North Stawell Minerals : Drilling Reveals 300m Wide Au-As Zone on Granite Margin

North Stawell Minerals

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ASX Announcement

20 July 2022

Aircore Drilling Reveals 300m Wide Au-As Zone on Granite Margin

Phase 1 Aircore drilling identifies highly anomalous grades in a previously untested area

drawing structural and geological similarities to Stawell 'type' and Wonga 'type' gold

deposits.

Highlights:

• Phase 1 aircore drilling has again successfully identified new mineralisation using geophysics to explore through Murray Basin cover.
• A 300m wide gold-arsenic anomalous zone occurs on the margin of a granite and extends into surrounding metasediments.
• The Wimmera Park prospect has similarities to the historic Wonga Deposit in Stawell. These include its geology and structural setting, regional architecture and alteration style, and an apparent relationship to the proximal granite.
• The Wimmera Park target remains open between drilling lines (800m), along the granite contact and for 2,000m to the south along a magnetic anomaly, and is a compelling target for infill drilling during the next drill season.
• The strong correlation between gold and arsenic is encouraging for effectively vectoring to significant mineralisation at Wimmera Park.
• RC drilling has concluded in the southern tenements with assays pending and likely to be released in the current quarter.
• NSM is fully funded to execute its exploration activities with $6.7M

Victorian gold explorer North Stawell Minerals Ltd (ASX:NSM) (North Stawell or the Company) is pleased to provide an update on its exploration programs. The aircore rig has continued the regional, first pass drill program, targeting mineralisation beneath shallow cover that has potential to host structural repeats of the multi-million ounce gold deposit at Stawell.

1

NORTH STAWELL MINERALS LTD

ACN 633 461 453

ABN 84 633 461 453

For personal use only

Figure 1. NSM tenure map highlighting areas with planned/completed aircore drilling and RC drilling. The image also shows the position of the Stawell Gold Mine, major interpreted structures, the edge of the Murray Basin cover, approximate depth to basement and historic drilling collars with gold anomalism based on individual assays grades downhole.

	North Stawell Minerals Ltd
	Level 12, 644 Chapel Street, South Yarra, 3141 Victoria, Australia
2	Telephone [phone]
www.northstawellminerals.com

For personal use only

NORTH STAWELL MINERALS LTD

ACN 633 461 453

ABN 84 633 461 453

North Stawell Minerals Chief Executive Russell Krause said:

"The regional Phase 1 aircore program has again drill-tested an identified geophysics target and returned broad gold anomalism associated with the feature. Aircore drilling is an extremely effective tool for penetrating Murray Basin cover.

Drilling 12km north of Stawell (Figure 1) has intersected a previously untested granite (the Wimmera Park Granite) with a 300m wide gold and arsenic anomalous zone across the contact with surrounding metasedimentary rocks. The Wimmera Park Prospect has encouraging similarities to the Wonga Deposit south of Stawell that has historic production of 294koz Au at 4.8g/t Au. The target occurs in the same structural corridor, with the same geology and interpreted structures with analogous orientations to structures at Wonga. The Wimmera Park Prospect remains significantly undertested and presents a clear Phase 2 drilling target for the next drill season to test the extents of the mineralisation.

The encouraging results at the Wimmera Park Prospect diversify possible gold styles under cover to include granite-related gold mineralisation. Other interpreted granites with similar structural settings will be reviewed prior to the coming field season for additional mineralisation potential. NSM's strategy for exploring through thin cover has proven to be successful for both Stawell 'type' mineralisation and now intrusive-related mineralisation, as both target types have important geological controls that return geophysical signatures - basalt cores in Stawell-types and igneous intrusions for potential granite-related mineralisation.

Results from five additional aircore drilling targets are still pending, including three targets in first-pass areas and two infill drilling programs. RC results from drilling that tested southern targets are also yet to be returned."

Exploration Strategy

North Stawell Minerals is exploring for repeats of the multi-million-ounce Stawell Mine under a thin blanket of unmineralised sedimentary cover (the Murray Basin). A distinct advantage of exploring for this type of mineralisation is that a basalt core controls mineralisation sites, and the basalt can be remotely mapped with geophysics (i.e., beneath the blanket of cover). A high-resolution airborne gravity survey conducted in the June Quarter FY21 completed the data suite required for effective exploration. An aircore rig has tested multiple regional targets for 8 months from October 2021.

Within the basalt structures, additional targeting is possible. Observations of controls on mineralisation in the Stawell Mine and modelling of ore-controls indicate that mineralisation is most likely to occur on the contacts (or proximal to the contacts) of the basalt cores where changing geometries create dilation zone (fold hinges, embayments, etc) and create space where mineralisation is deposited. Where these locations are interpreted in geophysics, drilling is prioritised.

