EPM 18980 - LIMESTONE CREEK

Exploration Permit for Minerals (EPM) 11980, Limestone Creek tenement is situated approximately 120km to the north of the Mungana and Red-Dome copper-gold mines, and 130km north of the Chillagoe Township in North Queensland. It is part of Diversified Mining and Resources Pty Ltd (DMR) Palmerville project acquired from NMR which comprises nine EPMs and is focused on the delineation of porphyry coppergold, skarn, and massive sulphide copper-gold, lead and zinc style deposits within the highly prospective Chillagoe Formation which hosts the Mungana and Red Dome mines.

Many of these massive siliceous rocks so closely mimic the interpreted and mapped shallow thrusts, that they are almost certainly siliceous replacement bodies associated with these thrusts. However, some cherts and Tertiary rocks may represent massive silicification and diatreme breccias that, while frequently geochemically non-anomalous at surface, may be associated with gold and copper mineralisation at depth (Nethery, 1997).

Mesozoic sediments of the Gilbert River Formation cover parts of the Palmerville project, varying in thickness between 20m‐100m. The cover obscures a major flexure in the trend of the Palmerville Fault from north‐westerly to a northerly trend between Nolan Creek and Elizabeth Creek basement rocks.

The prospective Chillagoe Formation, and possibly the Permo‐Carboniferous intrusive rocks, are covered by flat-lying Late Carboniferous and Early Permian felsic volcanics, (the Pratt Volcanics and Nychum Volcanics, respectively) which underlie the Mesozoic sediments (McNeich & Morrison,2012).

Considerable complex over thrusting is apparent from previous mapping and Landsat imagery interpretation and suggests that the shallow SW dipping thrusting is commonly occupied by quartz veining (Nethery, 1997).

Mineralisation within the Chillagoe Formation is mainly associated with the granitic intrusions of the Late Carboniferous O’Briens Creek and Almaden Supersuites, which have produced numerous occurrences of skarn and porphyry‐style mineralisation.

In the Chillagoe district known mineral occurrences and deposits occur along the 80 kilometres of exposed Chillagoe Formation. Significant deposits include the zinc rich skarn King Vol mine (indicated and inferred resource: 2.76Mt @ 11.9% Zn, 0.6% Cu, 0.7% Pb, 30g/t Ag) and the Mungana and Red Dome porphyry skarn‐related gold copper deposits.

(Nethery, 1997) considered that mineral paragenesis in the Chillagoe Formation is marked by a strongly auriferous phase, associated with the late stages of intrusion of the O’Briens Creek Supersuite, and related to the onset of shallow thrusting. Features indicative of the extreme range of PT settings, from high PT prograde skarn and porphyry style, through to epithermal surface sinter and diatreme style, are inferred.

LOCAL GEOLOGY

Limestone outcrops divide the tenement up into distinct zones. The northeastern outcrop is folded and terminates at the southern end as a tight fold nose. The central outcrop extends throughout the EPM
and marks a regional structural contact. The western outcrop covers large areas that probably reflect a shallowdip.

The central limestone outcrop shows the general strike in the northern third of the original tenement to be north-north-west to north-west, whereas in the south lithologies are trending essentially northsouth. The change in strike occurs at approximately 8,216,000mN. A regional scale structure runs the length of the EPM and along the eastern contact of the central limestone outcrop.

Lithologies between the central and eastern limestone outcrops are generally highly deformed cherts with minor basic volcanics and slivers of minor limestone. Small unconformable remnants of Jurassic quartz conglomeratic sandstones occur throughout the tenement, indicating the Jurassic has only recently been eroded. Irregular karst-type weathering has
resulted in many unconformable sandstone outliers.

Karst-type weathering has trapped chert, quartz, ironstone lag and overlying Jurassic sandstone remnants that have collapsed into cavities of various sizes and depths. Further weathering, weak
lateritisation and erosion has formed ferruginous material covering low-lying limestone outcrops occurring adjacent to limestone cliffs, and in exposed ‘potholes’ within limestone outcrop.

