Hawthorn Resources : HAW - December 2021 Quarterly Report

		ASX Release
		31 January 2022
only	ASX Code: HAW
ABN 44 009 157 439
	Hawthorn Resources Limited
		Level 2, 90 William Street,
	Melbourne Vic 3000 Australia
		Tel + 61 3 9605 5902
	[e-mail]
use	Directors:
		Mr Li, Yijie
	(Non-Exec Director/Chairman
		Mr Mark G Kerr
		(Managing Director/CEO)
personal	Dr David Tyrwhitt
(Non-Exec. Director)
Mr Liao Yongzhong
		(Non-Exec. Director)
		Mr Liu Zhensheng
		(Non-Exec. Director)
		Mr Brian F Thornton
		(Non-Exec. Director)
		Senior Management:
		Mr William Lloyd
		(Operations Manager)
		Mr Mourice Garbutt
		(Company Secretary)
		Mr Tony Amato
For	(CFO)

Mining exploration entity and oil and gas exploration entity quarterly report

QUARTERLY ACTIVITIES REPORT - DECEMBER 2021

HAWTHORN RESOURCES LIMITED

Quarterly Report - DECEMBER 2021

HIGHLIGHTS

Mount Bevan/ Mt Alexander - Joint Venture - Iron Ore & Base Metals (E29/510) (LCY 60% and HAW 40%)

• HANCOCK TO EARN IN TO THE MT BEVAN IRON ORE PROJECT

By a joint market announcement to the ASX on 15 December 2021 Legacy Iron Ore Limited (ASX code: "LCY") as a 60% holder and the Company (ASX code: "HAW") as a 40% holder announced that an Agreement had been executed with Hancock Magnetite Holdings Pty Ltd (HMPL), a wholly owned subsidiary of Hancock Prospecting Pty Ltd (HPPL) granting HMPL the exclusive right to earn-in to the Mt Bevan Iron Ore project and form a new joint venture agreement ("NJVA"). Under the NJVA:

• HMPL to fund Pre-feasibility Study (PFS)
• Atlas Iron Pty Ltd (Atlas) to be appointed Manager of the NJVA.

Trouser Legs Joint Venture - Gold

• Haulage of the estimated 50,000t parcel of the low-grade gold stockpiles from the Anglo-Saxon open pit operations progressed during the quarter to the Lakewood treatment plant for processing.
  +To date it is estimated that by 31 January 2022 a total of nearly 28,000t of the low-grade ore will have been hauled and crushed at the Lakewood mill with the recovery thus far on-shipped to the Perth Mint.
• During the quarter the Anglo-Saxon underground project continued to be

on a deferred basis until satisfactory long-term toll treatment capacity from nearby mills becomes available. Refer ASX announcement on 8 September 2021.

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IRON ORE & BASE METALS

Mount Bevan/ Mt Alexander - Joint Venture - Base Metals

(Legacy Iron Ore Ltd 60%; Hawthorn Resources Limited 40 %): Manager- Legacy Iron Ore Ltd

The Project is currently a joint venture with Legacy and Hawthorn situated 250km north of Kalgoorlie and 100km west of Leonora in the Central Yilgarn region of Western Australia. The Project is on a large tenement E29/510 which hosts 1,170 Mt of magnetite resource @ 34.9% Fe.

(refer: LCY: ASX Announcement 17/12/2013 - Mt Bevan -Significant Resource Upgrade and Appendix 1).

The Joint Venture tenement area consists of Exploration Licence 29/510, being north of Kalgoorlie and approximately 100 km west of Leonora in the Central Yilgarn region of Western Australia; it is located immediately south of St George Mining Limited's (ASX: SGQ) Mt Alexander Nickel Project.

The Joint Ventures objective aims to progress this potentially world class magnetite project and is also exploring for nickel-copper mineralisation.

As announced to the ASX on 15 December 2021 the joint venture participants of Legacy Iron Ore Limited and the Company have entered into an Agreement with Hancock Magnetite Holdings Pty Ltd (HMPL), a wholly owned subsidiary of Hancock Prospecting Pty Ltd (HPPL) granting HMPL the exclusive right to earn-in to the Mt Bevan Iron Ore project and form a new joint venture agreement ("NJVA").

The NJVA arrangements with HMPL are expected to be settled during the current quarter with the principal terms of the HMPL earn-in being:

Initial Investment

• HMPL will make an initial investment of $9m to earn a 30% interest in the Project (Initial Investment) with $8m cash being paid to Legacy and Hawthorn in proportion to their interest in the project (Legacy $4.8m and Hawthorn $3.2m) and the remaining $1m as working capital for the new Joint Venture;
• Atlas will be appointed as Manager of the new Joint Venture.
• Upon completion of the Initial Investment, HMPL will hold a 30% interest, Legacy will hold a 42% interest and Hawthorn will hold a 28% interest in the Project.

