Red Fox Resources – Base Metal

QUEENSLAND

1. Red Fox Resources

The Company made a strategic investment of A$600,000 to become a 40% shareholder in Red Fox Resources Pty Limited in late 2020 (ASX Announcement 3 November 2020). Red Fox is a private Queensland focused advanced exploration Company that holds seven wholly owned granted tenements (EPMs) covering 900 square km in two highly mineralised districts: Mt Isa / Cloncurry and Georgetown. The tenements contain a pipeline of targets for discovery of Ernest Henry style IOCG Cu-Au; Tick Hill style high grade Au; and, large Century and Broken Hill style Zn-Pb-Ag deposits.

Why the decision by CML to invest in Red Fox Resources? It has a highly accredited Board and experienced technical team, with a track record of discoveries. All its projects are either drill-ready or require a small amount of low-cost groundwork to advance to drilling. This means the potential to rapidly increase value without GCM spending years on early-stage exploration.

Red Fox has a constant news flow via its website and its announcements are also released to via the ASX by GCM.

Further information and progress reports on Red Fox and its activities can be found on its website: http://www.redfoxresources.net.au

2. Hawkwood Project JV

with Auburn Resources Limited

In line with GCM’s strategy of acquiring highly prospective tenements on favourable terms within a single jurisdiction, it entered into an earn-in and joint venture agreement with unlisted Australian junior explorer Auburn Resources Limited (ASX Announcement 27 October 2021) whereby it can acquire up to 90% of the district-scale Hawkwood project area with Ni Cu Co Au PGE potential. The tenement holding consists of 13 granted EPMs covering approximately 1,680km² located approximately 55km west of Mundubbera in Southern Queensland.

Fig. 1 Location of Hawkwood Project

Green Critical Minerals (GCM or the Company) has entered into an option under a joint venture (JV) agreement with private Company Auburn Resources Ltd (AUB) which gives it the opportunity to explore an entire new district of potential large-scale copper nickel cobalt gold PGE (palladium and platinum) prospects in central south-eastern Queensland 350km north-west of Brisbane (ASX Announcement 27 October 2021).
AUB has a package of 100% owned adjacent exploration tenements (EPMs) in the largely covered portion of the Permo Triassic mineral belt of southern and central Queensland. The area had been subject to little exploration prior to AUB’s activities.
Eight new magmatic nickel copper PGE targets have been defined in previously unexplored gabbro complexes.
Two new porphyry copper targets have been recognised, with one ready for initial drilling.
A 12km zone of anomalous copper gold palladium and platinum in a layered gabbro is drill ready.
Most prospects are at the drilling phase or can be advanced to drilling after minor surface programmes.

Nickel Copper Gold PGE Targets

By applying modern geochemical techniques and a local geological understanding AUB identified the source areas of copper, nickel gold platinum and palladium that had been detected in stream sediments. This led to an entire trend of highly anomalous mafic complexes being defined and secured under granted EPMs.

The nickel copper gold PGE source areas have been partially investigated by airborne electromagnetics surveys (VTEM), with depth persistent conductors detected adjacent to the peak geochemical values. The bedrock in these localities is shallowly buried under veneers of sediments, and require drill testing, and further local geophysical surveys.

The mafic complexes with peak nickel geochemistry and adjacent underlying conductors are the Jack Shay gabbro, the Quaggy gabbro, and the inferred totally covered Calrossie gabbro.

The more southerly Delubra layered gabbro contains layers enriched in copper gold platinum and palladium, without nickel.

The Jack Shay gabbro has several large geochemical – geophysical targets distributed around the inside margin of the mafic intrusive complex. These are interpreted as extensive depth persistent zones of disseminated and stringer sulphides related to strongly magnetic intrusive phases.

The Quaggy target, about 20km to the north, is a very intense conductor interpreted at 1 Ohm. This implies a large body of massive sulphides and has been selected for drilling in early 2022.

Fig. 2 Hawkwood Project Nickel Copper PGE targets

Fig. 3 Targets within the Jack Shay Gabbro, defined by VTEM and surface nickel geochemistry. Note that the VTEM survey did not cover the entire Jack Shay intrusive complex.

