Minotaur Exploration : Jericho copper acquisition to cornerstone Demetallica IPO

Jericho and Sandy Creek copper-golddeposits, of 11.1Mt @ 1.39% Cu and 0.3g/t Au the Altia resource2 of 5.8Mt @ 4% Pb, 0.5% Zn

MINOTAUR EXPLORATION LIMITED

ACN 108 483 601

ASX: MEP

9 December 2021
		Release
ASX
only	Jericho copper acquisition to cornerstone Demetallica IPO
Key points
•		Minotaur aggregates Cloncurry polymetallic assets as Chimera Polymetal Project
use	Centrepiece of the strategic portfolio will be 100% owned Jericho copper deposit
•
•		Full ownership of Jericho and Eloise tenements will transfer to Demetallica
•		Portfolio forms strong growth platform for Demetallica IPO
•		Recent change in ownership of Eloise copper mine highlights copper-gold pedigree of Chimera district
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Minotaur Exploration (ASX: MEP) subsidiary Demetallica Pty Ltd (formerly Breakaway Resources) and OZ
Minerals Ltd (ASX: OZL) have agreed to transfer ownership of the Jericho and Eloise projects near Cloncurry,
Queensland (Figure 1) to Demetallica. Currently, Jericho JV interests are disposed 80/20 as to OZL/MEP and
El	ise JV interests are arranged 70/30 as to OZL/MEP. Deal terms are stated below.

Chimera Polymetal Project

The transaction will result in the Jericho JV (28.5km2) and Eloise JV (817km2) tenements becoming 100% owned by Demetallica. Consolidation of tenement ownership in Demetallica is a logical and preferable outcome for both OZ Minerals and Minotaur, enabling Demetallica to pursue discovery objectives and its growth ambitions.

S parately, Sandfire Resource's (ASX: SFR) regional tenements and the Altia polymetallic deposit1 are in transition to Demetallica 100%.

Demetallica will thereby compile a strategic tenement position - named the Chimera Polymetal Project (Ky-mee-ra) in the region Forsu ounding the Eloise copper operation. The Chimera Polymetal Project is interspersed with several quality deposits; the

Jericho copper-gold deposit its nexus. Published resource inventories are:

•

•

Andrew Woskett, Managing Director, said "this transaction injects a cornerstone asset into Demetallica's proposed IPO. With all Minotaur's non-kaolinassets transferring into Demetallica the new business will be boosted by full ownership of the Chimera Polymetal Project. 2022 will be a formative year for Minotaur shareholders participating in the new explorer, Demetallica, through their in-speciedistribution of shares".

1. Refer MEP report to ASX Minotaur acquires full ownership of Altia polymetallic project; 24 August 2021
2. ibid

LEVEL 1, 8 BEULAH ROAD, NORWOOD, SOUTH AUSTRALIA 5067 T [phone] F [phone] E [e-mail]

www.minotaurexploration.com.au

9 December 2021

onlyObjectives for Jericho Copper-Gold Resource

Demetallica considers the Jericho deposit to be especially worthy of a renewed exploration effort. Under Demetallica's stewardship Jericho will be actively drilled, aiming for significant resource improvements and elevation to pre-development status. Through calendar 2022 Demetallica intends to resume resource drilling to build inventory and form the basis for an upgraded JORC resource estimate.

1. metallica envisages the Jericho orebody is the hub of mine developments across the Chimera Polymetal Project, advancing usethe company towards developer and producer status.

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Figure 1: Map showing main area of Chimera Polymetal Project and local mineral deposits

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9 December 2021

onlyJericho Copper-Gold Resource

A JORC 2012 resource estimate by OZ Minerals was published by Minotaur Exploration in July 20203 and remains valid with no material changes noted within the data. The Inferred Mineral Resource was reported as 9.1 million tonnes grading 1.4% Cu, 0.3 g/t Au and 1.6 g/t Ag within an 0.8% copper constraining shell.

Jericho mineralisation is primarily hosted within two main parallel lodes (J1 and J2) approximately 120 meters apart along +3.5km of strike length, dips steeply west (Figure 2) and is open along strike and at depth. The published resource

usencompasses only 2km of strike through the central portions of J1 and J2 lodes, with the remainder of the mineralised zone remaining unclassified.

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Figure 2: Oblique 3D view (looking southwest) of the Jericho Inferred Mineral Resource blocks and

associated drill holes

3 Refer MEP ASX report Maiden Jericho Resource and Cloncurry exploration update; 16 July 2020

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Figure 4: Long projection (view west) of Jericho J2 lode JORC resource blocks

Minotaur Exploration Ltd

www.minotaurexploration.com.au

9 December 2021

onlyJericho Resource Growth Potential

~30km of diamond drilling at Jericho was completed up to July 2019. With the benefit of the drill data base Minotaur refined its geological interpretation of Jericho, giving greater confidence in the geological model and a better understanding of the structural controls on mineralisation. Mineralisation remains open along strike and down dip on both lodes and Demetallica sees strong potential to expand the resource through further drilling. The most coherent higher-grademineralisation occurs within structural zones comprising the Matilda and Jumbuck shoots within J1 lode (Figure 3) and in the Billabong shoot within

useJ2 lode (Figure 4). These areas of the deposit will be Demetallica's focus of drilling in 2022, aimed at both growing the resource down-plungeand infill drilling shallower parts of the deposit to increase drill density and hence resource confidence ahead of a re ource upgrade.

personal Figure 3: Long projection (view west) of Jericho J1 lode JORC resource blocks For

ASX: MEP

9 December 2021

onlySandy Creek Copper-Gold Resource

The Sandy Creek Cu-Au deposit has a published JORC 2012 Inferred Mineral Resource estimate of 2Mt @ 1.32% Cu, 0.3g/t Au at 0.3% Cu cut-off as reported4 in 2013 by Breakaway Resources Ltd (BRW, Figure 5). The resource estimate remains valid with no material changes noted within the data. Sandy Creek is situated about 20km west of Jericho (Figure 1) and presents as a readily accessible sub-cropping deposit that may have shallow open-pit mining potential.

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Figure 5: Oblique projection (view north-east) of Sandy Creek Inferred Mineral Resource blocks and associated drill holes (original data sourced from BRW and utilised to generate updated image)

Demetallica's initial assessment of Sandy Creek, under its control, will be to conduct a high-level mining concept (based on the resource model) and use that to determine further work to advance the asset. That might include further drilling into the resource area and below drilled depth of 200m. Sandy Creek could become a useful satellite resource should Jericho evolve to be a viable mining proposition.

4	BRW ASX report dated 30 April 2013: Activity Report for the Quarter ended 31 March 2013.

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