Jericho, an advanced exploration project 65km south-east of Cloncurry, Queensland is the cornerstone of Demetallica's 100% owned Chimera Polymetal Project. Jericho hosts a JORC 2012 Inferred Mineral Resource Estimate1 (MRE) of 9.1Mt @ 1.4% Cu, 0.3g/t Au and 1.6 g/t Ag. Demetallica's inaugural 14,000m drilling program is well underway at the Jericho copper-gold deposit with two drill rigs operating.

Drill progress has been strong with 11 RCholes already completed. Jericho comprises two main lodes, J1 and J2, is 3.7km long and 600m deep, and remains open along strike and at depth. The MRE covers only 2.2km of the 3.7km strike of known mineralisation.

Demetallica considers there is abundant scope for additional mineralisation at Jericho and has developed an Exploration Target, based on the planned extension drilling program detailed below, of 13-15Mt @ 1.3-1.5% Cu and 0.29- 0.32g/t Au (inclusive of the current MRE). The drill program is focused within the current MRE and has two principal aims: 1. infill portions of the high-grade Matilda and Jumbuck shoots at shallow depth within J1 lode, improving resource confidence, and 2. extend mineralisation down-plunge of the Matilda and Jumbuck shoots in J1 lode and within the Billabong shoot in J2 lode, expanding the resource envelope. RC Infill drilling of J1 lode will notionally provide 50m-spacing of drill holes within areas of high-grade copper mineralisation within Matilda and Jumbuck shoots at shallow depth, aimed at increasing the confidence level of the resource in two locations.

The program comprises around 9,500m of RC drilling in approximately 45 holes. So far, the rig has completed 11 holes, all of which show visible copper sulphide mineralisation; a typical example is from the second drill hole, JE22D002. Field observations are that all RCholes intercept copper sulphides at the predicted location within the current resource envelope, giving confidence that these infill holes (assays pending) will reinforce the published mineral resource estimate.

Extensional diamond drilling is aimed at expanding the resource down-plunge where mineralisation is entirely open. High-grade copper was previously intercepted in each of the deepest drill holes within the Matilda, Jumbuck and Billabong shoots. Weighted average copper grades for those drill intercepts for each of the shoots1 are 2.12% at Matilda, 2.85% at Jumbuck, and 2.38% at Billabong.

The extension drilling program comprises 12 diamond drill holes for around 4,500m with the initiating hole testing lower boundaries of the Jumbuck shoot at 400m below surface. Drilling will continue through into August with release of an updated MRE expected in Fourth Quarter 2022. Updates on drill progress and assay results will be provided over the course of the drill program, noting that the industry is experiencing extended laboratory assay turn-around times of around 2 months.