E2 Metals : December 2021 Quarterly Activities & Cashflow Reports

ASX Announcement

only
December 2021 Quarterly Report
	25 January 2022
	E2 Metals (E2 or the Company) is pleased to present the quarterly report for the period ended 31
use	December 2021 and provide an update on exploration activities across the Company's portfolio.
Highlights

Update on the Conserrat gold and silver project (Santa Cruz, Argentina)

• Exploration continues to be focused on the Conserrat project, a greenfields discovery by E2 along trend from AngloGold Ashanti's Cerro Vanguardia mine.
• Scout drilling has defined four new mineralised trends:

personal	Andrea Sur	CORC-183:	16m at 15gpt Au, 22gpt Ag (15.5gpt AuEq) from 31m, inc.
			2m at 108gpt Au, 53gpt Ag (109gpt AuEq) from 32m
		CORC-190:	4m at 3gpt Au, 11gpt Ag (3.2gpt AuEq) from 29m
	Malvina Oeste	CODD-163:	1m at 15gpt Au, 327gpt Ag (20 AuEq) from 65.2m
	Malvina Sur	CODD-194:	2m at 5.6gpt Au, 119gpt Ag (7.3gpt AuEq) from 69m
	• This includes unreported scout drill results from Silvia where encouraging gold and silver
	mineralisation is intercepted in the fourth hole at the prospect.
	Silvia	CODD-234:	19m at 0.7gpt Au, 31gpt Ag (1.1gpt AuEq) from 157m inc.
			3m at 2.9gpt Au, 96gpt Ag (4.3gpt AuEq) from 160m
	• Ongoing extensional drilling at Malvina continues to deliver exceptionally high silver grades
For		CODD-162:	7.2m at 2.3gpt Au, 854gpt Ag (14.5gpt AuEq) from 70.8m
	CODD-171:	3m at 3gpt Au, 714gpt Ag (13.2gpt AuEq) from 105.6m
		CORC-174:	2m at 9.8gpt Au, 2580gpt Ag (46.7gpt AuEq) from 62m
		CODD-189:	6.1m at 1gpt Au, 194gpt Ag (3.7gpt AuEq) from 111.9m
		CODD-191:	6m at 2.9gpt Au, 638gpt Ag (12gpt AuEq) from 44m

• Mineralisation at Malvina is defined by 14 drill holes over a 325m strike with a weighted

average grade of 2.2gpt Au and 592gpt Ag (10.6gpt AuEq) over 3m (downhole width).

E2 Metals Limited	Directors / Secretary	Address
ABN: 34 116 865 546	Peter Mullens	Level 4, 100 Albert Road
Chair
ASX Code: E2M	Todd Williams	South Melbourne VIC 3205
	P: [phone]
	Managing Director
Issued Capital	F: [phone]
Melanie Leydin
	E: [e-mail]
	Non-Executive Director
150.5M fully paid
ordinary shares

ASX Announcement

For personal use only

Highlights cont.

Update on the Conserrat gold and silver project (Santa Cruz, Argentina)

• Infill drilling at Mia has defined a new hanging wall vein (HW Vein) as well as deeper breccia hosted mineralisation, expanding the resource potential of the prospect

CORD-205:(HW Vein) 1m at 7gpt Au, 2073gpt Ag (36.6gpt AuEq) from 80m

CORD-205:(Breccia) 49m at 0.7gpt Au, 43gpt Ag (1.3gpt AuEq) from 146.7m inc. 25m at 0.9gpt Au, 75gpt Ag (1.9gpt AuEq) from 147.7m

• Diamond and Reverse Circulation (RC) drilling recommenced in the first week of January and will include:

1. Infill and follow-up drilling at all advanced prospects including Andrea Sur, Malvina, Malina Oeste, Malvina Sur, Mia and Silva.

