Golden Cross Resources : Kilparney Extended Geophysics Review

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GOLDEN CROSS RESOURCES LTD

ABN 65 063 075 178

301/66 Berry Street

NORTH SYDNEY NSW 2060

Phone [phone]

1 February 2022

Kilparney Extended Geophysics Review

Golden Cross Resources ("the Company") recently completed a gravity geophysical survey over EL8270 located 40 kilometres south of Nymagee in Central NSW. (refer to ASX announcement 24 December 2021- "Kilparney Extended Update")

Deep (and possibly conductive) overburden to a depth of approximately 90m in many places in the region mitigates against some geophysical techniques. As basement structure is a key factor in localising the Cobar style deposits, the gravity survey was completed to test the technique.

The area of EL8270 is characterised by overburden of unknown depth obscuring bedrock geology. The main feature of geological interest has been adjacent to the western end of EL8270 licence, where the Kilparney magnetic feature has been prospected previously.

Government open file regional gravity data is wide spaced approximately 4km x 2km, with insufficient stations over the main features to achieve resolution suitable for targeting and structural interpretation. To assess the usefulness of the gravity technique, readings were initially taken on 800m x 800m grid pattern. (Figure 1)

GCR ASX Announcement - Kilparney Extended Geophysics Review

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Figure 1 Gravity Survey location

A review of the data has been undertaken by geophysicist Steve Collins (Appendix 1). Two main gravity features are identified, and, considering there is limited supporting data from other types of exploration, a review of possible further exploration is presented, including a range of geophysical techniques.

The Company plans to consider the review and decide on the appropriate work for the next field program.

This announcement has been reviewed and authorised for release by the GCR Board.

References to previous announcements

24 December 2021: "Kilparney Extended Geophysics Update"

The Company confirms that it is not aware of any new information or data that materially affects the information included in the original ASX announcements.

Compliance Statements

Competent Persons

The information in this report that relates to Geophysical Results is based on information from a survey in 2021. The report in Appendix 1 was compiled by Mr Steve Collins, who is a Member of the Australasian Institute of Geoscientists. (AIG). Mr Collins sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking 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". Mr Collins consents to the inclusion in this report of the matters based on that information in the form and context in which it appears.

The information in this report that relates to Exploration Results is based on information from previous reports, compiled by Mr Bret Ferris, who is a Member of the Australasian Institute of Geoscientsts. (AIG). Mr Ferris is a consultant to Golden Cross Resources Limited, and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking 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". Mr Ferris consents to the inclusion in this report of the matters based on that information in the form and context in which it appears.

GCR ASX Announcement - Kilparney Extended Geophysics Review

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Appendix 1

Review of Gravity Data - Kilparney Extended Project. S Collins. January 2022

Appendix 2

JORC Compliance Statement: Kilparney Gravity Survey

Sections 1 and 2 of Table 1, JORC Code, 2012 Edition

GCR ASX Announcement - Kilparney Extended Geophysics Review

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Review of Gravity Data

Kilparney Extended Project - Golden Cross Operations

Steve Collins January 2022

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Fifty three gravity readings were collected on the Kilparney Extended Project (EL8720) of Golden Cross Operations in late 2021. The gravity data show a possible broad gravity high approximately 3km east of the previously explored Kilparney Prospect which may be related to that prospect. In the east of the gravity survey is a ridge of elevated gravity readings that are parallel to and semi- coincident with a near surface linear magnetic high. There is a possibility that higher gravity readings in the east of the surveyed area reflect thinner alluvial cover than in the west.

Fifty three gravity stations were recorded at 800 metre spacings on a square grid to cover EL8720 with broad spaced gravity readings. The terrain in this area is very flat with less than 20 metre elevation change from one side of the survey to the other in a gradual gradient. The data were Bouguer corrected using a correction density of 2.67 T/m3. The low terrain relief makes the correction density barely relevant and no terrain corrections were applied.

An image of the Bouguer corrected data is shown in Figure 1. At the west of the survey area the gravity values are consistently lower than over the rest of the survey area. This may be indicative of deeper alluvial cover. The previously explored Kilparney Prospect lies about a kilometre west of the western edge of this survey. Drilling on this prospect indicates that the depth of cover is about 90 metres. Gravity data suggests that the cover depth may be significantly less than this over most of EL8720. Alternately, the elevated gravity may be indicating denser subsurface lithologies, possibly silicification. Either way, the higher gravity values in the east is beneficial for exploration.