Stage 1 Earn-in

• HMPL can earn an additional 21% interest in the Project by funding the completion of a PFS.
• Upon completion of the Stage 1 earn-in, HMPL will hold a 51% interest, Legacy will hold a 29.4% interest and Hawthorn will hold a 19.6% interest in the Project.
  Joint Venture
• Upon completion of the Stage 1 earn-in, and subject to favourable outcomes from the work completed, additional work programs will be undertaken with the intention of further advancing the Project to a Bankable Feasibility Study.

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GOLD

ANGLO SAXON GOLD PROJECT

Trouser Legs Joint Venture - Underground Gold Project

(Hawthorn Resources 70%, Gel Resources 30 %): Manager - Hawthorn Resources Limited

Hawthorn Resources Limited ASX: HAW ("Hawthorn" or the "Company"), is pleased to update shareholders and the market on activities undertaken during the December 2021 quarter at the Trouser Legs Joint Venture underground gold project ("the Project") at Pinjin in Western Australia.

The Project area is located 140 km north-east of Kalgoorlie at Pinjin in Western Australia within the prolific South Laverton Tectonic Zone (SLTZ) (see location map Fig 1 below)

1. As reported to the ASX on 8 September 2021 the Company advised that the AMC Consultants Pty Ltd Report as commissioned by the Joint Venture had found that underground mining methods such as longhole stoping or airleg mining do not generate a sufficient return on capital based on the current MRE, at the prevailing gold price. In addition, long-termtoll treatment capacity from nearby mills continues to be currently unavailable.

Accordingly, as reported to the ASX on 8 September 2021 the TLMJV resolved that the Anglo- Saxon underground project be deferred temporarily or until such time that suitable long term treatment options become available.

1. As previously advised, haulage and processing contracts for the low-grade gold stockpiles at Pinjin, stemming from the previous open pit operations, have been signed for the processing of an estimated 50,000t parcel of ore.

To date it is estimated that by 31 January 2022 a total of nearly 28,000t of the low-grade ore will have been hauled and crushed at the Lakewood mill with the recovery thus far on-shipped to the Perth Mint.

The full 8 September 2021 announcement to the ASX can be viewed on the Company's website at: www.hawthornresources.com

EXPLORATION

Edjudina M31 /481 -Gold Project

(Hawthorn Resources Limited: 100%)

For the December 2021 quarter only tenement maintenance work was carried out.

As announced in the September 2021 quarterly Report future RC drilling plans will be focussed further east testing near surface and deeper sections of the Neta Lode which was the target of underground historic mining via the Geneve and Senate shafts on lease ML481 and noting "… Whilst much of the past RC drilling by the company has tested this area the holes are widely spaced and require in-filltesting. Also, no deeper diamond drilling has been conducted which is needed to test such deep targets at a depth of 200 meters below surface…"

For the full September 2021 Quarterly Report to the ASX go to website: www.hawthornresources.com

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Mining exploration entity and oil and gas exploration entity quarterly report

Figure 1 - Project location map - Western Australia Goldfields

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Interests in Mining Tenements

Disclosure in accordance with ASX Listing Rule 5.3.3.

		Interest at	Interest at	Joint Venture Partner/
Project/Tenement	Location	beginning	end of	Farm-In Partner/
		of quarter	quarter	Farm Out Partner
Pinjin East	West Australia
E 31/781		100%	100%
E 31/782		100%	100%
E 31/783		100%	100%
E 31/1050		100%	100%
E 31/1176		100%	100%
Edjudina-Triumph	West Australia
M 31/481		100%	100%
Mt Bevan Iron Ore	West Australia
Joint Venture
E 29/510 -I		40%	40%	Legacy Iron Ore Limited
Pinjin - Trouser Legs	West Australia
Joint Venture
E 31/1094		70%	70%	GEL Resources
G 31/4		70%	70%	GEL Resources
L 31/32		70%	70%	GEL Resources
L 31/65		70%	70%	GEL Resources
L 31/66		70%	70%	GEL Resources
L 31/68		70%	70%	GEL Resources
L 31/69 (A)		0%	0%	GEL Resources
M 31/78		70%	70%	GEL Resources
M 31/79		70%	70%	GEL Resources
M 31/88		70%	70%	GEL Resources
M 31/113		70%	70%	GEL Resources
M 31/284		70%	70%	GEL Resources
P 31/2034		70%	70%	GEL Resources
Edjudina - Pinjin
Joint Venture	West Australia
E 31/789		80%	80%	Karora Resources Pty Ltd
Teutonic Bore
Royalty *	West Australia
E 37/902		0%	0%	Round Oak Jaguar Pty Ltd

• Royalty up to a maximum of $1m subject to conditions

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