Magnetic Resources NL : Thicker intersections continue at Laverton gold projects

ASX code: MAU ASX Release

21 February 2022

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THICKER INTERSECTIONS CONTINUE TO GROW LADY JULIE1 AND 4 AND HOMEWARD BOUND

Ongoing infill and extension drilling at Lady Julie has shown many thick intersections some of which start from surface with 40m at 1.5g/t from 0m including 8m at 5.18g/t from 0m in MLJRC482, 12m at 2g/t from 4m in MLJRC474 and further examples are shown in the highlights below and in Figures 1-2. This promising thick gold zone at the central part of Lady Julie1 is growing southwards towards the southern mineralised zone over a 1km length as shown in Figure 1.

HoleID	East	North	From	To	Width	Gold
	MGAz51	MGAz51	m	m	m	g/t
MLJRC482	429039	6822440	0	40	40	1.47
		including	0	8	8	5.18
MLJRC475	429158	6821990	0	40	40	0.61
MLJRC474	429507	6821603	4	16	12	1.95
MLJRC463	431833	6823882	92	124	32	0.95
MLJRC441	429690	6821061	88	124	36	0.91
MLJRC347	429748	6820399	32	46	14	1.03
MLJRC437	429527	6821069	4	20	16	0.88
MLJRC493	429652	6821587	8	16	8	1.07
MLJAC020	431912	6823820	8	17	9	1.15
MHNRC1129	431926	6823860	82	88	6	1.73
MHNRC1062	431956	6823820	67	76	9	3.68

There are now four main mineralised centres that have been extensively drilled and in some cases, further drilling is planned. They include Lady Julie 1 (being drill tested over a 1km length), Lady Julie 4 (being tested over 500m length), HN9 (2.5km length) and Homeward Bound South (being tested over a 500m length and is within 5km mineralised Federation shear zone). These four mineralised areas are all shallow deposits and, in some cases, starting from surface providing low strip ratios and potential for economic ore that is open-cuttable.

The Lady Julie 1 mineralisation (Figure 2) can be unusually thick with associated higher grades, 41m at 2.6g/t from 31m in MLJRC162, 52m at 1.7g/t from 52m in MLJRC352, 52m at 1.5g/t from 15m, 40m at 1.5g/t from 0m in MLJRC452 and 88m at 1.3g/t from 68m, which augers well for the potential economics considering a lot of the intersections also start from surface, 25m at 4.4g/t from 0m in MLJRC348, 22m at 4.1g/t from 0m in MLJRC457.

Level 1, 44A Kings Park Road, West Perth WA 6005 I PO Box 1388, West Perth WA 6872 Telephone [phone] I www.magres.com.au

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The highest-grade and thickest zones trend NNW within an overall NS trend (Figure 1). This 1km long Lady Julie 1 target is being infill drilled to get it to an Indicated Category. There are at least two separate stacked lodes present in this current drilling area, which dip 20 to 45 deg to the east. Assays are pending for 32 RC holes totaling 2572m and 3 diamond holes for 302m at Lady Julie 1 and 4 and three RC holes totaling 320m at HN9.

The gold mineralisation at Lady Julie 1 can occur within the porphyry or along the porphyry/mafic and porphyry/ultramafic unit contacts. Locally there is a strong concentration within the ultramafic as well, where there is higher grade mineralisation. Also, the alteration is usually a strong pervasive albite-silicic alteration within the porphyry units which have numerous cross-cutting quartz vein intersections as well.

Thickened porphyry zones (up to 70m) are common on the eastern part of the Lady Julie North 1 strongly mineralised zones, on the edge of a major 6km long NS thrust zone. These porphyries are also steeper dipping in this area and may represent conduits for deeper mineralisation to come closer to the surface. These underlying intrusions are also targets for deeper mineralisation similar to the deeper intrusions at depth at the world class Sunrise Dam gold mine and deeper holes are planned here.

Infill RC drilling within the very high-grade intersection zones have shown that they are associated with pervasive vertical zones (shoots) with grades greater than 10g/t as shown in Table 1. Some of these intersections include 2m at 21.4g/t from 43m in MLJRC292 and 2m at 21.0g/t from 3m in MLJRC457 and 1m at 59.5g/t from 22m in MLJRC348 and 4m at 15.1g/t form 32m in MLJRC453. Further infill RC and diamond drilling have been completed and results are awaited. This drilling is designed to define the true extent and distribution of these enriched high-grade shoots that lie within the promising thicker intersections (Figure 1).

