Coppermoly : Quarterly Activities and Cashflow Reports

27 July 2023

ASX Code: COY

June 2023 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 2023.

SUMMARY

• Completion of Sale of PNG Projects
• Large geochemical and Airborne EM anomaly delineated at Shuffleton Prospect
• Three tenements covering about 900 sqkm in the eastern successions in Mt Isa were pegged for Ernest Henry Type IOCG mineralisations.
• $846k Placement to advance Mt Isa Projects. Coppermoly is well capitalised with cash reserves of ~$2.1 million as of 30 June 2023

Exploration Projects

Papua New Guinea Exploration Projects

During the quarter the Company announced the sale of all of the Company's shares in its wholly owned subsidiary, Copper Quest PNG Limited (Copper Quest), the holder of the Company's exploration licences in West New Britain in the Independent State of Papua New Guinea.

The Company announced completion of the sale following receipt of shareholder approval on 24 April 2023. Consideration for the Sale comprised the buy-back and cancellation by the Company of 1,955,024,388 fully paid ordinary shares in the Company held by the Buyer and certain other major Shareholders, together with a cash payment to the Company of $500,000.

Exploration Projects in Australia

Additional 3 large tenements pegged for IOCG mineralisation systems, i.e. Windy Hill (EPM27851), Malakoff (EPM28853) and Mt Marathon (EPM28854). The Company is now one of the largest ground holders in the substantial prospective terrain for copper gold mineralisations in the Eastern Succession, Mount Isa Inlier, northwest Queensland (Fig 1, EPM27835, EPM27836, EPMA27851, EPMA28853 and EPM28854).

Data review, interpretation and modelling continued during the quarter on geophysical anomalies with initial results released for a large geochemical and airborne EM anomaly at the Shuffleton Prospect and a number of other potential copper gold targets in granted permit area. The prospects have also been identified by analysis of historical geological, geochemical and geophysical data within applied permit areas in the eastern successions, Mt Isa Inlier, Northwest Queensland.

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.

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Figure 1 - Tenement location in the Eastern Successions, Mt Isa Inlier, Northwest Queensland (Geological map compiled after Qld's Mines Department database - NWQ Geology 2011)

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	470,000 mE	480,000 mE	490,000 mE
	Lorna Miss Hit Cu-Au Zone
7,670,000 mN
		Williams
	Rennies
7,660,000 mN
			Fox
		Fairmont
	E	Fox Extension Cu-Au Zone
	L
	E
	N
	A
	T
	F
	A
	U
	L	Shuffleton Prospect
	T
7,650,000 mN
T
		C
		L
		O
		N
		C
		U
		R
		R
		Y
		F
		A
		U
		L
		T
7,640,000 mN
		Explanation
		Historical Mining Lease
7,630,000 mN	0	10
	kilometers
		Projection: MGA Zone 54 (GDA 94)

Figure 2 - A stitched map of 3 Airborne EM and GEOTEM surveys showing AEM anomalies in tenement area.

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Shuffleton Prospect

The Shuffleton Prospect is situated along a NNE striking segment of the Cloncurry Fault (Figure 3).

Soldiers Cap Group, Stavely Formation, Corella Formation and Mesozoic cover stratigraphy intruded by a large part of the granitic Williams Batholith and numerous small mafic bodies are mapped in the area (Figure 3).

The Soldiers Cap Group comprises a fine- to coarse-grained, marine clastic sequence which includes iron formation and a suite of Fe-rich mafic igneous sills. The Solders Cap Group hosts numerous base metal ore bodies including Cannington and Eloise.

The calc-silicate rich Corella Formation contains significant discordant breccias in the district, in particular along and on the western edge of the Cloncurry Fault. These are polymictic sedimentary and porphyritic volcanic rock breccia with K-feldspar, albite and hematite alteration reminiscent of some of the rock types present at Ernest hennery and Mary Kathleen.

The Staveley Formation is dominated by a fine to medium grained, massive to well bedded immature and calcareous sediments with minor banded iron formations. They note ripple marks, halite casts, desiccation cracks and extensive brecciation.

The Williams Granite is 2km to the west of the Shuffleton Prospect is dated at 1530±8Ma. The Saxby Granite, which is also about 1530Ma old, is mapped about 1~3 km to the north-east of Shuffleton. A number of minor dolerite/mafic intrusions are also present within and in the vicinity of the prospect.

In more detail, a 3.5km strike by up to 20m wide gossanous (iron stained) sub-vertical quartz breccia sheet is mapped along the interpreted Cloncurry Fault Zone at Shuffleton.

Out of a total of 50 rock chips samples taken within the prospect, the quartz breccia returned 16 with concentrations greater than 0.1% and a maximum of 15.9% Cu. (Figure 3).

The bulbous, NNW oriented 8 x 2km - 80# stream sediment Cu geochemical zone (n= 236,+ 50 ppm, max 235 ppm) is shown in Figure 4. The geochemical anomaly extends to include a part of the Staveley Formation and contact with the Williams Batholith. The eastern half of the geochemical anomaly follows the trace of the mapped Cloncurry Fault and surface mineralised quartz breccia. The eastern edge of the geochemical anomaly is also coincident with the similar strike length GEOTEM conductivity (Figure 4)

Within the prospect area, the Queensland Mines Department has recorded small historical production of copper from the Mt Kalkadoon Mine between 1940's and 1960s (Table 1 - source GSQ CR 5180). The copper mine worked high grade surface oxide ores located approximately 800m west of the Cloncurry Fault.

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Figure 3 - Shuffleton Prospect - Geology with outline of stream geochemical anomaly overlain by

location of highlight Cu rock chip results.

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