Lefroy Exploration : RC Drill Results Outline New Gold Zone at Burns

ASX RELEASE-25 January 2022

RC Drill Results Outline New Gold

Position at Burns

• Final assay results have been received for a 17-hole RC drill program that evaluated multiple
only	targets at the Burns Cu Au prospect in October 2021. The results continue to enhance a
	growing Cu-Au-Ag-Mo Intrusion related mineral system
• One of the holes has outlined a new oxide gold opportunity. Hole LEFR307 tested the centre
use	of the large Burns intrusion located 1600m to the west of the established Burns Cu Au
system. This intersected an altered monzodiorite porphyry beneath palaeochannel
sediments. The assay results have outlined:
•	A new palaeochannel hosted intercept of 17m @ 1.70g/t Au from 75m
			including 7m @ 3.68g/t Au from 80m that is open
	• The monzodiorite basement of 11m @ 0.42g/t Au from 100m, which
			supports this as a new host and is also open
• The palaeochannel intercept is within the broad east west trending Lefroy palaeodrainage
	network of which 2500m extends east over Burns and beneath Lake Randall. The channel
	hosted gold intersection in LEFR307 expands the opportunity to explore for further
	mineralisation along the entire length of the palaeochannel.
• At Burns, the results from six RC holes evaluating the western basalt position have further
personal	supported and strengthened this Cu-Au-Ag zone, with better results including; -
		• 13m @ 0.40% Cu, 0.31g/t Au, 0.85g/t Ag from 230m in LEFR305
		• 16m @ 0.60% Cu, 0.03g/t Au, 0.91g/t Ag from 24m in LEFR310
		• 11m @ 0.46% Cu, 0.14g/t Au, 0.50g/t Ag from 107m in LEFR310
			• 20m @ 0.51% Cu, 0.50g/t Au, 1.38g/t Ag from 123m in LEFR310
			• 30m @ 0.39% Cu, 0.50g/t Au, 0.64g/t Ag from161m in LEFR310
• Results from eight proof of concept RC holes evaluating aeromagnetic targets northwest of
For	Burns intersected altered rock units and elevated Au-Cu-Ag-Mo geochemical signatures
	consistent with Burns and include the previously reported LEFR297 from Lovejoy that
	intersected 8m @ 0.22g/t Au & 0.51% Cu from 250m to EOH
• Planning for a broad first pass RC drill evaluation of the Burns palaeochannel to expand upon
	LEFR307 is underway. Assessment of geochemical data from 2021 RC and diamond drilling
	will be combined with pending assays from the lake drilling program to develop a broader
	appreciation of the Au-Cu-Ag-Mo footprint to plan the next phase of drilling at Burns.
ASX Code: LEX		Australian Registered Office	E: [e-mail]
	T: [phone]
Shares on Issue: 147M	Level 3, 7 Rheola Street Avenue	ARBN: 052 123 930
Market Capitalisation: $51.4m	West Perth, 6005

www.lefroyex.com

ASX Announcement

25 January 2022

For personal use only

Lefroy Exploration Limited (ASX: LEX) ("Lefroy" or "the Company") is pleased to report results from the 17-hole RC drill program that evaluated multiple proof of concept targets at the Burns copper (Cu) gold (Au) prospect in October 2021. Burns is within the Eastern Lefroy tenement package, which is part of the wholly owned greater Lefroy Gold Project (LGP) located 50km southeast of Kalgoorlie (Figure 1).

The Burns prospect is situated on the eastern margin of a large interpreted felsic intrusion, termed the Burns Intrusion (Figure 2). The intrusion does not outcrop but features a distinctive annular aeromagnetic and gravity geophysical signature (Figure 2). The Company has not yet established the association between the larger Burns intrusion and the diorite porphyry intrusions intersected at Burns but consider there is a genetic relationship between them.

Broad high-grade gold mineralisation is hosted within a newly discovered hematite-pyrite-chalcopyrite-magnetite altered diorite porphyry (refer LEX ASX release 23 February 2021) that intrudes high Mg basalt at Burns. This porphyry, termed the Eastern Porphyry, is open to the north and south. The eastern extent of the Eastern Porphyry is now defined, on multiple drill sections, by foliated basalt (footwall basalt). The copper and gold mineralisation hosted by both the diorite porphyry, basalt and massive magnetite veins is considered to be a new and unique style of Au-Cu-Ag mineralisation in the area, a land position dominated by Lefroy (Figure 1).

Figure 1 Lefroy Gold Project, highlighting Eastern and Western Lefroy, the location of the Burns prospect and extent of the Lefroy Palaeodrainage. Refer to Figure 2 for Burns drill hole plan.

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ASX Announcement

25 January 2022

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RC Drill program-background

A detailed aeromagnetic survey completed over the broader Burns area in August 2021 defined multiple Burns look alike magnetic anomalies over a 3000m trend (Figure 2), known as the Burns Corridor. The Company interpreted the anomalies to represent magnetite alteration zones within and surrounding porphyry dioritic intrusions that are additional to and similar in style to Burns.

This triggered the Company to commence a staged drilling program to assess the broader limits of the Burns mineral system and surrounding geology. Stage 1 of the program involved drilling land-based targets using an RC rig, with stage 2 requiring a specialised lake aircore rig to evaluate targets (e.g., Lovejoy) in Lake Randall with an initial phase completed in December 2021. The stage 2 AC program is currently underway.

