Lefroy Exploration : Burns Continues to Grow – deeper – wider and a new zone

ASX RELEASE-25 May 2021

Burns Continues to Grow - depth continuity for original mineralisation; porphyry widening; new mineralised zone

• The third and deepest diamond hole at Burns to date, LEFRD267, has been completed. LEFRD267 was collared 65m west of LEFD004 to evaluate the host porphyry rocks vertically below the mineralisation found in LEFD004 and OBURCD025.
• Drilling found
• • A 246m interval of the Eastern Porphyry interleaved with basalt from 244m to 490m downhole, followed by massive basalt to EOH at 522.5m
  • The Eastern Porphyry contains multiple altered and mineralised intervals of porphyry and basalt totalling 102m, including:
  • • A 72m interval that contains magnetite and sulphide veining (photo below) from 244.4m to 316.5m in the expected position based on the mineralisation found in LEFR260
    • A new 31m zone of porphyry and basalt hosted mineralisation from 430m to 461m

LEFRD267 interval 311.3 - 311.4m Refer Figure 7 & 8 for detail

• The DD program at Burns has now:
• • confirmed the vertical depth continuity of altered and mineralised porphyry at least 100m below the 37m zone of Au/Cu mineralisation in LEFR 260 (38m @ 7.63g/t Au & 0.56% Cu from 134m),
  • expanded the Eastern Porphyry body to over 140m true width
  • established the broadening with depth of the altered and mineralised zone on the western side of the porphyry, and
  • discovered a new mineralised interval on the east side of the porphyry body
• A fourth diamond drill hole, LEFRD268, is now underway to evaluate the Eastern Porphyry a further 60m vertically under hole LEFRD267. The hole will extend the existing diamond hole from 330.8m to an estimated final depth of 560m and will be the deepest hole yet to be completed at Burns by the Company.
• Assays from holes LEFD004, OBURCD025 and LEFRD267 are expected in late June.

ASX Code: LEX	Australian Registered Office	E: [e-mail]
T: [phone]
Shares on Issue: 120M	Level 2, 11 Ventnor Avenue
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Market Capitalisation: $120m	West Perth, 6005

www.lefroyex.com

ASX Announcement

25 May 2021

Lefroy Exploration Limited (ASX: LEX) ("Lefroy" or "the Company") is pleased to report a further update to the current 3000m diamond drilling program evaluating the Burns copper (Cu) gold (Au) prospect. Burns is within the Eastern Lefroy tenement package, which is part of the wholly owned greater Lefroy Gold Project (LGP) located 50km south east of Kalgoorlie (Figure 1).

The Burns copper gold prospect is situated on the eastern margin of a large interpreted felsic intrusion, termed the Burns Intrusion. The intrusion does not outcrop but features a distinctive annular aeromagnetic and gravity geophysical signature.

Broad high-grade gold mineralisation is hosted within a newly discovered hematite-pyrite-chalcopyrite-magnetite altered porphyry (refer LEX ASX release 23 February 2021). This porphyry, termed the Eastern Porphyry, is open to the north and south and its eastern extent is unknown (Figure 2). The mineralisation is open at depth (Figure 3). The copper and gold mineralisation hosted by both porphyry and basalt is considered by the Company to be a new style of mineralisation in the area, a land position dominated by Lefroy (Figure 1).

Figure 1 Lefroy Gold Project, highlighting Eastern and Western Lefroy, the location of the Burns prospect and proximity to Lucky Strike. Refer to Figure 2 for Burns drill hole plan.

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Discussion

A fourteen-hole diamond drill program commenced on 20 April 2021 to evaluate the Eastern Porphyry over a 200m strike length on 40m spaced drill sections (Figure 2). The first hole of the program (LEFD004) was completed on 3 May 2020. That hole was designed to twin and extend past the high-grade interval found in LEFR260 to determine the width of the Eastern Porphyry (Figure 3). Details of that drill hole were reported to the ASX on 3 May 2020.

The host Eastern Porphyry was intersected in LEFD004 from 117m to 304.5m, a down hole interval of 187.5m. The porphyry was interpreted to have a near vertical dip and an estimated true width of approximately 110m bounded by basalt to the west and east (Figure 3). That hole confirmed three distinct variations of the host diorite porphyry were observed in this interval and are interpreted as multi-phase intrusive events.

Details of the second hole of the program, OBURCD025, were reported to the ASX on 13 May 2021. The diamond drill hole commenced at 40m down a pre-existing RC hole and terminated at 396.6m downhole. The collar of that hole is located 35m to the west of LEFD004 and provided further important information to highlight the dimensions and constraints to the porphyry and the sulphide mineralisation on this baseline (0N) section (Figure 3). A 189m interval of the Eastern Porphyry was intersected from 179m, that also includes two narrow intervals of altered basalt (refer Table 2 for detail). The hole terminated in chlorite biotite altered basalt.

