Estrella Resources : Assays Received and Exploration Update

24 November 2021
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ASX:ESR	Assays Received from Step-out Drilling at T5
		And Exploration Update
	HIGHLIGHTS
	 The first 60m south step-out diamond hole CBDD057 has returned some of the best grades to date
		∙ Upper zone - 11.62m(1) @ 0.9% Ni and 0.46% Cu with 0.61 g/t 2PGEs(2)
use		∙ Including 0.95m @ 2.78% Ni and 0.23% Cu with 1.00 g/t 2PGEs (Figure 1 Left)
	∙ Lower zone - 12.8m(1) @ 0.96% Ni and 0.79% Cu with 0.85 g/t 2PGEs(2)
		∙ Including 1.81m @ 2.8% Ni and 0.44% Cu with 1.53 g/t 2PGEs
		∙ Including 0.7m @ 4.30% Ni and 0.16% Cu with 1.88 g/t 2PGEs (Figure 1 Centre)
		∙ Confirmed new zone - 3.7m(1) @ 1.76% Ni and 0.66% Cu with 1.10 g/t 2PGEs(2)
		∙ Including 0.7m @ 3.35% Ni and 0.63% Cu with 1.00 g/t 2PGEs (Figure 1 Right)
personalFor	 The upper two zones confirm the south plunge of the T5 Conductors

 Assays also confirmed the nickel-copper bearing sulphide nature of the new massive sulphide zonethat is emerging below T5 with additional downhole electromagnetic (DHEM) plates identified

 RC Rig upgrade in progress to increase speed and depth of Phase 4 exploration

Figure 1: Massive and highly-disseminated sulphide from the Upper, Lower and new zones respectively in CBDD057.

1. Downhole intersection quoted, true width is roughly one half of the downhole intersection width.
2. 2PGE's is derived from Pt + Pd

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Estrella Resources Limited (ASX: ESR) (Estrella or the Company) is pleased to announce the presence of further massive nickel-copper sulphides which have returned significant assays in the first 60m southern step-out drilling at the Company's Carr Boyd project, located approximately 80km north of Kalgoorlie.

Three zones of nickel-copper sulphides were intersected over the last 170m of diamond drill hole CBDD057 with all three zones containing significant widths of massive sulphides with accompanying globular, highly disseminated, disseminated, stringer and cloud sulphides.

Significant intersections are presented Table 3 and shown on the T5 long section in Figure 2 along with downhole electromagnetics (DHEM) results from CBDD060.

Table 1: Significant Intersections from CBDD057

Hole	m From	m To	Interval	Ni%	Cu%	Co%	2PGE *	Ag g/t
CBDD057	406.8	418.42	11.62	0.90	0.46	0.04	0.61	2.05
Including	413.96	414.91	0.95	2.78	0.23	0.12	1.00	1.34
CBDD057	508.6	521.4	12.8	0.96	0.79	0.04	0.85	3.34
Including	517.48	520.92	3.44	1.92	1.94	0.07	1.19	8.18
Including	519.11	520.92	1.81	2.80	0.44	0.11	1.53	2.67
Including	519.85	520.55	0.7	4.30	0.16	0.16	1.88	1.05
CBDD057	567	570.7	3.7	1.76	0.66	0.07	1.10	2.79
Including	569	569.7	0.7	3.35	0.63	0.12	1.00	2.55

* 2PGE refers to Pt + Pd in g/t

Estrella Managing Director Chris Daws commented:

"In what is fast becoming a common theme, Estrella Resources is continuing to unearth more nickel at Carr Boyd and these latest results are some of the best nickel assays that we have received to date.

Our team is getting a very good understanding of the Carr Boyd geological setting with the results of CBDD057 demonstrating our ability to unlock further prospective mineralisation.

We have made numerous massive nickel and copper sulphide intersections with only a very small portion of the basal contact area tested.

As we progress the drilling towards Christmas and New Year, I can only get more excited about what we may uncover next for our shareholders, I look forward to reporting any significant updates."

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Figure 2: Location of CBDD057 Significant Intercepts in relation to T5 and additional DHEM plates generated from CBDD060

As can be seen in Figure 3, the top two significant intersections relate to the Upper and Lower T5 Conductors that have been drilled previously. These conductors have a substantial massive sulphide core that is overlain by heavily-disseminated and globular nickel-copper sulphides.

