Lefroy Exploration : Burns Success – Depth Extension and More Mineralisation

ASX RELEASE-13 May 2021

Burns Success Continues - 55m vertical depth extension and more strong mineralisation now established

• Two diamond holes have now been completed in the DD program at Burns, with both successfully intersecting significant mineralisation/alteration zones. The drilling has
  o confirmed at least 55m vertical depth continuity of the altered porphyry zone that hosts the very high-gradegold copper mineralisation found in LEFR 260 (38m @ 7.63g/t Au & 0.56% Cu from 134m to 172m)
  o discovered new, vertically continuous zones of mineralisation and alteration, o established that the Eastern Porphyry is over 100m in true width, and
  o provided extensive geological information to guide further drilling.
• The first diamond hole, LEFD004, successfully twinned and extended discovery hole LEFR260. Ref announcement 3 May 2021.
• The second hole, OBURCD025, was collared west of LEFD004 to evaluate the host porphyry rocks 55m vertically below the mineralised zones in LEFD004. A 189m downhole interval of the Eastern Porphyry was intersected from 179m followed by biotite-chlorite altered basalt to EOH at 396.6m. Two mineralised zones totalling 57m in length were found o 35m of strong mineralisation from 201m to 236m, including 17m of strong hematite (red rock) altered porphyry with magnetite veining from 219-236m.
  This is the expected position of the high-grade mineralisation in LEFR260
  o A further 22m of strong red rock altered porphyry, with chalcocite, trace chalcopyrite in veins and disseminated pyrite, was found from 269-291m. This is vertically below the 50m mineralised interval, which was newly discovered in LEFD004, so demonstrates vertical continuity of this new zone.

Magnetite Chalcopyrite vein in altered porphyry Refer Figure 6 for detail

• The next diamond drill hole, LEFRD267, which is the third hole in the current 14-hole plan, is now underway to evaluate the Eastern Porphyry a further 60m vertically beneath hole OBURCD025. The hole is already pre collared to 244m and has an estimated final depth of 440m. This will be the deepest hole yet to be completed at Burns by the Company.
• Assays from holes LEFD004 and OBURCD025 are expected in late June.

ASX Code: LEX	Australian Registered Office	E: [e-mail]
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www.lefroyex.com

ASX Announcement

13 May 2021

Lefroy Exploration Limited (ASX: LEX) ("Lefroy" or "the Company") is pleased to report an update from 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. 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 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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ASX Announcement

13 May 2021

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 2021.

The host Eastern Porphyry was intersected in LEFD004 from 117m to 304.5m, a down hole interval of 187.5m. The hole terminated in massive biotite chlorite altered basalt (304.5m-371m). 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). Three distinct variations of the host diorite porphyry were observed in this interval and are interpreted as multi-phase intrusive events.

The second hole of the program, OBURCD025, was completed on 10 May 2021. The diamond drill hole commenced at 40m down a pre-existing RC hole and terminated at 396.6m downhole. The collar is located 35m to the west of LEFD004 (Figure 3). The hole was aimed to test the depth extent of the host porphyry approximately 55m below that intersected in LEFD004 and to provide important constraints to the geometry of the mineralisation and the Eastern Porphyry.

The hole intersected a 189m interval of the Eastern Porphyry from 179m downhole. The interval included two narrow intervals of altered basalt (refer Table 2 for detail). The hole terminated in chlorite biotite altered basalt.

Multiple broad zones of alteration and mineralisation where intersected in the porphyry in OBURCD025 with key intervals being:

• 201-219m,an 18m interval situated directly down dip of the high-grade gold mineralisation in LEFR260. This interval contains epidote altered basalt, with vein hosted chalcopyrite (copper sulphide) in magnetite veins and gypsum-calcite-magnesite veins.
• 219-236m,a 17m interval of strong hematite (red rock) altered porphyry with some narrow basalt zones. Mineralisation includes blebby chalcopyrite in fractures and veins, as well as zones of disseminated chalcocite (copper sulphide) and pyrite. Strong magnetite veining throughout, often hosting chalcopyrite (figure 4).
• 269-291m,a 22m interval consisting of strong red rock altered porphyry with chalcocite, trace chalcopyrite in veins and disseminated pyrite.

Photographs of selected examples of core within the broader intervals are shown below (Figures 4, 5, 6, 7). These are not the only mineralised zones but are relevant examples to highlight the style of the chalcopyrite mineralisation in the host altered porphyry.

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ASX Announcement

13 May 2021

The porphyry is now confirmed to have a near vertical dip and (as predicted) has an estimated true width of approximately 110m bounded by basalt to the west and east (Figure 3). This large interval of Eastern Porphyry is consistent with that intersected in LEFD004. The porphyry is interpreted, based on wide spaced RC drilling, to extend at least a further 120m to the north and 80m to the south and thereafter the strike length of the feature remains open.

Importantly, geological observations in this hole support the interpretation that the red rock (hematite) and magnetite-sulphide (pyrite, chalcopyrite) over print each of the three variants of the host diorite porphyry. At this early stage the over print is considered a final event in the paragenesis of the system (refer Figures 4,5,6).

Observations from hole OBURC025 support the Company's view that the amount of magnetite- chalcopyrite veining (Figures 4 & 6) has increased with depth when compared with that observed in LEFD004. This supports the Company's interpretation that the strength of the Burns Cu-Au mineral system may be increasing with depth.

Based on this interpretation and the encouragement of the observations in hole OBURCD025, the Company has decided to extend hole LEFR267 to a depth estimated at 440m downhole (Figure 3). The diamond drill extension (tail) to this RC pre collar is now underway. The RC hole is renamed LEFRD267 to denote the diamond tail to the RC pre collar.

The hole will test the depth extension to the host eastern porphyry and mineralisation a further 60m vertically beneath that observed in OBURCD025. This will provide additional important constraints to the system to approximately 275m vertical depth from surface and will provide the baseline geological and assay results to support evaluation of the system on step out sections to the north and south. Successful tracking of the system on these steps out will allow calculation of a mineral resource at Burns as soon as possible.

The geology from the recent hole indicates and continues to reinforce the Company's initial interpretations of the Burns copper gold prospect as being a multi-stage mineral system, with the final magnetite sulphide (chalcopyrite) event (refer Figure 5) mineralising both the porphyry and the basalt host rocks.

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ASX Announcement

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Magnetite chalcopyrite vein

Figure 4 OBURCD025 interval 222.35m-222.8m showing altered diorite porphyry with a magnetite vein containing chalcopyrite.

chalcopyrite

Figure 5 OBURCD025 interval 228m-228.2m showing altered diorite porphyry containing blebby chalcopyrite

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