Large Polymetallic Potential Highlighted At Morgan's Creek

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ASX ANNOUNCEMENT

9/11/2021

Large Polymetallic Mineral System Potential Highlighted At

Morgan's Creek

HIGHLIGHTS:

• Zoned Polymetallic System highlighted by reconnaissance exploration and drilling at
  Morgan's Creek
• Highly anomalous REE's and Critical Minerals in rock chips at the newly identified
  Hydrothermal Hill Prospect:

1. 4,395ppm TREO, 630ppm Co (WK0681)

• 1. 3,023ppm TREO, 1,162ppm Li2O, 1,100ppm Co (22709)
  1. 2,549ppm TREO (22713)
  1. 2,263ppm TREO, 1,851ppm Li2O, 1,180ppm Co (22716)
  1. 2,006ppm TREO (22711)
  1. 1,943ppm TREO, 1,090ppm Co, 517ppm Li2O (22712)
  1. 1,851ppm Li2O, 988ppm Co, 0.14% Cu and 831 ppm TREO (22670)
  1. 1,076ppm Li2O, 2,010ppm Co and 705ppm TREO (WK680)
  2. • Recent diamond drilling intercepted visible chalcopyrite, contact skarn alteration and ultramafic intrusions at hydrothermal Hill (assays pending)
• Highly anomalous REE's, Cobalt and Lithium in rock chips at Oxide Hill Prospect:
• 1. 2,542ppm TREO, 2,520ppm Co (22743)

• 1. 740ppm Co, 904ppm Li2O (16320)
  2. • Recent RC drilling intercepted REE, Lithium, Zinc, Vanadium and Scandium mineralisation from surface (October diamond drilling assays pending)
• Identification of the New Burra Prospect, where REE, Zn and Li anomalism extend over 3kms of strike in the same geological setting as the nearby Burra Monster Mine (75kt Cu metal; 125km south of MCCP)
• Cu, Zn, Co, V and REE anomalism in skarn mineralisation around mafic-ultramafic intrusions:
• 1. 3.4% Cu, (22749) 2.5% Cu (22752); 1.3% Cu (22711); 1.2% Cu (22769)

1. 0.7% Cu, 0.13% Zn, 41.6% Fe (22741)

• 1. 0.13% V2O5, 144ppm Co, 579ppm TREO and 58.4% Fe (16322)
• New ground magnetics and gravity data support large intrusive sources of mineralisaiton
• RC drilling to test newly identified targets and extend on recent intercepts is planned in November 2021

CEO Thomas Line Commented: "We are seeing the hallmarks of a large zoned polymetallic system at Morgan's Creek. We are seeing anomalism across a range of commodities, including REE's, Critical Metals and Base Metals, which are showing zonation around the large mafic- ultramafic intrusions and the intrusive breccias which host them. The identification of the Hydrothermal Hill and New Burra prospects, which host significant polymetallic anomalism, has added two new high-priority drill targets at Morgan's Creek. We are looking forward to drill testing the new targets highlighted by these results, aimed at driving new discoveries within the Morgan's Creek project area. In addition to testing new targets, we will also be drilling to expanding the existing REE, Cu, Li, V and Zn mineralisation intercepted on the recent RC drilling program."

	CAPITAL STRUCTURE	BOARD & MANAGEMENT		CONTACT US
	512,060,006	Thomas Line	Eric De Mori	Level 8, 99 St Georges Terrace
ASX:TAR	Shares on Issue	CEO	Non-Executive Director
Perth WA 6000
		David Chapman
tarugaminerals.com.au	44,250,000	Paul Cronin	T [phone]
	Options on issue	Non-Executive Director	Non-Executive Director
	F [phone]
	(various ex. prices
	Gary Steinepreis	Dan Smith
	and dates)	[e-mail]
	Non-Executive Director	Company Secretary
		1

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Taruga Minerals Limited (ASX: TAR, Taruga or the Company) is pleased to present an exploration update for Morgan's Creek, at the Mt Craig Copper Project (MCCP), where an extensive reconnaissance exploration program has highlighted large-scale polymetallic mineral system potential.

New Burra Prospect

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Figure 1. The geological setting of the Burra Monster Mine (75kt Cu), showing the contact of the diapiric breccia on the basal unit of the Skillogalee Dolomite - in the same setting as Morgan's Creek. Source: GSSA Publication Preiss, W, V; Drexel, J, F; & Reid, A,J 2009.

Hydrothermal Hill Prospect

REE, Zn and lithium soils anomalism (Figures 2-5) has concentrated around the contact of the basal unit of the Skillogalee Dolomite and the western margin of the diapiric breccia (Figures 2- 5), in the same setting as the nearby Burra Monster Mine, where 75kt of Cu metal was produced since 1845 (Figure 1). At the Burra Monster Mine, the Burra Diapir contacts on the basal units of the Skillogalee Dolomite, where high-grade copper was mined between 1840's and 1980's. The Burra Monster Mine was the world's largest operating copper mine in its early days, and bolstered the South Australian economy in a time of great need. The supergene copper at Burra was very high grade, with 700,000 tonnes of ore mined at 7% before bulk mining continued at grades between 1.5% - 3% Cu. The Skillogalee Dolomite contains highly reactive rocks, which attract metal deposition as hydrothermal and other metal bearing fluids pass through the reactive rocks. The ore mined at the Burra Monster Mine was never tested for REE's and precious metals, and so the potential for a more diverse polymetallic suite was never recognised. However, the soils and rock-chip anomalism (REE, Zn, Co, Cu, Li, Au) along the same setting at Morgan's Creek has highlighted this potential. This highly prospective contact, which extends south and north from the Hydrothermal Hill, will be tested in the upcoming RC drilling program.

