Coppermoly : Half Yearly Report and Accounts

A.B.N. 54 126 490 855

CONSOLIDATED INTERIM FINANCIAL REPORT

HALF-YEAR ENDED 31 DECEMBER 2023

Page 1

INDEX	Page
DIRECTORS' REPORT	3
AUDITOR'S INDEPENDENCE DECLARATION	14
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME	15
CONSOLIDATED STATEMENT OF FINANCIAL POSITION	16
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY	17
CONSOLIDATED STATEMENT OF CASH FLOWS	18
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS	19
DIRECTORS' DECLARATION	23
INDEPENDENT AUDITOR'S REVIEW REPORT	24

Corporate Directory

Coppermoly Limited (ABN 54 126 490 855)

Executive Director	Registered office
Dr Wanfu Huang	Unit 18, 180 Morrow Street,
Non-Executive Directors	Taringa, Queensland 4068
Mr Kevin Grice	Telephone:	[phone]
Mr Craig McPherson	Facsimile:	[phone]
Company Secretary	Email: [e-mail]
Mr Craig McPherson	Website: www.coppermoly.com.au

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DIRECTORS' REPORT

DIRECTORS' REPORT

Your directors present their report on the consolidated entity consisting of Coppermoly Limited ("Coppermoly" or the "Company") and the entities it controlled (the "Group") at the end of, or during, the half-year ended 31 December 2023.

DIRECTORS

The following persons were directors of Coppermoly during the half-year and up to the date of this report:

Kevin Grice

Dr Wanfu Huang

Craig McPherson

REVIEW OF EXPLORATION ACTIVITIES

Overview

The Company is focused on copper gold projects in one of the world's most prospective terrain, the Mount Isa Inlier. The Company's Mt Isa projects include two granted tenements and three applied tenements with high-quality IOCG potential within the Eastern Succession and one applied tenement at the Western Foldbelt for Isa style copper system (Fig 1). All six tenements are 100% owned by the Company.

As of 31 December 2023, the Company had interests in the following mineral exploration tenements in Mt Isa, Queensland Australia:

PROJECT

Granted Exploration Permit	EXPIRY DATE	AREA	LOCATION
EPM27835 Fox Creek	4 October 2026	320 km2	Mt Isa, Queensland
EPM27836 Mount Tracey	7 March 2027	294 km2	Mt Isa, Queensland
Applied Exploration Permit	LODGED DATE	AREA	LOCATION
EPM27852 Windy Hill	16 March 2023	320 km2	Mt Isa, Queensland
EPM28853 Malakoff	19 June 2023	305 km2	Mt Isa, Queensland
EPM28854 Mt Marathon	19 June 2023	310 km2	Mt Isa, Queensland
EPM28981 Dynamite	20 December 2023	307 km2	Mt Isa, Queensland

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DIRECTORS' REPORT

Figure 1 - Tenements location on simplified regional geology map of Mount Isa Inlier, Northwest Queensland

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DIRECTORS' REPORT

Foxtails Prospect

The Company's contiguous EPM 27835 (Foxes Creek) and EPM 27836 (Mount Tracey), located 55 km SSW of Cloncurry, are situated along the north-south striking Cloncurry Fault where highly prospective Proterozoic Staveley Formation, Corella Formation and Soldiers Cap Group metasediments are intruded by metal fertile Williams Batholith granites. These two tenements host a number of copper gold prospects.

IP Sounding Surveys were performed at the Shuffleton Prospect and Foxtails Prospect by Echo Vista Geophysics ("EVS") during September and October 2023 (Fig. 2).

Figure 2 - Location Map of the IP Sounding Surveys at Shuffleton and Foxtails prospects in the Eastern Succession, Mt Isa Inlier, Northwest Queensland. Note the background map is an unlevelled mosaic of three Airborne Geotem Surveys, (Soldiers Cap, Mount Tracey and Kuridala Geotem survey)

An IP Sounding survey consisting of two 3-line configurations, for a total of about 7.2-line kilometres, were completed in order to test a Geotem anomaly zone extending over 1.6 km at the Foxtails prospect.

IP Sounding survey detected two significant anomalies. Preliminary modelling suggests that the anomalies trend to the northeast and dip steeply to the northwest.

The first three holes were designed to test highly chargeability anomaly zone (Fig. 3). Once the initial three drill hole data has been collated and verified, a detailed review of all drillhole and assay information, in conjunction with geological modelling, will be completed to better understand the nature and extent of both the higher chargeability and high conductivity zone.

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DIRECTORS' REPORT

Figure 3. Plane view of Chargeability anomaly and proposed RC holes at the Foxtails Prospect.

One of the RC holes was completed during the half year, and the hole intersected magnetite-quartz alteration zone, with minor sulfur visible from RC rockchips. Detailed assay data is expected from AlS Mount Isa Lab shortly. RC drilling will be resumed once weather conditions permit.

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DIRECTORS' REPORT

Shuffleton Prospect

The Shuffleton Prospect hosts a number of historical copper mines and workings operated from 1940s to 1960s, with little known modern exploration programs having been applied to this area. The Company previously reported a broad soil geochemical anomaly in early 2023, which was followed by field mapping.

Three northeast-southwest trending survey lines with 100m line spacings for a total of 3.6-line kilometres were completed during the half year (Fig. 4).

