Navarre Minerals : Broad gold zones in first holes on Nelson Line at St Arnaud

ASX Announcement

21 January 2022

For personal use only

MAIDEN DIAMOND DRILLING ON ST ARNAUD'S

NELSON LINE INTERSECTS BROAD

GOLD AND SILVER MINERALISATION

T H E D R I L L I N G C O N F I R M S B R O A D Z O N E S O F G O L D M I N E R A L I S A T I O N A N D V I S I B L E G O L D B E N E A T H H I S T O R I C M I N I N G O N T H E N E L S O N L I N E O F L O D E

• Navarre has received diamond core assay results for a 17-hole program consisting of 4,580 metres of drilling at the St Arnaud Gold Project in western Victoria.
• The drilling intersected two prominent quartz-sulphide bearing structures containing broad zones of gold mineralisation and rare visible gold.
• Highlight results include:
• • 1.0 metre at 13.9 grams per tonnes (g/t) gold within a broader zone of 25.3 metres at 1.7 g/t gold from 157.7m (NED008)
  • 4.6 metres at 3.2 g/t gold & 26.9 g/t silver from 194m (NED009)
  • 4.0 metres at 2.4 g/t gold & 15.9 g/t silver from 165.8m (NED010)
  • 8.3 metres at 2.1 g/t gold & 1.6 g/t silver from 266.7m (NED011)
• The drilling tested the potential for mineral resources beneath and adjacent to the Comstock open pit, on the Nelson Line of Lode that was mined late last century.

Navarre Minerals Limited (ASX: NML) (Navarre or the Company) is pleased to report diamond core assay results from the recently completed drilling program at its wholly owned St Arnaud Gold Project, 240 kilometres northwest of Melbourne, Victoria Australia (Figure 1).

The new assay results come from a 17-hole program consisting of 4,580 metres of drilling, which tested the shallow gold potential beneath the old Comstock open pit on the Nelson Line (Figures 2 & 3). The Nelson Line is one of three main lines of reef worked within the historical 400,000-ounce St Arnaud Goldfield.

The drilling has intersected two main mineralised quartz-sulphide bearing structures containing broad zones of irregularly distributed low to medium grade gold, silver and arsenic assays and rare visible gold (Figure 4).

For personal use only

ASX Announcement

21 January 2022

2

The drilling also highlights the development of a higher-grade, steeply south plunging gold shoot around the intersection of the bedding parallel Comstock with the discordant Walkers shear zones (Figure 5). This mineralisation has similar geometry to historically mined shoots within the St Arnaud Goldfield and remains open at depth and along strike to the north.

Highlight results include:

• 1.0 metre at 13.9 g/t gold within a broader zone of 25.3 metres at 1.7 g/t gold from 157.7m (NED008)
• 4.6 metres at 3.2 g/t gold & 26.9 g/t silver from 194m (NED009)
• 4.0 metres at 2.4 g/t gold & 15.9 g/t silver from 165.8m (NED010)
• 8.3 metres at 2.1 g/t gold & 1.6 g/t silver from 266.7m (NED011)
• 1.9 metres at 5.0 g/t gold within a broader zone of 8.2 metres at 1.3 g/t gold from 152.4m (NED004)
• 6.4 metres at 1.3 g/t gold from 250.6m (NED007)

The St Arnaud Goldfield consists of the New Bendigo (Bristol), New Chum and Nelson lines (Figure 2). The Nelson Line produced the most gold and was worked over a strike extent of approximately five kilometres to a maximum depth of 685 metres in the goldfield's deepest mine, the Lord Nelson Mine.

The Lord Nelson Mine was the only mine to produce gold from sulphide ores below a depth of 200 metres, with records showing a total of 323,000 recovered ounces.

Navarre Managing Director, Ian Holland said:

"The Company is pleased with the results from its first round of diamond core drilling on the Nelson line of reef.

"We are encouraged by the presence of quartz - sulphide mineralisation with rare visible gold within two main reef structures beneath the old pit.

"The recognition of a higher-grade gold shoot with similar geometry to those historically mined within the prolific St Arnaud Goldfield gives us confidence to forge ahead with our methodical evaluation of what is the second largest hard-rock goldfield in Victoria's Stawell Geological Zone."

The latest diamond core drilling results follow up on previously reported high-grade gold intercepts recorded in reconnaissance air-core drilling (refer ASX announcement of 16 June 2021).

For personal use only

ASX Announcement

21 January 2022

3

The Company's next step at St Arnaud is to complete two-kilogram bulk leach extractable gold (BLEG) sampling, to test for the presence of coarse, 'nuggety' gold potentially missed by the routine 50-gram fire assays. The mineralisation remains open along strike and will be subject to follow-up drilling.

T h e d r i l l i n g p r o g r a m i n d e t a i l

This announcement relates to Navarre's recently completed, 4,580 metre diamond core drilling program that followed up encouraging air-core (AC) gold intersections around historic workings on the Nelson line of reef (Figures 2 - 6).

The target area was focused beneath the Comstock open pit mine on the Nelson Line, the richest historical line of reef within the St Arnaud Goldfield that produced 400,000 ounces between 1855 and 1916 at an average grade of 15 grams per tonne (Figure 2).

The program was Navarre's first diamond core testing on the Nelson Line and follows encouraging gold assay results returned from reconnaissance AC drilling (see ASX announcement on 16 June 2021).

Figure 1: Location of Navarre's St Arnaud Gold Project.

ASX Announcement

21 January 2022

4

For personal use only

Figure 2: Plan showing the three major lines of reef worked within the historical St Arnaud Goldfield and the location of Navarre's significant drilling intercepts.

ASX Announcement

21 January 2022

5

For personal use only

Figure 3: Aerial photograph looking south over two diamond core drilling rigs on the eastern rim of the old Comstock open pit (September 2021).

Navarre has received assay results for all seventeen holes of the diamond core drilling program. This drilling has intersected two main quartz reef structures (Comstock and Walkers), lesser mineralised shears and associated quartz stockwork zones (refer Figures 4 - 6):

• Comstock Shear - a variably 1 to 20-metre-widenorthwest-trending mineralised quartz reef structure. Historically this reef was mined in the Comstock open pit over a strike extent of 330 metres. This is the most continuous structure intersected in the drilling program. The structure contains zones of strong sulphide mineralisation in the form of arsenopyrite, pyrite + galena + sphalerite (strong pathfinder elements in most Victorian gold deposits). This shear has been confirmed by drilling over a 260 metre strike extent and to approximately 200 metres depth. The structure remains open along strike and at depth (Figure 4).
• Walkers Shear - an irregular 0.5 to 5-metre-wide quartz reef and stockworks structure containing zones of strong sulphide mineralisation in the form of arsenopyrite + galena + sphalerite and rare visible gold. This shear has been confirmed by drilling over a 250 metre strike extent and to 200 metres depth. This structure trends slightly oblique to the strike of the Comstock Shear and is interpreted to intersect the Comstock Shear in the northern end of the old open pit where higher-grade intercepts define a steeply plunging gold shoot (Figure 5). This gold shoot remains open to the north and at depth (see Figure 5).