Anchor Resources : 29/08/2016 - Exploration Update - PDF

Anchor Resources Limited

ABN: 49 122 751 419 ASX Code: AHR

Website: anchorresources.com

29th August 2016 UPDATE OF EXPLORATION ACTIVITY

Anchor Resources Limited provides the following update on its exploration projects in New South Wales and Queensland.

Blicks Project, NSW, Liberty Copper-Molybdenum Prospect

The Liberty copper-molybdenum (Cu-Mo) prospect is centred on an elongate magnetic 'low' that transgresses a magnetic ridge underlain by a felsic (tonalite) intrusion containing up to 2% disseminated fine-grained pyrrhotite and sparsely disseminated chalcopyrite with molybdenite generally found on fractures. The magnetic 'low' correlates with a younger intrusion of similar composition.

Reconnaissance grass roots exploration undertaken at the Liberty copper-molybdenum prospect incorporated concurrent grid based -80 mesh B-C horizon soil sampling and detailed geological mapping. During the Quarter ending 31 March 2016 five rock samples were collected for petrographic investigation to assist in the identification of rock types in the area.

Soil samples were collected during the June 2016 Quarter from the base of the B-horizon soil profile just above weathered C-horizon bedrock at 40m centres along east-west grid lines spaced 160m apart. Samples were also collected along road reserves. Samples were analysed using the Company's handheld Niton™ XRF analyser as a first pass analytical method to determine approximate copper and molybdenum concentrations in the soil. Samples with Niton™ copper values above 200ppm clustered over a significant area were then sent to ALS in Brisbane for analysis using techniques (ALS Code ME-MS61) considered near total extraction methods. ALS copper assay results consistently reported approximately 30% lower than the portable Niton™ XRF analytical values.

ALS Mo assay values also consistently reported approximately 30% lower. The soil sampling survey defined a copper anomaly 700m long and 430m wide using a 200ppm Cu contour (Figure

1) based on ALS assay results.

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Mr. Jianguang Wang Mr. Ian Price

Mr. Vaughan Webber Mr. R N (Sam) Lees

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Figure 1: Liberty -80# BC horizon soil copper anomaly defined by the 200ppm Cu contour

A coincident soil Mo geochemical anomaly is also defined using a 40ppm Mo contour (Figure 2) based on ALS results. The 200ppm Cu contour correlates closely with an underlying poorly outcropping porphyritic biotite microtonalite containing minor interstitial pyrrhotite, pyrite and sparse chalcopyrite and molybdenite. Sulphide textures suggest the formation of scattered pyrrhotite aggregates and a little chalcopyrite is contemporaneous with the host rock. Molybdenite is mostly found as rare coatings on insipient fracture planes. Fracturing and quartz stockwork veining are poorly developed. The 200ppm Cu contour correlates closely with a strong elongate magnetic 'low' (Figure 3).

Figure 2: Liberty -80# BC horizon soil molybdenum anomaly defined by the 40ppm Mo contour Figure 3: Liberty reduced-to-pole (RTP) magnetic image showing magnetic 'low' overlain by a soil copper anomaly contoured at 200ppm Cu based on ALS assay values

Follow up work on the Blicks Project will investigate and assess the geological setting of the Liberty copper-molybdenum prospect in respect of the previously defined Tuting molybdenum- tungsten prospect, Navin arsenic-tin prospect and Tyringham gold ±tungsten prospects which are all located along the Tyringham Corridor (Figure 4). Anchor has identified the Tyringham Corridor as a major northeast trending transverse structural zone.

Figure 4: Tyringham Corridor overlain on reduced-to-pole (RTP) magnetic image Birdwood Extended Project, NSW

Birdwood Extended exploration licence (EL 8295) was relinquished following a detailed assessment of open file data that indicated the area has low prospectivity for intrusive-related- gold systems and porphyry copper deposits. These conceptual exploration models were originally applied to areas of reported historic mineral occurrences which were considered to be the principal targets. Other small historic mineral occurrences appear to have limited potential to host large scale deposits and were not considered to warrant further exploration.

Bielsdown Project, NSW

The exploration licence for the Bielsdown project (EL 6388) was renewed in August 2016 for a further three-year term.

Aspiring and Walsh River Projects, QLD

At the Aspiring project (EPM 19447) a statutory reduction has been made after the first three years of the five year term of the tenement for 39 blocks that have been assessed as having low prospectivity, with 58 blocks retained for ongoing exploration (Figure 5). A field program of reconnaissance and mapping at Walsh River (EPM 25958) and Aspiring tenements is to be undertaken in the coming months.

Figure 5: Aspiring project showing known prospect and remanent magnetic anomalies