Multiple broad (10m-20m) zones of alteration and mineralisation where intersected in the porphyry in OBURCD025 from 201m to 291m and documented in the LEX ASX release dated 13 May 2021. The observations of the mineralisation in OBURCD025 supported the Company's interpretation that the strength of the Burns Cu-Au mineral system maybe increasing with depth that triggered the decision to adjust the drill program and bring forward the extension of hole LEFR267 (Figure 3).

RC drill Hole LEFR267 was part of the maiden Burns drill program completed in January 2021 and collared approximately 68m west of LEFR260. The hole was terminated in porphyry at 244m, unaware at the time that this was the commencement of the Eastern Porphyry. The diamond drill extension to LEFR267 terminated at 522.5m down hole, 80m deeper than proposed and is currently the deepest Lefroy drill hole at Burns.

The diamond extension (LEFRD267) intersected a 246m interval of the Eastern Porphyry from 244m downhole. The interval included multiple intervals of basalt up to 25m in length, some of which were deformed, carbonate veined and contain sulphides (chalcopyrite). This is the broadest downhole interval of the Eastern Porphyry intersected at Burns, and although includes intervals of basalt it suggests the porphyry body is becoming wider with depth.

Multiple broad zones of alteration and mineralisation were intersected in the Eastern Porphyry and also basalt in LEFRD267 with key intervals being:

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ASX Announcement

25 May 2021

• 244.4m-253m,an 8.6m interval down dip of the mineralisation in OBURC025 This interval contains strong red rock and magnetite altered diorite porphyry. With disseminated chalcopyrite (Cp)-magnetite-actinolite veinlets (2-3% Cp).
• 260m-273m,a 13m interval of strong hematite (red rock) altered porphyry and pervasive vuggy open space. Partly filled with Gypsum-magnesite-chalcopyrite. Strong disseminated 2-3% Cp.
• 273m-297.7m,a 24.7m interval consisting of strong red rock altered porphyry with 1% disseminated Chalcopyrite-Pyrite and trace magnetite stringer veins
• 310.5m-316.5m,a 6m zone of intense red rock and magnetite alteration. Epidote magnetite stringer veins with blebs of Cp (Figure 8). Open space gypsum/magnesite/Cp +-molybdenite veins. 2 specks visible gold at 311.8m.
• 430m-460.88m,a new broad 31m zone of basalt and porphyry with moderate epidote alteration and an estimated 2% disseminated/stringer pyrite.

Photographs of selected examples of core within the broader intervals are shown below (Figures 4 to 9). These are not the only mineralised zones but examples to highlight the style of the chalcopyrite mineralisation in the host altered porphyry and basalt.

Importantly, geological observations in this hole provide further support to the interpretation that the red rock (hematite) and magnetite-sulphide (pyrite, chalcopyrite) over prints each of the three variants of the host diorite porphyry and at this early stage is considered a final event in the paragenesis of the system (refer Figures 4 to 9).

Further, the observations from hole LEFRD267 support the Company's view that the tenor of alteration and mineralisation in the porphyry is broadening with depth in addition to the new mineralisation in the basalt intervals when compared with observations in OBURCD025. The new 31m interval from 430m is located close to the eastern boundary of the porphyry (Figure 3). The zone may represent an outer pyrite dominant mineralisation assemblage to the system.

Based on this interpretation and the encouragement of the observations in hole LEFRD267, the Company decided to adjust the drill program and bring forward the extension of hole LEFR268. The hole depth is planned to be 560m deep (Figure 3). The RC hole was originally extended in February 2021 as a diamond hole (tail) and terminated in porphyry at 330.8m.

The hole will test the depth extension to the host eastern porphyry and mineralisation a further 60m vertically beneath that observed in LEFRD267. This will provide additional important constraints to the system to approximately 320m from surface and provide the baseline geological and assay results to support evaluation of the system on step out sections to the north and south.

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chalcopyrite

Figure 4 LEFRD267 interval 265.2 - 265.5m showing (gypsum) vein hosted chalcopyrite in quartz feldspar porphyry.

magnesite

gypsum

chalcopyrite

Figure 5 LEFRD267 interval 301 - 301.3m showing chalcopyrite in association with a gypsum magnesite vein in basalt.

chalcopyrite

Figure 6 LEFRD267 interval 304.5 - 304.7m showing massive chalcopyrite associated with magnesite and gypsum in basalt.

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