Estrella Resources : Massive Sulphides Intersected Under Carr Boyd Mine

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ASX:ESR
24 Ja	uary 2022	Massive Sulphides Intersected Under Carr Boyd Mine
use	HIGHLIGHTS

	 CBDD064 intersects Massive and Semi-MassiveNickel-Copper Sulphides beneath the Carr Boyd
		Nickel Mine (Figure 1)
			∙ Main Zone - 16.96m(1) Massive and Semi-Massive Ni-Cu-S from 193.9m
			∙ Mid Zone - 1.32m(1) Semi-Massiveto Matrix Ni-Cu-S from 242.9m
			∙ Lower Zone - 12.91(1) Semi-Massive, Matrix and Disseminated Ni-Cu-Sfrom 256.1m
personal		Logging and geochemical analysis by CSIRO will determine the Carr Boyd sulphide's relationship to the
	T5 mineralisation found on the Basal Contact
 Confirmation that massive sulphide mineralisation continues below the old workings
	 Mine Fault located and work to begin to identify mineralisation off-set direction and distance so as to
		exploit further potential
For



Figure 1: Massive and semi-massivenickel-copper sulphides in CBDD064 at ~198m downhole.

(1) Downhole intersection quoted

Estrella Resources Limited (ASX: ESR) (Estrella or the Company) is pleased to announce the intersection of two broad zones of massive and semi-massivenickel-copper sulphides below the Carr Boyd workings. The mineralisation was intersected in CBDD064 (Table 1), a diamond drillhole that was targeted across the dip of mineralisation to assist the Company and CSIRO in understanding the relationship of the Carr Boyd mineralisation to the T5 Discovery on the Carr Boyd basal contact 1km away to the northwest.

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Office Address London House, Level 11, 216 St Georges Terrace, PERTH WA 6000 Postal Address GPO Box 2517, PERTH WA 6831 Phone [phone] Fax [phone] Email [e-mail]

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The intersection confirms the continuation of nickel-copper sulphides below the old workings and coincides with a Downhole Electromagnetic (DHEM) response modelled from the top portion of CBDD056A which was drilled by Estrella into the basal contact in October 2021 (Figure 2). The DHEM hole is too far from Shoot 4 at depth for any mineralisation to be detected.

Figure 2: Location of CBDD064 mineralisation in relation to the historical workings and the Carr Boyd basal contact.

The Carr Boyd Mine (Figure 2 and Figure 3) was worked between 1972 and 1976 by Western Mining Corporation (WMC) before being closed due to lowering nickel prices and WMC's commitments elsewhere. A large fault had been identified as controlling mineralisation along the eastern edge of the main shoot. This fault was predicted to close off mineralisation at depth however this was a theory not proven before the mine closed. Predictions as to the location of the off-set mineralisation were tested unsuccessfully by drilling in the 1990's and early 2000's.

The mine fault has a similar orientation to an off-set in the basal contact identified by Estrella's drilling last year. None of the historical core from the project was saved which will make identification of the magnitude and direction of the off-set of the fault more difficult. Subsequent drilling and limited DHEM around the workings have also failed to account for additional mineralisation except for an area called Shoot 4 which has received some drilling.

Of more importance to Estrella is to prove or disprove the concept that the Carr Boyd mineralisation was derived from a much larger pool of sulphides located on the T5 basal contact, the area within an intrusion

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where nickel-copper sulphides will most likely accumulate before later events remobilise those sulphides elsewhere.

Work by Estrella and the CSIRO should be able to resolve this link. If proven, the opportunity then exists that this large pool of sulphides still exists at depth. The company aims to continue to use drilling, DHEM and its seismic interpretation to explore this opportunity fully.

Figure 3: Picture taken in the 1990's underground at Carr Boyd showing extensive remobilised breccia mineralisation.

Estrella Managing Director Chris Daws commented:

"I am highly encouraged by these latest rounds of results from CBDD064 as it confirms massive sulphide mineralisation continues below the old Carr Boyd workings.

While our focus is very much on drilling, we are also highly focused on determining the Carr Boyd sulphide's relationship to the T5 mineralisation found on the Basal Contact.

Through our ongoing work with the CSIRO, which includes logging and geochemical analysis, weare highly confident on determining this link which, if it exists, means a very exciting time ahead for investors as it is proof this large pool of sulphides may still exist at depth.

I look forward to updating investors as we progress with our findings and as we continue to explore this world-class opportunity.

The Board has authorised for this announcement to be released to the ASX.

FURTHER INFORMATION CONTACT

Christopher J. Daws

Managing Director Estrella Resources Limited [phone]

[e-mail]

For personal use only

Media:

David Tasker

Managing Director

Chapter One Advisors

1. [e-mail]

1. [phone]

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 his information in the form and context in which it appears.

