Taruga Minerals : Gravity Modelling & Sampling Results at Southern Flinders

5 November 2020

Gravity Modelling and Surface Sampling Results at Southern Flinders IOCG

Project, SA

Highlights

• Gravity modelling and interpretation completed in the southern portion of Flinders Project - new targets defined.
• Significant gravity and coincident magnetic anomaly defined at Mt Stephen Prospect
• New zone of high-grade surface mineralisation identified over 1.35km at Saddle Prospect from rock chip and soil sampling.
• Significant rock chip results included:

• 1. WK0602 - 21.7% Cu; 9.2g/t Ag o WK0599 - 6.25% Cu; 3.8g/t Ag o WK0581 - 5.82% Cu
• Heritage Clearance Agreement completed with Nukunu Traditional Owners in the south & Government drilling application submitted - awaiting approval.
• Engagement with Traditional Owners progressing well as the Company works towards recommencement of drilling at Woolshed Prospect and identifying any overlapping heritage interests which may be present in the southern clearance area.

Table 1. New Rock Chip Highlights from Flinders Project

	Prospect			Sample			Sample			Cu %			Ag g/t			Au g/t
			ID			Location
	Saddle		WK0602		Surface Lag	27.1		9.2		0.01
	Saddle		WK0599		Surface Lag	6.25		3.8		0.005
	Saddle		WK0619		Rock Chip	5.82		0.5		0.007
	Saddle		WK0606		Rock Chip	3.14		0.6		0.006
	Saddle		WK0609		Rock Chip	2.94		0.2		0.004
	Saddle		WK0601		Rock Chip	2.54		0.5		0.006
	Saddle		WK0604		Rock Chip	2.17		0.1		0.002
	Saddle		WK0603		Surface Lag	1.89		0.2		0.002

All recent results reported in Appendix 1

Taruga Minerals Limited (ASX: TAR, Taruga or the Company) is pleased to announce that detailed

geophysical modelling and interpretation has been completed over the southern portion of the Flinders Project. A strong gravity anomaly which is coincident with a magnetic high and has good surface geochemical support is defined at the flexure of the Mt Stephen Thrust (MST) as shown in

Figures 1 and 3. At Main Lode, a strong gravity anomaly has been defined downdip from the historic

mine workings where hematite breccias were mined for high-grade copper and iron over a maximum width of 6m.

Soil and rock chip sampling in conjunction with the geophysical modelling have clearly defined the surface expression of the MST as shown in Figures 3 and 4. In addition, reconnaissance mapping and sampling uncovered a new exposure of breccias and mineralised sediments over a minimum strike length of 650m and a width of 30m (Saddle Prospect) which are associated with the MST. Significant copper grades from rock chip sampling included 27.1% Cu and 6.25% Cu. A structural splay off the MST adjoining the exposure to the south at Saddle Prospect reported copper grades of up to 5.82% Cu and 3.14% Cu extending the strike potentially by a further 700m.

Figure 1: Significant Gravity and Magnetic Geophysical Anomalies over the Flinders Project showing

Regional Prospects.

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Taruga CEO Thomas Line commented: "The results of our ongoing systematic exploration program in the southern portion of the Flinders Project is continuing to deliver, with strong targets identified which have the potential to host high-grade,near-surface copper mineralisation. The Mt Stephen Thrust (MST) has once again been highlighted as a significant feeder structure which, along with its associated mineralised intrusive breccias, has the potential to be rooted in the underlying Archean basement. A continuous copper in soil anomaly has been defined over more than 10km of the Mt Stephen Thrust from soils and rock chip sampling at Flinders and indicates the deep-seated connectivity along the full extent of the thrust. What is particularly exciting is the newly identified heavily mineralized breccia zones at various locations along the thrust which are obvious targets for future drilling."

"The best coincidence of gravity, magnetics and geochemistry in the southern portion of Flinders is at the Mt Stephen Prospect where a 90 degree flexure in the thrust is interpreted to have created a crush zone with additional space for mineralised hydrothermal fluid flow thereby creating a priority target. Iron- altered mafic volcanic breccias with visible copper mineralisation have also been identified in proximity to these coincident anomalies."

"Our goal at Main Lode, which was mined intermittently for copper and iron over the past 150 years, was to use geophysical modelling to determine whether there was potential for the high-grade breccias found at surface to extend down-dip and widen to potentially economic dimensions. We are excited to see the results which show a large, modelled gravity body extending and widening down-dip and are looking forward to drill testing this anomaly when drilling progresses to the southern project area."

"At Taruga we are constantly improving our understanding of controls on mineralisation through innovative systematic exploration which to date has included detailed mapping and surface geochemistry programs, high-resolution gravity surveys and geophysical inversion modelling of magnetic and gravity data. The combination of grass-roots exploration techniques along with modern techniques such as inversion modelling allows us to produce a very refined preliminary drill program."

Main Lode

Copper and micaceous iron oxide (MIOX) hosted in hydrothermal iron breccias were mined historically at Main Lode from surface down to roughly 30m below surface. The structure which hosts the mineralised breccias varied from 1.5m in width at surface to roughly 6m width at depth where historic mining development ceased. A tightly spaced gravity survey (25m x 25m station spacing) over the Main Lode historic workings defined a weak gravity anomaly coincident with the area of mining while the regional gravity survey (100m x 50m station spacing) showed a significant gravity anomaly down-dip from the workings as shown in section in Figure 2. This indicates the potential for the mineralised breccias to blowout down-dip into a larger mineralised zone. Upcoming reverse circulation (RC) drilling is planned to test this anomaly.

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Figure 2: Oblique Section across Main Lode Historical Workings showing the Surface Rock-Chip Highlights, Soil Geochemical Anomaly Contours and a Large Dense Gravity Body Modelled to Extend Downdip form the Historic Mine.

Grab samples from mining spoils at Main Lode reported exceptionally high copper grades of up to 52% Cu and 14g/t Ag. All indications are that Main Lode has the potential to develop into a significant mineralised system down-dip at depth.

Mt Stephen Thrust/Mt Stephen Prospect

A continuous copper in soil anomaly supported by the geophysics has been defined over more than 10km along the Mt Stephen Thrust from Woolshed/Metabase in the north and the Mt Stephen Prospect in the south. It is highly likely that areas of increased anomalism are associated with cross-cutting structures with increased hydrothermal fluid flow. A new exposure, the Saddle Prospect (Saddle), was identified over an area of 650m x 30m along the MST and a further 700m along an adjoining splay structure for a combined strike length of >1,300m as shown in Figure 3. Highly significant results of 27.1% Cu and 9.2g/t Ag (WK0602) and 6.3% Cu and 3.8g/t Ag (WK0599) were reported from the northern portion of Saddle and 5.8% Cu (WK0619) and 3.1% Cu (WK0606) were reported from the southern splay structure.

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