Lefroy Exploration : Burns Update – Drilling Confirms Northern Extension

ASX RELEASE-18 June 2021

Burns Drilling Update - first hole on 40N section

confirms significant mineralisation extends to the north

• Three more diamond tail holes have been completed at Burns, with two on the zero north section and a first hole on the 40N section (ie 40m north of the zero section). First assays for the program are expected by late June.
• On 40N section, hole LEFRD261 intersected a broad 110m down hole interval of hematite- magnetite-pyrite altered Eastern Porphyry, followed by foliated altered basalt to EOH at 393.8m. The intersection:
• • includes 39m of magnetite, hematite and sulphide altered porphyry (photo below) from 222.75m to 262m which is strongly similar to intervals from holes LEFD004 and OBURCD025, and importantly
  • has strongly confirmed northern continuity of the extensive mineralised porphyry found on the zero-north section.

LEFRD261 interval 244.82 -

245.07m Refer Figure 7 for detail

• Results from the zero north section holes were:
• • Hole LEFR268 intersected broad zones of pyrite with weak fracturing/ haematite alteration in the Eastern Porphyry and calcite veining within basalt.
  • Hole LEFR282 intersected only narrow zones of trace pyrite mineralisation, as was expected given the results in hole LEFR259 below this hole. The true width of the Eastern Porphyry was, however, re-confirmed
• The five diamond holes on the zero north section have now established
• • at least 180m of vertical depth continuity of altered and mineralised porphyry below the 37m zone of Au/Cu mineralisation in LEFR 260 (38m @ 7.63g/t Au & 0.56% Cu from 134m). The mineralisation remains open below this level.
  • that the Eastern Porphyry body is approximately 120m true width

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

ASX Announcement

18 June 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 southeast 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 diorite porphyry (refer LEX ASX release 23 February 2021) that intrudes high Mg basalt. This porphyry, termed the Eastern Porphyry, is open to the north and south. The eastern extent of the Eastern Porphyry is now defined, on the zero north section at least, by foliated basalt. The mineralisation is open at depth. The copper and gold mineralisation hosted by both the diorite 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). The existence of additional mineralisation further east under Lake Randall is not discounted by the current drilling campaign and will be the subject of more exploration and drilling in the future.

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

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Discussion

Zero North Section

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 find any further mineralisation and determine the width of the Eastern Porphyry (Figure 3) on the zero north drill section (0N). 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 which are interpreted as multiphase intrusive events.

Details of two further diamond holes on the zero-north section, OBURCD025 and LEFRD267, were reported to the ASX on 13 and 25 May 2021 respectively. Those holes confirmed the extension to, and the geometry of, the altered Eastern Porphyry at depth.

Hole 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 (foliated), carbonate veined and contained sulphides (pyrite). This was the broadest downhole interval of the Eastern Porphyry intersected at Burns, and although intervals of basalt were included, it suggested that the porphyry body is becoming wider with depth.

Recent sampling of the drill core from LEFRD267 revealed a speck of visual gold (VG) within calcite hosted by a sulphide bearing gypsum vein. The vein is hosted in basalt. A photo (Figure

1. of this core section was reported in the ASX release of 25 May 2021. The VG is shown in Figure 5 in this release.

gypsum vein

Figure 4 LEFRD267 interval 301 - 301.3m showing chalcopyrite in association with a gypsum magnesite vein in basalt. Refer to Figure 5 for VG within this vein in half core.

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ASX Announcement

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gypsum		Gold in calcite(pink)

chalcopyrite

Figure 5 Gold in half drill core from LEFRD267 interval 301 - 301.3m showing chalcopyrite in association with a gypsum magnesite (white mineral) vein

The observation of free gold associated with sulphides (chalcopyrite) in the gypsum vein now highlights the basalt as an additional host rock to both gold and copper mineralisation. More importantly the gold bound within the pink calcite (Figure 5) within the gypsum vein provides important implications for the timing of the gold mineralisation. The presence of the pink calcite veins (refer discussion and photos below on LEFRD261) may indicate an association with the gold and or copper mineralising event.

