Enegex : Priority Targets Emerging at Miamoon

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18 January 2022

Priority Targets Emerging at Miamoon

Highlights

• Multiple anomalies identified in new airborne gravity survey data
• Priority targets for immediate follow-up identified with coincident gravity and magnetic signatures as well as anomalous geochemistry
• Field checking and additional detailed geophysical and geochemical surveys to commence as soon as feasible
• Interpretation and inversion modelling of other targets is continuing to further expand Enegex target pipeline

Enegex Limited (ASX: ENX) is pleased to provide an update on exploration activities at its flagship Miamoon Project in the West Yilgarn Ni-Cu-PGE province of Western Australia. The Company has received results from its gravity gradiometer survey flown in October 2021 and detailed interpretation of the new gravity data including 3D inversion modelling by Core Geophysics is advanced.

At its Miamoon Project, the Company is targeting magnetic ultramafic rocks with a coincident or offset gravity signature. The new gravity survey data collected in October contains multiple features considered prospective for mineralisation (refer Figure 1).

Target areas identified from the gravity interpretation are shown on the right panel of Figure 1, with priority targets (based on initial prospectivity assessment) coloured red.

Early assessment has identified several of these priority target areas for immediate follow-up. Enegex has named two of these targets, 'Spitfire' and 'Crusader' (refer Figure 1). Both Spitfire and Crusader are discrete targets that have a strong correlation between magnetic and gravity high signatures. Enegex is highly encouraged by these features with field-checking of these target to commence as soon as feasible.

Figure 1 New gravity gradiometer survey data and targets at Miamoon

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The Spitfire Target

Spitfire is defined by coincident gravity and magnetic anomaly highs and has a northwest trend extending over 1.3km (Figure 2). Complexity within the magnetic anomaly features a subtle magnetic low within the magnetic high that could be indicative of magnetite destruction associated with hydrothermal alteration and mineralisation. 3D inversion modelling of the magnetic and gravity data at Spitfire has identified two discrete blocks; one a shallow, moderately magnetic and high-density source sitting above a second deeper, strongly magnetic and highly dense source.

1VD Gravity

RTP Total Magnetic Intensity

Figure 2 Gravity (left) and magnetic (right) data over the Spitfire target area

The Crusader Target

Crusader is defined by coincident gravity and magnetic highs (Figure 3) that correlate to an area with anomalous geochemistry in historical RAB drilling data.

1VD Gravity

RTP Total Magnetic Intensity

RAB drilling	RAB drilling
section location	section location

Figure 3 Crusader target coincident gravity (left) and magnetic (right) highs

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Correlation of gravity and magnetic highs with anomalous RAB geochemistry at Crusader

A single line of RAB drilling completed by Independence Group NL (IGO) in 2008 across the Crusader target area intercepted elevated copper assays up to 506 ppm (Figure 4). Whilst the IGO RAB drilling did not test the Crusader gravity and magnetic target zones, the low level anomalous Cu from RAB drilling is considered encouraging.

Gravity (Eotvos)

TMI Magnetics (nT)

RAB drill hole collar locations (IGO, 2008)

RAB drill hole cross section showing copper (IGO, 2008)

Figure 4. Elevated Copper in historical RAB drilling correlates with magnetic and gravity highs at Crusader

Immediate Exploration Focus

Spitfire, Crusader and other priority targets identified in early assessment of the Miamoon gravity survey data are an immediate focus for Enegex's exploration activities with the objective of developing drilling targets for testing.

Next steps include field-checking of target areas, geochemical sampling and detailed geophysical surveys to provide better depth resolution of dense bodies in order to facilitate the definition of targets for drill testing at high priority target areas. Access arrangements with private landholders are required before Enegex can carry out these activities, and accordingly are a key focus of current activity.

Enegex Director Rae Clark commented:

"The initial results from the Falcon Gravity survey at Miamoon are highly encouraging with multiple features evident in the data. Continuing interpretation and modelling of the full dataset is expected to provide additional targets areas. Compelling priority targets identified in early assessment are our immediate focus for follow-up."

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Competent Person Declaration

The information in this report that relates to exploration results is based on information compiled by Carolyn Higgins, a Competent Person, who is a Member of the Australasian Institute of Mining and Metallurgy. Ms Higgins is an employee of the Company and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Ms Higgins consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.

For more information

Rae Clark

Director, Enegex Limited | [e-mail]

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About Enegex

Enegex is one of the largest tenement holders in the West Yilgarn province which is increasingly recognised as an endowed Ni-Cu-PGE terrain following the discovery by Chalice Mining of the nearby Gonneville Ni-Cu-PGE Resource at Julimar and presents opportunity for multiple regional discoveries.

Figure 5 Enegex's West Yilgarn Ni-Cu-PGE Province Tenure

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