Navarre Minerals : 08/03/2017 – Diamond drilling commences at Irvine gold prospect

ASX Announcement

8 March 2017

Navarre Minerals Limited

ABN 66 125 140 105 ASX Code: NML

Corporate Details

Issued capital:

173.9M ordinary shares 36.1M unlisted options

Directors & Management:

Kevin Wilson

(Non-Executive Chairman)

Geoff McDermott (Managing Director)

John Dorward

(Non-Executive Director)

Colin Naylor

(Non-Executive Director)

Jane Nosworthy (Company Secretary)

Shane Mele (Exploration Manager)

Contact Details

Geoff McDermott Managing Director

Navarre Minerals Limited 40 - 44 Wimmera Street

Stawell VIC 3380 Australia

PO Box 385

Stawell VIC 3380 Australia

Tel: [phone]

Email: [e-mail] Website: www.navarre.com.au

Diamond drilling commences at Irvine gold prospect, western Victoria

• Drilling of an 18-hole, 3,000m diamond drilling program commenced today (RD001)
• Drilling is targeting a potential depth extension to shallow oxide gold mineralisation discovered in air-core drilling in December 2016 (known as the Resolution Lode)
• The diamond drilling program is co-funded by a Victorian Government TARGET Minerals Exploration Initiative grant

  Navarre Minerals Limited (ASX Code: NML) (Navarre or the Company) is pleased to report the commencement of a 3,000m, 18-hole diamond drilling program at the Irvine gold prospect, part of its 100%-owned Stawell Corridor Gold Project, located 15kms south of Stawell in western Victoria (Figures 1 & 4).

  The program is targeting potential depth and strike extensions to the recently discovered shallow oxide gold Resolution Lode. Drilling is planned for completion in May 2017 with first results expected by the end of April.

  Ballarat-based Titeline Drilling Pty Ltd has been engaged to deliver the drilling program.

  Navarre's Managing Director, Geoff McDermott, said:

  "We are excited to commence drilling operations seeking to expand along strike and at depth the recent near-surface gold discovery known as the Resolution Lode, which has geological similarities to the 4 million ounce Magdala gold deposit at Stawell.

  "Stawell-style gold orebodies are highly prized because the gold is fine-grained, more continuous and predictable, and extend to a greater depth (Magdala produced gold from surface to 1,640m) than gold mineralisation typically found at Victoria's other goldfields such as Bendigo and Ballarat.

  "We appreciate the support of the Victorian Government with a co-funding grant awarded under the TARGET Minerals Exploration initiative, which gives us the opportunity to test our ideas, culminating in a 3,000m diamond drilling program.

  "Based on encouraging results to date, and underpinned by a highly experienced geological team, Navarre has every reason to be encouraged and confident as we commence this important phase of the exploration process."

  Navarre Minerals Limited | ABN 66 125 140 105

  40 - 44 Wimmera Street | PO Box 385 | Stawell VIC 3380 Australia t [phone]

  e [e-mail] | w navarre.com.au

  Figure 1: Stawell Corridor Gold Project location map.

  Diamond Drilling Program

  The diamond drilling program, comprising up to 18 diamond holes for approximately 3,000m of drilling, has been designed to test for the strike and depth continuity of the recently discovered Resolution Lode, part of the Irvine gold prospect (Figures 2 & 3). The main target area of the diamond drilling program is shown in a long projection (Figure 2).

  The diamond drilling program follows a maiden 105 hole, 4,906m air-core (AC) drilling program which resulted in the discovery of significant oxide gold mineralisation from surface to an average depth of 45m (referred to as the Resolution Lode). The gold mineralisation occurs over a strike length of 800m and remains open along strike and at depth. Significant results, previously reported (see NML ASX releases of 1 & 15 December 2016 and 16 January 2017), from the initial AC drilling include:

  • 6m at 6.3 g/t gold from 66m (IAC018) including 1m at 24.6 g/t gold

  • 2m at 41.5 g/t gold from surface (IAC018)

  • 6m at 4.2 g/t gold from 17m (IAC058)

  • 4m at 2.2 g/t gold from 25m (IAC054)

  • 7m at 2.7 g/t gold from 31m (IAC034)

  • 12m at 1. 6g/t gold from 48m (IAC027), including 1m at 12.6 g/t gold

  • 12m at 1.2 g/t gold from 12m (IAC029) from a broader zone of 60m at 0.6 g/t gold from surface

  • 14m at 1.4 g/t gold from 5m (IAC040)

  • 11m at 1.4 g/t gold from 56m (IAC043).

    The Resolution Lode gold mineralisation dips steeply to the west and has horizontal widths of up to 30m at surface. Mineralisation widths reduce to approximately 5-10m at the base of oxidation where higher-grade un-oxidised mineralisation commences (e.g. IAC018 6m at 6.3 g/t gold).

    Figure 2: Longitudinal projection of the Resolution Lode showing recent AC drill intercepts and the area of the proposed diamond drill program (refer to Figure 3 for location of Resolution Lode).

    The planned diamond drilling program is expected to comprise HQ size core (64mm diameter), which will allow for representative samples and data to be collected for:

  • gold grade determination;

  • geotechnical logging and rock strength;

  • structural measurements;

  • petrological examination;

  • metallurgical sampling and test work; and

  • twin holes of selected AC drill holes for validation purposes.

The program will consist of angled drill holes ranging in length from 150m to 250m, drilled along the 900m extent of the target area (Figure 2 above shows a plan of the recent AC drilling with the planned diamond drilling target area).

Resolution Lode

Figure 3: Geological interpretation of the Irvine basalt dome, location of the Resolution Lode and historic alluvial gold footprint of the 1Moz Ararat Goldfield