Figure 4. Location map of IP survey stations/lines and chargeability contours at -400 m depth at Shuffleton Prospect. Note a chargeability high anomaly near the Mt Kalkadoon Mine.

On the IP sounding profiles, the partially mined out ore zone at Mt Kalkadoon Mine does not display a high chargeability anomaly, with only a weak dyke shape anomaly extending downdip for about 200 m detected (Fig. 5).

An evident chargeability anomaly (SCM01) was detected from around 250 m depth extending from the above weak anomaly. This chargeability anomaly dips to the northeast and poses a modest conductivity zone. An additional larger chargeability anomaly (SCM02) with high conductivity zone lies 500m east of the Mt Kalkadoon Mine. This chargeability anomaly also dips steeply to the northeast.

The SCM01 and its upward weak anomaly at the Mt Kalkadoon Mine appear to fit well within our mineralisations model, being breccia zone hosted Iron-Sulphide Copper Gold (ISCG) systems controlled by major faults. The chargeability anomaly is not as strong but it is consistent with IP signatures of similar type of ore bodies in the Eastern Succession, Mount Isa Inlier.

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DIRECTORS' REPORT

Figure 5. - 2D chargeability psedusection (top) and resistivity pseudosection (bottom) of Line 1000 over the Mt Kalkadoon Mine. Note that SCM01 is about 250m below the known ore zone but sits above a major fault zone.

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DIRECTORS' REPORT

The resistivity profile shows major contrast between Soldiers Cap Group and Staveley Formation (Fig.5b). From a geological point of view, the boundary between Soldiers Cap Group and Staveley Formation can be interpreted to be a thrust contact. The chargeability anomaly lies above a major NE dipping thrust zone.

The SCM02 IP chargeability anomaly on the northeastern part of the survey line displays much high tenor Pm >22%, and low resistivity < 120 Ω.m.

Three holes (SCM2301, SCM2302 & SCM2303) to test these chargeability anomalies are proposed (Fig. 5). RC drilling will commence when the weather conditions permit.

Windy Hill Prospect

Windy Hill Prospect is located approximately 80 kilometres south-west of Cloncurry. Access is via Cloncurry approximately 80 kilometres along the Duchess Road to Devoncourt Homestead, then approximately 20 kilometres south along station tracks. Access in the property is generally good.

The Windy Hill prospect, initially located by CRAE, is a mineralized breccia within Argylla Formation rhyodacite volcanics. At Windy Hill the volcanics are moderately sericitized. Pegmatite dykes cut the strong 30° trending 70°E dipping foliation. Gossanous zones associated with quartz veining occur in the immediate vicinity of the Windy Hill breccia. Poorly exposed breccia is variably mineralized at the prospect.

The area selected was thought to have good potential for copper-gold and gold mineralisations associated and magnetite concentrations, as observed at the Ernest Henry and Osborne deposits. Contacts with the 1500 Ma Wimberu Granite are thought to be prospective for this type of mineralisations system, but have not been targeted previously.

MIM Exploration did some works in 1980s, including ground magnetic, ground gravity and down hole EM surveys at around the Windy Hill anomaly, mainly targeting magnetic anomaly. MIM also did costean - 7 trenches for 1.1km aggregate - the surface expression of the anomaly.

Significant results from the costean are shown below.

Tl 75m at 316 ppm Cu

T2 160m at 0.15% Cu (including 48m at 0.3% Cu and 24m at 0.33 g/t Au)

T3 184m at 0.35% Cu (including 40m at 1.2% Cu and 36m at 0.62 g/t Au)

T4 154m at 0.3% Cu (including 30m at 0.9% Cu and 40m at 0.28 g/t Au)

T5 176m at 0.17% Cu (including 18m at 0.29% Cu)

T6 150m at 0.13% Cu (including 38m at 0.28% Cu) T7 122m at 0.12% Cu (including 8m at 0.28% Cu)

However RC drilling below these results intersected narrower oxide Cu intersections and only two hypogene hits, associated with magnetite-pyrite veins, were encountered.

Although the results were disappointing on the prospect scale, the presence of mineralized breccias associated with magnetic highs within the Argyll Formation is of some significance on the regional scale. As late airborne magnetic survey reveals that the Windy Hill magnetic high complex extends over 2 km to the NNE, and the fact that the anomaly is mineralised strengthens the case for further exploring its northern extension (Fig. 6).

Windy Hill Prospect seems to be a genuine Wimberu Granite related breccia pipe/ IOCG system developed in Argylla rhyodacite with low grade Cu but significant U anomalism. Significant REE's is also a distinct possibility.

Further systematic review of the mineralisation system in this prospect and its extension to the north is ongoing.

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DIRECTORS' REPORT

Figure 6 - Windy Hill Prospect and its large magnetic high complex, 80 km SSW of Cloncurry.

Mt Malakoff Prospect

The Mt Malakoff Prospect is about 45 km north of Cloncurry. Most parts of the area are under a thin late Tertiary and Quaternary sediments, but Middle Proterozoic Naraku Granite and Corella Formation is outcropped locally. In the 1970s, Chevron and Minad were exploring for the cover hosted roll front Uranium deposits in the area.

Drill hole geological and downhole geophysical logs provide some basement information for geophysical typing, geological interpretation. Recent high resolution aeromagnetic data can be used to scan large scale IOCG targets similar to Ernest Henry Cu-Au system (Fig. 7).

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