1. Following the success of the December 2021 quarter, a further 11 regional targets have been prioritised for scout drilling during Q1 2022

Update on the Corona gold and silver project (Santa Cruz, Argentina)

• The Company has initiated a reconnaissance mapping and sampling program at the Corona project located within the same structure and 30km south of Newmont's Cerro Negro mine.
• Sampling during December 2021 defined a number of previously unrecognised vein structures including the priority Veta Agustina prospect which extends for 800m strike

Update on the El Rosillo gold project (Rio Negro, Argentina)

• El Rosillo is a new greenfields discovery and forms part of a district-scale landholding within the unexplored extension of the Gastre fault zone (host to Pan American Silver's Navidad deposit)
• Exploration was limited to a hand dug trench program as the Company awaits approval of an Environmental Impact Assessment (EIA) and permits for surface works including drilling
• Hand dug trenches completed in Target 38 defined high-grade bedrock-hostedmineralisation as the possible source to widespread surface gold anomalies.
• Significant gold and silver assays include:

ROT-009:(Hand dug trench) 1m at 279gpt Au, 116gpt Ag (280gpt AuEq)

Corporate

The Company remains in a strong financial position with $6.7M cash as of 31 December 2021.

1Gold equivalent grades calculated at spot price of U$1750/oz gold and U$25/oz silver (Au + Ag/70)

December 2021 Quarterly Report

E2 Metals Limited • www.e2metals.com.au

1

ASX Announcement

For personal use only

Santa Cruz Projects, Argentina

Overview

E2 Metals continues to be focused on its Santa Cruz projects in Argentina (Figure 1) where it holds an 80% interest in a 90,000-hectare land package prospective for multi-million-ounce gold and silver epithermal vein deposits similar to Cerro Negro (Newmont) and Cerro Vanguardia (AngloGold Ashanti) mines.

Figure 1: Santa Cruz Portfolio

Exploration work priorities for Santa Cruz during the December 2021 quarter included:

1. Ongoing scout, extensional and infill drilling at Conserrat where E2 is focused on unlocking a new gold and silver vein district along trend from Cerro Vanguardia
2. Mapping and sampling within Corona to evaluate the projects potential to host epithermal gold and silver mineralisation similar to that mined at nearby Cerro Negro

December 2021 Quarterly Report

E2 Metals Limited • www.e2metals.com.au

2

ASX Announcement

For personal use only

Conserrat

The Conserrat project is comprised of one title totalling 8,696Ha and is centered on the same geological trend that is host to AngloGold Ashanti's Cerro Vanguardia mine (historical and current reserves 8.9Moz Au, 137Moz Ag). The project contains a recently discovered epithermal vein field that partially outcrops over an area of 25 square kilometers and is exposed within 'erosional windows' through younger volcanic and sediment cover.

Figure 2: Conserrat Project

Prior to E2 commencing work in August 2019, Conserrat had never been drilled or subject to systematic modern exploration. Subsequent exploration by E2 has returned a number of 'blind' discoveries over an area 3 kilometers east to west and 5 kilometers north to south.

A total of 76 holes for 8632m were completed during the reporting period. Hole depths ranged from 42m to 215m and comprised a mix of diamond and Reverse Circulation (RC) drilling.

December 2021 Quarterly Report

E2 Metals Limited • www.e2metals.com.au

3

ASX Announcement

For personal use only

Overview of drilling

Exploration objectives for the reporting period included:

1. Follow up drilling at the recent Malvina discovery (see ASX announcement, gold and silver assays confirm Malvina discovery, 5 October 2021).
2. Infill drilling at Mia
3. Regional scout drilling (8 target areas)

Prospect locations and drill results from the December 2021 quarter are summarised below in Figure

2. The Company tested 8 regional structural, geophysical and geochemical targets during the reporting period. The work resulted in four >20 gram-metrediscoveries (downhole gold equivalent grade multiplied by thickness) in addition to further high-grade silver and gold results from follow up drilling at Malvina. Importantly, all new mineralised prospects are within separate mineralised trends which remain unexplored along strike and under shallow gravel and basalt cover.

Figure 2: Conserrat Project

December 2021 Quarterly Report

E2 Metals Limited • www.e2metals.com.au

4