DGO Gold : Pernatty Drilling Results

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DGO Gold Limited	Level 9, 63 Exhibition Street
ABN 96 124 562 849	Melbourne VIC 3000
	Australia
	Telephone:	+ 61 3 9133 6251
	Facsimile:	+ 61 3 9691 6899
	Email:[e-mail]
	Website:	www.dgogold.com.au

17 December 2021

Pernatty drilling extends the Zambian-

style copper mineralisation

Key Points

• Drilling at Pernatty in South Australia has intersected low grade copper and cobalt mineralisation, now over 15km of strike, 55km southwest of OZ Minerals' Carrapateena copper-gold mine in SA.
• A reverse circulation drilling program of 49 widely spaced RC holes for 6,340m was completed.

DGO Gold Limited (ASX:DGO) advises of the completion of follow-up reverse circulation (RC) drilling at Pernatty, South Australia, 55km southwest of OZ Minerals' (ASX:OZL) Carrapateena copper-gold mine and 100km northwest of Port Augusta. DGO's 5,571km2 landholding on the Stuart Shelf is a substantial position adjacent to BHP, FMG, and OZ Minerals.

The drilling tested Zambian Copper Belt (ZCB) style sediment hosted copper targets under shallow cover on the Stuart Shelf. Drilling on wide spaced (+1km) lines has defined a 15km long Transition Zone at Moseley. The best intersections from the program include:

4m @ 0.86% CuEq1 from 76m (0.57% Cu and 242ppm Co)

4m @ 0.68% CuEq1 from 172m (0.28% Cu and 326ppm Co)

The drilling at Moseley was conducted on tenements held by Investigator Resources Limited (ASX:IVR) in which DGO is earning an 80% interest (ASX:DGO 21/09/2020).

DGO Executive Chairman Eduard Eshuys said "This drilling has confirmed that copper mineralisation occurs over significant strike lengths within the Transition Zone. The next phase of exploration will focus on identifying and testing areas where significant copper mineralisation is expected."

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Figure 1: Moseley cross section with copper and cobalt results

DGO recently drilled 49 RC holes for 6,340m at Pernatty. Eleven drill lines with an average spacing of 1km and 400m spaced drill holes along each line were completed in October 2021. Drill holes averaged 130 metres in depth and ranged from 12 to 216m. Drill holes were targeting the Transition Zone where shallow basin lithologies transition to deeper shale units of the Tapley Hill Formation. All holes were terminated in the underlying Pandurra Sandstone Formation.

Copper grades in excess of 0.1% CuEq were intersected within the target Transition Zone on every drill line over a strike of 15km demonstrating that the mineral system is active on a world class scale. DGO's expert Zambian copper consultant Dr Stuart Bull has advised that the ideal sites for economic Zambian-style copper mineralisation are complex parts of the basin margin where mineralising fluids can be focussed to increase the grade and thickness of mineralisation. Passive seismic may be capable of identifying areas of basin margin with sufficient complexity to be high probability drilling targets.

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Next Steps

Passive seismic is a low impact exploration method which uses ambient seismic energy from natural and manmade sources to map shallow stratigraphy. DGO will conduct a proof-of-concept passive seismic program at Pernatty early in the new year to test the effectiveness of the technique in mapping the architecture of the Transition Zone under cover.

Passive seismic and drilling is planned on DGO's 100% owned Pernatty tenements once the negotiated Native Title Mining Agreement is approved at a meeting of the Kokatha common law holders and executed by the Kokatha Board.

Iron Oxide Copper Gold (IOCG) Targets

The Stuart Shelf is highly prospective for Olympic Dam style IOCG mineralisation and hosts the world class Olympic Dam, Carrapateena, and Oak Dam IOCG deposits. High-quality Gawler Craton Airborne Survey data recently released by the SA Department of Energy and Mining has generated a number of IOCG targets within DGO's land position at Pernatty.

Targets with similar geophysical signatures to Carrapateena style hematite dominant systems at predicted depths that can be tested by RC drilling have been prioritised. A detailed gravity survey over three priority targets is expected to commence in the March quarter immediately followed by drilling.

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Moseley

Figure 2: Regional geological interpretation

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Pernatty Background

DGO's Pernatty tenements cover 5,571km2 of the Eastern Gawler Craton, South Australia within the Stuart Shelf Copper-Gold Province (Figure 3). Twelve licences are 100% held by DGO with one pending Exploration Licence Application and five are under a binding Heads of Agreement with Investigator Resources Limited, where DGO is earning an 80% interest.

DGO's consultant, Dr Stuart Bull, an expert in ZCB deposits, identified a 250km strike length of Transition Zone sediments between shallow water carbonates (Woocalla Dolomite) and reduced basinal shales (Tapley Hill Formation) overlying a basement high of oxidised sandstone (Pandurra Formation). Historic drill hole intersections indicate that the depth to the prospective Transition Zone may be less than 100m over much of this area. The basin setting at Pernatty has many similarities with the edges of the Katangan Basin in the Central African Copperbelt which hosts deposits such as Chambishi (40Mt @ 2.6% Cu for 1Mt of contained copper).

Historic drilling immediately east of DGO's tenements identified copper at the Tapley Hill-Pandurra contact close to the interpreted Transition Zone. Selection Trust Ltd intersected 1.9m @ 1.7% Cu from 185m when exploring for sedimentary copper immediately east of Pernatty in 1976 (hole PRL10/SAR5 - Open file report ENV02703). This result was not adequately followed up before the tenement was relinquished in 1978. Past exploration results highlight the potential for significant mineralisation within the interpreted Transition Zone. The 280,000 tonnes of contained copper equivalent in Mineral Resources at MG14 and Windabout (ASX:COD 26 October 2020) within the northern extension of the Transition Zone provides support to the exploration model.

DGO drilled 44 RC holes for 3,733m at Pernatty in March 2021. Copper grades greater than 0.1% were intersected at all three areas drilled in the target Transition Zone. The best intersections were at Moseley where three holes over 1.5km across the targeted Adelaidean basin margin all had 1m assays greater than 0.5% Cu with associated elevated Co and Ag at depths of 50 to 80m. The drilling reported in this announcement is followed up these results.

At Maslins, three holes had 1m assays greater than 0.7% Cu at depths of between 70 and 150m, with a best intersection of 0.7% Cu and 15g/t Ag at a depth of 146m. The drilling indicated that better mineralisation is more likely at a shallower basin position (i.e. west) of the Maslins holes. At Winnie Pinnie, results point to a 2.5 x 5km target east of the drilled area where the prospective base of the Tapley Hill Formation is approximately 100m deep and is untested by previous drilling.

The Stuart Shelf Copper-Gold Province is a major copper province that includes BHP's world class Olympic Dam IOCG deposit and Oz Minerals' Carrapateena IOCG deposit. Stratiform sediment-hostedcopper-cobalt deposits on the Stuart Shelf includes Myall Creek, Mt Gunson and Emmie Bluff.

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