Coda Minerals : New Bornite Zone Discovered as Emmie IOCG Opens Up

New Bornite Zone Discovered as Emmie IOCG Opens Up
ASX RELEASE
28 March 2022	New target zones identified as exploration momentum builds across the wider project
ASX Code: COD
Highlights

• • New, geologically distinct, copper-rich bornite dominated zone intercepted in EBD7.

• • EBD7 and earlier EBD4 and EBD2W4 intersections indicate potential southeast expansion of the IOCG mineralisation.

• • Independent re-evaluation of the Emmie IOCG system, together with bornite zone intersected in EBD7 demonstrates the likely presence of multiple bornite zones.

• • This updated geological model has improved understanding of the mineralisation and has generated further high-priority drill targets.

• • The Emmie IOCG discovery and shallower Emmie Bluff Cu-Co Mineral Resource is now emerging as a significant accumulation of copper, cobalt, gold, and silver mineralisation within a uniquely large and complex mineralising system.

Operational Update

• • Evaluation of an integrated development of the full "Emmie System" has commenced through integration of Emmie IOCG into the ongoing Elizabeth Creek scoping study.

• • Elizabeth Creek copper-cobalt scoping study progressing rapidly with mining and metallurgy studies now materially advanced.

• • Coda is currently drill testing potential eastern extensions of the Emmie Bluff Zambian-style copper-cobalt deposit.

• • Drill testing of the Central Elaine Zone "Elaine" IOCG prospect some 15km to the south of Emmie IOCG has commenced.

• • Coda's cash balance remains above $11.3 million at the date of this announcement#.

Figure 1 DD22EBD0007 mineralised material, including bornite and chalcocite, at approximately 815m.

Figure 2: Scale map showing recent drilling and material intercepts within the Emmie IOCG gravity anomaly area

Coda Minerals Limited (ASX: COD, "Coda", or "the Company"), in conjunction with its joint venture partner Torrens Mining Limited (ASX: TRN), a listed gold and copper company ("Torrens"), provide an update on recent drilling and development studies at its flagship Elizabeth Creek Copper Project in the Olympic Copper Province in South Australia.

Coda is the operator and majority owner of the Elizabeth Creek Project, holding a 70% interest alongside Torrens, which holds a 30% interest. Coda and Torrens have entered into a Bid Implementation Deed for the companies to merge via a recommended takeover offer, consolidating 100% ownership of the Elizabeth Creek Project (see ASX announcement, 9 February 2022).

Drilling is continuing to evaluate the exciting Emmie IOCG discovery1 (first announced in mid-2021), with significant new results, including receipt of assays and a pivotal geological reinterpretation reported in this announcement.

1 Please see Note 1 below for more commentary on the naming conventions for deposits within this announcement.

# Excludes external funds held within ECJV, total including ECJV funds is $12.8 million.

In parallel, while the full results of this recent drilling at Emmie IOCG are evaluated, the drill rigs have been redeployed to test eastern extensions of the Emmie Bluff Zambian-style copper-cobalt-silver deposit (for which a maiden Mineral Resource was announced in December 2021) and to provide an initial test of the Elaine IOCG target.

Commenting on the recent developments at Elizabeth Creek, Coda CEO Chris Stevens said:

"After eight months of exploration, we have arrived at a pivotal point in our exploration of the Emmie IOCG system with some significant outcomes from the most recent two diamond holes, EBD6 and EBD7, that fundamentally improve our understanding of this deposit.

"Drilling continues to emphasise the enormous metal endowment of the broader Emmie System, which comprises both the shallower Emmie Bluff copper-cobalt deposit and the adjacent Emmie IOCG (copper-gold) at depth.

"To date, our hypothesis has been that we are chasing a single area of IOCG mineralisation with classic zonation from pyrite to chalcopyrite to bornite (in simple terms, from a barren iron sulphide to a higher tenor of copper sulphide to a very rich copper sulphide). This is something seen in nearly all IOCG deposits of this type.

"The two most recent drill-holes, EBD6 and EBD7, combined with comprehensive re-logging of drill core by an IOCG expert, have fundamentally changed our paradigm. EBD6 appears to cut off the bornite zone on the far western edge of the anomaly. Conversely, EBD7 has returned an incredibly copper-rich bornite dominated intercept where we were previously not expecting to find one. Combined with the detailed re-logging of previous holes, this suggests that there may be multiple copper-bearing conduits within the Emmie IOCG mineralised system.

"Simply put, we thought we were chasing a single area of mineralisation but we now believe that there may be multiple zones of bornite. What we don't yet know is how many there are, and whether or not some are much thicker than what we have found to date. This is a very exciting opportunity that needs to be pursued.

"The bornite discovery in EBD7 vectors us towards new targets. Furthermore, based on what we already know, we have reached a point of confidence that Emmie IOCG represents a significant accumulation of copper and other valuable metals at least comparable in scale to the Emmie Bluff copper-cobalt deposit above it, and potentially much larger.

"Having both types of potentially economic copper mineralisation within the same overall mineralised system is unique, probably in the world.