In October 2021 the stage 1 "onshore" RC drilling program was completed. A total of 16 angled holes (Table 1) for 3336m evaluated 6 magnetic anomalies, including six holes at Burns (Figure 2 &3). Hole depths ranged from 120m to 258m, with an average depth of 200m. This program included one vertical hole (LEFR307) located 1600m west of Burns (Figure 2) drilled to target the main Burns Intrusion.

The nine RC holes evaluating the Smithers, Flanders, Skinner and Lovejoy magnetic anomalies up to 2000m north of Burns (Figure 2) all intersected altered diorite and basalt similar to that observed at Burns. The strongest alteration in dioritic porphyry was intersected in holes at Lovejoy and Skinnner. Holes LEFR296 and 297 are on the western margin of Lovejoy magnetic anomaly (Figure 2) that was evaluated In December with aircore drilling on Lake Randall.

The RC samples were dispatched in 17 laboratory consignments (one for each drill hole) to Perth for analysis in October 2021. Two drill holes were prioritised for analysis and results for hole LEFR297 at Lovejoy were reported in early November 2021 (refer LEX ASX release 3 November 2021). The extended delay for the remaining 15 submissions was due to the significant sample backlog at the laboratory and inability to process the volume of samples.

Results

The results from the 17-hole RC program have defined new positions of gold and or gold copper mineralisation and expanded the footprint of the Burns Cu-Au style of mineralisation (Figure 2).

Importantly, and as previously reported hole LEFR297 (Figure 2) intersected significant intervals of hematite silica altered porphyry and associated Cu-Au-Ag-Mo mineralisation (Table 2). A fault zone with angular diorite clasts in an intense hematite altered silica matrix including strong fine disseminated magnetite and sulphides was intersected from 228m to 250m.

The hole, located on the edge of lake Randall (Figure 2) was abandoned at 258m due to high flows of ground water. The last 2m of the hole ended in strong copper mineralisation hosted by altered diorite porphyry and basalt with associated gold and silver credits.

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ASX Announcement

25 January 2022

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Significant results from hole LEFR297 include:

• 10m @ 0.21g/t Au & 0.60% Cu & 2.5g/t Ag from 218m Including 2m @ 0.41g/t Au & 1.56% Cu & 5.5g/t Ag from 225m
• 8m @ 0.22g/t Au & 0.51% Cu & 1.75g/t Ag from 250m to EOH Including 2m @ 0.67g/t Au & 1.53% Cu & 5.0g/t Ag from 256m to EOH

This hole is the most northerly RC hole drilled along the Burns corridor with results pending for the air core drill holes drilled north along strike within Lake Randall (Figure 2). The Cu Au mineralisation and altered dioritic host rocks within LEFR297 are consistent with that observed at Burns and demonstrates the extent of the system approximately 1600m northwest of Burns.

Figure 2 Combined satellite image with transparent TMI RTP aeromagnetic image highlighting the discrete magnetic anomalies along strike of Burns and a segment of the Lefroy Palaeodrainage. The inset area refers to the area of RC and diamond drilling at the Burns Au-Cu-Ag prospect (Figure 3). (Warm colours represent rocks beneath the surface with higher magnetite content). Coloured and black dots represent historical AC drill holes. The October RC drill holes are highlighted. Refer to Figure 3, the inset, for the October RC hole locations at Burns.

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ASX Announcement

25 January 2022

For personal use only

The results from the remaining 15 RC holes are tabulated on Table 2 and include the previously reported LEFR297.

A new gold zone and opportunity has been discovered approximately 1600m to the west of the established Burns system (Figure 2). Two holes (LEFR306 & 307) were drilled to evaluate the untested core and margin to the large Burns Intrusion. The target area had only been tested by historical (2007-2012 era) wide spaced (320m line 160m centres) aircore drilling, most of which was considered by the Company as ineffective.

Vertical hole LEFR307 was designed to evaluate the intrusion but also follow up a prior subtle gold anomaly hosted in transported cover in an historical aircore hole. The single RC hole intersected a broad gold interval at the base of the transported cover and established gold mineralisation in the monzodiorite basement (Figure 3). The results include: -

• A new palaeochannel hosted intercept of 17m @ 1.70g/t Au from 75m including 7m @ 3.68g/t Au from 80m that is open
• The first intersection within the monzodiorite basement of 11m @ 0.42g/t Au from 100m, that supports this as a new host rock and is also open

This single hole has now established that the basal sediments in the palaeochannel at Burns can host gold significant mineralisation and that the monzodiorite basement beneath is also a host to primary gold mineralisation. The intersections are open in all directions.

The Burns palaeochannel (channel) is part of the larger Lefroy drainage that extends east from St Ives (Figure 1). At Burns the Company has established the extent of the channel based on interpretation of the historical AC drilling (Figure 2). The broad channel extends from LEFR307 in the southwest and trends to the northeast and beneath Lake Randall for approximately 2500m. The channel and basal gravels were intersected in the December 2021 aircore drilling in Lake Randall, with results pending. The channel is open to the east.

The broad gold intercept in LEFR307 demonstrates that the basal gravels in the channel can host Significant gold mineralisation and is considered by the Company to be a priority target to follow up in addition to pursuing the Cu Au mineralisation at Burns. Previous drilling along the channel is by wide spaced aircore which has assisted to map out the extent of the channel but much of which is considered ineffective and not penetrating the basal gravels in the deeper parts of the channel.

Planning for a vertical RC drilling program to expand the basal gold mineralisation and to better define the channel is underway.

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