Coppermoly Limited (ASX:COY or 'the Company') is pleased to announce the results of a ground geophysical EM program completed at both the Nakru 2 Northwest and Nakru 3 prospects on the Mt Nakru Project (EL1043), on the island of New Britain, Papua New Guinea.

The ground EM program was conducted as a follow up to a trenching program which had previously located high-grade copper-zinc mineralisation at both Nakru 2 Northwest and Nakru 3. Trench NK19_T02 returned 11m @ 4.13% Cu, 9.04% Zn, 0.29g/t Au & 47g/t Ag, at the Nakru 2 Northwest prospect and trench NK19-T14-2B returned 6m @ 2.23% Cu, 8.23% Zn, 1.96g/t Au and 236g/t Ag, at the Nakru 3 prospect. The objective of the ground EM survey was to define targets, related to the mineralisation exposed in the trenches, for follow up drill testing.

Coppermoly's Managing Director Dr. Wanfu Huang commented that the results from ground EM surveys strongly complemented the results from the trenching program, which discovered the high-grade copper-zinc mineralisation at Nakru 2 Northwest and Nakru 3, defining a clear drill target at Nakru 2 Northwest and providing indications at Nakru 3 that the mineralisation exposed in the trenches could potentially be part of larger mineralised systems.

'At Nakru 2 Northwest the ground EM defined a clear drill target 250m along strike from the high grade copper-zinc mineralisation in trench NK19_T02, which returned 11m @ 4.13% Cu and 9.04% Zn and now we can move to finalising plans for drill testing both the EM conductor and copperzinc mineralisation exposed in trench NK19_T02 at Nakru 2 Northwest' he said.

'At Nakru 3 we also have confirmed high-grade copper-zinc mineralisation which the EM data suggests is part of much larger alteration zones which potentially indicates that the mineralisation is more extensive than what has been intersected in the surface trenching.' Dr. Huang said.

Nakru 2 Northwest Ground EM Geophysical Survey Results

The Nakru 2 Northwest prospect is located approximately 500m northwest of the Nakru 2 Mineral Resource, which is estimated as 6.33Mt @ 0.85% Cu, 0.04g/t Au & 2.34g/t Ag and classified as Inferred in accordance with JORC 20126 . Five trenches constructed between October-November 2019, exposed high-grade copper and zinc mineralisation. The trenches expose the mineralisation over a strike length of at least 150m and over a down-dip extent of at least 50m. Within these trenches the exposed copper-zinc mineralisation is of 10-15m variable width, within a zone of strong alteration which varies in width from 15-60m. The mineralisation located to date can be generally described as a combination of structurally controlled and 'stratabound' hydrothermal felsic breccia with polyphase quartz stockwork. Alteration is dominated by silica- clay-pyrite with commonly disseminated copper and zinc sulphides. The best results from the trenching at the Nakru 2 Northwest prospect include; Trench NK19_T03 - 11m @ 4.13% Cu & 9.04% Zn, Trench NK19_T01 - 5m @ 5.73% Cu & 1.77% Zn and Trench NK19_T04 - 4m @ 5.16% Zn7 .

At the Nakru 2 Northwest prospect two EM transmitter loops were used to energise the known mineralisation and readings of the EM response were taken on lines orthogonal to the long axis of the transmitter loop. Loop 1 was orientated with its long axis northeast - southwest with reading lines running northwest - southeast. Loop 2 was orientated with itslong axis northwest-southwest with reading lines running northeast-southwest.

The purpose for energising the mineralisation at the Nakru 2 Northwest prospect with EM loops of two different orientations, was to ensure that the mineralisation exposed in the trenches was effectively energised if the mineralisation was steeply dipping and striking northeast or if the mineralisation was shallowly dipping to the northeast and striking northwest.

From Loop 1, 5875 line/m of data were collected at station spacings of 25-50m on lines 50-100m apart. From Loop 2, 2600 line/m of data were collected at station spacings of 25-50m on lines 100m apart. The X, Y and Z components of the secondary EM response were recorded at each station spacing.

From Loop 1 an anomalous 'late time' EM response was recorded near the edge of Loop 1 on line 5500N. Modelling of the Loop 1 EM anoamly suggests its causative source is a plate like conductor, of moderate conductivity, 120m x 120m in dimensions, dipping at 20 degrees to the northeast and at a depth of approximately 110m. A drill hole of approximately 200m in length has been planned to test the plate conductor. The plate conductor identified at Nakru 2 North west is interpreted to occur along strike and down plunge from the high-grade copper-zinc intersection in trench NK19-T02 and hence represents a quality drill target. No anomalous EM conductors were recorded from Loop 2 at the Nakru 2 Northwest prospect.

