Announcement PDF ASX:ESR 4 October 2023 Carr Boyd TargetEM Survey Identifies Multiple New Bedrock Anomalies HIGHLIGHTS ➔ Next-generation helicopter-borne TargetEM system has identified multiple first and second order bedrock conductor anomalies at Carr Boyd (Figure 1) ➔ High-priority Colreavy Komatiite shows bedrock conductivity over a 5km strike length ➔ Previously unknown 3km long southern bedrock conductor lies under shallow cover warrants immediate investigation ➔ Known mineralisation at T5, Carr Boyd and Broonhill responded well to TargetEM ➔ The majority of bedrock anomalism identified correspond to internal and external basal contact positions identified in the 2023 exploration review ➔ PoW to drill Colreavy approved with activities ready to commence Figure 1: First and second order bedrock anomalism identified by the recent TargetEM survey at Carr Boyd _________________________________________________________________________________ Office Address London House, Level 8, 216 St Georges Terrace, PERTH WA 6000 Postal Address GPO Box 2517, PERTH WA 6831 Phone +61 8 9481 0389 Fax +61 8 9463 6103 Email info@estrellaresources.com.au Estrella Resources Limited (ASX: ESR) (Estrella or the Company) is pleased to announce the successful preliminary results obtained by the recent TargetEM survey1 at its 100% owned Carr Boyd Nickel Project located 80km north of Kalgoorlie-Boulder in Western Australia. Multiple first and second order bedrock-conductor anomalies have been identified including over a 5km strike length of the Colreavy Komatiite and a new 3km linear zone under cover to the south of the Carr Boyd Intrusion. Commenting on the highly anticipated results, Estrella Managing Director Chris Daws said: “We are thrilled to be able to present the initial results from the deployment of the TargetEM system, which is an extremely advanced helicopter-borne electromagnetic survey. “The survey was run across 253km2 of our Carr Boyd tenure and has revealed a number of exciting anomalies. Firstly, the survey has highlighted a series of primary bedrock anomalies which coincide with the Carr Boyd mine and T5 Discovery, as well as a secondary bedrock anomaly at Broonhill. The interpretation of anomalies at the locations of primary sulphides increases our confidence in the technology. “Secondly – and arguably even more exciting – are the newly interpreted targets which occur at locations yet to be drilled. Major bedrock anomalies have been identified at the Colreavy Komatiite, as well as a new southern conductor which is currently largely under cover. “These are fantastic opportunities to make discoveries and the approval of a PoW for our first ever drilling campaign at Colreavy will see us ready to get underway. Meanwhile, the strength of the new southern conductor elevates this prospect to a primary target and the Company will immediately accelerate plans to drill at this location. “While further data from the survey will filter through, the initial results are very encouraging and are yet another example of Estrella Resources using advanced research and technology to make discoveries.” The TargetEM system contains many structural, electrical, and software improvements over previous helicopter-borne EM systems that have greatly improved the sensitivity and depth of investigation. The resulting bedrock anomalism identified by the system correctly located known nickel-copper-sulphide mineralisation at T5, Carr Boyd and Broonhill. There is no real difference between first and second order anomalies save for second order anomalies have surface effects which partially mask the anomaly. The electromagnetic response from zones of known stringer sulphide such as at Tregurtha and POH can be seen in the data, however more processing is needed to isolate those true anomalies from other potential ground effects, enabling new but more subtle anomalies to be identified. Processing of the data by Expert Geophysics and Southern Geoscience will be ongoing. On-ground investigation of the anomalies reveal that many of them relate to areas of interest identified by the recent exploration review, which combined multiple data-sets with research conducted by the CSIRO in 2022. The resulting internal and external basal contact positions (Figure 2) show some correlation to the identified anomalism and further refinement of the exploration model and targeting can now take place. 