Dateline Resources : Gold Links Production Update

Gold Links Production Update

DATELINE RESOURCES LIMITED

(ACN 149 105 653)

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CAPITAL STRUCTURE

Share Price (20/04/22) $0.12 Shares on issue 438 million Market Cap $52.55 million

MAJOR SHAREHOLDERS

Southern Cross Exploration NL 21.8%

Mr. Mark Johnson AO 19.8%

National Nominees Ltd 11.9%

Stephen Baghdadi 5.9%

DIRECTORS & MANAGEMENT

Mark Johnson AO Chairman

Stephen Baghdadi Managing Director

Greg Hall Non-Executive Director

Tony Ferguson Non-Executive Director

Bill Lannen Non-Executive Director

Mark Ohlsson Company Secretary

CONTACT

Mark Ohlsson

Phone: [phone]

Postal Address: P.O. Box 553 South Hurstville NSW 2221

Email:[e-mail]

Highlights

• • 12 tons of gold concentrate have been produced from the Gold Links

• • Assays received for first three tons of concentrate average over 900g/t Au.

• • Offtake agreement in final stages of negotiation with three groups

• • Agreement signed with Komatsu for the supply of underground mining fleet.

Dateline Resources Limited (ASX: DTR) (Dateline or the Company) is pleased to announce the production of saleable gold concentrate from the Gold Links mine in Colorado, USA.

During the months of March and April, the company trucked ore from the Gold Links mine and processed it at the Lucky Strike Mill (The mill). The mill operated on a 24-hour basis for four days per week using mostly diluted development ore.

To date, the Company has produced 12 tons of saleable gold concentrate.

Assays for the first three tons of concentrate have been received and are listed in the table below

Description	Weight	Assay (g/t Au)	Assay (g/t Ag)
Bag 1	1 ton	963.71	1,695.12
Bag 2	1 ton	587.05	914.18
Bag 3	1 ton	1,219.52	2,124.87
Average	1 ton	923.42	1,578.06

A bigger sample size has been collected from 11 bags of concentrate including the first three and have been split equally to be assayed by two separate labs. Results will be reported once they are received.

Milling at the Lucky Strike will commence operations on a 24/7 basis in May 2022.

The Company has entered into an equipment supply agreement with Komatsu USA for the supply of a fleet of new/near new mining equipment for Gold Links. The first three items were delivered in April and the remaining two items will be delivered in late May and June 2022.

The supply of the new mining fleet and ramping up of processing rates means that the Company was able to recruit new experienced personnel and move to a 24/7 schedule for mining activities.

Commenting on the milestone, Dateline's Managing Director, Stephen Baghdadi, said:

"The amount of concentrate produced to date has been done on a limited work week. We expect production to increase substantially once we start milling on a 24/7 basis"

"With the transition to a mine owner operator model and having our own fleet, we can start to plan the development of the balance of our substantial property holdings that make up the Gold Links group of mining claims"

"Whilst we have reached this first production milestone, we have much more to achieve at Gold Links as we install additional processing capacity and ramp up production over the remainder of 2022."

Processing Plant Commissioning Update

The Company is pleased to report that processing at the Company's 100% owned Lucky Strike processing plant is progressing well, with no major issues identified. Most of the commissioning activities were undertaken using low to medium-grade development ore.

The mill was operated on a four day a week basis which necessitated almost two days out of four for shut down and start-up of the mill

The newly acquired 250tpd mill and associated flotation circuit in the process of being installed and expected to be operational in June 2022

Figure 1 250tpd flotation cells and conditioning tank delivered to site on April 19

Offtake Agreement

To date, approximately 12 tons of concentrate has been produced for sale. The Company is in the final stages of completing a competitive tender process for offtake from Gold Links, with the Company narrowing down the potential offtake parties to three.

The first concentrate sale is expected to be completed in late April/early May with regular shipments thereafter.

Transition to Owner Miner

The Company has made the decision to transition from a contract miner to owner miner model and has entered into an equipment supply agreement with Komatsu USA to facilitate this change.

The new/near new equipment, which includes trucks, boggers and a jumbo, will be delivered to site starting April. As an owner miner, the Company will have increased flexibility with regards to the timing of ore vs development mining, whilst the near/near new equipment is expected to provide higher productivity and availability levels than was provided by the mining contractor.

Figure 2 Three of the five pieces of Komatsu equipment received in April

Underground Mining Update

Most of the underground mining activities since the start of the year have focused on the establishment of two development drives and the transport of development ore to Lucky Strike for commissioning activities.

The Company has recently commenced stoping activities, with high-grade ore being transported to the plant for the first time. It is expected that stoping activities will increase over the next month as we move to a 24/7 operation.

Figure 3 Miners evaluating next round following the ~1-metre wide quartz sericite altered and oxidized vein in 9875 North.

Underground Drilling

Underground exploration is continuing, with recent drilling targeting deeper zones to the north of previous drilling. Drill core shows zones of sulphides in line with what is expected with the 2150 vein. Samples have been sent to the lab and results are pending

Figure 4 Section of core showing the large 3.7 metre mineralized vein material. Vein is intensely quartz sericite altered with stringers of sphalerite, galena, and pyrite sulfidation, which is where the gold is associated.

Figure 5 Senior geologist inspecting drill rig and reviewing drill plan with drillers on active underground drill program.

This announcement has been authorised for release on ASX by the Company's Board of Directors.

For more information, please contact:

Stephen Baghdadi

Managing Director [phone]www.datelineresources.com.au

Follow Dateline on Twitter:https://twitter.com/Dateline_DTR

About Dateline Resources Limited

Dateline Resources Limited (ASX: DTR) is an Australian publicly listed company focused on gold mining and exploration in North America. The Company owns 100% of the Gold Links and Green Mountain Projects in Colorado, USA and 100% of the Colosseum Gold Mine in California.

The Gold Links Gold Mine is a historic high-grade gold mining project where over 150,000 ounces of gold was mined from high-grade veins. Mineralisation can be traced on surface and underground for almost 6km from the Northern to the Southern sections of the project. Ore mining commenced in late 2022, with first saleable gold concentrate produced in April 2022.

The Company owns the Lucky Strike gold mill, located 50km from the Gold Links mine, within the Green Mountain Project. Ore is transported to Lucky Strike for processing.

The Colosseum Gold Mine is located in the Walker Lane Trend in East San Bernardino County, California and produced approximately 344,000 ounces of gold (see ASX release 15 March 2021). Significant potential remains for extension to mineralisation at depth as well as potential for rare earth elements.

Competent Person Statement

Sample preparation and any exploration information in this announcement is based upon work reviewed by Mr Greg Hall who is a Chartered Professional of the Australasian Institute of Mining and Metallurgy (CP-IMM). Mr Hall has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to quality as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves" (JORC Code). Mr Hall is a Non-Executive Director of Dateline Resources Limited and consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.