Horseshoe Metals Limited provided an update on activities related to its Horseshoe Lights Copper-Gold project following the successful reinstatement to trading on the ASX on 18th February 2022. The Horseshoe Lights Copper-Gold Project is the original Cu/Au VMS discovery in the Bryah Basin and is located approx. 60 km west of DeGrussa Copper Mine operated by Sandfire Resources.

Past production from Horseshoe Lights includes around 316,000 oz Au & 55 kt Cu metal in two phases of mining, and the deposit contains a current in situ resource 128 kt Cu metal @ 1.0% (0.5% cut-off) and 36,000 oz Au. 2013 Resource Model: The current JORC 2012 resource estimate was reported and classified at a cut-off grade of 0.5% Cu in June 2013, although the model was developed using wireframe models using a cut-off grade of 0.18%. The prevailing AUD copper price at the time was about $7500/t, compared with a current price of $14,000/t. Given the significant increase in Cu pricing an assessment of the model with respect to grade vs tonnage sensitivity is being undertaken and expected to be completed next week.

2014 Scoping Study: Entech have been engaged to update their Scoping Study that was previously released to the market on the 19th December 2014, in light of vastly improved copper pricing outlined above. This information was previously released under an earlier edition of the VALMIN code, which was updated in 2015. The update is expected to be completed late March.

The Company intends updating inputs for the 2014 Scoping Study, primarily to assess the effects on and mineral values associated with the different resource types, grade cut-offs, and resource classifications, and their respective development streams. It is also anticipated that updated economics will highlight additional drilling requirements in certain areas, driven by new, deeper pit shells. The Company notes that while the deposit contains additional drilling post the 31 July 2013 announcement of the Horseshoe Lights in situ Resource, the existing resource estimate will be utilised for the update. RC Drilling: Phase 2 RC drilling is planned to commence during March, primarily targeting the Motters zone, following up significant shallow copper mineralisation highlighted in Phase 1 activities.

The unmined southern extension of the Motters structure which is proximal to the eastern wall of the open pit will also be further assessed during this programme. RC drill testing of dumps to the southwest and north of the pit will also be undertaken during this phase. Previous sporadic drilling has interested copper mineralisation in both locations.

Drill Planning: Considerable exploration upside has been identified in the main orebody and its north-west extension beyond the existing open pit. The Company intends targeting high-grade extensions beneath the existing open pit, which has been typically drilled to a depth of around 250m depth, and not below 400m depth. Other major mineral deposits in the Bryah Basin have been drilled to depths of at least 3-4 times in order to better assess the scope and potential of the mineralising system.

Drill planning and geological modelling is underway to allow commencement of this drilling at the completion of the initial programme, in conjunction with planning for drilling associated with the Below the Dolerite (BTD) target. Gold Stockpiles: Discussions are underway regarding potential offsite treatment of gold stockpiles remaining from the gold mining activities in the 1980's. Further evaluation of these stockpiles may be required including auger drilling and/or RC drilling.