Estrella Resources : Potential of New Zone Extends T5

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ASX:ESR
27 Ja uary 2022	Potential of New Zone Extends T5
use	HIGHLIGHTS
 Downhole Electromagnetic (DHEM) platform hole CBDD062 extends potential of new zone below T5
	nickel-copper deposit
			∙ DHEM modelling indicates the mineralisation is still open to the north and south
			∙ New EM plate situated between previous drilling
	 Planning underway to for next round of drilling at T5 between regional exploration programs
personal			∙ Drilling with a combination of wedge holes and DHEM is being planned
For
Figure 1: Emerging new mineralised zone below T5 highlighted by recent DHEM from holes CBDD060 and CBDD062

Estrella Resources Limited (ASX: ESR) (Estrella or the Company) is pleased to announce positive results from the DHEM surveying at the T5 nickel-copper deposit at the Company's 100% owned Carr Boyd Nickel Project, located approximately 80km from Kalgoorlie, WA. DHTEM surveying of drillholes CBDD060 and CBDD062 has assisted in defining a potential new zone of mineralisation below the T5 discovery, intersected in holes CBDD057 and CBDD042A (see ASX announcements 24 November 2021 and 9 April 2021 respectively).

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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]

For personal use only

The DHEM result confirms the continuation of mineralisation potential to the north which escaped detection when holes CBDD044 and CBDD047 were electromagnetically surveyed. The currently modelled DHEM plates extend over a strike length of 165m, and it is a further 50m to the massive sulphide breccia intersection in CBDD042A to the south. Work is underway to schedule several more step-out holes to the north and south of T5 to locate the continuation of mineralisation both up and down plunge.

The next northern step-out drilling will explore a potential fault off-set that has dislocated the massive sulphides resulting in a DHEM response skewed towards the main T5 mineralisation, leaving additional areas blind to electromagnetics. Drilling will also test the new plates generated by CBDD060 and CBDD062.

The southern drilling will target the continuation of the T5 massive sulphide mineralisation towards the Proterozoic Dyke (Figure 1) as well as infill the last drilled section of T5 mineralisation above and below CBDD042A as shown in Figure 2.

Figure 2: Zoomed longsection of the T5 Mineralised Envelope showing geophysical responses only from CBDD060 and CBDD062 in relation to intersected nickel-copper sulphides in the southern plunge area

Figure 3: Basal breccia style globular to massive mineralisation observed in CBDD057 grading 3.7% nickel. This style of mineralisation noes not always yield a strong DHEM geophysical response.

For personal use only

Estrella Managing Director Chris Daws commented:

"T5 continues to provide an exciting opportunity for Estrella to extend the footprint of the high grade nickel sulphides we have intersected in recent drilling at depth. The refinement in how we utilise DHEM surveys to guide us is evolving and we are gaining an understanding of the capabilities and limitations in identifying the mineralisation.

The latest round of surveys at depth unequivocally informs us that the limit of the T5 mineralisation is yet to be found.

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

Regional Exploration

The Phase 5 regional program is in full swing and the Company will update the market on progress in coming days.

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]

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 2: Drill hole collar details

Hole ID	Final Depth	Easting	Northing	RL	Dip	Azimuth	Status
CBDD042A	654.7	367404	6673500	430.2	-70	270	Completed
CBDD057	606.7	367370	6673580	431.8	-70	260	Completed
CBDD060	741.6	367372	6673580	431.9	-75	260	Completed
CBDD062	672.9	367414	6673750	433.6	-72	270	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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Criteria

JORC Code explanation

Commentary

Logging

∙

Whether core and chip samples have

∙ Detailed industry standard of collecting core in core trays,

been

geologically

and geotechnically

marking meter intervals & drawing core orientation lines

logged to a level of detail to support

was undertaken.

only

appropriate

Mineral

Resource

∙

Core trays

were photographed wet and dry prior to

estimation, mining

studies

and

sampling.

metallurgical studies.

∙ Drill hole logs are recorded in Excel spread sheets and

∙ Whether

logging

is

qualitative

or

validated in Micromine Software as the drilling

quantitative in nature. Core (or costean,

progresses.

channel, etc) photography.

∙ The entire length of all holes is logged.

∙ The total length and percentage of the

relevant intersections logged.

Sub-

∙

If core, whether cut or sawn and

∙ Core is half cut using an automatic core saw to achieve a

sampling

whether quarter, half or all core taken.

half-core sample for laboratory submission.

techniques

∙

If non-core, whether riffled, tube

∙ The sample preparation technique is considered industry

and sample

sampled, rotary split, etc and whether

best standard practice.

use

pr paration

sampled wet or dry.

∙ No field duplicates have been collected in this program.

∙ For all sample types, the nature, quality

Field duplicates will be collected once initial results are

and appropriateness of the sample

returned and resampling of the mineralised zones is

preparation technique.

warranted.

∙ Quality control procedures adopted for

∙

Sample sizes are appropriate to the grain size of the

all sub-sampling stages to maximise

mineralisation.

representivity of samples.

personal

∙

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.

Quality of

∙

For geophysical tools, spectrometers,

∙ No handheld XRF results are reported however the tool

assay data

handheld XRF instruments, etc, the

was used to verify the mineralisation with reporting >0.3%

and

parameters used in determining the

Ni in disseminated zones and >1% Ni in the matrix

laboratory

analysis including instrument make and

sulphide zones.

te ts

model,

reading

times,

calibrations

∙ DHTEM parameters are as follows;

∙

factors applied and their derivation, etc.

∙

Tx Loop size:

500 x 800 m

Nature of quality control procedures

∙

Transmitter:

GAP HPTX-70

adopted

(e.g.

standards, blanks,

∙

Receiver:

EMIT SMARTem24

duplicates, external laboratory checks)

∙

Sensor:

EMIT DigiAtlantis

and whether acceptable levels of

∙

Station spacing:

2m to 10m

accuracy

(i.e.

lack

of

bias)

and

∙

Tx Freq:

0.5 Hz

precision have been established.

∙

Duty cycle:

50%

∙

Current:

~130 Amp

∙

Stacks:

32-64

∙

Readings:

2-3 repeatable readings per

station

Verification

∙

The

verification

of

significant

∙ Results verified internally by Company personnel

of sampling

intersections by either independent or

and

alternative company personnel.

Forassaying

∙

The use of twinned holes.

∙

Hole CBDD0028 is twinning hole CBP042. No other

twinning is warranted at this stage.

∙

Documentation of primary data, data

∙ The data was collected and logged using Excel

entry procedures, data verification, data

spreadsheets and validated using Micromine Software.

storage

(physical

and

electronic)

The data will be loaded into an externally hosted and

protocols.

managed database.

∙ Discuss any adjustment to assay data.

∙ No adjustments have been made to the assay data other

than length weighted averaging.

Location of

∙

Accuracy and quality of surveys used to

∙ The holes were pegged using a hand-held GPS +3m

data points

locate drill holes (collar and down-hole

∙ The rig was setup over the nominated hole position and

surveys), trenches, mine workings and

final GPS pickup occurred at the completion of the hole.