In the Cobar district, alteration associated with mineralisation generally appears as a topographic high. In areas of deep alluvial and wind blown cover these topographic features may be represented as paleo-highs in the bedrock. The gravity method can help map this paleo-topography since the cover material is significantly less dense than the bedrock. Silicification associated with mineralising events will often also locally increase the density of the host rock. Thus most major mineral deposits in the Cobar district are coincident with or adjacent to local gravity highs. The high itself, however, may not be a direct indicator of mineralisation.

The sampling interval for this gravity survey at 800 metres is too large to properly define density variations at the expected depth of cover (100m). Infilling of the survey to 400m square should significantly increase the resolution of density variations below the cover. A decrease to 200m is likely to be sufficient to gain the maximum information for the depths of interest. This is particularly the case in the central and eastern parts of the survey area where it is possible that the cover is thinner.

The data was high-pass filtered to enhance as much detail from shallower density variations as possible. However, at 800m centres it is not possible to get a detailed picture. Figure 2 shows the data after filtering with a 1000m Gaussian high-pass filter. This is the limit of what is possible in terms of detail enhancement, given the broad station spacing.

The filtered data set shows a prominent local high at approximately 412,800E / 6,390,800N (MGA55 GDA94). However, this is part of a gravity ridge and the local high is defined by just a single reading so cannot be relied on as a definite indicator of subsurface density contrast. It is possible that the gravity ridge is associated in some way with alteration surrounding the previously explored Kilparney prospect but these are three kilometres apart so this seems unlikely.

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The Kilparney prospect, further west, is a very well defined magnetic high. In order to look for similar but lower tenor magnetic features the government airborne magnetic data for the licence area was filtered and imaged. Figure 3 shows these data after a 2km halfwidth highpass filter has been applied. On the western edge of the area are isolated magnetic highs that are the edge of the magnetic complex associated with the Kilparney prospect further west. The width of these responses indicates a depth of burial of about 100 metres, consistent with the known depth to bedrock at Kilparney. Interestingly, these may also be subtle gravity highs. On the east side of these is a south-north magnetic ridge that is coincident with an abrupt gradient in the gravity data. This may indicate a geological contact or fault of some sort.

In the eastern half of the area surveyed by gravity is an area of elevated magnetic character that roughly corresponds to elevated values in the gravity data. The width of magnetic features in this zone suggests that the source(s) of this magnetic/gravity high is significantly closer to the surface than the 100m depth indicated on the western side of the area. It would be advisable to check any existing water bores or exploration drilling in this area or in similar surrounding areas for information on the depth to bedrock.

Within the area of elevated magnetic and gravity values is a north-northwest trending linear magnetic high centred at approximately 417,500E / 6,389,800N. This ridge is parallel to and semi- coincident with a ridge of elevated gravity values. There is insufficient gravity data to determine if these features are truly coincident but it is likely that they are related to the same geological structures or lithologies. The width of the magnetic ridge suggests a depth of the source between zero and a few tens of metres. It is possible that the magnetic high is a maghemite filled paleo- stream but there is no indication of this in the topographic data.

Recommendations for further work are as follows.

Firstly check for existing drilling or water bores to attempt to determine the depth to bedrock in the eastern half of the survey area.

Secondly, infill the gravity data. Ideally this infill should be at 200 metre centres but this may not be practical given the thick vegetation that covers the licence area. An infill of the gravity to 400 metre centres would help the resolution of the data. This could then be evaluated to determine if further infill is justified.

A line or two of ground magnetic data over the eastern magnetic ridge would better determine the depth of burial of the source and may write this feature off as a maghemite filled paleo-stream.

Suitable area such as the magnetic ridge or geochemical anomalies may be amenable to surveying using Induced Polarisation (IP). The Southern Nights deposit northwest of this project has a clear IP response. This is particularly applicable in any area that has a lead/zinc geochemical signature.

Ground electromagnetic (EM) surveys may be applicable for a copper rich sulphide accumulation but I doubt that airborne EMwould work if there were a deposit of the typical Cobar basin morphology beneath the sort of cover material known to exist at the Kilparney prospect. If the bedrock depth in the eastern half of the Exploration Licence is found to be shallower than expected then airborne or ground EM may be suitable exploration methods for copper bearing sulphide deposits on the Licence.