Fig. 4 3D interpretation of the Jack Shay Conductors and Magnetic Bodies

Fig. 5 Red Hill Target and Proposed Drilling

Fig. 6 Looking east to Red Hill Drilling Target. Red Hill is a capping of locally ferruginised coarse alluvium

Fig. 7 Jack Shay South Nickel Target and Proposed Drilling

Fig. 8 Jack Shay South Target – 2m thick basal alluvial cover locally enriched in iron nickel and PGEs. The conductor underlies this material in the photo background

Fig. 8 Jack Shay South Target – 2m thick basal alluvial cover locally enriched in iron nickel and PGEs. The conductor underlies this material in the photo background

Fig. 9 Schematic Cross Section of Jack Shay Targets

Fig. 10 Quaggy target along the margin of a large mafic ultramafic complex. Proposed drilling is shown.

Porphyry Copper Targets

Fig. 11 Hawkwood Project Copper Targets

Two areas of strong copper molybdenum gold geochemistry have led Auburn to the recognition of new porphyry copper systems at Nerangy, and TiTi Creek.

Nerangy:

Nerangy is a drill ready target, with a coincident 1.5km x 800m copper molybdenum soil geochemistry and magnetic target.

Only a small marginal portion of this entirely leached porphyry system outcrops in a gully at the northern end (Figures 13 and 14). The residual soils in the centre contain abundant veinlets, typical of the centres of porphyry deposits. Molybdenite was noted in the veinlets, but the copper has been leached.

The total leaching of visible copper from the surface implies that an enriched copper blanket will be developed around the level of the water table. Copper grades at depth below the level of leaching should be much higher.

Fig. 12 Nerangy Porphyry Copper Target and Proposed Chase Drilling

Fig. 13 Sole Outcrop (on the northern propylitically altered margin) – Nerangy Porphyry

Fig. 14 Close Up of the veined leached outcrop in Fig. 11

Titi Creek is an extensive area of copper gold (cobalt molybdenum) mineralisation including old diggings. In places there are intrusive porphyries and breccias with veinlet and disseminated sulphides. Much of the area is obscured by various cover sediments, and the target needs to be defined and confirmed by more sampling and mapping.

Copper Gold Platinum Palladium

In addition, the southernmost of the Auburn mafic complexes, the Delubra Gabbro has been shown to have major potential for copper with gold platinum and palladium. This layered intrusive which has been described by the Queensland Geological Survey, as Skaergaard in style, was very sparsely drilled previously.

The full width and extent of the copper PGE layer in this intrusion was never tested by historic drilling (results not substantiated). CML intends to drill through the mineralisation in an area of maximum surface copper and scattered old diggings at Main Top.

The Main Top area of old diggings at the better exposed western end of the target has been chosen for initial diamond drilling (Figures 15 and 16).

Fig. 15 Full Extent of the Main Top to Walkers Road Copper Gold PGE target. Dips vary between 30 and 50 degrees north and east within the layered gabbro.

Fig. 16 Main Top Copper Gold PGE – Proposed Drilling

Fig. 17 Old collapsed shaft and dumps Main Top. The proposed drilling is designed to test this material at depth

Fig. 18 Discarded low-grade material – Main Top diggings 0.43% Copper 0.35 g/t combined gold platinum palladium. Chase is targeting a very large tonnage of similar grade, with included higher grade layers.

3. CML Exploration Permits

The Company has itself recently commenced applying for Exploration Permits (EPMs) in Queensland in the search for REE Cu Ni and PGEs.

To date, four EPM Applications covering an area of approximately 3,270km²have successfully been lodged (ASX Announcements 19 January 2022 and 18 May 2022).

3.1 APPLICATIONS OVER AREAS IDENTIFIED WITH RARE EARTHS POTENTIAL IN NW QLD

Two Project areas are under application – both are in localities known for high value rare earths as reported by previous explorers from surface exploration.
Known rare earths association with copper nickel cobalt lead zinc anomalism.
Implied strike lengths of greater than 10 km.
The source of the surface anomalies and REE mineralisation appears to be of a very young age, possibly representing a new REE mineral province.

Fig.1 Location of Chase Rare Earths Projects

The Company has applied for three uncontested 100 sub block Exploration Permits (EPMAs) in grazing country in the Boulia – Duchess area of northwest Queensland. Native Title and Heritage agreements are required prior to grant, so timing is unknown. Two of the adjoining EPM applications comprise the Boulia Project and the other the Digby Peaks Project (Figure 1).

Boulia Project

The Boulia project area is comprised of two EPM applications – Canary (EPMA 28251) and Prickly Bush (EPMA 28253). Previous exploration by Jacaranda Minerals Ltd (EPMs 15234, 15235, and 15236, and in CRs 67692, 67931, and 67700) was mainly for uranium. Later, Hartz Rare Earths Pty Ltd (EPMs 25158, 25159, 25160 and 25295 and in CRs 090037,090038, 090039, and 090040) conducted wide spaced stream sediment sampling that identified catchments strongly anomalous in rare earths and less so for copper nickel cobalt lead and zinc (see appendix 2 and 3 for results).

