Chesser Resources : Half Yearly Report and Accounts

For personal use only

Chesser Resources Limited

ABN 14 118 619 042

Interim Financial Report

For the half-year ended 31 December 2021

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For personal use only

Chesser Resources Limited

Interim Financial Report for the half-year ended 31 December 2021

Directors' report

The directors of Chesser Resources Limited (the "Company" or "Chesser") submit herewith the half-year financial report of the Company and the entities it controlled for the half-year ended 31 December 2021 (collectively "Group"). To comply with the provisions of the Corporations Act 2001, the directors report as follows.

Directors

The following persons were directors of Chesser Resources Limited during the half-year under review and up to the date of this report, unless otherwise stated:

• Mr. Mark Connelly, Non-Executive Chairman
• Mr. Andrew Grove, Managing Director
• Mr. Simon O'Loughlin, Non-Executive Director
• Mr. Simon Taylor, Non-Executive Director
• Mr. Robert Greenslade, Non-Executive Director

Company secretary

Mr. Stephen Kelly was the Company Secretary during the whole of the half-year under review and up to the date of this report.

REVIEW OF OPERATIONS

The following is a summary of the activities of Chesser during the period 1 July 2021 to 31 December 2021. It is recommended that this half-yearly report be read in conjunction with the 30 June 2021 Annual Report and any public announcements made by the Company during the period.

EXPLORATION OVERVIEW

DIAMBA SUD PROJECT

During the half-year, the Company significantly advanced the Diamba Sud gold project through the following exploration activities:

• Completion of the Phase 6 drill program.
• Announcement of a robust 781koz Au maiden mineral resource estimate for Areas A and D incorporating results from historical drill programs up to, and including, the Phase 6 drill program.
• Completion of the Phase 7 drill program resulting in a new discovery in Area H.
• Completion of metallurgical test work in relation to Area D.

PHASE 6 DRILL PROGRAM

The Company completed the approximate 10,000m Phase 6 resource definition drill program, during the half-year.The RC and diamond drill program was commenced in the prior financial year and was designed to infill and extend the identified mineralisation, demonstrate the scale of the mineralised systems, and to better understand the controls on mineralisation prior to preparing the maiden resource estimate for Areas A and D.

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Chesser Resources Limited

Interim Financial Report for the half-year ended 31 December 2021

Directors' report

For personal use only

Figure 1 Diamba Sud Project - drilling, IP and geochemistry

AREA A

Drilling defined continuous high-grade gold mineralisation over a strike length of at least 250m at Area A. North of section 1429560mN, mineralisation strikes in a northwest-southeast direction possibly associated with the interpreted dilatational fault and south of section 1429560mN high-grade mineralisation strikes north-south. Mineralisation appears to be best developed where structures intersect the favourable calcareous sedimentary breccia lithological units. Mineralisation remains open along the strike of these structures.

Four holes drilled on section 1429585mN at Area A identified shallow oxide mineralisation within a calcareous sedimentary breccia unit. Significant results in the oxide include:

• DSR295: 17m at 1.7 g/t gold
• DSR292: 4m at 2.9 g/t gold
• DSR293: 12m at 3.9 g/t gold

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For personal use only

Chesser Resources Limited

Interim Financial Report for the half-year ended 31 December 2021

Directors' report

Below the oxide, significant widths of mineralisation were intersected within a thick sequence of calcareous sedimentary breccia rocks which in turn are terminated against a flat lying felsic intrusive, which may represent a late-stage fault or thrust. Mineralisation is especially well developed in hole DSR295 and remains open at depth. The extensive mineralisation development intersected by DSR295 may also be related to the interpreted northwest-southeast dilutional fault. Significant results in the fresh include:

• DSR295: 11m at 4.0 g/t gold, 9m at 2.5 g/t gold, 30m at 1.4 g/t gold and 19m at 2.6 g/t gold
• DSR287: 10m at 6.3 g/t gold
• DSR292: 7m at 2.0 g/t gold
• DSR293: 7m at 3.5 g/t gold and 3m at 3.6 g/t gold
• DSR294: 10m at 3.0 g/t gold
• DSR283: 6m at 1.8 g/t gold, 7m at 1.8 g/t gold and 3m at 2.6 g/t gold
• DSR284: 1m at 19.0 g/t gold

Other high-grade intercepts by drill section returned for Area A include:

Section 1429560mN:

• DSR304: 44m at 5.3 g/t gold from 10m, 11m at 6.1 g/t gold from 95m and 5m at 1.3 g/t gold from 118m
• DSR302: 2m at 6.1 g/t gold from 49m, 4m at 2.7 g/t gold from 53m, 4m at 7.1 g/t gold from 61m and 6m at 2.3 g/t gold from 96m
• DSDD060: 8.8m at 1.7 g/t gold from 49m

Section 1429540mN:

• DSR301: 3m at 19.2 g/t gold from 73m, 16m at 7.3 g/t gold from 88m, 14m at 3.0 g/t gold from 108m, 8m at 1.4 g/t gold from 145m and 8m at 1.6 g/t gold from 159m
• DSR303: 19m at 5.1 g/t gold from 79m
• DSR309: 10m at 4.8 g/t gold from 22m and 10m at 1.8 g/t gold from 78m

Section 1429510mN:

• DSR300: 4m at 1.0 g/t gold from 14m, 7m at 3.5 g/t gold from 80m, 4m at 6.7 g/t gold from 103m and 7m at 7.7 g/t gold from 135m

Section 1429380mN:

• DSDD063: 6.6m at 4.3 g/t gold from 302.5m

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Chesser Resources Limited

Interim Financial Report for the half-year ended 31 December 2021

Directors' report

For personal use only

Figure 2: Area A plan view showing drilling and grade histograms highlighting high-grade corridor

Area

mineralisation near the Northern Arc structure with two holes also returning material high grade intercepts within the underlying fresh sedimentary breccia units. These results highlight the potential for identifying additional high-grade mineralisation at depth and will be the target of future drilling campaigns. Significant results included:

• DSDD044: 63 m at 5.8 g/t gold from 9m including 25.2m at 4.7 g/t gold (fresh) from 46.8m
• DSDD042: 41.5m at 3.9 g/t gold from 12m, 5m at 1.2 g/t gold (fresh) and 6m at 1.0 g/t gold (fresh)
• DSDD040: 29.4m at 5.0 g/t gold from 28m
• DSDD043: 9m at 1.7 g/t gold from 9m and 14m at 5.4 g/t gold from 20m
• DSDD049: 9.5m at 1.1 g/t gold from 11m, 9m at 2.5 g/t gold from 28.5m, 1.5m at 9.2 g/t gold (fresh) and 3.8m at 5.9 g/t gold (fresh)

• DSDD047: 6m at 1.1 g/t gold from 15m, 9.1m at 1.8 g/t gold from 28m and 5.1m at 1.6 g/t gold from 39.5m

Two holes drilled on section 1429425mN on the western margin of Area D intersected oxide and fresh mineralisation that remains open to the west and will be a target of future drilling programs.

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