Peako : Significant PGE Potential - Peako East Kimberly Project

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Significant PGE Potential Identified in Lamboo Ultramafic Complex on Peako's

East Kimberley Project

31 January 2022

Highlights

• Potential identified for a large PGE mineralised system within the known Lamboo Ultramafic Intrusive Complex on Eastman Tenement
• The prospective Intrusive Complex extends for 16.5km within the Eastman Tenement, with structural repetition further enhancing prospectivity
• Anomalous PGE intercepts returned from wide-spaced historical drilling over the entire16.5km strike length of the Lamboo Ultramafic Complex on the Eastman Tenement
• New PGE Exploration Model for the Lamboo Ultramafic Intrusive Complex in the Eastman Tenement further validated by the recent wide PGE and gold intercepts released by Pantoro Limited at its nearby Halls Creek Project

Figure 1: Outline of the Lamboo Ultramafic Complex over 1VD Aeromagnetic Image. Includes collar locations for historical holes that returned intercepts >0.5 g/t Pt+Pd+Au.

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Peako Limited (ASX: PKO, Peako) is pleased to advise that its recent review of the Lamboo Ultramafic Intrusives has identified the potential for a significant platinum group element (PGE) mineralised system within its Eastman Tenement.

Peako's Eastman Tenement (E80/4990) hosts a diverse suite of Proterozoic rocks that include the Koongie Park Formation Volcanic Belt and the Lamboo Ultramafic Intrusive Belt as well as an array of granitoid intrusions. Although the potential of the Lamboo Ultramafic Belt to host PGEs plus Nickel and Copper mineralisation has been recognised by previous explorers, most prior exploration focused on the base metal potential of the Koongie Park Formation.

Encouraged by recent reporting of wide intercepts of PGEs plus gold mineralisation at Pantoro Limited's nearby Halls Creek Project, Peako commenced a prospectivity review of the Lamboo Ultramafic intrusions within its Eastman Tenement. Peako considers that the exploration model for the Lamboo Ultramafics validated by Pantoro at its Halls Creek Project presents a new and compelling exploration target for the Eastman tenement.

Geology

Peako's Eastman Tenement hosts extensive Lamboo Ultramafic Intrusions which aeromagnetic and satellite imagery suggest extends for an aggregate 16.5 km within the tenement. The ultramafic complex is relatively well exposed in the east of the tenement, the central portion has been stoped out by the Eastman Granite and the western portion extends beneath shallow cover, but is clearly visible in the geophysics (Figure 1).

The Lamboo Ultramafic Complex is a layered mafic to ultramafic intrusive complex comprised predominately of pyroxenite, anorthosite and gabbro. The pyroxenite forms the basal unit to the overlying gabbro and anorthosite. The basal pyroxenite zone hosts the PGE mineralisation, often within numerous chromite seams and lenses. The sequence has been variably folded and faulted in places resulting in structural repetition of the sequence. Multiple structural repeats of the sequence adds considerably to the prospectivity of the Lamboo Ultramafic Intrusives on the Eastman Tenement.

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Previous Exploration

Previous exploration of the Lamboo Ultramafic Intrusives within the Eastman Tenement has been limited, and concentrated on the relatively short and discontinuous chromite lenses within the pyroxenite layers, rather than the more continuous and wider pyroxenite layers themselves. Mapping programs by previous explorers identified many chromite lenses within the basal unit, and it is these lenses that were the main target for historical drill testing.

