Fin Resources : Results of Diamond Drilling Completed at McKenzie Springs

Results of Diamond Drilling Completed at McKenzie Springs Project

Fin Resources Limited (ASX: FIN) (Fin or the Company) announces the results of drilling completed at the McKenzie Springs Project (Fin 70% interest and Cazaly Resources Limited ASX:CAZ 30% interest) located 85km northeast of Halls Creek, within the Halls Creek Orogen, Western Australia (the Project). The program was the Company's first-ever drilling within the Project, comprising three diamond drill holes for a total of 947.9m (see Figure 1).

The drillholes were designed to test multiple modelled strong high priority conductors defined from Fixed Loop Electromagnetic (FLEM) geophysical surveys. Following the drilling, downhole transient electromagnetic (DHTEM) surveying was completed on each drillhole. The aim of the DHTEM was to detect and delineate bedrock conductors of interest adjacent to the diamond drillholes.

Whilst the drilling did not intersect significant sulphides, broad disseminated zones of sulphides were encountered and several weak to strong in-hole and off-hole anomalies were identified, many of which are likely to be related to sulphide mineralisation. Further geological and geophysical modelling is in process.

Fin Resources' Director, Mr Jason Bontempo said, "Drilling successfully intersected semi-massive sulphides proving the system has the potential for mineralisation, however it did not intersect the preferred ultramafic sequence which hosts economic mineralisation such as Savannah to the north. We believe this to be deeper in the sequence, and that further work is required."

Figure 1 | Location Map

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Figure 2 | Fin Diamond Drillhole Locations over Airborne Electromagnetics with DHEM modelled conductor plates

FNDD001 was designed to target and intercept a modelled conductive plate at 390m in depth. The drillhole progressed through a sequence of variably sheared and brecciated lithologies composed of mostly sedimentary granulites showing variable propylitic alteration, and lesser mafic units including amphibolites, gabbros, leucogabbros and anorthosites. The brecciation and shearing appears to be associated with a hydrothermal event with breccias often silica cemented with variable lithologies and mineralogy appearing as xenoliths, quartz veining is concentrated in or near shears. Both structures display increased propylitic alteration both in and surrounding them.

No obviously conductive lithologies were logged above below nor at the target depth of 390m, but a six-metre-thick sheared sedimentary granulite containing minor graphite and sulphides was intercepted above this at 371m. A strong in-hole anomaly and strong off-hole anomaly were observed at 300-320m and 370m downhole respectively in FNDD001. These anomalies are consistent with the FLTEM model conductor targeted by the FNDD001 drilhole. The sheared sedimentary granulite with minor sulphide and graphite identified in the approximate position of the strong off-hole anomaly may be the source of this anomaly.

FNDD002 was drilled to target and intercept a modelled conductive plate at 220m in depth. The drillhole progressed through a sequence of mostly undeformed sedimentary granulites and variable mafic units, then a brecciated and sheared zone of similar lithologies. This then passed into a sequence of sedimentary granulites variable brecciated and sheared.

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At 277.25m, a 3.05m thick highly sheared and highly propylitic altered sedimentary granulite was intercepted with sulphide accumulations in foliations, and semi-massive blebs around quartz veins visually forming up to 45% of the interval. Sulphide percentages in intervals directly above and below this shear to the bottom of the hole were also elevated from those observed above this. It is considered likely that this interval is responsible for the conductivity anomaly observed in the surface electromagnetics.

The hole was drilled past the planned depth of 270m to 342.8m as observed sulphide percentages beyond the target zone continued to be elevated and varied in occurrence and mineral species.

Although smaller in size, an off-hole conductor at 210m is consistent with the original FLTEM model conductor and may represent a near-miss. A high conductance, off-hole DHTEM model conductor at 260-300m represents a potential source of massive sulphide mineralisation for follow-up drilling.

Figure 3 | Diamond drill core from McKenzie Springs A) FNDD002 semi-massive to foliation disseminated sulphides from 276m B) FNDD002 semi-massive sulphides C) FNDD002 breccia textured sulphide (pyrrhotite-pyrite-chalcopyrite) at 278m

FNDD003 was drilled to target and intercept a modelled conductive plate at 70m in depth. The drill hole progressed through a sequence of sheared and brecciated sedimentary granulites and variable mafic units, then a brecciated and sheared sedimentary granulite with variable propylitic alteration to the end of hole. Just beyond the target zone a 2m interval from 75.9m was intercepted showing foliated sedimentary granulite sheared and foliated with up to 25% visual sulphides as disseminated, in foliations, and occasional massive bands/veins up to 1cm in width. This then passed into a sequence of sedimentary granulites variable brecciated and sheared. It is considered likely that this interval is responsible for the conductivity anomaly observed in the surface electromagnetics.

Off-hole and in-hole conductors identified were consistent with the original FLTEM model conductor.

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