Table 1: Visual sulphide intersection details of CBDD064

	Hole ID			Depth			Depth									Visual			Visual			Visual
							Interval			Sulphide Texture			Sulphide			Pentlandite			Chalcopyrite
	& Zone			From			To
													Estimation			Estimation			Estimation
			193.90		195.17		1.27			Semi-Massive		40%		10%		5%
			195.17		195.86		0.69			Massive		90%		10%		5%
			195.86		197.17		1.31			Highly Disseminated		40%		5%		2%
			197.17		197.32		0.15			Pyroxenite		Trace
			197.32		198.03		0.71			Semi-Massive		50%		10.0%		20%
			198.03		198.56		0.53			Semi-Massive		60%		10%		25%
CBDD064	198.56		198.82		0.26			Semi-Massive		50%		1%		1%
198.82		199.83		1.01			Massive		70%		5.0%		5%
	Main
	199.83		200.40		0.57			Massive		80%		10%		10%
	Zone
	200.40		200.90		0.50			Highly Disseminated		40%		5%		2%
	16.95m
	200.90		201.32		0.42			Massive		95%		30%		5%
			201.32		203.97		2.65			Semi-Massive		50%		5%		10%
			203.97		207.83		3.86			Massive		80%		10%		20%
			207.83		208		0.17			Stringer		10%		2%		5%
			208		208.55		0.55			Highly Disseminated		10%		5%		5%
			208.55		209.8		1.25			Disseminated		5%		1%		1%
			209.8		210.85		1.05			Disseminated		2%		50%		50%
	Mid	242.93		243.41	0.48			Semi-Massive		50%		5%		5%
	Zone
	1.32m	243.41		244.25	0.84			Matrix		25%		5%		5%
			256.06		256.26	0.20			Stringer		20%					1%
			256.26		257.25	0.99			Stringer		25%		5%		2%
			257.25		258.58	1.33			Cloud		1%
			258.58		258.82	0.24			Stringer		25%		5%		2%
CBDD064	258.82		259.4	0.58			Pyroxenite		Trace
	Lower	259.4		260.75	1.35			Semi-Massive		50%		5%		5%
	Zone	260.75		261.43	0.68			Stringer		5%		1%		1%
	13.2m	261.43		263.97	2.54			Disseminated		5%		1%		1%
			263.97		264.7	0.73			Semi-Massive		50%		5%		5%
			264.7		265.9	1.20			Cloud			tr	1%		1%
			265.9		266.68	0.78			Matrix		10%		1%		1%
			266.68		268.97	2.29			Matrix		30%		5%		5%

Table 2: Drill hole collar details

Hole ID	Final Depth	Easting	Northing	RL	Dip	Azimuth	Status
CBDD064	276.9	367398	6672991	424	-63	147	Completed
CBDD056A	831.8	367393	6672993	427.3	-74	265	Completed

APPENDIX 1 JORC TABLE 1 - JORC CODE, 2012 EDITION - TABLE 1

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

		Criteria		JORC Code explanation			Commentary
		Sampling	∙ Nature and quality of sampling (e.g. cut		∙	DD core samples have been half cut with an automatic
		techniques		channels,	random chips,	or specific			core saw.
only		specialised	industry	standard		∙ 0.25m-1.1m samples are collected from the core trays as
				measurement tools appropriate to the			marked out by the supervising geologist.
				minerals under investigation, such as		∙ A handheld XRF tool was used to verify the mineralisation
				down hole gamma sondes or handheld			with samples reporting >0.3% Ni in disseminated zones
				XRF instruments, etc.). These			and >1% Ni in the matrix sulphide zones.
				examples should not be taken as		∙	XRF results have not been reported and are used as a
				limiting the broad meaning of sampling.			logging/sampling verification tool only.

• Include reference to measures taken to ∙ Core is cut and sampled to ensure the sample is

use		ensure sample representivity and	the		representative and no bias is introduced. Cutting of
	appropriate	calibration	of	any		specific, banded or stringer sulphide zoned core is done
			measurement tools or systems used.		orthogonal to the banding to ensure there is no bias.
		∙ Aspects	of	the	determination	of	∙	Determination of mineralisation has been based on
			mineralisation that are material to the		geological logging, visual sulphide estimates and
			Public Report.						confirmation using a pXRF machine. Samples were
										dispatched to an accredited laboratory for multi-element
										analysis.
										.
personal	∙ In cases where 'industry standard' work	∙ Diamond core drilling was used to obtain 3m length
			has been done this would be relatively		samples from the core barrel which are then marked in
			simple (e.g. 'reverse circulation drilling		one meter intervals, based on core block measurements.
			was used to obtain 1 m samples from	∙ Samples are selected based on geological logging
			which 3 kg was pulverised to produce a		boundaries or on nominal meter marks.
			30g charge for fire assay'). In other	∙ Collected samples weigh a nominal 2-3 kg (depending on
			cases more explanation may be		sample length).
			required, such as where there is coarse	∙ Samples have been dispatched to an accredited
			gold that has inherent sampling		commercial laboratory in Perth for analysis.
			problems.	Unusual	commodities	or	∙	Samples are being analysed using a 4-acid digest, ME-
			mineralisation	types	(e.g. submarine		ICP for 33 elements and ore zone samples are also being
			nodules)	may	warrant disclosure of		tested for Au & PGE elements using ICP analysis.
			detailed information
	Drilling	∙	Drill type (e.g. core, reverse circulation,	∙ Drilling was undertaken using NQ2 sized drill core.
	t chniques		open-hole hammer, rotary air blast,	∙ Holes have been collared with mud rotary from surface,
			auger, Bangka, sonic, etc) and details		HQ rough cored to top of fresh rock then NQ2 cored to
			(e.g. core diameter, triple or standard		EOH.
			tube, depth of diamond tails, face-
For		sampling bit or other type, whether core
	is oriented and if so, by what method,
	etc).
	Drill sample	∙	Method of recording and assessing	∙ Core recovery was recorded by the field crew and verified
	recovery		core and chip sample recoveries and		by the geologist.
		∙	results assessed.				∙	RQD measurements were digitally recorded to ensure
		Measures taken to maximise sample		recovery details were captured.
			recovery	and	ensure representative	∙	Sample recovery in all mineralised zones is high with
			nature of the samples.				negligible core loss observed.
		∙ Whether a relationship exists between	∙	Diamond core drilling is the highest standard and no
			sample recovery and grade and		relationship has been established between sample
			whether sample bias may have		recovery and reported grade as the core is in very good
			occurred due to preferential loss/gain of		condition.
			fine/coarse material.

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