1 See ASX Announcements dated: 9th & 21st August 2023 Figure 2: Recently proposed internal and external prospective contacts at the Carr Boyd Nickel Project Colreavy Komatiite The anomalism at Colreavy extends over a 5km strike length and appears directly related to the Komatiite magnetics. The area is under clay cover and so the geology is not visible at surface. There has been no modern exploration over the 16km strike at Colreavy and historical drilling of the komatiite has been largely limited to the north and south ends of the structure. Only one hole has tested the area within the prospective 5km long zone of anomalism identified by TargetEM. This drillhole (DD97CB029) intersected a complexly layered zone of komatiite interfingered with felsic-pyritic sediments. The geology shows Colreavy has the right paleo-environment required to form a Kambalda-style nickel deposit. Estrella has previously identified this area as one of the highest exploration priorities. A Program of Works to drill Colreavy has now been granted and flora surveys have recently been conducted ahead of gaining clearing permits to set up for drilling. New Southern Conductor The recent survey has identified a 3.3km long bedrock conductor striking west-northwest to the south of the Carr Boyd layered intrusion. Ground-mapping has revealed a mixed sequence of mafic sediments, intrusive pyroxene-cumulate sills and basalts. The trend contains a co-incident gold anomaly related to the Whitehead’s gold trend that extends from Gindalbie some 25km to the south. Gossanous sulphide bleed can be found at surface (Figure 3) with elevated copper and arsenic. CBDD081 drilled by Estrella in 2022 intersected up to 0.5g/t Au in a sulphidic shear zone some 850m to the north whilst targeting the Gossan Hill Prospect. Due to the cover, the exact source of the bedrock anomaly remains obscured and requires drilling. A PoW has been submitted to gain exploration drill access to the area. Figure 3: Copper-rich sulphide and pyroxene-cumulate rocks in the vicinity of the new southern EM bedrock anomaly T5 and Carr Boyd The TargetEM survey correctly identified the T5 mineralisation discovered by Estrella’s discovery RC hole CBP042 and also saw distinct responses from the remnant Carr Boyd mineralisation. These two resources have been extensively drilled to depth however confirmation that the TargetEM system could detect, particularly the T5 mineralisation which has remained undiscovered for over 50 years, gives the Company confidence in the system and in the additional bedrock signatures identified elsewhere across the project. Northern Carr Boyd Intrusion Several bedrock anomalies to the northern end of the intrusion have been identified which correlate to the main basal contact, one at Broonhill and another some 1.5km to the northeast at the Dunn Prospect. Estrella’s diamond drilling identified Ni-Cu-S at Broonhill but has not tested the basal contact to the northeast at Dunn. In addition, two conductors related to internal basal contacts were identified. The first and largest lies immediately north of Carr Boyd and east of T5 and relates to the Mossgiel internal contact depicted as #5 target horizon in Figure 2. Gossanous float has been mapped by Estrella along this contact however to date the focus on exploration has been the main basal contact and thus far this internal horizon remains untested by drilling. An additional internal anomaly lies some way east of the Porphyry Hill horizon at a prospect historically named Tektite Hill. The Tektite Hill contact lies within the layered gabbroic sequences mid-way through the complex and surface geology is obscured. Figure 4: Northern side of the Carr Boyd Intrusion The stringer mineralisation located by historical drilling at POH and at Frost did not show significant anomalism in the initial anomaly identification process and work will continue on these zones so other areas containing similar mineralisation can be accurately assessed. Other Areas Additional anomalies were identified along the Gossan Hill internal contact (#7 in Figure 2), the southern end of the POH internal contact (#8 in Figure 2) and within and below the Eastern Pyroxenite basal contact (#3 in Figure 2) and the Frenchman’s Hill basal contact (#2 in Figure 2). These anomalies all lie below shallow cover and require drilling to provide geological context which cannot be gained by surface inspection. Next Steps Further processing and refinement of the TargetEM and Audio-Frequency-Magnetic time-domain (AFMAG) data will continue to enable more subtle anomalism to be drawn out of the data. The Company has most of the regulatory approvals in place to commence drilling and has submitted additional approvals to explore outlying areas such as the Eastern Pyroxenite. Additional target ranking and budgeting has commenced so that an un-interrupted work program going forward can be commenced. The Board has authorised for this announcement to be released to the ASX. FURTHER INFORMATION CONTACT Christopher J. Daws Managing Director Estrella Resources Limited +61 8 9481 0389 info@estrellaresources.com.au Media: David Tasker Managing Director Chapter One Advisors E: dtasker@chapteroneadvisors.com.au T: +61 433 112 936 Competent Person Statement The information in this announcement relating to Exploration Results is based on information compiled by Steve Warriner, who is the Exploration Manager of Estrella Resources, and a member of The Australasian Institute of Geoscientists. Mr. Warriner has sufficient experience relevant to the style of mineralisation and type of deposit under consideration, and to the activity he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resource and Ore Reserves”. Mr Warriner consents to the inclusion in the report of the matters based on their information in the form and context in which it appears. Forward Looking