A further two holes have now been completed on the zero-north section to finalise the initial five- hole diamond drilling campaign along this key section. The geometry and alteration character of the Eastern Porphyry on the zero north will provide a useful calibration to understand the geology on adjacent step out sections.

Hole LEFRD268 was extended from 330.8m to a final depth of 582.8m, which is the deepest hole drilled to date by the Company at Burns. The hole intersected some broad zones of disseminated pyrite mineralisation associated with weak fracturing and haematite alteration in the Eastern Porphyry and calcite veining within basalt. Significant zones of pyrite mineralisation are summarised in Table 2. There also appears to be a zonation of alteration downhole from magnetite-haematite-gypsum-magnesite to epidote-chlorite-calcite and finally to chlorite-biotite within the foliated eastern basalt (Figure 3).

The final hole LEFRD282 was wedged off the RC pre-collar at 51.6m and extended to a depth of 270.8m (Figure 3). This was the Eastern most hole on the zero north section. It confirms the steep geometry and approximate 120m width of the Eastern Porphyry near surface.

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ASX Announcement

18 June 2021

This hole intersected only narrow zones of trace pyrite mineralisation, as was expected given the results from hole LEFR259 below. LEFRD282 displays a similar alteration zonation pattern downhole as LEFRD268.

The completion of the five diamond holes on the zero north section has now established at least 180m of vertical depth continuity of altered and mineralised porphyry below the 37m zone of Au/Cu mineralisation in LEFR 260 (38m @ 7.63g/t Au & 0.56% Cu from 134m). The mineralisation remains open below this level. The drill data has also defined the boundaries to the Eastern Porphyry body which has approximate 120m true width.

40N Section

The 40N section (Figure 2) was drilled with five RC holes by the company earlier in the year. Two of the holes (LEFR283 and 286) just penetrated the Eastern Porphyry. Both holes intersected copper gold mineralisation in the porphyry, including 15m @ 0.67gt Au and 0.58% Cu from 144m in hole LEFR283. The three other RC holes (LEFR261, 262 and 269) were designed to test the Western Basalt at the time, and all stopped short of the Eastern Porphyry. The holes are available to be used as precollars for diamond tails (Figure 3).

Hole LEFRD261 was completed as the first step out diamond hole, 40m north of the zero north section (Figure 2 and 3). The hole intersected a broad 110m downhole interval of haematite- magnetite-pyrite altered Eastern Porphyry, followed by foliated altered basalt to EOH at 393.8m. The entire interval of porphyry is altered and or mineralised, demonstrating the northern continuity of mineralisation within the altered Eastern Porphyry 40m to the north of the zero north section. Significant zones of alteration and mineralisation were intersected both in the Eastern Porphyry and basalt with key intervals being:

• 155.1m-163.3m,an 8.2m interval of strongly fractured basalt with massive magnetite-gypsum-carbonate veins with disseminated 5-15% Py and blebby 5% Cp.
• 163.6m-184m,a 20.7m interval of intense red rock altered diorite (Figure 5 and 6) with vuggy fracture fill and stringer veins magnetite-haematite(specular)-gypsum-quartz with blebby 1-3% Cp/Py +- chalcocite.
• 222.75m-262m,a 39.25m interval that contains strongly fractured red rock and magnetite altered diorite porphyry (Figure 7) with fracture fill pyrite (Py)-magnetite-actinolite veinlets and blebs (3% Py).
• 309.7m-345.15m,a 35.45m interval of strongly foliated chlorite-calcite altered variolitic basalt. Strong pervasive white/pink calcite veins parallel to foliation and massive sugary textured pink calcite veins (Figure 8) up to 60cm width with disseminated 1% Py and trace blebby Cp.

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