E2 Metals : June 2022 Quarterly Activities & Cashflow Reports

ASX ANNOUNCEMENT

28 July 2022

For personal use only

JUNE 2022 QUARTERLY REPORT

E2 Metals (E2 or the Company) is pleased to present the quarterly report for the period ending 30 June 2022 and provide an update on exploration activities across the Company's portfolio.

HIGHLIGHTS

CONSERRAT GOLD AND SILVER PROJECT (SANTA CRUZ, ARGENTINA)

Gold and silver assay results were received for a 1,605m infill diamond drill program completed at the Malvina and Andrea Sur prospects aimed at extending known high-grade mineralisation.

Significant gold and silver assay results include:

Malvina	CODD-292: 3m at 3.1gpt Au, 575gpt Ag (11.2gpt AuEq) from 39.2m
	CODD-295:	1.7m at 4.5gpt Au, 2,065gpt Ag (34gpt AuEq) from 143.3m
Andrea Sur	CODD-300:	4m at 8.4gpt Au, 31gpt Ag (9gpt AuEq) from 51m, inc.
		1m at 31.2gpt Au, 45gpt Ag (31.8gpt AuEq) from 51m

High-grade mineralisation is open at both prospects.

Exploration during the quarter defined 19 priority targets including new outcropping high-grade vein structures and blind extensions of known mineralised corridors.

• Regional rock chip sampling has defined six new mineralised vein structure that are prioritised for drilling. This includes Emilia Norte with up to 9.9gpt Au, 1310gpt Ag in rock chip samples. The structure partially crops out over 900m strike.
• A recent Controlled Source Audio Magnetotellurics (CSAMT) geophysical Survey has contributed to a new 3D geological and structural model to predict the location of mineralised corridors under cover, including the extensions of known mineralisation and possible parallel trends.

The Company has secured a drill rig to complete an approximately 5000m drill program aimed at testing all regional prospects. The program will commence after winter when normal operations resume.

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ASX ANNOUNCEMENT

28 July 2022

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El ROSILLO GOLD PROJECT (RIO NEGRO, ARGENTINA)

Drilling has commenced at the El Rosillo project located in the Rio Negro Province of Argentina.

• El Rosillo is a greenfields project located within the Gastre Fault which is host to Pan American Silver's large Navidad silver deposit (total resources 751Moz Ag)
• The drill program will comprise 2500m of diamond drilling and will test 7 gold mineralised structures defined in trenches, including:

Prospect 37A ROT-024: 1.9m at 184gpt Au, 55gpt Ag

ROT-023: 10.7m at 3.7gpt Au

Prospect 38A ROT-024: 1m at 279gpt Au, 116gpt Ag

• Drill rates are slower than anticipated due to inclement weather and snow. A total of 1500m diamond drilling has been completed to date and final drill assays are due in late August.

CORPORATE

• Cash balance at the end of the quarter is $10.7M

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ASX ANNOUNCEMENT

28 July 2022

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SANTA CRUZ PROJECTS, ARGENTINA

OVERVIE W

E2 Metals continues to be focused on its Santa Cruz projects in Argentina (Figure 1) where it holds an 80% interest in a 90,000-hectare land package prospective for multi-million-ounce gold and silver epithermal vein deposits similar to Cerro Negro (Newmont) and Cerro Vanguardia (AngloGold Ashanti) mines.

• Figure 1: Santa Cruz Portfolio

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ASX ANNOUNCEMENT

28 July 2022

CONSERRAT PROJECT

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The Conserrat project is comprised of one title totalling 8,696Ha and is centered on the same geological trend that is host to AngloGold Ashanti's Cerro Vanguardia mine (historical and current reserves 8.9Moz Au, 137Moz Ag). The project contains a recently discovered epithermal vein field that partially outcrops over an area of 25 square kilometers and is exposed within 'erosional windows' through younger volcanic and sediment cover.

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Figure 2: Conserrat Project

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ASX ANNOUNCEMENT

28 July 2022

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• Figure 3: New gold and silver assay results from the Malvina and Andrea Sur prospects

MALVINA

Malvina is a new 'blind' vein discovery located in the central project area (see ASX Announcement, 5 October 2021, Gold and silver assays confirm Malvina discovery). To date, drilling has defined three meter-scale vein structures (termed M1 to M3) that are hosted in a homogenous unit of White Lithic Tuff. The structures have been traced over 1 kilometer of strike and are open to the southeast.

Infill drilling at the prospect is on sections spaced 50 to 25m apart testing the M1, M2 and M3 veins over 400m strike length and 150 vertical meters below the surface. High-grade mineralisation is defined by 25 drill holes over a 350m strike with a weighted average grade of 2.5gpt Au and 734gpt Ag (13gpt AuEq) over 3m (downhole width).

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