Coppermoly : Quarterly Activities and Cashflow Reports

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28 July 2022

ASX Code: COY

June 2022 Quarterly Activities Report

The following report details the operating and corporate activities of Coppermoly Ltd (Coppermoly or the Company) for the quarter ended 30 June 2022.

SUMMARY

• With the easing of COVID related travel restrictions, Coppermoly is preparing for the resumption of its exploration programs.
• Coppermoly is well capitalised with cash reserves of $2.05 million as of 30 June 2022.

Exploration Projects

The Company explores for copper, gold and zinc deposits across the north Queensland, Australia and New Britain, Paupu New Guniea.

Papua New Guinea Exploration Projects

The Company holds 5 tenements, with two advanced copper gold projects, Mt Nakru and Simuku, on the New Britain Island.

Figure 1 - Location of Coppermoly's tenements in PNG

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The Company has continued to maintain its existing PNG infrastructure (personnel, access roads and exploration camps) and has focused on maintaining good relations with landowners and local communities. With the easing of COVID restrictions that commenced during the March quarter, the Company is preparing for the recommencement of its exploration programs.

Mt Nakru (EL 1043) - PNG

The Mt Nakru Cu-Au project (EL 1043) comprises two known deposits, Nakru 1 and Nakru 2, which are 1.5km apart. The Mt Nakru Project hosts Mineral Resources, classified in accordance with JORC (2012), which were estimated by Mining Associates in February 2019 and are summarised in Table 1.1

Table 1. Nakru Project Indicated and Inferred Mineral Resource Estimate, Feb 2019 (> 0.3% Cu)1

Resource	Mineralised		Grade			Metal
Category	Tonnes	Copper	Gold	Silver	Copper	Gold	Silver (
(millions)	%	g/t	g/t	(kt)	(koz)	koz)
Indicated	7.03	1.00	0.28	1.81	70	64	409
Inferred	34.36	0.69	0.21	1.55	239	237	1,707
Total	41.39	0.75	0.23	1.59	309	300	2,116

1 See Coppermoly ASX Announcement 28 February 2019. The Company is not aware of any new information or data that materially affects the information included in the referenced ASX announcement and confirms that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed.

High- grade copper-zinc mineralisation zones were reported at surface by trenching at the Nakru 2 NorthWest and Nakru 3 Prospects (Figure 2, ASX announcement on 4 December 2019).

Figure 2 - Clay-silica-pyrite alteration zone with massive sulphur mineralisation veins exposed

along surface trenching at the Nakru 2 North-West Prospect

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A planned exploration drilling program at Mt Nakru to define the strike length and depth extent of the currently exposed massive and disseminated sulphides has been deferred pending the lifting of COVID- 19 related restrictions on travel between Australia and Papua New Guinea.

Simuku (EL 2379)- PNG

The Simuku Project comprises Exploration Licence 2379 on the island of New Britain in Papua New Guinea (Figure 3). Mineralisation at Simuku is copper-molybdenum-gold porphyry style associated with the Simuku-Kulu Intrusive Complex, which is Upper Oligocene in age. Three and potentially four porphyry copper-molybdenum-gold prospects, spaced along a 3 to 4 km, north to northeast trending zone, have been recognised on the Simuku Project.

Table 2 details the Simuku Mineral Resource, which was reported 0n 4 March 2020 at a 0.2% copper cut off.

Table 2 - Simuku Mineral Resource Statement2

Category	Mt	Cu %	Au g/t	Ag ppm	Mo ppm	Cut-Off
Inferred	373.6	0.31	0.05	2.1	59	0.2% Cu

2 See Coppermoly ASX Announcement 4 March 2020 for full details of the Simuku Mineral Resource Estimate. The Company is not aware of any new information or data that materially affects the information included in the referenced ASX announcement and confirms that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed

Coppermoly's exploration strategy is to investigate areas adjacent to the Simuku Mineral Resource for similar styles of mineralisation to expand the overall Mineral Resource. Recent geophysical studies completed by the Company have outlined target areas near the Simuku Mineral Resource for follow up exploration.

