Navarre Minerals : 16/01/2017 – Multiple surfaces of gold mineralisation at Irvine prospect

ASX Announcement

16 January 2017

Navarre Minerals Limited

ABN 66 125 140 105 ASX Code: NML

Corporate Details

Issued capital:

173.9M ordinary shares 34.7M 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)

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

Discovery of multiple surfaces of gold mineralisation at Irvine prospect near Stawell, Victoria

• Air-core (AC) drilling confirms multiple surfaces of gold mineralisation along both flanks of Irvine basalt dome
• Shallow broad zones of gold mineralisation of up to 30m wide from surface are confirmed over an additional 250m to total 800m strike length on Target 3
• Best new results from Irvine East Flank (Target 3) include:
  • 6m at 4.2 g/t gold from 17m (IAC058) within a broader zone of 18m at 1.6 g/t gold from 5m down hole
  • 4m at 2.3 g/t gold from 25m (IAC054) within a broader zone of 15m at 1.0 g/t gold, from 25m down hole
• Target 3 remains open along strike and at depth
• Gold intersected on two surfaces on the western side of the Irvine basalt in reconnaissance drilling. A best intercept of 9m at 1.3 g/t gold from 7m down hole (IAC077)
• Results from a further 10 AC holes are pending
• Deeper Reverse Circulation (RC) / diamond drilling expected to commence in February / March 2017
• Exploration is co-funded by the Victorian Government's TARGET Minerals Exploration Initiative grant

Navarre Minerals Limited (Navarre or the Company) is pleased to announce further results from its maiden AC drilling program recently completed at its 100%-owned Stawell Corridor Gold Project, located 15km south of Stawell in western Victoria (Figure 1).

Significant new results have been received from a further 48 AC holes testing for near-surface oxide gold zones across several targets located adjacent to the flanks of the Irvine basalt dome (see Table 1 and Figure 2).

On the East Flank, new results from an area known as Target 3 continue to show broad zones of shallow gold mineralisation extending to the north. The highlight result was from drill hole IAC058 that returned 6m at 4.2 g/t gold from within a broader zone of 18m at 1.6 g/t gold from 5m down hole.

Target 3, considered to be a new discovery, has grown to over 800m long and remains open along strike and at depth.

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

Two new gold surfaces have been discovered adjacent to the West Flank of the Irvine basalt dome. Wide-spaced scout drilling has confirmed known styles of gold mineralisation typically occurring at Stawell. The highlight result is 9m at 1.3 g/t gold on the basalt contact in drill hole IAC077.

Navarre Managing Director, Mr Geoff McDermott, said: "The results received to date from the Irvine gold prospect are very encouraging. We are confident that there is genuine potential for significant discoveries of multiple surfaces of gold mineralisation along both margins of the 8km long Irvine basalt dome.

"In our recently completed drilling program, which has been testing to an average depth of 45m from surface, we recognise similar rocks and gold mineralisation styles as occur nearby in underground mining at Stawell's 4Moz Magdala Gold Mine.

"Our drill results support proceeding to a follow-up program of diamond/RC drilling to test for depth extensions of the shallow gold we have discovered to date.

"We will also look to advance our exploration program to the south over the full extent of the Irvine basalt dome that is situated beneath the 1 Moz alluvial gold footprint of the Ararat Goldfield."

Figure 1: Stawell Corridor Gold Project location map.

Figure 2: Drill hole location plan showing reconnaissance AC drilling results and assay status.

Irvine AC Drill Results

In mid-December 2016, the Company completed its maiden drilling program at the Irvine gold prospect. The program comprised a total of 4,906m in 105 AC drill holes. Assay results for batch 3 of 4 batches of drill samples have been received and are the subject of this release. Results for sample batches 1 and 2 were previously reported to the ASX in releases on 1 and 15 December 2016. Results for the final batch of samples, comprising the last 10 AC holes, will be reported when they become available.

The results to date demonstrate a strong resemblance to the surface expressions of the two main mineralisation styles present in the Magdala Gold Mine at Stawell, which are basalt contact mineralisation and quartz reefs (see Figure 6 and refer background notes at the end of this release).

The results discussed below relate to multiple mineralised gold surfaces occurring on both sides of the Irvine basalt dome (see Table 1; Figures 2 - 5).

East Flank Targets of Irvine Basalt Dome Target 3

Results have now been received for all 46 AC holes drilled into Target 3 (Figures 3 - 5). In testing the target, most of the drill holes were orientated perpendicular to the geology (where access allowed), inclined at 60 degrees, and drilled to refusal (fresh bedrock). The holes were drilled on nominal 30m (east-west) spacing on eight (north-south) traverse lines situated 100m apart.

The new results come from two northern drill sections (see Table 1; Figures 3 - 5). They confirm a 250m extension of surface oxide gold mineralisation which remains open along strike and at depth. Highlights from the new results include:

• 6m at 4.2 g/t gold from 17m (IAC058) within a broader zone of 18m at 1.6 g/t gold from 5m down hole
• 4m at 2.3 g/t gold from 25m (IAC054) within a broader zone of 15m at 1.0 g/t gold from 25m down hole Previously reported significant results include (see Figure 3):
• 6m at 6.3g/t gold from 66m (IAC018) including 1m at 24.6 g/t Au
• 2m at 41.5g/t gold from surface (IAC018)
• 8m at 1.2g/t gold from 18m (IAC017) from a broader zone of 20m at 0.9g/t Au from 18m
• 7m at 2.7g/t gold from 31m (IAC034) from a broader zone of 36m at 1.0g/t gold from 2m
• 12m at 1.6g/t gold from 48m (IAC027), including 1m at 12.6 g/t gold
• 12m at 1.2/t gold from 12m (IAC029) from a broader zone of 60m at 0.6g/t gold from surface
• 14m at 1.4g/t gold from 5m (IAC040)
• 11m at 1.4g/t gold from 56m (IAC043)

  Interpretation of Target 3:

• the gold mineralisation intersected is believed to represent a near surface, oxidised expression of basalt contact style gold mineralisation associated with quartz stockwork veining;

• the geology and gold mineralisation appear to be continuous over 800m of strike and remain open along strike and at depth;

• the gold mineralisation dips steeply to the west and has horizontal widths of up to 30m at surface (see Figure 3 - IAC034 36m @ 1.0 g/t Au). Mineralisation widths reduce to approximately 5-10m at the base of oxidation where higher grade un-oxidised mineralisation commences (see Figure 3 - IAC018 6m @ 6.3 g/t Au);