Fig.2 Boulia Project Summary of Previous Work and CML Concept

The anomalous catchments when contoured according to metal contents, reveal a distribution along northwest striking shear structures in the Cretaceous age sediments of the Toolebuc and Allaru formations.

The maximum anomalism (732 ppm Total Rare Earths, including 190 ppm Neodymium) is from a large catchment within the CML applications. This anomalism has not been closed off to the northwest, where there are magnetic structures of the same orientation, which are possibly carbonatite dykes and the source of the surface concentrations of rare earth mineralisation.

As the host sediments are Cretaceous in age, the shear zones, alteration, and mineralisation are very young, most likely Tertiary, and appears to be controlled by dilation faults splaying from the Burke River fault zone. If correct this represents a new age and style of rare earths deposition in Australia.

Digby Peaks Project

The Digby Peaks project is comprised of a single 100 sub block EPM application (EPMA 28256).

CML selected the project area on the basis of the known but poorly defined rare earths in the general locality outside the application, but more particularly because of the similar geochemistry and geology to the new Boulia Project area further south along the Burke River fault zone as described above.

Fig.3 Digby Peaks Previous results and the CML target area

The Digby Peaks mineral occurrence (see Figure 3) was sparsely sampled by CRA in 1977 under EPM 1605 and reported in CR6056. According to the Qld Government geochemical database, CRA located drainages and rocks anomalous in nickel copper cobalt lead and zinc. Rock samples from sheared brecciated carbonate sediments assayed up to 0.48% nickel. This unusual geochemical signature is similar to the Boulia Project’s.

Digby Peaks lies along the western margin of the Tertiary age Burke River fault, as does the Boulia Project.

The CML concept is that the Digby Peaks base metal occurrence, like the Boulia Project, is also a focus for shear hosted rare earths mineralisation.

CML Proposed Exploration Programme

Subject to the applications being granted, the proposed work programme will initially comprise of stream sediment, soil and rock sampling designed to define the rare earth – base metal structures prior to trenching and drilling.

3.2 EXPLORATION FOR MAGMATIC NICKEL SULPHIDE IN QLD EXPANDED

An EPM Application has been lodged over the large Glencoe layered ultramafic intrusion.

EPM application 28434 Glencoe (Figure 1) contains a large layered ultramafic body that is better exposed than the other four such bodies to the south where as announced on 27 October 2021 Chase Mining Corporation Ltd (CML or the Company) entered into a joint venture (JV) option agreement with private Company Auburn Resources Ltd (AUB) which gives it the opportunity to explore an entire new district of potential large-scale copper nickel cobalt gold PGE (palladium and platinum) prospects in central SE Queensland. As announced on 3 May 2022, AUB JV drilling is scheduled for Calrossie, Quaggy, Jack Shay and Delubra as indicated on Figure 1 during the second quarter 2022.

Fig.1 Glencoe EPM application 28434 and existing Hawkwood JV project EPMs

Previous exploration over EPM application 28434 included Ridge Exploration Pty Ltd under EPM 19164 that identified and evaluated the gently dipping layered Glencoe ultramafic intrusive with several lines of soil sampling. A weak, but coherent zone of copper nickel gold platinum and palladium anomalism was identified (Figure 2) but was not closed off. The low level of the anomalism led Ridge to surrender the EPM in 2015.

Since that time, airborne VTEM surveys flown over the mostly alluvium covered Calrossie, Quaggy, and Jack Shay ultramafic intrusives were successful in revealing large depth persistent conductors adjacent to the peak soil values of these diagnostic metals.

The geological geochemical and geophysical signatures are typical of major magmatic nickel sulphide deposits.

CML plans to further delineate the Glencoe metal anomalous zone and to fly airborne EM with the aim of locating conductive nickel sulphides down to depths of about 500m. The western extent of the Kildare mineral field has never been closed off with sampling and will also be investigated.

Success at any one of the large AUB JV targets selected for the upcoming drilling campaign would be transformative for CML, and lead to a rapidly expanded exploration programme. EPM application 28434 and inclusion of the Glencoe layered ultramafic intrusion increases CML’s exploration exposure within this entire nickel and PGE prospective belt.

Fig. 2 Details of the Glencoe EPM application 28434 on magnetic imagery