Widespread anomalous PGE intercepts from sparse, wide-spaced historical drilling over the 16.5km extent of the Lamboo Ultramafic Complex indicate an extensive PGE mineralised system (refer Figure 2). Anomalous historical interceptions include,

• 18m @ 1.42 g/t Pt+Pd+Au from 32m
• 20m @ 0.84 g/t Pt+Pd+Au (3E) from 9m, incl. 10m @ 1.26 g/t Pt+Pd+Au (3E) from 9m
• 30m @ 0.47 g/t Pt+Pd+Au (3E) from 77m
• 20m @ 0.48 g/t Pt+Pd+Au (3E) from 131m
• 19m @ 0.47 g/t Pt+Pd+Au (3E) from 86m
• 8m @ 0.81 g/t Pt+Pd+Au (3E) from 19m
• 6m @ 0.86 g/t Pt+Pd+Au (3E) from 105m
• 7m @ 0.65 g/t Pt+Pd+Au (3E) from 40m

Figure 2: Location of historical drill holes with intercepts greater than 0.5 g/t Pt+Pd+Au and some of the more significant historical PGE intersections while drill targeting for chromite.

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New Exploration Model

At its Halls Creek Project located approximately 75 km north-east of Peako's Eastman Tenement, Pantoro Limited has reported wide intercepts of PGE plus gold mineralisation from recent drilling. Results have included,

• 31m @ 2.42 g/t Pt+Pd+Au (3E) from surface1
• 38m @ 2.34 g/t Pt+Pd+Au (3E) from 1m1
• 34m @ 2.02 g/t Pt+Pd+Au (3E) from surface1
• 136m @ 0.93 g/t Pt+Pd+Au (3E) from 44m1
• 100m @ 1.10 g/t Pt+Pd+Au (3E) from surface, inc. 66m @ 1.34 g/t Pt+Pd+Au (3E) from surface2
• 120m @ 0.96 g/t Pt+Pd+Au (3E) from surface, inc. 31m @ 1.24 g/t Pt+Pd+Au (3E) from 89m.2

Significantly, Pantoro has targetted the PGE potential of the pyroxenite layer at the base of the Lamboo Ultramafic rather than solely the chromite lenses within the pyroxenite. This strategy has proved to be successful, resulting in the wide mineralised intercepts reported.

Peako's Eastman Tenement is located on the same Palaeoproterozoic rocks of the Halls Creek Orogeny as Pantoro's Halls Creek Project and, importantly, the geology of the Lamboo Ultramafic Complex appears similar in both project areas. Pantoro's exploration model therefore presents a new exploration target at the Eastman Tenement as previous explorers had focused on the discontinuous chromite lenses rather than targeting the wider more extensive PGE-rich basal pyroxenite zone.

Given the new interpretation, the Lamboo Ultramafics will be a significant focus for Peako's 2022 field activities. The ongoing compilation and interpretation of historical data will underpin the design of drill targets. A program of surface sampling and field mapping early in the field season will be used to refine targeting and develop additional drill targets with drill testing of targets planned for the second half of the field season.

1. "Wide Drill Intersections from Surface Confirm Major PGE System at Halls Creek", Pantoro Limited
   (ASX:PNR), 6 September 2021https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02417842-6A1048986?access_token=83ff96335c2d45a094df02a206a39ff4
2. "Drilling Confirms Large Scale Lamboo PGE Deposit", Pantoro Limited (ASX:PNR), 15 November
   2021https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02451897-6A1062623?access_token=83ff96335c2d45a094df02a206a39ff4

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Summary

Peako is highly encouraged by the potential for a large PGE mineralised system within the Eastman Tenement. Historical exploration confirms the basal pyroxenite hosts anomalous PGE (± gold) mineralisation over much of its 16.5 kilometre strike length. In addition to this, multiple layers of the target horizon are present on the tenement due to the sequence being repeated by folding and faulting. Peako believes previous exploration has not adequately evaluated the PGE potential of the area with previous workers having concentrated on the relatively short and discontinuous chromite lenses rather than the more continuous, wider PGE-rich pyroxenite layers.

For more information

Rae Clark

Director, Peako Limited | [phone] | [e-mail]

Competent Person Declaration

The information in this report that relates to Exploration Results is based on information compiled or reviewed by Dr Paul Kitto who is a member of the Australian Institute of Geoscientists. Dr Kitto is Technical Director of and a consultant to Peako Limited and has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activity which 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 Resources and Ore Reserves. Dr Kitto consents to the inclusion in this report of the matters based on information provided by him and in the form and context in which it appears.

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