Statements This announcement contains certain forward looking statements which have not been based solely on historical facts but, rather, on ESR’s current expectations about future events and on a number of assumptions which are subject to significant uncertainties and contingencies many of which are outside the control of ESR and its directors, officers and advisers. APPENDIX 1 JORC TABLE 1 – CARR BOYD EXPLORATION Section 1 - Sampling Techniques and Data Criteria Sampling techniques JORC Code explanation • Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. • Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. • Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information. Drilling techniques • Drill type (e.g. core, reverse circulation, openhole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, facesampling bit or other type, whether core is oriented and if so, by what method, etc). Drill sample recovery • Method of recording and assessing core and chip sample recoveries and results assessed. Measures taken to maximise sample recovery and ensure representative nature of the samples. Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. • Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. The total length and percentage of the relevant intersections logged. • • • Logging • • • Sub-sampling techniques • If core, whether cut or sawn and whether quarter, half or all core taken. Commentary • ESR drilling included diamond core - half core samples with a maximum of 2m and minimum 0.25m length. DD core samples have been half cut with an automatic core saw. • Core is cut and sampled to ensure the sample is representative and no bias is introduced. Cutting of specific, banded or stringer sulphide zoned core is done orthogonal to the banding to ensure there is no bias. • Determination of mineralisation has been based on geological logging, visual sulphide estimates and confirmation using a pXRF machine. Samples were dispatched to an accredited laboratory for multi-element analysis. • Diamond core drilling was used to obtain 6m length samples from the core barrel which are then marked in one metre intervals, based on core block measurements and core recovery. • Samples are selected based on geological logging boundaries or on nominal meter marks. Collected samples weigh a nominal 23 kg (depending on sample length). Samples have been dispatched to an accredited commercial laboratory in Perth for analysis. • Samples are being analysed using a 4-acid digest, ME- ICP for 33 elements and all samples are also being tested for Au & PGE elements using ICP analysis. • Drilling was undertaken using NQ2 sized drill core. • Holes have been collared with mud rotary from surface, HQ rough cored to top of fresh rock then NQ2 cored to EOH. • • • • • • • • Core recovery was recorded by the field crew and verified by the geologist. RQD measurements were digitally recorded to ensure recovery details were captured. Sample recovery in all mineralised zones is high with negligible core loss observed. Diamond core drilling is the highest standard and no relationship has been established between sample recovery and reported grade as the core is in very good condition. Detailed industry standard of collecting core in core trays, marking metre intervals and drawing core orientation lines were undertaken. Core trays were photographed wet and dry prior to sampling. Prior to 2021 drill hole logs were recorded in Excel spread sheets and validated in Micromine Software as the drilling progressed. In 2021 a digital logging system, Logchief, was implemented which validates data as it is recorded and uploads that data remotely to a centralised database. The entire length of all holes are logged. Core is half cut using an automatic core saw to achieve a half-core sample for laboratory submission. The sample preparation _________________________________________________________________________________ Criteria and sample preparation Quality of assay data and laboratory tests Verification of sampling and assaying JORC Code explanation • If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. • For all sample types, the nature, quality and appropriateness of the sample preparation technique. • Quality control procedures adopted for all subsampling stages to maximise representivity of samples. • Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. • Whether sample sizes are appropriate to the grain size of the material being sampled. • The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. • For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. • Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established. Commentary technique is considered industry best standard practice. • No field duplicates have been collected for DD holes. Field duplicates will be collected once initial results are returned and resampling of the mineralised zones is warranted. • Sample sizes are appropriate to the grain size of the mineralisation. • • • • • Location of data points • • • Data spacing and distribution • • • The verification of significant intersections by either independent or alternative company personnel. The use of twinned holes. Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. Discuss any adjustment to assay data. • • • • • • • Prior to 2021 drill hole logs were recorded in Excel spread sheets and validated in Micromine Software as the drilling progressed. In 2021 a digital logging system, Logchief, was implemented which validates data as it is recorded and uploads that data remotely to a centralised database hosted by Maxgeo. Hole CBDD028 is twinning hole CBP042. No other twinning is warranted at this stage. • No adjustments undertaken. Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. Specification of the grid system used. Quality and adequacy of topographic control. • Data spacing for reporting of Exploration Results. Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. Whether sample compositing has been applied. • For drill collars, RC and DD holes were surveyed with DGPS equipment using the MGA94, Zone 51 coordinate system. Mineral Resource estimation was carried out on this grid. Topography is relatively flat and control is more than adequate given the early stage of the project. A 3D drone ortho-photographic survey has been used to create a DTM of the project area. Drill data spacing of all drill data is sufficient to establish the degree of geological and grade continuity appropriate for estimating a Mineral Resource. Drill hole spacing ranges from 10m by 10m in the most well-drilled portion of the deposit and broadens to approximately 40m by 80m over the remaining areas. Spacing is adequate to establish the degree of geological and grade continuity for estimating a Mineral Resource. Samples were composited to 1m lengths prior to Mineral Resource estimation. The geometry of drill holes relative to the mineralised zones achieves unbiased sampling of this deposit type. No orientation-based sampling bias has been identified. • • • Orientation of data in relation to geological structure Samples are selected based on geological logging boundaries or on nominal meter marks. Collected samples weigh a nominal 23 kg (depending on sample length). Samples have been dispatched to an accredited commercial laboratory in Perth for analysis. Samples are being analysed at Intertek and ALS Laboratories in Perth using a 4-acid digest, ME- ICP for 33 elements and all samples are also being tested for Au & PGE elements using ICP analysis. For ESR drilling, QAQC included Certified Reference Material (CRM’s) and blank (Blanks) samples inserted at the laboratory. Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. If the relationship between the drilling • • to assay data were Criteria Sample security Audits or reviews JORC Code explanation orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material. • The measures taken to ensure sample security. Commentary • • The results of any audits or reviews of sampling techniques and data. • Samples are in the possession of ESR personnel from field collection to laboratory submission in Kalgoorlie. No independent audit or review has been undertaken. Section 2 - Reporting of Exploration Results Criteria Mineral tenement and land tenure status Exploration done by other parties JORC Code explanation • Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. • The security of the tenure held at the time of reporting along with any known impediments to obtaining a license to operate in the area. • Acknowledgment and appraisal of exploration by other parties. Commentary • Carr Boyd Nickel Pty Ltd (a wholly owned subsidiary of ESR) holds a 100% interest in the nickel and base metal rights to the project. • All of the tenements are current and in good standing. • • • • • • • • • • The Carr Boyd Rocks deposit was discovered by Great Boulder Mines, in a joint venture with North Kalgurli Ltd in 1968. The deposit was mined between 1972 and 1975, during which time they explored for additional breccia pipe occurrences near the mine. WMC acquired Great Boulder Mines Ltd in 1975, briefly reopening the mine in 1977 before closing it permanently shortly thereafter due to a collapse in the nickel price. The mine had produced 210,000t at 1.44% Ni and 0.46% Cu before its closure. From 1968 Pacminex Pty Ltd held most of the ground over the CBLC outside of the immediate mine area. Between 1968 and 1971 they conducted extensive exploration programs searching for large basal contact and/or stratabound Ni-Cu deposits. It was during this time that most of the disseminated and cloud sulphide occurrences such as those at Tregurtha, West Tregurtha and Gossan Hill were discovered. Defiance Mining acquired the regional tenements from Pacminex in 1987 and focused on exploration for PGE deposits between 1987 and 1990. In 1990 Defiance purchased the Carr Boyd Rocks mine from WMC and switched focus to the mine area between 1990 and 2001, leaving many PGE targets untested. From 1990 Defiance dewatered the mine to conduct testwork and feasibility studies on the remnant mineralisation. Metallurgical testwork, Mineral Resource estimations, and scoping studies were completed. Around 1996 the focus shifted again to regional exploration for large tonnage basal