Of note is the lowest intersection from CBDD057 which corresponds to nickel-copper sulphide mineralisation intersected in CBDD042A(3). This new zone occurs as massive matrix breccia sulphides.

Due to the nature of this style of mineralisation, a DHEM response is not always seen by adjacent drilling. This is due to the disconnected nature of semi-massive sulphides when forming these basal breccia zones. The finding highlights the importance of drilling and geological interpretation, augmented by geophysics in the exploration and resource development process.

Figure 3 shows a cross section through CBDD057 and depicts the three massive to semi-massive sulphide zones. Additional wedge holes are underway to better constrain the mineralisation intersected prior to DHEM surveying.

(3) See ASX Announcement dated 9 April 2021

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Figure 3 Left: Cross section through CBDD057 Right: Cross Section 100m to the North. The vectored exploration model incorporating magma flow direction predicts multiple zones of sulphide occurrences as observed in core.

Figure 4: Figure 4: 3D rendering of the Basal Contact showing the CBDD057 intersection down plunge of the T5 Discovery in relation to the entire Broonhill - T5 prospective basal contact and Phase 4 Significant Intersections to date.

Phase 4 RC Update

The Phase 4 RC drilling has enabled the Company to trace the basal contact some 2km to the North of T5 towards the Broonhill sulphide discovery, completing some 4,600m in the last 8 weeks. There is currently a significant delay in the return of assays from the laboratories, in excess of 10 to 12 weeks.

The Company is using this lag in assay return to allow for the upgrade of the RC capability on the current rig, a process which will take approximately one week. This will involve a new booster for increased air to run a larger hammer and a number of other efficiencies to increase rig production. The rig is currently tagging the basal contact between 100m and 300m depth. However, in some instances the holes are being pushed to 370m. The additional depth results in slower drill rates and the drill contractor, Topdrive Drillers Australia has heavily invested in additional equipment to facilitate more efficient drilling to this depth.

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After CBDD076 intersected sulphides 325m down hole at Broonhill, additional RC holes drilled south have not reached the basal contact below this level due to the technical capabilities of the RC rig. These additional holes will either be diamond tailed or additional RC holes drilled to follow up on the Broonhill discovery. It is expected that the rig will be capable of deeper drilling within the next few days and the Company looks forward to learning more about this new area.

The Company is aiming to complete at least 25,000m of RC drilling into the Broonhill, Mossgiel and Gossan Hill Prospects during the 2021 / 2022 Financial Year (Figure 5). These areas have been identified as the most prospective western basal contact areas and yet have received very little if any historical drilling.

Mapping and drilling of the Carr Boyd Igneous Complex clearly shows multiple sites around the intrusion edge where sedimentary sulphides are being assimilated into the melt. These sulphides, once in the melt have the ability to travel and to become enriched with nickel, copper, silver and PGE elements such as palladium and platinum.

Geological indicators from within and outside of the intrusion show that gravity, at the time of emplacement, was essentially to the west. This means that the western basal contact is the most prospective for accumulated sulphides.

Broonhill Prospect - Northern Shoulder (+3.5km strike)

The T5-Broonhill Prospect lies on the northern side of what is interpreted to be the main channel of the intrusion. Local sulphur assimilation in this area has led to the nickel-copper sulphides at T5 and to sulphides intersected in drilling at Broonhill (assays pending). The proximity to the sulphide sources means that the amount of nickel and copper in sulphides can vary over small distances, as was seen in the close spaced drilling during Phase 3.

Gossan Hill Prospect - Southern Shoulder (+3.5km strike)

A similar shoulder to that seen at Broonhill exists 5km to the south at the Gossan Hill Prospect. No drilling into the basal contact has been performed at Gossan Hill and the Company has received the regulatory approvals to commence setting up for RC drilling in this area.

Mossgiel Prospect - Main Channel Base (+2km strike)

The Mossgiel Prospect represents the very base of the intrusion. This area is highly prospective and the Company intends to drill this prospect at the conclusion of the current Broonhill RC program. All regulatory approvals to explore this area have already been received and preparations are underway to establish drilling positions. The Company intends to collar at least one or two holes into the Mossgiel Prospect before a 2-week maintenance shutdown over Christmas and New Year.

These three areas are deemed to be of very high potential to accumulate nickel and copper sulphides. As such the Company wishes to explore the geology rapidly within the next six months.