Metal Bank : Drilling intersects str

ASX ANNOUNCEMENT 23 June 2017

ASX: MBK Triumph Project - Drilling intersects strong evidence of bulk tonnage style mineralisation

• 20 meter outer zone of mineralised intense alteration consistent

  with a bulk tonnage Au-Cu-Mo system successfully intersected

• Demonstrates bulk tonnage potential with at least nine new targets

  identified within a 4km x 2km corridor

• New IP geophysics and diamond drilling lays the foundation for

systematic testing of high-grade and bulk tonnage targets with follow up drilling imminent

Metal Bank Limited (ASX: MBK) is pleased to provide the following drilling update from the Triumph Project in southeast Queensland, Australia. Results have been received from an initial diamond drilling programme (8 holes for 1012.5m) testing various Induced Polarisation (IP) geophysical targets under shallow cover.

The results provide strong support for multiple bulk tonnage style mineral systems on the project, with the first hole into the Chief Adachi target returning strong Au-Ag-Mo-Bi geochemistry within intense feldspathic alteration typical of leakage above the 'roof zone' of a potentially much larger mineralised Au-Cu-Mo system concealed by shallow cover. Nine new Au-Cu-Mo bulk tonnage exploration targets have been defined; underpinned by the latest drilling, new IP geophysics and further supported by incorporation of existing geological, geochemical and geophysical evidence.

Tony Schreck, Managing Director of Metal Bank said:

"We now have direct evidence for a connection between the widespread high-grade Au-Ag mineralisation targeted to date and bulk tonnage Au-Cu-Mo style mineralisation of a potentially significant scale. This is a pivotal step change for the Triumph project and importantly, it provides the geological indication that the project can host large bulk tonnage systems similar to other multi-million ounce gold deposits of Eastern Australia."

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Figure 1: Intense feldspathic-sericite alteration with sulphide mineralisation infilling vuggy cavities TDH115 (19.5m depth) Chief Adachi prospect, field of view 10cm.

Figure 2: Triumph gold system showing Au-Cu-Mo bulk tonnage targets in association with high-grade Au-Ag target structures.

Bulk Tonnage Style Au-Cu-Mo Mineralisation - Chief Adachi Prospect

An initial diamond drill hole (TDH115) has been completed at the Chief Adachi prospect, the first of nine new bulk tonnage targets to be tested. Drilling was designed to test the margin of a broad >750m x 350m IP geophysical anomaly characterised by a low resistivity signature concealed beneath shallow cover sediments. The results included elevated levels of Mo-Cu- Pb-Zn-Mo-Ag-Bi (Au) geochemistry associated with intense feldspathic-sericite alteration which are consistent with leakage from a mineralised 'roof zone' or outer carapace located above an intrusion. An interpreted drill section across the geophysical target zone is shown in Figure 3.

Figure 3: Chief Adachi prospect drill section showing drill hole TDH115 intersecting elevated geochemistry associated with a broad geophysical IP resistivity low. Drill section A-A' location is shown in Figures 2, 4 and 5.

Results from first hole into the Chief Adachi target include: TDH115 2m @ 0.6 g/t Au, 22g/t Ag from 27m;

Elevated geochemistry over 13m @ 11ppm Ag, 88ppm Mo, 264ppm Cu, 258ppm Pb, 818ppm Zn from 17m

The porous nature of the intense feldspathic alteration containing abundant sulfide-filled vuggy cavities including molybdenum (Mo), chalcopyrite (Cu) and sphalerite (Zn) (Figure 1) is also consistent with the low resistivity IP response (Figure 4) and occupies a previously unexplored area concealed beneath sedimentary cover.

The priority at Chief Adachi target is to evaluate the entire IP low resistivity zone (>750m x 300m) interpreted to reflect similar widespread alteration and mineralisation (refer to Figure 4).

Figure 4: Resistivity IP geophysical data (Gradient Array IP) showing the Resistivity low defining the Chief Adachi target.