DevEx Resources : Broad alteration zones in first diamond hole at Junee

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3rd February 2022

Strong start to drilling at Junee Gold-Copper Project, NSW

with broad alteration zones in first diamond hole

HIGHLIGHTS

• First diamond hole, 21JNDD001, has tested a strong IP feature beneath previous wide- spaced gold-copperintercepts at the Nangus Road Prospect.
• 21JNDD001 has intersected several broad zones of intense hydrothermal alteration with associated pyrite mineralisation and quartz veins between 153m to the bottom of hole at 453m (assays pending).
• This is the first hole to be drilled as part of a larger ~16,000m programme comprising diamond, Reverse Circulation (RC) and air-core (AC) drilling. Three drill rigs are now on site to test the 2km long bedrock gold-copper anomaly defined last year.

DevEx Resources Limited (ASX: DEV, "DevEx" or "the Company") is pleased to advise that it has made a strong start to its recently commenced drilling program at the 100%-ownedJunee Copper-GoldProject in NSW, with the first diamond hole intersecting extensive intervals of intense alteration and pyrite mineralisation.

At the Nangus Road Prospect, a combination of diamond, RC and AC drilling is underway to test the large, 2km-longgold-copper(Au-Cu) bedrock anomaly defined by last year's wide-spaced AC drilling, which returned gold and copper grades of up to 3.5g/t Au and 1,410ppm Cu respectively (see ASX Announcement 26th July 2021).

In addition, extensive IP chargeability anomalies underlying these bedrock Au-Cu anomalies represent a compelling exploration target for both shallow and deeper drilling.

The first diamond hole (21JNDD001, "Hole 1") was designed to test a chargeability IP anomaly that underlies gold mineralisation identified in last year's broad-spaced AC drilling (see Figure 1 and Figure 2).

Preliminary geological and alteration observations indicate that this hole has intersected several broad zones of sheared and hydrothermally altered phyllic to localised advanced argillic mineral assemblages replacing what was originally an andesite.

Both the phyllic (sericite-silica) and advanced argillic (pyrophyllite) assemblages host abundant pyrite mineralisation, together with numerous intermittent zones of quartz-pyrite veins (see examples in Figures 3 and 4).

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These more intense alteration zones and associated pyrite mineralisation are prevalent in three broad intervals between 153m to the bottom of hole at 453m. Outside of these zones, alteration typically comprises propylitic alteration (chlorite-epidote) with lesser sulphides.

Figure 1: Cross section, including modelled 3D IP chargeability anomaly, showing recently completed diamond hole 21JNDD001 which has encountered significant hydrothermal alteration zone down-hole with corresponding visual estimate of pyrite underlying last year's gold-copper reconnaissance AC intercepts. Assays pending.

Preliminary down hole structural observations from Hole 1 show variable east dipping (steep to flat) orientations for quartz veins, sulphides and schistosity. True widths are not yet known.

The second diamond hole (Hole 2) has commenced and will test the same IP chargeability anomaly and overlying Au-Cu mineralisation 400mfurther to the north (Figure 2).

Hole 1 is currently being cut and sampled for laboratory submission. Assays are expected in 6-8 weeks, given the delays currently being experienced by assay laboratories.

In addition to the diamond drilling, RC drilling will test directly beneath previous anomalous air- core holes, with AC drilling to test between last year's drilling on 100mN traverses. A total of ~16,000m of drilling is planned to evaluate the project during the March Quarter.

The location of the two diamond holes relative to the bedrock Au-Cu anomaly is shown in the plan view in Figure 2 below. Photos of the core are shown in Figures 3 and 4.

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Figure 2: Nangus Road Prospect showing location of current diamond drilling 21JNDD001 and 22JNDD002 (Hole 2 - in progress) testing the 2km long bedrock Au-Cu anomaly on 400mN spacing. RC and AC drilling has also commenced and will infill the previous AC intercepts.

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personalFor Figure 3: Nangus Road diamond hole 21JNDD001 close up of core at 300m (top) and 305m (bottom) showing pervasive silica, sericite, pyrite alteration with quartz pyrite veins.

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Figure 4: Nangus Road diamond hole 21JNDD001 close up of core at 321 to 327m showing pervasive silica, sericite, pyrite alteration with quartz pyrite veins.

DevEx Managing Director, Brendan Bradley, said: "We are very encouraged by what we have seen in the first diamond hole, which is the first deep exploration hole to be drilled at this exciting gold-coppertarget. While alteration does not necessarily translate into gold grade, the presence of broad down-holewidths of hydrothermal alteration with abundant pyrite mineralisation and quartz veining is a very exciting development.

"We have drilled directly beneath shallow gold intersected in previous AC drilling into a strong IP feature and the early indications from this diamond drilling are very positive. We are looking forward to seeing what ongoing drilling and assay results will reveal in the months ahead.

"In the meantime, RC drilling starts this week to test below the air-core holes in a systematic fashion and in-fill AC drilling is also underway to help us pinpoint the more prospective parts of what is clearly a very large system!"

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