Kingsrose Mining : Surface High-Grade Gold at the Maul Vein - Way Linggo

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ASX Announcement

20 January 2022

Kingsrose Announces Near Surface High-Grade Gold at the Maul

Vein, Way Linggo Project

Kingsrose Mining Limited (ASX: KRM) ("Kingsrose" or the "Company") is pleased to announce high-grade gold intercepts from drilling on the Maul Vein target at the Way Linggo project, Indonesia (Figure 1 and Table 1). Between November and December 2021, five holes for a total of 816.7 metres were completed (Figure 2 and Table 2) to follow up on encouraging trench results and geological interpretations announced on 1st November 2021.

Highlights

• Significant downhole intercepts include:

• 1. 3.1 metres at 13.0 g/t gold, 21.9 g/t silver (from 78.2 metres, DDH-597)o 4.3 metres at 6.0 g/t gold, 8.6 g/t silver (from 41.2 metres, DDH-596)o 2.7 metres at 6.7 g/t gold, 8.9 g/t silver (from 8.1 metres, DDH-595)
• Gold grades up to 25.1 g/t over 0.7 metres (from 78.2 metres, DDH-597) are evidence of high-grade mineralising events present within the vein system and indicates potential to vector toward thicker high-grade zones.
• A sub-parallel gold mineralised vein which is blind at surface was intercepted 25 metres to the north of the Maul Vein, termed the Semung Besar Vein, as such the area is shown to host multiple veins within the same structural corridor.
• Mineralisation is located 500 metres west of the 240,000 oz gold Mineral Resource at Talang Santo (refer ASX announcement dated 10 August 2021) and is open both along strike and down dip.
• Kingsrose is commencing a strategic process to review opportunities to divest all or part of the Way
  Linggo project to maximise the value of the Company's interest in the project for the benefit of all shareholders and pursue its discovery focused strategy.

Fabian Baker, Kingsrose Managing Director, commented "The first five holes from the Maul Vein have discovered gold mineralisation from surface in two sub-parallelstructures, which is encouraging for the potential of the area.

Mineralisation remains open and is located 500 metres west of the 240koz gold Talang Santo Mineral Resource, which is also open down plunge. Follow-up drilling is planned to commence at the end of January to target depth extensions of the Maul and Semung Besar veins.

Despite these encouraging results, our strategy, and our team's strength, is value creation through discovery. As the scale of existing resources at Way Linggo do not meet our development threshold, we are assessing divestment opportunities to realise value through a balanced transaction that further funds this strategy while retaining exposure to future cash flow from production."

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Maul Vein Drilling Results

Five, shallow diamond drill holes totalling 816.7 metres were completed (Table 2) along a 160 metre strike at the Maul Vein (Figures 2 and 3), to test the down dip continuity of the vein exposed in surface trenching (refer ASX announcement dated 1 November 2021). The deepest hole was 241.9 metres.

Drilling intercepted two sub-parallel gold bearing vein zones, the Maul Vein to the south and the newly identified Semung Besar vein 25 metres to the north. The Maul Vein was identified by mapping and trenching, and the Semung Besar vein is blind at surface, concealed beneath thin alluvial cover. Trenching has shown the Maul Vein to occur over at least 300 metres of strike at surface and is open along strike.

This initial drill program has confirmed the down dip continuity of the Maul Vein to at least 120 metres below surface along a strike length of 160 metres, as well as proving that the vein is host to high-grade gold and silver mineralisation (Table 1 and Appendix 2). Within the mineralised intercepts, narrow high grades were intercepted, for example:

• 0.7 metres at 25.1 g/t gold, 61.5 g/t silver (from 78.2 metres, DDH-597)
• 0.6 metres at 12.8 g/t gold, 13.4 g/t silver (from 10.2 metres, DDH-595)
• 1.0 metre at 9.7 g/t gold, 9.0 g/t silver (from 41.6 metres, DDH-596)

Vein zones are typically between 2 and 15 metres apparent thickness and dip between 60° and 75° to the northeast, containing mineralised intervals >1 g/t gold of one to five metres apparent thickness.

Mineralisation remains open both along strike and down dip, and two drill holes totalling approximately 500 metres are scheduled to commence in late January targeting depth extensions to the Maul and Semung Besar veins.

Commencement of Strategic Review of the Way Linggo Project

Kingsrose's strategic direction is the creation of value for its shareholders by discovery and responsible development of mineral deposits with Tier-1 potential, as demonstrated by the recent acquisition of promising exploration projects in Scandinavia. Although past production at the Way Linggo project was highly profitable at times, the current Mineral Resources do not meet economic thresholds required to realise the Company's strategy. The project area has good exploration potential however the targets identified to date are regarded as high-risk.

Therefore, Kingsrose is commencing a process to seek opportunities to divest all or part of the Way Linggo project to maximise the value of the Company's interest in the project for the benefit of all shareholders. The intention is to identify a transaction that allows Kingsrose to reduce its holding cost exposure and to add to the Company's treasury, while retaining exposure to future production cash flow and further discoveries at Way Linggo. Any potential transaction will be subject to any required shareholder and regulatory approvals.

Any discussions with counterparties will remain incomplete and confidential until the process has concluded and there can be no certainty any transaction will be agreed. The Company shall keep the market informed of any developments with respect to this process in due course in accordance with its continuous disclosure obligations.

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TABLE 1: Significant drill intercepts.

				From			Interval2			Au			Ag
	Hole ID														Vein Interpretation
				(m)			(m)			(g/t)			(g/t)
DDH-595	8.10			2.70			6.65			8.87			Semung Besar
		14.75			1.25			1.58			1.44
		66.20			0.65			5.58			6.07			Maul
DDH-5963	32.80			1.60			1.83			2.59
		37.10			0.70			4.95			2.90			Semung Besar
		41.20			4.30			5.99			8.59
DDH-5974	78.15			3.05			13.03			21.92			Maul
DDH-5985	150.20			5.70			1.87			11.08			Maul
DDH-599	109.20			1.00			4.33			9.70			Semung Besar
		143.40			1.05			4.42			8.13			Maul
Notes:
1.	Significant intercepts were calculated using a 1.0 g/t gold lower cut-off
2.	Downhole interval is reported, due to the early stage of exploration and lack of detailed structural data, it is not
		possible to estimate true widths
3.	No significant intercept of the Maul Vein in DDH-596
4.	The Semung Besar Vein has been eroded and was not intercepted in DDH-597
5.	No significant intercept of the Semung Besar Vein in DDH-598

TABLE 2: Drill hole collar data.

Hole ID	Easting	Northing	Elevation	Inclination	Azimuth	Length
			(m)	(°)	(°)	(m)
DDH-595	432542	9425373	1266	-60	210	125.1
DDH-596	432482	9425438	1272	-50	210	134.7
DDH-597	432612	9425333	1266	-60	210	115.1
DDH-598	432554	9425481	1292	-60	210	241.9
DDH-599	432615	9425427	1281	-50	210	199.9

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FIGURE 1: Map showing exploration prospects and past-producing mines within the Way Linggo project.

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FIGURE 2: Drill collar locations at the Maul and Semung Besar ("SB") veins, located 500 metres west of the Talang Santo mine.

FIGURE 3: Long section showing the Maul Vein relative to the Talang Santo Mineral Resource and mine.