Dampier Gold : HIGH GRADE SOILS RESULTS CONFIRM GOLD CORRIDORS AT CREDO

ASX RELEASE

21 January 2021

HIGH GRADE SOILS RESULTS CONFIRM

ANOMALOUS GOLD CORRIDORS AT CREDO

Credo follow-up Soil Survey defines new anomalous corridors and further targets

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Key Points:

• Following on from the successful first RC drilling program at Credo which identified JORC compliant resources of 12,259 oz Au (see announcement on 2 June 2020), and the high-grade site orientation soil survey which confirmed en-echelon new gold structures (see announcement on 7 October 2020), results have been received for 394 soil samples in the Credo Well area extending the soil coverage from the previous orientation survey.
• Several anomalous zones (>5ppb) have been identified with results up to 45 ppb Au. The distribution also supports the mineralisation model of high-grade gold along the intersection of north east trending structures with the major north west trending fold in the area.
• Soils have confirmed the untested structure between the Credo Well and Credo Well North resources.
• A strong gold trend has been identified, parallel to the Credo Well mineralisation.
• The soils were also analysed for multielement and these are confirming mapping and geophysical geological interpretations also.
• A reverse circulation (RC) drilling program is being planned to test these new targets.
• A drilling contractor has been engaged for the aircore program at Zuleika and is due to commence in late January with the RC program to be completed as part of this ongoing aggressive exploration program.

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Dampier Gold Limited (ASX:DAU, Dampier or the Company) is pleased to announce the results of at their Credo Gold JV with Torian Resources Limited (Credo Gold Project).

The survey extended the orientation soil sample (see announcement on 7 October 2020) over the corridor between the previously defined Credo NW and the Credo Well resources. This part of the Credo JV tenements is amenable to surface soil sampling due to the relatively shallow weathering profile over the host gabbro.

Results of up to 193 ppb Au were received from the Credo Well North area in the orientation survey amongst a background level of gold of 2-5 ppb. Results from the recent sampling have returned several anomalous zones >5 ppb Au with up to 45 ppb Au in addition to the anomalies from the orientation survey up to 193 ppb Au.

These zones fall within a broad north west trending corridor that contains the resources at Credo Well and Credo Well North. This gold trend is coincident with a regional north west trending fold thought to have been a focus for fluid movement allowing open spaces to form in cross cutting structures within the normally competent gabbro host.

DAMPIER GOLD LIMITED (ASX:DAU)

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36 Prestwick Drive, Twin Waters, Queensland 4564

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The north east trending shears that host gold in drilling at Credo Well and Credo Well North suggest that they may be repeated in the anomalous zones throughout the soil survey (see Figure 1 and Figure 2). The gold also has support in arsenic assay results with a broad anomaly coincident with the high-grade corridor, further defining a hydrothermal gold system.

These results confirm the geological and mineralisation model seen at Credo Well and Credo Well North with the potential for one or more of these zones to provide further high-grade gold intercepts to supplement the known resources in the area.

Figure 1 Gridded gold results in soils and interpreted high grade corridor

Figure 2 Gridded gold drill results and interpreted high grade corridor

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Reverse Circulation drilling will be undertaken the upcoming exploration programs to test the new anomalous zones due to the fresh gabbro near the surface in this part of the tenement area. The Gabbro host for the gold in the Credo Well area has been folded then fractured by late north east trending structures. The brittle nature of the fracturing provides for excellent quartz vein development with gold hosted mostly within the veins.

This drilling will be undertaken as part of the extensive drilling program currently scheduled to commence by the end of January. A drilling contractor has been secured and an aggressive program of Aircore and Reverse Circulation drilling is planned for the coming months. (see ASX announcement on the 17 December 2020)

A Maiden Resource for both Credo NW and Credo Well was announced on 02 June 2020 (DAU ASX) with a total resource of over 12,000oz Au from the 2 deposits in locations as shown below in Figure 3 and Table 1.

Figure 3 Credo Well area pit outlines, in interpreted high grade corridor

			Inferred Resources
Resource Area		Cutoff g/t	Tonnes	Grade g/t	Contained
	Au	Au	Au Oz
Credo Well OC	0.50	24,161	5.24	4,068
Credo Well HG		5.00	3,223	6.65	689
Credo Well Total			27,776	5.33	4,757
Credo Well NW OC	0.50	54,976	3.75	6,616
Credo Well NW HG		5.00	4,159	6.63	886
Credo Well NW Total			59,135	3.95	7,502
Total Open Cut	0.50	79,137	4.20	10,684
Total High Grade	5.00	7,382	6.64	1,575
Total Resources			86,519	4.41	12,259

Upper cut off 30g/t applied

Table 1 JORC 2012 Resource Summary Credo Well JV

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Authorised for release by

Malcolm Carson

CHAIRMAN

Competent persons statement

The information in this report that relates to the Statement of Mineral Resource Estimates exploration results has been compiled by Mr David Jenkins, a full-time employee of Terra Search Pty Ltd, geological consultants employed by Dampier Gold Ltd. Mr Jenkins is a Member of the Australian Institute of Geoscientists and has sufficient experience in the style of mineralisation and type of deposit under consideration and the activity which they are undertaking to qualify as Competent Persons as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves ("JORC Code"). Mr Jenkins consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.

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