Nakru 3 Ground EM Geophysical Survey Results

The Nakru 3 prospect is located approximately 800m north-east of the Nakru 1 Inferred Mineral Resource and 2.3km east of the Nakru 2 North-West prospect. Historical surface geochemistry sampling at Nakru 3 showed several areas with elevated Cu and Zn values which provided the encouragement to proceed with a trenching program at Nakru 3. Fourteen trenches for a total of 835m were constructed in the general area around the Nakru 3 during October-November 2019.

Trenches NK19_T14_2B, NK19_T12_2 and NK19_T12_3 exposed copper-zinc-gold-silver mineralisation, within exposed pyrite-silica-clay alteration zones and extensive quartz stockwork veining. The area of alteration extends beyond the limits of the area which was trenched. The thickest and highest-grade copper-zinc-gold-silver mineralisation at Nakru 3 was exposed in trench NK19-T14_2B which returned 6m @ 2.23% Cu, 8.23% Zn, 1.96g/t Au and 236g/t Ag8 . The massive sulphide copper-zinc mineralisation occurs within consistent zones of steeply dipping silica-rich rhyodacite breccias containing disseminated sulphides. The mineralisation located to date can be generally described as a combination of structurally controlled and 'stratabound' hydrothermal felsic breccia with polyphase quartz stockwork mineralisation. Alteration is dominated by silicaclay-pyrite with commonly disseminated copper and zinc sulphides.

As the strike of the mineralisation at Nakru 3 was thought to be generally to the north - northeast, a single EM transmitter loop was used to energise the known mineralisation. The transmitter loop was orientated with its long axis north-south and EM readings were collected on lines orientated east-west. The EM reading lines were spaced 100m apart and readings were taken at 25-50m station spacings along the lines. The X, Y and Z components of the secondary EM response were recorded at each station spacing.

The EM data from Loop 1 identified a broad conductive zone, trending northwards from trench NK19_T12_2, which returned 2m @ 0.41% Cu, 1.45% Zn, 1.11g/t Au & 364g/t Ag, through trench and NK19_T12_3, which returned 2m @ 0.16% Cu, 0.5% Zn, 0.14g/t Au and 5.35g/t Au and extending further north beyond the area which was covered with EM data. This broad conductive zone is interpreted to be due to conductive material within an alteration zone associated with the mineralisation exposed in trenches NK19_T12_2 and NK19_T12_3.

The EM data from Loop 1 at Nakru 3, also highlighted a zone of reduced conductivity, trending northeast across the entire survey area. Occurring within this zone of reduced conductivity is trench NK19-T14-2B, which returned 6m @ 2.23% Cu, 8.23% Zn, 1.96g/t Au and 236g/t Ag9 . The large area of reduced conductivity is interpreted as an alteration zone, different in its form to the alteration zone associated with trenches NK19_T12_2 and trench NK19_T12_3, as the alteration appears to have reduced conductive material within the alteration zone. This suggests that the processes which lead to the mineralisation on the western and eastern sides of the Nakru 3 prospect were quite different and may have occurred at different geological times. However, the EM data does suggest that there are two large alteration systems at the Nakru 3 prospect, indicating the mineralisation exposed in the trenches completed to date, could potentially be part of a much larger system.

Summary of Ground EM Geophysical Survey Results from Nakru 2 Northwest and Nakru 3

At the Nakru 2 Northwest prospect the causative source of an EM anomaly on line 5500N, is interpreted to be a plate like conductor at a depth of approximately 110m, of moderate conductivity, 120m x 120m in dimensions and dipping at 20 degrees northeast. This conductor occurs 250m north, along strike and down plunge of an intersection of high-grade copper-zinc mineralisation in Trench NK19_T03 which returned 11m @ 4.13% Cu & 9.04% Zn. The plate conductor represents a clearly defined quality drill target which could be tested with a 200m deep drill hole. At the Nakru 3 prospect two large alterations zones are interpreted from the ground EM data in the west and east of the prospect area. These two zones suggest that the massive copper-zinc mineralisation exposed in trenches at Nakru 3, could potentially be part of a larger mineralised system. Authorised on behalf of Coppermoly Limited by the Managing Director Dr. Wanfu Huang.

Contact:

Dr. Wanfu Huang

Managing Director

Coppermoly Limited

Email: wfhuang@coppermoly.com.au

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