Mak Mak (EL2514)- PNG

Mak Mak is a greenfield exploration tenement that lies proximal to the Nakru tenement. There are several sites within the tenement where rock chip and stream sediment samples have returned elevated copper and gold.

No significant exploration activity was undertaken on the Mak project during the quarter.

Kori River (EL2578)- PNG

EL2578 comprises 116 sub-blocks, covering an area of approximately 315 km2, that encloses the Company's existing Simuku exploration licence (Figure 3). EL2578 includes areas near the boundary of the Simuku exploration licence that show encouraging signs for potential conductive and resistive anomalous zones.

No significant exploration activity was undertaken on EL2578 during the quarter.

Metelen River (EL2638)- PNG

Metelen River occupies an area of 246km2 and is located adjacent to the Company's existing Mt Nakru and Mak exploration licences.

Ongoing data compilation, but no fieldwork was undertaken on EL2638 during the quarter.

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Exploration Projects in Australia

During the prior quarter, the Queensland Department of Natural Resources, Mines and Energy ("DNR"). granted exploration licence EPM 27836 (Mount Tracey Project) to the Company. Thus the Company holds substantial prospective ground for copper gold mineralisation in the Eastern Succession, Mount Isa Inlier, northwest Queensland.

EPM 27836 (Mount Tracey Project)

EPM27836 covers an area of approximately 294 km2 , and lies immediately to the south of the previously granted EPM27835 (Fox Creek Project), which comprises an area of approximately 320 km2.

The Queensland Mineral database records numerous Cu-Au occurrences within the Eastern Succession. The most significant occurrences include Ernest Henry (167 Mt @ 1.1% Cu; 0.54 g/t Au), Eloise (3.2 Mt @5.8% Cu; 1.5g/t Au; 19g.t Ag), Osborne (11.2 Mt @ 3.51% Cu; 1.49 g/t Au), Mt Elliot (3.3 Mt @ 3.6% Cu; 1.8 g/t Au), Starra (6.9 Mt @ 1.65% Cu; 4.8 g/t Au) (Figure 3).

Extensive research on mineralisation model and implication in exploring for those Cu-Au deposits highlighted several key elements: (1) contact zones across major stratigraphic packages such as the Corella/Staveley Formation and Soldiers Cap Group; (2) the district scale basement structure such as the Cloncurry Fault; (3) presence of mafic intrusives / extrusives; (4) spatial proximity to significant granitoids such as the Williams-Naraku Granite.

The Cloncurry Fault is a significant structural zone in the Eastern Succession, striking north-westerly over 150 km in length and extending continuously to at least 20km depth. This fault is broadly associated with a major lithological contact, separating cover sequence units in the Soldiers Cap and Corella/Staveley Formation. It is spatially associated with a series of plutons such as the Saxby Granite and Squirrel Hills Granite. It is recognised to have been a major fluid channel over a significant period of time. Numerous Cu-Au occurrences occur along this fault zone (Figure 4).

EPM27835, contains a significant portion of the Cloncurry Fault (Figure 4).

The tenement area is deemed highly prospective for base metal and gold mineralisation with geological resemblances to the Eloise Cu-Au and Starra Cu-Au deposits.

There are numerous historic copper workings in the tenement area. Three of those areas, are Mount Kalkadoon Cu-Au Zone, Lorna Miss Hit Cu-Au Zone and Fox Extension Cu-Au Zone. Preliminary modelling of historic data warrants further exploration on those zones (Figure 4).

Coppermoly Ltd

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Figure 3 - Tenement location in the Eastern Succession, Mt Isa Inlier, Northwest Queensland showing significant copper, gold and zinc deposits in the region. (Map compiled after Qld's Mines Department database - NWQ Geology 2011)