Avenira : Quarterly Activities & Cashflow Report

30 October 2020

SEPTEMBER 2020 QUARTERLY ACTIVITIES REPORT

HIGHLIGHTS

• Maiden Aircore Drilling commenced at Jundee South to test identified high priority targets
• $3.4 million Placement and Entitlements Issue completed to undertake a drilling program at the Company's Jundee South Project
• The Company continues to review additional gold projects and opportunities in Australia

JUNDEE SOUTH GOLD PROJECT (Avenira 100%)

The initial aircore program at Jundee South has been designed to test high priority targets identified through historic drilling data and geophysics to enhance the Company's understanding of the large regional opportunity at Jundee South.

The Yandal Greenstone belt is located in the north-eastern part of the Norseman-Wiluna belt of the Archaean Craton in Western Australia. It is one of few Archaean greenstone belts containing multiple million-ounce deposits, including Jundee, Bronzewing and Darlot (Figure 1).

The Jundee South Project area is located within 3km of the Jundee Mine and covers more than a 60km strike of

highly prospective greenstone stratigraphy. The project area contains major regional structures interpreted to control gold mineralisation through the Yandal Greenstone Belt and contains a number of historically defined gold occurrences.

Access is via a well-established road system. Accommodation and facilities including flight services are well established in the district, given the number of operating mines in the area.

Figure 1: Jundee South Project

location map

Project Review

Work undertaken during the quarter comprised a review of the Jundee South Project, including a geological re-interpretation based on drilling and geophysical data. The review identified prospective mafic stratigraphy not identified previously. The revised interpretation is displayed in Figure 2, with further detail provided in the ASX releases dated 4 June 2020 and 11 June 2020.

Avenira's exploration team identified targets using the controls evident at the neighbouring world-class gold mines:

1. Complex geology that allows focusing of gold bearing fluids into "gold traps"; lithologies that scavenge gold.
2. Multi-phasedstructural preparation: long lived structures that allow long lived passage of auriferous fluids and short-lived brittle structures that remobilise gold into high grade concentrations. Quartz veining and pervasive alteration are hallmarks of these processes.
3. Proximal intrusive activity that provides the heat engine to drive both gold bearing fluids and cause pervasive alteration.
4. Geochemical indicators that alert to the presence of gold in the system.

Twenty four targets were identified on these criteria, eight of which met all four criteria and as such were designated by Avenira to be Priority 1 targets (labelled in Figure 2). A further six Priority 2 targets were also identified which are being tested during this phase of drilling. The Priority 2 and 3 targets are also shown in Figure 2.

Overview of Priority 1 Targets

Details of the Priority 1 targets are detailed below with interpretations being displayed in Figure 2:

Target 1 (MF01): Interpreted as a possible repetition of the Jundee structural setting, with the intersection of a major NNW trending fault associated with the Nimary Fault and lesser NNE fault.

Target 2 (MF02): Interpreted similarity to the Jundee structural setting, with a dolerite dome sandwiched between two Barton Trend faults and dissected by lesser Nim and Kryten trend faults. These fault systems control gold mineralisation at Jundee. There has been no drilling in this area.

Target 3 (MF04): Interpreted large flexure in major NW fault or shear. The area is bound to the south by an ENE fault that is interpreted to define a corridor in that orientation that contains the Jundee Gold Mine and to the west by a major intrusive. This area has no previous assessment by shallow drilling.

Target 4 (MF03): A high thorium area prospective for laterite-style gold. Laterite gold is found in association with the Gourdi-Vause Gold Mines to the south of Jundee. This target is easily and simply assessed with surface rock chip sampling.

Target 5 (MF05): A southward closing fold consisting of an interpreted ultramafic unit, bracketed to the east and west by regional structures. Structural complexity and proximal intrusives, features of the Jundee Gold Mine, are present in this target. The area has been previously assessed by 800m-spaced lines of RAB that likely did not reach bedrock.

Target 6 (YaN11): A structural target sitting to the north east of a NNW trending magnetic high interpreted as a folded dolerite adjacent to multiple intrusives.

Target 7 (YaN14): A possible fold nose interpreted in ultramafics or dolerites that represents a shallow plunging blind target sitting over complex geology (comprising granites, granodiorites, basalts, tuffs and porphyries). The previous sparse reconnaissance RAB drilling was inadequately followed up.

Target 8 (SH01): A never-before sampled area that lies on a potential fault offset of Yandal Resources Limited's Atlanta prospect, interpreted to be a magnetic ultramafic unit. Geological complexity, both lithological and structural, characterise this area.

Figure 2: Targets identified by Avenira at the Jundee South Project

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Figure 3. Priority 1 targets share common features with nearby major mines including: early & late stage structure, dolerite host, ultramafics, near intrusives

Ground Geophysics

As a prelude to drilling, four Priority 1 Targets were singled out for high resolution ground magnetic surveys, designed to help in identifying and precisely locating large regional faults and shears and smaller local faults and more accurately mapping rock contacts. Targets MF01, MF05, YaN12, and Yan14 were surveyed.

The surveys have produced data from which more precise interpretations have been made. As an example, Figure 4a (on the left) shows the regional aeromagnetic interpretation, while Figure 4b (on the right) shows the updated interpretation based on the ground magnetic data.

Figure 4: Interpretation based on aeromagnetic data (Fig 4a - left) and interpretation based on ground magnetic data (Fig 4b - right)

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