Taruga Minerals : RC Drilling Commences at Mt Craig Copper Project

06 April 2021

RC Drilling Commences at Mt Craig Copper Project

Highlights

• Reverse Circulation drilling has commenced at Mt Craig Copper Project, South Australia
• Drill program to consist of approximately 1500m of shallow drilling targeting near surface copper mineralisation
• 3D inversion modelling completed on historical IP data at Wyacca Prospect, which highlighted:
  o An open-ended IP high-chargeability anomaly was defined over a distance of at least 1.7km
  o The historical drilling missed the core of the IP anomaly, however intercepted copper mineralisation along the anomaly margins
• RC Drilling will test the IP anomaly along with interpreted mineralised trends associated with historical mines
• Recent breccia sampling results at Wyacca included:

1. 21.6% Cu and 11.4 g/t Ag (MC001); 17.8% Cu and 6.4 g/t Ag (MC005); 11.6% Cu and 23.2g/t Ag (MC007)1

Figure 1: First RC hole WCRC001 being collared at the Wyacca Prospect.

1 Refer ASX Announcement 8 March 2021, "Excellent Results from Wyacca Prospect"

Taruga Minerals Limited (ASX: TAR, Taruga or the Company) is pleased to announce that it has commenced a reverse circulation (RC) drilling program at the Wyacca Prospect, within the Mt Craig Copper Project. The program will test mineralised trends and an IP anomaly defined by reprocessing and inversion modelling of historical data.

Wyacca Prospect

The Wyacca Prospect is located in the northern portion of the Mt Craig Copper Project (MCCP) as shown in Figure 2 and was the first operational small-scale mine in the MCCP area, with copper being first discovered and mined in 1863. Incomplete mining production records indicate that Wyacca was operating with a run of mine grade of up to 40% Cu during the early years of production, after which higher tonnages at an average grade of 3% Cu were mined for a total of 306 tonnes of ore.

Figure 2: MCCP Project Outline showing Priority Exploration Targets, Historical Copper and Gold Mineral Occurrences & Mines, and the Main Structural Feature being the Worrumba Anticline.

Mineralisation at the Wyacca Prospect is strongly associated with breccias along the apparent contact between the Tapley Hill and Wilyerpa Formations as shown in Figure 3. These breccias lie parallel to the stratigraphy in the northern and southern portions but are rotated to strike NW-SE over the central portion where they cover more than 1.7 km of strike (Figure 3). The IP anomaly is offset to the east of the workings supporting a north-easterly dip direction observed in the old mine workings.

Figure 3: Geology Map of the Wyacca Prospect showing IP Anomaly, IP Lines, Section Lines, Copper

Workings and Mapped Breccias

Figure 4: IP Chargeability RESIP2D section across Line 10N and Historic Drilling

Figure 4: IP Chargeability RESPI2D section across Line 20S and Historic Drilling

About the MCCP

The MCCP is situated within the Adelaide Geosyncline (AGS), which lies within the G2 structural corridor. The G2 structural corridor is host to all of South Australia's past and present major copper projects including Prominent Hill, Olympic Dam and Carrapateena as shown in Figure 5. The AGS has hosted over 800 historical copper mines or workings, and multiple polymetallic mines since the 1840's. Copper-gold associations are common within the AGS, with many of the old copper mining ventures not recognising the presence of gold. Modern exploration has continued to uncover significant large-scale, polymetallic, base and precious metal potential around historical mining regions within the AGS, which have undergone limited exploration and development since initial mining ceased in the late 1800's.

Figure 5: Regional Map showing the MCCP (in red) location within the Adelaide Geosyncline and G2

Structural Corridor within the Gawler Craton and Significant Mines/Deposits Nearby.