Level 1, 44A Kings Park Road, West Perth WA 6005 I PO Box 1388, West Perth WA 6872 Telephone [phone] I www.magres.com.au

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Figure 1. The southern 1km part of the Lady Julie North1 area highlighting significant thick intersections from the latest drill programme (yellow large rectangular label) and previous drilling (white label) with maximum gold projected to surface and planned drillholes (in yellow).

Level 1, 44A Kings Park Road, West Perth WA 6005 I PO Box 1388, West Perth WA 6872

Telephone [phone] I www.magres.com.au

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Figure 2 Gold intersection overview covering the HN5, HN6, HN9 and adjacent Lady Julie Projects showing ten additional gold targets covering 15km (purple outlines) with highlighted intersections (white label). Significant historical and Magnetic intercepts (maximum Au projected to surface) and planned RC holes in yellow.

Level 1, 44A Kings Park Road, West Perth WA 6005 I PO Box 1388, West Perth WA 6872

Telephone [phone] I www.magres.com.au

ABN 34 121 370 232

Within the HN5, HN6, HN9 and Lady Julie areas there are many new shallow intersections (Fig 1 and Table 2) with a total of 1,670 intersections (ranging from 1 to 30m) greater than 0.5g/t Au, which includes 734 greater than 1g/t Au, 274 greater than 2g/t Au, 153 greater than 3g/t Au and 96 greater than 4g/t Au.

onlyThe results from the 2D seismic survey and the recent major drill programmes as well as historical drillings results have led to the interpretation of 15km of gold targets in 10 areas within HN5, HN6, HN9 and Lady Julie outlined in purple in Figure 2 and summarised in Table 1.

The best-looking target so far besides the 3km-long HN9 mineralisation, is Lady Julie North (3.9km long) At Lady Julie North 1 there are many mineralised intersections including the outstanding intersection of 41m at 2.6g/t Au from 31m including 15m at 4.2g/t from 52m in MLJRC162, 25m at 4.4g/t from 0m in MLJRC348 and 36m at 2.0g/t from 92m in MLJRC448.

useThis zone between the two thrusts is very prospective and there are numerous NS workings, mineralised drillholes and anomalous soil geochemical areas, which are in the process of being further drilled (Figures 1-2).

Both the mineralised targets at HN9 and Lady Julie North appear to straddle two deep seated thrusts, with HN9 being a major 3km-long mineralised zone. The eight thrust zones that come to surface continue to the north and south over an extensive 6km length and shallow RAB and or soil geochemistry is being carried out to help outline any further anomalous gold areas worthy of follow up drilling (Figure 2). At Lady Julie North 1 and 2, the targets are compelling because they are associated with the two parallel Thrusts 7 and 8 (Fig. 2).

personal			Table 1. Target Summary HN5, HN6, HN9 and Lady Julie
Target	Length	Significant gold intersection	Description
Km
			MLJRC406 64m @ 2.37g/t from 88m	Several wide and high-grade
Lady Julie			MLJRC404 20m @ 4.29g/t from 140m
3.9		intersections starting from surface
North (1-4)		MLJRC295 39m @ 1.55g/t from 7m
		associated 50ppb soil anomaly
			MLJRC162 41m @ 2.56g/t from 31m
	Lady Julie	1.5		MLJRC214 4m @ 16.66g/t from 32m	New NNE-trending gold zone with some
	Central		excellent high-grade intersections.
	Lady Julie	1.7		MLJRC183 4m @ 1.49g/t from 16m	Southern extension of near-surface
	East		high-grade results
	HN9				Open1km to the NE. New holes
	thickened	1.5		MHNRC582 104m @ 0.82g/t from 8m
For		planned.
zone
HN9 fold	1.5		RFAC408 5m @ 2.35g/t from 49m	Unusual EW trend, part of large regional
	folding
HN9 Thrust 2				Drilling extension of high-grade
1.2		HNR008 2m @ 12.83g/t from 36m	intersection planned.
HN9 Thrust 3			MHNRC1010 1m @ 58.48g/t from	Drilling extension of new intersection
1.2		91m
HN5 West			MHNRC1015 4m @ 62.51g/t from	Drilling of very high-grade intersection
0.3		52m	planned
	HN5 South	0.7		No drilling to-date	NW extension of Eagles Nest workings
	HN6 Thrust 2	1.5		MHNRC1041 1m @ 3.06g/t from 40m	Extension of intersection and initial
		testing of workings planned.
	Total	15.0

Level 1, 44A Kings Park Road, West Perth WA 6005 I PO Box 1388, West Perth WA 6872

Telephone [phone] I www.magres.com.au

ABN 34 121 370 232