HISTORIC EXPLORATION

Historical exploration within the tenement has been well covered in previous reporting including the EPM 11980 Annual Report 2020 (Jackson, T. 2020).
The Leane’s Copper Prospect is in the central area of the Palmerville project. It was originally discovered in 2007 by Lodestone Exploration Limited (“Lodestone”) when outcrops containing malachite veining were mapped at surface.

Subsequent exploration, including detailed soil geochemistry identified strongly anomalous copper over a 1,200m extent along a north-northwest trending brecciated contact between limestone to the west and siliciclastic sediments, plus locally meta-basalt to the east. In 2010, Lodestone completed a shallow 8 drill hole RC program to test the copper soil anomalies over a 500m strike length, plus two
drill holes further south to test gold anomalies.

The best intervals in that program intersected 28m @ 0.55% Cu in drill hole LRC004, 4m @ 0.55% Cu in drill hole LRC003, and 11m @ 0.32% Cu in drill hole LRC002. All drilling intersected the breccia zone
in the weathered horizon.

Surface geochemistry, carried out by Lodestone, suggested the breccia system is at least 1.5km long

PREVIOUS NMR EXPLORATION

In late 2020, NMR completed an RC and diamond drilling program (nine and two holes respectively) for 961m with the objective of corroborating the historical Lodestone results and providing confirmation of the interpreted porphyry intrusive model. With the onset of the wet season cut the program short of the intended depth targets for the diamond drill holes however aplitic intrusives were encountered along with disseminated mineralisation in the form of pyrite and chalcopyrite sufficient to provide confidence
in the model.

Five RC drillholes partially or fully tested the near-surface hydrothermal breccia mineralisation that sits below a strong linear copper-dominant soil anomaly. All holes intersected a ferruginous breccia horizon, as expected, associated with the contact between metasediments and limestone.

Three RC holes intersected copper mineralisation with grades of more than 0.2% copper as follows:

• LRC013 – 3m from 93m depth averaging 0.28% Cu, including 1m @ 0.29% Cu
• LRC014 – 6m from 74m depth averaging 0.33% Cu, including 1m @ 0.61% Cu
• LRC016 – 8m from 80m depth averaging 0.25% Cu, including 1m @ 0.42% Cu

The four other drillholes, two RC holes and two diamond holes, were designed to test the proposed exploration model of deeper intrusive-related mineralisation below the breccia zone. Results from
these holes confirmed the validity of the model, with diamond hole LDD001 intersecting multiple intervals of polymictic breccia with silica-carbonate breccia infill and stockwork veining over a 40m
interval from 96m (Figure 8). In places the polymictic breccia appears to include highly altered porphyry fragments.

The 2020 drilling of the hydrothermal breccia system confirmed the presence of a mineralised system over a 400m strike length. Geological logging and assays demonstrated that the proposed exploration
and mineralisation model for Leane’s was valid.

2023 Airborne Magnetic & Radiometric Survey

During 2023, NMR completed an airborne magnetic and radiometric geophysical survey of its Palmerville Project, which includes EPM 11980 and the survey was conducted in collaboration with the
QLD government as part of the Collaborative Exploration Initiative (CEI).

The survey begun on the 6th April 2023 and the production of the raw data for the survey was completed in May 2023.

NMR has completed a review of the processed images and has identified a number of interesting structural features including the presence of a distinctive fold like or faulted structure just north of the
Glenroy Copper prospect which does not align with any of the known regional structural features as found in the Queensland Government geological database and is a possible tension fault which highlights a potential mineralised structure being present.

NMR decided after seeing the number of new, potentially never explored, features within the new geophysical data that further modelling work is needed to determine the size, shape, depth and type of
target that might be present.

In 2024, NMR appointed Mitre Geophysics to do a structural interpretation and selection of conceptual exploration targets for EPM 11980, and an unconstrained 3D magnetic inversion modelling of the
Leane’s Prospect.
The work will also include creation of various deliverables, and comparison with existing geological information and the results are expected in July 2024 and will be done in conjunction with several
adjacent tenements held by NMR.