For

ASX:TAR

Recent diamond drilling at Hydrothermal Hill (HH) intercepted chalcopyrite mineralisation and contact skarn alteration within and surrounding mafic-ultramafic intrusions (assays pending). The recent rock chips and mapping support strong hydrothermal alteration and mineralisation evident from surface (Figure 2). New high resolution ground magnetics data highlights a large magnetic anomaly around the intercepted mafic-ultramafic intrusion, which is coincident with the recent rock chips which reported highly anomalous REE, Cu, Co, and Li.

Significant Biotite-magnetite-serpentine-chlorite alteration along with blebby and dissemination chalcopyrite mineralisation was identified from the recent diamond drilling at Hydrothermal Hill. The prospect will be drill tested in the upcoming program.

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Figure 2. High-resolution ground magnetics TMI image (western inset) at Morgan's Creek, showing prospect names,

recent rock chip highlights, Taruga drilling highlights and recent diamond drillhole locations.

Zoned Polymetallic System

A common feature, which is being highlighted by the soils and the recent drilling results, is the polymetallic geochemical zonation around the margins of the mafic-ultramfic intrusions and along the margins of the diapiric breccias. High copper anomalies are often seen over the mafic-ultramafic intrusions and within the diapiric breccias, with zoned REE, Lithium and Zinc anomalism around the edges of the intrusions, presumably where metal-bearing hydrothermal fluids have reacted with country rock and deposited metals during a series of overprinting mineralisation events. Contact skarn alteration has been identified around the intrusions, which host REE, Cu, Li, Zn, Co, V mineralisation. These zones are often large (>1.5km2), and are associated with significant magnetic and gravity anomalies which likely represent intrusions and alteration zones.

Targeting Strategy

Morgan's Creek is prospective for a range of mineralisation styles, which include base-metal and critical mineral polymetallic suites. Evidence for these styles is either present at surface, or has been intercepted in recent Targua Drilling. Styles include:

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• Burra Monster Mine style Cu
• Beltana- style Zn
• Alkaline igneous REE's
• Ionic clay style REE's
• Zambian style sediment hosted Cu
• Mt Gunson Style sediment-hosted Cu
• Kipushi style polymetallic (Cu-Zn-Pb-Ag-Au)
• Layered mafic-ultramaficCu-Ni-PGE-V-Co
• Intrusion related mineral system (IRMS) and contact skarn polymetallic

Both base metal (Cu, Zn, Ni) and critical mineral zones (REE, Li, Co, Sc, V) will be targeted throughout the broad system at Morgan's Creek. Gravity and Magnetics will be used to identify intrusions, alteration zones and structures which may be influencing metal deposition. Areas of multielement geochemical anomalism (rock chips and soils) will be prioritised, particularly where local geology, surface mapping and geophysical data supports prospective mineral deposit features (Table 1).

Figure 3. REE in soils anomalies over Morgan's Creek, showing REE rock chip highlights. Note the strong linear REE anomaly extending from Hydrothermal Hill along the west, which marks the contact between the diapir and basal unit of the Skillogalee Dolomite - the same structural and lithological setting as the nearby Burra Monster Mine (75kt Cu produced).

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Table 1. Morgan's Creek Target Priorities.

Priority

Prospect

Target

Geochem

Target Style

Significant

Comments

Commodities

Anomaly

Intercepts

Layered

1 diamond

hole:

Awaiting Assays

Hydrothermal

Cu, REE, Co,

Cu, REE,

ultramafic,

1

Chalcopyrite

- RC drill testing

Hill

Zn, Li

Co, Zn, Li

contact skarn,

and magnetite

Q4 2021

Burra-style Cu

alteration

Burra -style Cu,

RC drill testing

2

New Burra

REE, Zn, Cu, Li

REE, Zn, Li

Kipushi Style

No Drilling

Q4 2021

polymetallic

REE, Li, Zn, Sc,

REE, Li, Zn,

Contact skarn,

REE, Li, Zn, V,

RC drill Q4 2021

3

Oxide Hill

sed-Cu,

- extend

V

Sc, V

Sc

Alkaline REE

mineralisation

Sed-Cu, Burra-

Cu, REE, Sr, V,

RC drill Q2

4

Morgan's Bore

Cu, REE

Cu, REE, Li

style Cu,

2022- extend

Sc

Alkaline REE

mineralisation

Layered

ultramafic,

contact skarn,

RC drill testing

5

Patric Star

REE, Cu, Li

REE, Cu, Li

sed-Cu,

No Drilling

Q4 2021

Kipushi-style

polymetallic,

Alkaline REE

Intrusion-

6

Red Hills

Cu

Cu

related Cu-Au,

No Drilling

RC drill testing

Contact Skarn,

Q2 2022

Alkaline REE

Table 2. Morgan's Creek Prospect Status.

Prospect

Mapping

Soils/Recon

Grav

Mag

First Pass RC

Diamond

Extensional

Resource

Sampling

Geophys

Geophys

Drilling

Drilling

RC Drilling

Drilling

Oxide Hill

Complete

Complete

Complete

Complete

Complete

Complete

Q4 2021

Morgan's

Complete

Complete

Complete

Complete

Complete

Complete

Q2 2022

Bore

Hydrothermal

Complete

Complete

Complete

Complete

Q4 2021

Complete

Q4 2021

Hill

TBA

Patric Star

Complete

Complete

Complete

Complete

Q4 2021

TBA

TBA

New Burra

Complete

Complete

Complete

Complete

Q4 2021

TBA

TBA

Prospect

Red Hills

Complete

Complete

Complete

Complete

Q2 2022

TBA

TBA

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