"With approximately 800,000 tonnes of contained copper equivalent already defined in Indicated Resources at Emmie Bluff, the IOCG beneath has also begun to demonstrate significant scale. In parts, the IOCG mineralisation is over 10 times the thickness of Emmie Bluff and now has assay-backed intercepts of well over 3% copper plus gold credits.

"This opens up the very real option to evaluate the potential of a fully integrated development of these two deposits as part of a much larger mining operation. Given that the two deposits are, quite literally, stacked on top of one another, the potential synergies and cost savings of an integrated development approach are obvious, and we want to understand all of our options before we advance too far down any particular path. This will form the focus of ongoing Scoping Study work, in parallel with further drilling to evaluate the newly discovered bornite zone.

"While we fully digest the results of the recent Emmie IOCG drilling, the two rigs on site are drilling potential extensions along the eastern side of Emmie Bluff (targeting the shallower Zambian-style sedimentary copper-cobalt mineralisation) and testing the large-scale Elaine IOCG target. Success in either of these areas could also deliver game-changing outcomes for Coda."

Summary of Recent Work - Emmie IOCG

The Company is pleased to advise that drill-holes EBD6 and EBD7 have now been completed to final depths of 1,054m and 1,133m respectively. Visual estimates based on field logging by geologists indicate that significant new zones of mineralisation were intersected in EBD7.

EBD6 - Visual Estimates

EBD6 was collared approximately 330m ESE of drill-hole EBD3, and was oriented to drill to the south-west, targeting a south-western extension of the mineralised trend encountered in wedge holes completed off drill-holes EB18 and EBD3. This hole encountered extensive intense haematite alteration and patches of red rock (K Feldspar) alteration at depth, however, no indications of economic copper mineralisation associated with this alteration was encountered.

EBD6 was originally planned to target an extension to mineralisation to the far south-western edge of the existing gravity anomaly based on interpreted geometry of the bornite zone encountered in EBD3W2. The results from this hole, combined with the major re-logging exercise undertaken by IOCG specialist appear to demonstrate that the initial hypothesis which drove the targeting of the hole relied on a somewhat oversimplified view of the internal structure of the deposit. New results, including from EBD6, EBD7 (see below) and extensive re-logging of historical holes and consultation with SMEs has resulted in a new and more comprehensive understanding of the mineralising system which will drive future targeting.

EBD7 - Visual Estimates

EBD7 is a scissor hole, drilled from the same pad as EBD4, which extended the known mineralised zone of Emmie IOCG by over 60%. While EBD4 was drilled roughly west, EBD 7 was a scissor hole, oriented east-northeast and at a flatter angle, targeted to intersect mineralisation to the south of EBD2W4 on the eastern edge of the high gravity, low magnetic part of the anomaly.

The drillhole encountered multiple hydrothermal conduits, identifiable by distinctive haematite texture, several of which appear to have been associated with the mineralising event, including a large scale (approx. 15m drilled thickness) conduit coincident with a material intercept of bornite and chalcocite from 811m. An additional lode of lower tenor, chalcopyrite mineralisation was intersected from 860m.

This intersection represents the first significant intersection of bornite/chalcocite dominated mineralisation away from the major NNW trending structure encountered in drillholes such as 18W2 and 3W2A. The intercept is over 400m east of the nearest comparable intersection (3W3B) and is likely separated by zones of chalcopyrite and potentially pyrite dominated mineralisation. This, as well as the presence of a major mineralising conduit, strongly suggest that this mineralisation formed entirely independently of the previously encountered mineralisation, implying at least two (and potentially more) mineralising structures involved in the system.

Summary of Ongoing Work - Emmie IOCG

Following extensive re-logging and geological modelling of Emmie IOCG drill-core over the past month, the Company will now focus on drill testing the model to evaluate and extend the new bornite zone encountered in EBD7 and the re-evaluation of historical drill hole SAE4 which encountered 16m @ 0.64% Cu and 0.2 g/t Au from 860m and 36m at 0.71% Cu and 0.2 g/t Au from 884m.

This work is expected to comprise two wedge holes from EBD7 as well as an additional parent hole located close to SAE4. It is expected that these will be undertaken following the drill testing of the Emmie East copper-cobalt target and the Central Elaine Zone IOCG target. This will allow for additional targeting and desktop modelling work to be undertaken prior to drilling.

Separately, the Company has begun very early steps to assess the economic potential of the Emmie IOCG deposit and is in the process of developing a geological and preliminary mineralisation model for assessment by mining engineers. The model will identify areas of uncertainty and assess preliminary mining parameters. The Company's intention is the eventual integration of the Emmie IOCG deposit into the ongoing Elizabeth Creek scoping study, leveraging the IOCG deposit's close proximity to the Emmie Bluff Cu-Co Mineral Resource and the associated potential to share infrastructure and mutually reduce CAPEX requirements.

Emmie IOCG

• • Anomalous zone of IOCG mineralisation as defined by recent and historical drilling

• • Located southwest of Emmie Bluff resource

• • Mineral Resource: 43.3Mt @ 1.84% CuEq

  Emmie Bluff

• • Approximately 400m deep

Emmie Bluff 43.3Mt @ 1.84% CuEq Approximately 400m deep

Figure 3: 3D Schematic of Emmie System looking North, North-West