DGO Gold : Quarterly Report and Appendix 3B

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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
	Email:[e-mail]
	Website:	www.dgogold.com.au

28 January 2022

December 2021 Quarterly Report

DGO focused on drilling at 4 strategic

land holdings

DGO Gold Limited (ASX:DGO) is pleased to report on its December 2021 quarter activities. DGO continues to advance its objective of shareholder wealth creation through its brownfield and greenfield gold discovery strategy. This strategy gained momentum in 2021 with ongoing drilling activity at its brownfield investments, drilling activities at Pernatty SA and Yerrida, WA. The upcoming drilling will continue that momentum into 2022.

Highlights

• The next stage of drilling was completed at Pernatty testing for Zambian style copper mineralisation under cover. Wide spaced drilling defined a 15km long Transition Zone at Moseley with grades up to 4m @ 0.9% CuEq.
• Drilling at Yerrida testing the equivalent stratigraphic position to Sandfire Resources' DeGrussa copper-gold mine was completed and the geological data generated by drilling was evaluated.
• DGO activities in the March quarter will focus on drilling at Bryah, Yerrida, Lake Randall and a detailed gravity survey at Pernatty.
• DGO has a 14.5% interest in De Grey Mining (ASX: DEG). DEG have 10 drilling rigs operating and reported the results of a Scoping Study on the 9Moz Mallina Gold Project resource in WA's Pilbara during the quarter. The market value of DGO's holding at January 27, 2022 was $237 million.
• DGO participated in Yandal Resources Limited's (ASX: YRL) rights issue during the quarter, increasing its investment to 20.1% of issued capital and is the largest shareholder. YRL reported excellent results for a number of prospects during the quarter and three drill rigs will be operating this quarter. The market value of DGO's holding at January 27, 2022 was $8.4 million.
• DGO has a 6.6% interest in Dacian Gold (ASX: DCN) with options to 8.7%. During the quarter DCN announced significant exploration results below the current resources at Jupiter. DGO participated in a $20 million capital raise to accelerate exploration at Mt Morgans. The market value of DGO's holding at January 27, 2022 was $13 million.

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DGO Discovery Activity

Greenfield Discovery

Pernatty, Stuart Shelf, SA (DGO 100%)

The Stuart Shelf contains BHP's world class Olympic Dam copper-gold-uranium mine, and a number of other major copper-gold deposits including Oz Minerals' Prominent Hill and Carrapateena operations. DGO's 5,571km2 landholding on the Stuart Shelf is a significant position adjacent to BHP, FMG, and OZ Minerals. The Stuart Shelf hosts Zambian Copper Belt style sediment copper and Olympic Dam style iron oxide copper-gold (IOCG).

DGO's earlier drill program confirmed the presence of Zambian style copper mineralisation under cover on the Stuart Shelf. Results from the proof-of-concept drilling at Moseley included 4m @ 0.8% CuEq (0.41% Cu and 0.04% Co) from 73m.

During the quarter DGO completed a further 6,340m program of reverse circulation (RC) drilling to test for Zambian Copper Belt (ZCB) style sediment hosted copper under shallow cover at Moseley. Drilling on wide spaced (+1km) lines defined a 15km long Transition Zone at Moseley. The best intersections from the program include:

4m @ 0.9% CuEq from 76m (0.57% Cu and 242ppm Co) 4m @ 0.7% CuEq from 172m (0.28% Cu and 326ppm Co)

A review of the IOCG potential of Pernatty has also generated a number of targets within DGO's land position at Pernatty. Targets with similar geophysical signatures to Carrapateena style hematite dominant systems at depths that can be tested by RC drilling have been prioritised. A detailed gravity survey over three priority targets is planned to commence in the March quarter

DGO continued to progress land access approvals for a drilling program on its 100% owned tenements during the quarter. The negotiated Native Title Mining Agreement with Kokatha Aboriginal Corporation awaits approval by the Kokatha Board and the common law holders.

Refer to DGO's ASX announcement on 17 December 2021.