contact deposits. In 2001 Titan Resources Ltd (Titan) acquired the project and recommenced economic evaluations of the remnant material at Carr Boyd Rocks before embarking on another regional exploration program focusing on the basal contact. An aeromagnetic survey, airborne EM reprocessing, and several programs of RAB and RC drilling were completed. From 2005 Yilgarn Mining entered a JV with Titan and continued with some regional exploration but focused most attention in and around the Carr Boyd Rocks mine. In 2007 Titan was acquired by Consolidated Minerals Ltd (Consmin). Consmin conducted IP surveys and detailed gravity surveys but did not drill any targets before selling the project to Salt Lake Mining (SLM) in 2013. SLM completed limited drilling to meet expenditure commitments, before selling the project to Apollo Phoenix Resources in 2016. Criteria JORC Code explanation Geology • Drill hole information • A summary of all information material to the under-standing of the exploration results including a tabulation of the following information for all Material drill holes: • easting and northing of the drill hole collar • elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar • dip and azimuth of the hole • down hole length and interception depth • hole length • If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case. • In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated. Data aggregation methods Deposit type, geological setting and style of mineralisation. Commentary • Apollo sold the project to ESR in 2018. • The Project lies within the Achaean Yilgarn Craton in a 700km belt of elongate deformed and folded mafic, ultramafic rocks and volcanic sediments intruded by granitoids which is referred to as the Norseman-Wiluna Belt. The belt has been divided into several geological distinct terranes, with the project area lying at the northern end of the Gindalbie terrane (Swager, 1996). The geology of the Carr Boyd area is dominated by the Carr Boyd mafic-ultramafic intrusive complex (“CBIC”). • Several distinctive styles of Ni and Ni-Cu mineralisation have been identified within the CBIC. At the Carr Boyd Rocks Nickel Mine NiCu mineralisation is hosted within several 20 to 60m diameter brecciated pipe-like bodies that appear to be discordant to the magmatic stratigraphy. Mineralisation is hosted by a matrix of sulphides (pyrrhotite, pentlandite, pyrite and chalcopyrite) within brecciated bronzite and altered country rock clasts. • Stratiform Ni-Cu-PGE mineralisation has been identified at several different locations within the layered magmatic complex. • ESR is in the process of re-mapping and reclassifying the Carr Boyd Igneous Complex. Previous “Layered Intrusive” models are misleading as the complex is made up of many overprinted and juxtaposed, smaller layered and non-layered intrusives that have progressed from ultramafic to mafic over time. The complex is better described as a magma feeder zone, where the earliest melts passing through the Morelands Formation have assimilated graphitic sulphidic shales, reached sulphur saturation and deposited nickel sulphides along basal contacts. • These basal contacts are not restricted to the base of the complex, but can form within the complex, wherever access was gained by these earlier flows. • The complex has then been intruded and inflated over time by progressively more mafic, barren magmas to produce what we see today. • Exploration results with all relevant drillhole information are reported in the body of the text. • All drill hole information relevant to this resource report/statement has been included in the appendices. No relevant drill hole information has been excluded. • • Exploration results with all relevant drillhole information are reported in the body of the text. Significant Grade Intersections are reported on a 0.5% Ni cut-off Criteria Relationship between mineralisation widths and intercept lengths Diagrams Balanced Reporting Other substantive exploration data Further work JORC Code explanation • Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. • The assumptions used for any reporting of metal equivalent values should be clearly stated. • These relationships are particularly important in the reporting of Exploration Results. • If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. • If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. ‘down hole length, true width not known’). Commentary • Composite assay grades are determined by geology and nickel-copper-sulphur content. • Assays are length and SG weighted when calculating average grades over an intersection. • Metal equivalent values have not been used. • Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported. These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views. • Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. • Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results. • Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances. • Relevant diagrams have been included within the Mineral Resource report main body of text. • All new drillhole information within this announcement is reported • • • •