Lefroy Exploration : Burns Update - Drilling Underway at Lovejoy Anomaly

ASX RELEASE-22 November 2021

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Burns Update-Aircore Drilling

Underway at Lovejoy Anomaly

A 100-hole aircore drilling program is underway to evaluate the limits to the footprint of Burns copper-gold system beneath Lake Randall at the Eastern Lefroy project, 70km southeast of Kalgoorlie.

Drilling has commenced at the priority Lovejoy target located within Lake Randall, and approximately 2000m to the northwest of the Burns Cu-Au system, the site of the baseline diamond and RC drilling earlier in the year.

The drilling at Lovejoy is part of a larger aircore drilling program in Lake Randall to evaluate the eastern limits of the Burns Cu-Au corridor beneath Lake Randall that is characterised by five magnetic anomalies with signatures similar to Burns that define the corridor

Lovejoy is characterised by a coincident positive magnetic and gravity anomaly at the northern end of the Burns corridor where a single RC hole drilled on the western edge of the anomaly in October intersected 8m @ 0.22g/t Au & 0.51% Cu & 1.75g/t Ag from 250m to end of hole.

The aircore program, totalling approximately 5000m, is expected to take 4 weeks to complete. Assay results from this initial program are expected in January 2022.

AC drilling at Lovejoy

Lefroy Exploration Managing Director, Wade Johnson said "The LEX team are excited to be back out drilling at Burns and this time to evaluate the broader extent of the intrusion related system offshore beneath Lake Randall. This includes testing the priority Lovejoy and Kenny's Dream magnetic anomalies. The drill campaign is the second stage of a strategy to scope out and demonstrate the scale of the geochemical footprint to the intrusion related system and its related mineralisation over a 2000m corridor and extending out into Lake Randall, the limits of which are still yet to be defined"

ASX Code: LEX	Australian Registered Office	E: [e-mail]
T: [phone]
Shares on Issue: 137M	Level 2, 11 Ventnor Avenue
ARBN: 052 123 930
Market Capitalisation: $49.3m	West Perth, 6005

www.lefroyex.com

ASX Announcement

22 November 2021

For personal use only

Lefroy Exploration Limited (ASX: LEX) ("Lefroy" or "the Company") is pleased to announce that an aircore (AC) drill program is underway to evaluate geophysical targets and the eastern limits of Burns copper gold prospect (Figure 1) over a 2000m corridor beneath Lake Randall. Burns is within the Eastern Lefroy tenement package, which is part of the wholly owned greater Lefroy Gold Project (LGP) located 50km southeast of Kalgoorlie.

At Burns, broad high-grade gold mineralisation is hosted within a newly discovered hematite- pyrite-chalcopyrite-magnetite altered diorite porphyry (refer LEX ASX release 23 February 2021) that intrudes high Mg basalt. The copper and gold mineralisation hosted by both the diorite porphyry, basalt and massive magnetite veins is considered by the Company to be a new style of Au-Cu-Ag mineralisation in the area. The existence of additional mineralisation under Lake Randall (Figure 1 & 2) is entirely possible and the current drill program to expand the system is now underway.

Figure 1 Combined satellite image with transparent TMI RTP aeromagnetic image highlighting the discrete magnetic anomalies (e.g., Lovejoy, Skinner, Flanders) along strike of Burns and the extent of the +220ppm copper anomaly. The inset area refers to the area of RC and diamond drilling at the Burns Au- Cu-Ag prospect. (Warm colours represent rocks beneath the surface with higher magnetite content). Coloured and black dots represent historical AC drill holes. October 2021 RC holes are depicted.

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ASX Announcement

22 November 2021

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Burns Corridor Background

A detailed aeromagnetic survey completed over the broader Burns area in August 2021 defined multiple Burns look alike magnetic anomalies over a 3000m trend (Figure 2), known as the Burns Corridor. The Company interprets that the anomalies represent magnetite alteration zones within and surrounding porphyry dioritic intrusions that are additional to, and similar in style to Burns.

Lovejoy is the largest and northernmost magnetic anomaly and lies beneath Lake Randall (Figures 1 & 2). Lovejoy also has a coincident, positive gravity (dense rock) anomaly (refer Figure 4 LEX ASX release 28 July 2021) of similar geophysical character to Burns.