CURRENT WORK PROGRAM

Prior to the acquisition by DMR, Mitre Geophysics were contracted by NMR with completing a structural and geophysical interpretation of the northern section of the Palmerville Project and focussed on the area north of the Mitchell River to the northern boundary of the Palmerville Project. The interpreted area includes part of the covered by the airborne geophysical survey that NMR conducted in 2023 (Appendix 1).

Mitre Geophysics were supplied with all of NMR’s datasets, all available public data, as well as the 2023 airborne data. The structural interpretation was based on the magnetic data from the 2023 airborne survey, using a variety of filtered images including various versions of the RTP, first and second derivative filters, tilt derivative, and the VRMI and Analytic Signal. The radiometric data was also viewed although was not found to add significant additional information.

The interpretation was completed by mapping as much of the magnetic stratigraphy as possible including tagging of the most magnetic units, while areas of reverse remanent magnetisation were also
mapped.

The interpretation clearly illustrates the dominant NS magnetic grain and major NS structures crosscut by a complex and interlaced system of NE and NW trending structures. The smaller EW structures are
generally limited in strike length.

A detailed set of structures was developed and are categorised based on their primary strike direction. There are clear sets of EW, NE, NW and NS trending faults identified by Mitre, as well as the primary
Palmerville Fault being mapped in detail.

There are probably many more minor magnetic trends and structural indications that could be interpreted from the data, but the result presented here captures the essence of the magnetic data and
provides a framework for further geological interpretation and conceptual target generation.

LEANE’S 3DMAGNETIC INVERSION MODELLING

In addition to the structural & geophysical modelling, Mitre were also tasked with developing a 3D magnetic inversion model for the Leane’s Prospect using the 2023 airborne magnetic data as the basis
for the work.

Results of the modelling are shown in Figure 10 and Figure 11 below, which show a narrow north south trending magnetic body that plunges down into a vertical body in the vicinity of Leane’s prospect (Figure 11)

RESULTS AND CONCLUSIONS

The interpretation completed by Mitre Geophysical for the northern section of the Palmerville Project area included EPM 11980 and generated a significant structural map for the tenement, which will be
utilized for future work.
The interpretation has highlighted several structures in or near to EPM 11980, which are shown in the above image, with the main ones being:
• NP7_A
➢ Leane's Prospect
➢ Southern end of NNE magnetic stratigraphy with cross cutting NE faulting.
➢ Geochemical anomaly and Cu in drilling
➢ Recommendations are IP survey to provide additional drilling targets
• NP8_B
➢ 1.3km north from Leane’s.
➢ Magnetic anomaly; Structure
➢ Tight offset in NNE trending magnetic stratigraphy
➢ Possible NE or NW offset could be focus for mineralisation
➢ Recommendations are mapping, geochemical sampling & possibly IP survey
• NP9_C
➢ Edge of tenement & shared with EPM 27452 (NMR tenement)
➢ Isolated magnetic anomaly with depth extent of 500m
➢ Possibly plunges steeply to the east.
➢ Recommendations are mapping, sampling & possibly IP survey
• NP10_D
➢ Edge of tenement & shared with EPM 26576 (Great Divide Mining Ltd tenement)
➢ Magnetic anomaly; Structure
➢ Termination of NNW magnetic stratigraphy by EW/NW regional faults
➢ Along strike (3km north) from Leane’s
➢ Recommendations are mapping & geochemical sampling

The listed targets will be DMR's priority in future exploration, as they represent complex structural area with a coincident magnetic body, which is NMR’s Leane’s model, a known copper occurrence along
strike or adjacent to the three other targets.

Additionally, the relationship between complex structural settings and magnetic bodies within the Chillagoe formation, offset is similar to the known ore bodies in the Chillagoe Formation found in the
southern section of the formation. To date only small scale deposits have been discovered in the northern section, where DMR’s tenements are located.

The interpretation clearly illustrates the dominant NS magnetic grain and major NS structures crosscut by a complex and interlaced system of NE and NW trending structures. The smaller EW structures are
generally limited in strike length.

Future work will also include mapping and sampling of the targets highlighted by the interpretation and hyperspectral imagery completed in previous work. Any anomalous results may have ground
geophysics and or drilling occur.