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Bryah, Murchison, WA (DGO 70-100%)

Bryah is located 95km southwest of Sandfire Resources' DeGrussa copper-gold mine (0.65Mt Cu & 0.74Moz Au, ASX:SFR 4/03/2011), 70km north of Meekatharra, and includes Judge's Find, an area of known gold nugget occurrences where surface mining for gold has occurred for some time. The source of this alluvial gold is unknown.

During the previous quarter DGO completed a maiden diamond drilling program of seven holes for 3,412m to test for both sediment-hosted and volcanogenic-hosted massive sulphide (VHMS) style copper-gold mineralisation on the basin margin.

Several horizons of intense quartz/carbonate veining were intersected, containing pyrite, minor chalcopyrite, and intense magnetite zoning including traces of galena and sphalerite, in a highly altered sequence of sediments, acid and mafic volcanics and dolomites.

Detailed analysis of the drill core and initial multi-element assays has been conducted by DGO's expert geological consultants Professor Ross Large AO and Dr Stuart Bull. Professor Large and Dr Bull have identified 3 distinct horizons (M1, M2, and M3) approximately 100m apart in the volcano-sedimentary stratigraphy with potential for hosting VHMS mineralisation immediately northwest of Judges' Find gold nugget field. When extrapolated to the surface and along strike these horizons intersect an AEM anomaly further north west. Laser ICPMS analyses completed on pyrite from the M3 horizon has identified a Pb isotope ratio (207Pb/206Pb) in the same range as in the DeGrussa VHMS deposit suggesting both systems share a common mineralising fluid source.

The AEM anomaly overlying the high potential VHMS horizons will be tested with drilling this quarter.

During the quarter DGO completed the acquisition of the Judge's Find tenements located on the southern boundary of the Company's Bryah tenements.

Refer to DGO's ASX announcement on 22 June 2021.

Yerrida, Murchison, WA (DGO 100%)

Yerrida is located in the Yerrida Basin, 75km south of Sandfire Resources' DeGrussa copper-gold mine (0.65Mt Cu & 0.74Moz Au, ASX:SFR 4/03/2011) and 60km northeast of Meekatharra, Western Australia. DGO's 4,574km2 landholding is a substantial position second only to Sandfire Resources in the Yerrida-Bryah Basin. The Yerrida Basin is prospective for both DeGrussa style copper-gold mineralisation and stratiform sediment- hosted copper deposits analogous to the world-class Zambian Copper Belt.

DGO's exploration and detailed analysis has identified coincident electromagnetic, magnetic, and signature VHMS geochemical anomalies. These coincident anomalies are within a geological sequence of the right lithology, age, and structure for hosting DeGrussa style VHMS mineralisation.

During the quarter, DGO completed a reverse circulation (RC) and diamond drilling program at Yerrida testing the equivalent stratigraphic position to DeGrussa over a strike length of 10km. During the quarter 3,743m of diamond and 6,488m of RC was drilled and the geological data generated by drilling was evaluated.

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Refer to DGO's ASX announcement on 22 July 2021.

Mallina, Pilbara, WA (DGO 100%)

DGO holds 281km2 of prospective tenements adjoining De Grey's Mallina Gold Project. The Mallina Basin hosts substantial structurally controlled gold resources including the intrusion related gold at Hemi, 75km east-northeast of DGO's tenure.

Detailed analysis by DGO suggests that mineralisation at Hemi is associated with the Millindinna intrusives which are present in DGO's Mallina tenements. Broad spaced (400m x 160m) UltraFine soil sampling completed over the Millindinna intrusives has identified a series of gold-in-soil anomalies including a high priority gold and semi-coincident arsenic anomaly. Detailed reprocessing and interpretation of geophysical data has identified a series of targets coincident with the Millindinna intrusives and the soil anomalies.

During the quarter the Kurlarnunya Tjinapi, who are seeking to register a native title claim over an area containing three DGO tenements, provided a survey report clearing DGO to recommence drilling. Subject to weather conditions and rig availability it is expected that this program will commence in the next quarter.