Figure 2 TMI RTP aeromagnetic image showing the full extent of the new aeromagnetic survey and the pronounced annular magnetic anomaly around the Burns Intrusion. Refer Figure 1 for the detail over the Burns prospect magnetic trend (warm colours represent rocks with stronger magnetic character)

That triggered the Company to commence a staged drilling program to assess the limits of the Burns mineral system. Stage 1 of the program involved drilling land-based targets (onshore) using an RC rig, with stage 2 requiring a specialised lake aircore rig to evaluate targets (e.g., Lovejoy) in Lake Randall (offshore).

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ASX Announcement

22 November 2021

For personal use only

In October the stage 1 "onshore" RC drilling program was completed. A total of 17 angled holes for 3336m evaluated 6 magnetic anomalies, including six holes at Burns (Figure 1). Nine RC holes evaluated the Smithers, Flanders, Skinner and Lovejoy magnetic anomalies up to 2000m north of Burns all intersected altered diorite and basalt similar to that observed at Burns. The strongest alteration in dioritic porphyry was intersected in holes at Lovejoy and Skinnner. Holes LEFR296 and 297 are located on the western margin of Lovejoy.

Hole LEFR297 intersected significant intervals of hematite silica altered porphyry and associated Cu-Au-Ag mineralisation (refer LEX ASX release 3 November 2021). A fault zone with angular diorite clasts in an intense hematite altered silica matrix including strong fine disseminated magnetite and sulphides was intersected from 228m to 250m. Significant results from hole LEFR297 included

• 10m @ 0.21g/t Au & 0.60% Cu & 2.5g/t Ag from 218m Including 2m @ 0.41g/t Au & 1.56% Cu & 5.5g/t Ag from 225m
• 8m @ 0.22g/t Au & 0.51% Cu & 1.75g/t Ag from 250m to EOH Including 2m @ 0.67g/t Au & 1.53% Cu & 5.0g/t Ag from 256m to EOH

The hole, located on the edge of lake Randall (Figure 1) was abandoned at 258m due to high flows of ground water. The last 2m of the hole ended in strong copper mineralisation hosted by altered diorite porphyry and basalt with associated gold and silver credits. Importantly interpretation of the whole rock geochemistry from this single hole at Lovejoy has a similar character to that observed at the Burns anomaly. Results for the remaining 16 RC holes of this program are expected in December 2021

Aircore Drill Program

The general association of the Au-Cu-Ag mineralisation at Burns, with magnetite in both basalt and diorite porphyry rocks, provides the rationale for a strong, first order exploration program focussed on the newly found magnetic anomalies.

The Stage 2 aircore drilling program to evaluate the Lovejoy and Kenny's Dream magnetic anomalies and the eastern extent of Burns all located in Lake Randall has commenced. The program will evaluate multiple targets beneath Lake Randall and filling the geological knowledge gap immediately to the east of the Burns anomaly (baseline section).

The priority target is the Lovejoy magnetic anomaly, but also the smaller discrete Kenny's Dream magnetic anomaly (Figure 1). Lovejoy is considered by the Company to be a priority target given it has coincident magnetic-gravity anomaly (LEX ASX release 24 September 2021). The results from hole LEFR297 that just intersects the edge of the Lovejoy anomaly provides confidence that additional altered and mineralised diorite can be discovered beneath Lake Randall.

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ASX Announcement

22 November 2021

only	The aircore drilling is planned on a nominal 160m line spacing with vertical holes at 80m centres
extending from Lovejoy in the north to east of Burns to the south. A total of 100 holes have been
planned with an estimated average depth of 50m, for a total of 5000m to be drilled. The drilling is
designed to test an area extending 700m from the shoreline out into Lake Randall and using a
specialised Lake aircore drill rig. The program is expected to take at least 4 weeks to complete,
with assay results due in January 2022.
The combined results from this AC and the October RC drill program will provide the broad
personal use	geochemical and geological baseline framework over the 3000m trend to focus more detailed drill
evaluation in CY2022.
	Figure 3 Location of Burns within the Eastern Lefroy tenement package and the extent of
For
	Lake Randall. Burns is located approximately 5km south of the Randalls Mill operated by
	Silver Lake Resources and 7km south east of the wholly owned Lucky Strike gold resource.
		Inset refers to extent of Figure 1.
		This announcement has been authorised for release by the Board
		Wade Johnson
		Managing Director
		END
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