Multiple suites of early to middle Devonian granites intrude into the regional Cambro- Ordovician sediments. This creates the opportunity to explore for Intrusion Related Gold (IRG) and Thermal Aureole Gold (TAG) deposits (e.g., the Wonga Deposit in Stawell). Identifying major structures that intersect or lie adjacent to granites are highly prospective for IRG or TAG mineralisation.

	North Stawell Minerals Ltd
	Level 12, 644 Chapel Street, South Yarra, 3141 Victoria, Australia
3	Telephone [phone]
www.northstawellminerals.com

For personal use only

NORTH STAWELL MINERALS LTD

ACN 633 461 453

ABN 84 633 461 453

Wimmera Park in Detail

The Wimmera Park target occurs in the thermal aureole of the Wimmera Park Granite. No historic drilling has been completed in the target area. It is bounded to the west by the Stawell Fault and to the east by the Coongee Fault (Figure 2). This is the same structural corridor that hosts Magdala (4.9 Moz Au) Wonga (294 koz Au) and Wildwood (50 koz Au). The Wonga deposit is bounded to the northeast by the South Fault, to the south by a major NE trending structure and to the east by the Coongee Fault (Figure 2). The Wimmera Park Granite is bounded by the same structures as Wonga to the east and west, and analogous structures at northwest and northeast orientations (Figure 2).

Thirty-eight (38) aircore holes were drilled for a total of 2,048m at Wimmera Park (Figures 1, 3). 33 of 38 drillholes returned anomalous gold grades (Table 1). Two of the drillholes ended in anomalous gold grades. Drilling was completed on two lines spaced 800m apart. Drill holes on each line are spaced approximately 100m apart. The drilling was designed to confirm the geology of the Wimmera Park Granite, test for gold mineralisation on the granite contact and surrounding metasediments and to test for gold mineralisation within the thermal aureole on the southern margin of the granite.

Mineralisation remains open to the NE and SE along the granite contact, for 800m between the two drilled lines, and for 2000m south of this drilling program (Figure 3). The gold-arsenic anomalism strongly correlates with a magnetic trend following an interpreted regional anticline (Figure 2). These anomalous results are interpreted to be proximal to more significant mineralisation shoots. There is a strong correlation between anomalous gold and arsenic at the Wimmera Park prospect (Figure 4, 5). The association is very encouraging for follow up drilling - arsenic is a more reliable vector to mineralisation in weathered rocks.

Drilling has defined a 300m wide Au-As zone on the Wimmera Park Granite contact. Minor bismuth and antimony anomalism also occur. The zone correlates to a gravity feature where it is cut by the granite intrusion (Figure 4,5). On the southern drill line, 800m south, comparable Au-As assays are returned. These results follow a linear magnetic feature interpreted as faulting (Figure 3). Sulphide-bearing (arsenopyrite and pyrite) biotite altered metasediments on the granite contact have strong similarities to geology, alteration and mineralisation occurring at the Wonga in Stawell (Figure 2). The geology, mineralisation (Au-As +/- Bi +/-Sb) and structure suggest that the granite plays a role in the emplacement or upgrade of mineralisation, and a granite-related (Intrusive Related Gold or Thermal Aureole Gold) model may apply.

Best anomalous results at Wimmera Park include:
• 3m @ 0.71 g/t Au from 33.00m	(NSAC0282)
• 6m @ 0.23 g/t Au from 48.00m	(NSAC0282)
• 8m	@ 0.22 g/t Au from 34.00m	(NSAC0270*)
• 6m	@ 0.27 g/t Au from 36.00m	(NSAC0273)
• 6m	@ 0.16 g/t Au from 31.00m	(NSAC0272)
• 6m	@ 0.16 g/t Au from 21.00m	(NSAC0297*)

*Ends in anomalous gold

	North Stawell Minerals Ltd
	Level 12, 644 Chapel Street, South Yarra, 3141 Victoria, Australia
4	Telephone [phone]
www.northstawellminerals.com

For personal use only

NORTH STAWELL MINERALS LTD

ACN 633 461 453

ABN 84 633 461 453

Figure 2. Schematic map showing geology and structure between the Stawell Granite and the Wimmera Park Granite. Highlighting the structural and lithological similarities between the Wonga Deposit and the Wimmera Park target.

Anomalous gold results (>0.05g/t Au) at Wimmera Park are summarized in Table 1.

	North Stawell Minerals Ltd
	Level 12, 644 Chapel Street, South Yarra, 3141 Victoria, Australia
5	Telephone [phone]
www.northstawellminerals.com