Refer to DGO's ASX announcements on 27 May 2021 and 13 July 2021.

Lake Randall, Eastern Goldfields, W.A (DGO 70-100%)

DGO holds 230km2 of untested, prospective terrain under shallow lake and transported sediment cover 50km east of Kambalda and 7km south of Silverlake Resources' Mt Belches Mining Centre. The Lake Randall target was generated as a result of a comprehensive review for sediment hosted gold mineralisation in the Eastern Goldfields of Western Australia.

A ground gravity survey in late 2019 identified fourteen targets with potential to host granite- associated Granny Smith style, and banded iron formation-associated Mt Belches-style, gold mineralisation beneath the lake sediments.

Recent exploration by Lefroy Exploration (ASX:LEX) intersected 60m at 5.22g/t Au and 0.38% Cu from 112m to end of hole at Burns (ASX:LEX 23 February 2021), 15km west of DGO's Lake Randall. Mineralisation is associated with a large felsic intrusion which does not outcrop.

These results have led to DGO planning the drilling of intrusive-associated Granny Smith style targets at Lake Randall and an 18-hole air core drilling program will be conducted in the March quarter. Access terms are agreed and a heritage survey was completed in the December quarter with the native title holders.

Refer to DGO's ASX announcement on 28 January 2020.

Deleta, Eastern Goldfields, W.A (DGO 100%)

Interpretation of historical geochemical datasets has identified gold and arsenic soil anomalies associated with structures within the Deleta Greenstone Belt to the west of the Yamarna Belt. DGO is progressing heritage approvals in preparation for additional soil sampling and drilling programs to evaluate the under-explored Deleta targets.

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Yilgarn Exploration Ventures Pty Ltd (DGO 40%)

During the quarter, an RC drilling program was completed at Balugundi, 20km east of Kalgoorlie to test the target generated by machine learning. Results are expected in the March quarter.

Brownfield Discovery

De Grey Mining Limited (DGO 14.5%)

DGO's investment in De Grey Mining Limited (De Grey) is 203.6 million De Grey shares or 14.5% of issued capital and DGO is De Grey's largest shareholder.

During the quarter De Grey announced the results of a scoping study for the 9Moz Mallina Gold Project. The study shows that a 10 year, 427,000 ounce per annum operation could be developed with a post-tax NPV5 of $2 billion (ASX:DEG 5 October 2021). These results continue to demonstrate that the Mallina Gold Project is a Tier 1 asset.

Significant extensional results at Hemi and regional exploration results were released during the quarter which highlight the potential for continued resource growth. These include:

• 63m @ 4.3g/t Au from 87m (Diucon, ASX:DEG 17 December 2021)
• 53.0m @ 5.8g/t Au from 315.0m (Eagle, ASX:DEG 10 December 2021)
• 5m @ 14.8g/t Au from 14m (Gillies, ASX:DEG 13 October 2021)
• 29m @ 5.4g/t Au from 80m (Withnell, ASX:DEG 13 October 2021)

De Grey raised $125 million during the quarter through a placement in which DGO did not participate.

Yandal Resources Limited (DGO 20.1%)

During the quarter, DGO acquired an additional 3.3 million shares in Yandal Resources Limited (Yandal) through participation in a rights issue increasing DGO's shareholding to

23.4 million shares or 20.1% of issued capital. DGO is Yandal's largest shareholder.

Yandal continued to announce significant, high-grade results from a number of prospects including:

• Gordons Dam: 23m @ 1.2g/t Au from 52m (ASX:YRL 12 January 2022)
• Bradman: 11m @ 2.0g/t Au from 257m (ASX:YRL 1 December 2021)

The results from Star of Gordon are in a similar geological position to Kanowna Belle 20km to the south and DGO looks forward to seeing further results from this prospect.

Dacian Gold Limited (DGO 6.8%; Options to 8.7%)

During the quarter, DGO supported a $20 million capital raise acquiring 10.2 million shares increasing DGO's shareholding to 74.3 million shares or 6.8% of issued capital with options to 8.7%.

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