SHREE MINERALS LTD

ASX Announcement

8th February 2022 onlyASX Code SHH

ACN 130 618 683

useCOMPANY DIRECTORS

Sanjay Loyalka

Director and

Company Secretary

personalAmu Shah

Non-Executive

Director

Davide Bosio

Non-Executive

Director

CONTACT DETAILS

Principal &

Registered Office

Unit 38

18 Stirling Highway NEDLANDS WA 6009

Forwww.shreeminerals.com

T +61 8 6118 1672

E info@shreeminerals.com

Shree Extends Gold Ground in Lachlan Fold

Belt Project

  • New Exploration Licence (EL9346) granted in the highly prospective Lachlan Fold Belt
    • The tenement covers the southwestern extension of a mineralised trend that contains two gold resources
    • Previous soil geochemistry identified several gold anomalies within the tenement area one of which coincides with the mineralised trend
  • RC drilling expected to commence at the Company's Lachlan Fold Belt Project - Rock Lodge (EL9155) this month

Shree Minerals Ltd ("Shree" or the "Company") is pleased to announce the addition of new exploration licence (Exploration Licence 9346) "Oak Hill" in the Southern Lachlan Fold Belt that is prospective for gold.

Figure 1. Shree's new tenement in NSW. The location of Shree's other

tenements in Lachlan Fold Belt, NSW is also shown.

SHREE MINERALS LIMITED | ACN 130 618 683

www.shreeminerals.com

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The Oak Hill (EL 9346) tenement is located 20km northwest of the town of Albury in southern New South Wales. The new tenement covers an area of approximately 25 km sq.

The tenement abuts EL7544 on its eastern side that is held by Aureus Mining Ltd. The Aureus web site1 describes the Albury Gold Project as containing the Stoney Park and Elm Park gold prospects that have a combined JORC Mineral Resource of 154koz Au:

Stoney Park - 0.86Mt, Au 2.75g/t, 72,000oz Au, 2.32g/t Ag, 61,000oz Ag

Elm Park -2.31Mt, 1.43g/t, 82,000oz Au, 1.01g/t Ag, 63,000oz Ag

EL 9346 (Oak Hill) covers Ordovician metasediments and phyllites that are intruded to the east by the Devonian Jindera Granite. Gold mineralisation at Elm Park and Stoney Park is hosted by a northeast trending fault that is clearly visible in aeromagnetic images (figure 2). The fault is possibly related to displacement on the contact between the granite and the sediments.

Figure 2. The northeast trending magnetic lineament extends on to Shree's EL 9346.

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A line of workings on EL7544 are aligned along the fault and drilling has identified thin steeply dipping quartz veins with a strike length of 2.24 km. The northeast trending magnetic lineament extends on to Shree's application area EL 9346, as illustrated in Figure 2.

Soil sample data available on the NSW Minview web site2 reveals that the fault has a coincident gold soil anomaly on ELA9346 (Figure 2). Soil geochemistry is clearly applicable to the area, with both the Elm Park and Stoney Park deposits highlighted by the contours.

Based on the 15ppb Au contour the anomaly extends 400m by 200m into Shree's tenement and is centred on a peak value of 180ppb Au (0.18g/t Au). Also, another trend of anomalous geochemistry may exist 500m to the north of the ELM Park trend in Figure 2.

Figure 3. Historical soil geochemistry contours showing a distinctive north-easterly south westerly trend of the contours. Also shown is the aerial extent of the soil sampling survey (white stippling), with 70% of EL9346 remaining unsampled.

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Exploration Plans & Next Steps

Shree considers the extension of the anomalous soil geochemistry into EL9346 as a significant opportunity to discover economic gold mineralisation.

Shree plans to initiate Exploration by in-fill soil sampling and geological mapping of the target area along strike of the structure hosting the Stoney Park and Elm Park deposits. Additional soil sampling surveys and mapping are planned to test other geochemical anomalies on the tenement. Only 30% of the tenement has been soil sampled (shown by stippling in figure 3).

RC drilling expected to commence at the Company's Lachlan Fold Belt Project - Rock Lodge (EL9155) this month

Approximately 15 RC holes are planned for ~1000m of drilling to test Induced Polarisation (IP) chargeability anomalies and gold soil anomalies at the northern and southern target areas at Rock Lodge (Figure 4).

Drilling was scheduled for November-December but the contractor was delayed and did not mobilise until December. Drilling commenced but production rates were lower than planned so it was decided to demobilise the rig late in December and replace it with a drill rig more suited to the conditions encountered. Shree has finalised a suitable rig with a contractor who has indicated that the rig is expected to complete a drilling campaign for another company shortly & mobilise to Rock Lodge over coming days.

At the northern target area soil sampling reported in October identified a gold anomaly 400m x 100m based on a 50ppb Au contour centred on a maximum value of 1.29 g/t Au and 1615ppm As. The gold anomaly coincides with an IP chargeability anomaly caused by sulphide veins and quartz veins. Rock chip samples of gossanous material and quartz veins by Shree returned a best result of 7.3g/t Au with 6049ppm As and 446ppm Bi.

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Figure 4: Rock Lodge prospect showing proposed RC holes (yellow triangles) testing IP

chargeability anomalies (yellow polygons) with coincident gold soil anomaly (orange >50ppb

Au, red >100ppb Au, magenta >250ppb Au)

Historical exploration at Rock Lodge includes work done by Southern Gold NL with Diamond drilling (SGDH01 to SGDH011) in 1985. The holes intersected up to 8m of massive sulphide with recorded grades up to 4.28g/t Au, 35g/t Ag, 0.79% Cu and 13.5% Zinc. Diamond hole SGDH08 intersected 12m @ 1.2 g/t Au, 9.8 g/t Ag and 0.2% Cu. The location of these holes is illustrated in Figure 5.

The mineralisation is associated with massive and disseminated pyrite‐arsenopyrite‐chalcopyrite‐ sphalerite sulphides and quartz, within host phyllites and sandstone of the Adaminaby group. This is exposed on the surface as a distinct gossan and ironstone. Sulphide mineralisation is associated with silica alteration and minor quartz veining, indicating that a significant volume of mineralising fluid has passed through the rock.

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Shree Minerals Limited published this content on 07 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 February 2022 21:40:08 UTC.