Peako Limited announced that the company has commenced its Phase 2 step-out reverse circulation (RC) drilling campaign at its 100% owned Eastman PGE Project (Eastman Project or the Project) in Western Australia. The ~2,000m RC drill program will see Peako target three highly anomalous and prospective PGE prospects within the Eastman Intrusive Complex; Brumby, Louisa and The Gap, which were identified to have considerable potential based on exploration results to date, including the recently completed Phase 1 reconnaissance drill program. This initial step-out drilling program, which is time limited due to the impending arrival of the Kimberley wet season, will involve 15 holes across three prospects. The holes are designed
as a series of step out drill fences to target along strike extensions of high grade `PGE reefs' and mineralised PGE envelopes. Results from Peako's 2022 drilling programs will be used to define the highest-priority targets for follow-up in 2023 that could potentially extend to infill drilling and resource definition activities depending on the outcomes of this program. Brumby Prospect: The Brumby Prospect is located centrally within the 9.4km eastern zone of the Eastman PGE Intrusion and has a strike length of 1.4km. Exploration at Brumby to date has identified the area as a priority target having highly anomalous PGE indicators across multiple exploration datasets including: Strongly anomalous Palladium and Platinum in soil geochemistry. Multiple significant drill intercepts that include high grade `reef' zones and wider PGE endowed envelopes such as: Reef zone of 7m @ 2.75 g/t PdEq (2.26 g/t 3E) - within envelop of 18m @ 1.84 g/t PdEq (1.42 g/t 3E) and within envelop of 34m @ 1.32 g/t PdEq (0.90 g/t 3E). Reef zone of 3m @ 2.72 g/t PdEq (2.25 g/t 3E) - within envelop of 12m @ 1.45 g/t PdEq (1.03 g/t 3E) and within envelop of 34m @ 0.91 g/t PdEq (0.50 g/t 3E) from surface. The Brumby Prospect is currently only tested by six RC holes along its entire 1.4km strike length, with four of those holes focused around a central drill fence. Current drilling identifies that PGE mineralisation extends from surface and is open at depth with two drill holes ending in mineralisation.
Initial step-out drilling is planned to comprise six holes along four drill fences to cover an approximately 300m segment of strike in the central part of the intrusion where the ultramafic is thickest. Drilling is designed to test high-grade `reef zones' and wider PGE envelopes along this segment, and enable the Company to assess grade and continuity of PGE mineralisation at Brumby. The Brumby Prospect is also the focus of planned diamond drill testing in the first half of 2023, with diamond drilling to be co-funded by the Western Australian Government as part of Peako's recent successful Exploration Incentive Scheme grant application. Louisa Prospect: Louisa is a central prospect in the eastern zone of the Eastman Intrusion Complex, with an approximate strike length of 1.3km. The Louisa ultramafic target is largely untested by historical drilling, with Peako's reconnaissance program completing the first drill fence across the prospect, enabling characterisation of the ultramafic and its PGE potential for the first time. Peako considers Louisa to be a priority target due to highly anomalous PGE indicators across multiple exploration datasets including: Highly anomalous Palladium and Platinum in soil geochemistry. Highly anomalous rock chip samples with some of the higher 3E values returned to date including highest levels of less common PGEs such as Ru, Rh and Ir in rock chip results. Significant PGE-mineralised drill intercepts including: 3m @ 1.54 g/t PdEq (0.98 g/t 3E) - within 22m @ 1.14 g/t PdEq (0.65 g/t 3E) and within 62m @ 0.70 g/t PdEq (0.36 g/t 3E). 4m @ 1.53 g/t PdEq (1.27 g/t 3E) - within 14m @ 0.73 PdEq (0.53 g/t 3E) and 10m @ 0.81 g/t PdEq (0.65 g/t 3E). 4m @ 1.01 g/t PdEq (0.76 g/t 3E) - within 29m @ 0.78 g/t PdEq (0.36 g/t 3E). The Gap Prospect: The Gap is the eastern-most prospect of the Eastman PGE Project having a 0.75km strike length and thickly developed PGE-bearing ultramafic rocks up to 135m across. First drilling at this prospect was completed during Peako's Phase 1 reconnaissance drilling, with
3 RC holes. Peako considers The Gap to be a priority target associated with highly anomalous PGE indicators across multiple exploration datasets, including: ighly anomalous Palladium and Platinum in soil geochemistry across the prospect. Highly anomalous rock chip samples; Strong indicators of PGE endowment from RC drilling with intercepts including: 7m @ 1.64 g/t PdEq (1.20 g/t 3E) within 99m @ 0.6 PdEq (0.3 g/t 3E) from surface. In its initial step-out drilling campaign, Peako plans to drill an additional five holes at The Gap for approximately 650m, with a key focus to test PGE zones along strike and across the ultramafic host rock sequence.