E2 Metals : Drilling expands mineralisation at Malvina and Andrea Sur

ASX ANNOUNCEMENT

20 June 2022

For personal use only

DRILLING EXPANDS MINERALISATION AT MALVINA AND ANDREA SUR

E2 Metals (E2 or the Company) is pleased to provide further high-grade drill results from the Malvina and Andrea Sur prospects located in the Conserrat project, Santa Cruz province of Argentina.

HIGHLIGHTS

Gold and silver assay results have been received for a 1,605m infill diamond drill program completed at the Malvina and Andrea Sur prospects aimed at extending known high-grade mineralisation.

Significant gold and silver assay results include:

Malvina

• CODD-255: 2m at 2.8gpt Au, 539gpt Ag (10.6gpt AuEq) from 136.7m
• CODD-261: 2m at 2.5gpt Au, 507gpt Ag (9.8gpt AuEq) from 132.4m
• CODD-292: 3m at 3.1gpt Au, 575gpt Ag (11.3gpt AuEq) from 39.2m
• CODD-295: 1.7m at 4.5gpt Au, 2,065gpt Ag (34gpt AuEq) from 143.3m

High-grade mineralisation is defined by 25 drill holes over 350m strike length and 150m vertical with a weighted average grade of 2.5gpt Au, 734gpt Ag (13gpt AuEq) over 3m downhole width.

High-grade mineralisation at Malvina is open to the northwest and is open at depth below hole CODD-295.

Andrea Sur

• CODD-300: 4m at 8.4gpt Au, 31gpt Ag (9gpt AuEq) from 51m, inc. 1m at 31.2gpt Au, 45gpt Ag (31.8gpt AuEq) from 51m

High-grade mineralisation at Andrea Sur is open at depth and to the northwest.

Commenting on the results, Managing Director Todd Williams states: "Extensional drilling at Malvina continues to build scale with mineralisation extended along strike and at depth. Importantly, hole CODD-295is one of the deepest intercepts at the prospects and extends high-grademineralisation a further 55 vertical meters. Drilling at Andrea Sur shows that mineralisation is open to the northwest under shallow lake sediments. While work at Conserrat is now on hold for winter, the focus for E2 shifts to the El Rosillo project where drilling is ongoing and first results are expected in late July"

DRILLING EXPANDS MINERALISATION AT MALVINA AND ANDREA SUR	1
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ASX ANNOUNCEMENT

20 June 2022

For personal use only

CONSERRAT DRILLING

OVERVIEW

E2 is pleased to report gold and silver assay results for the Conserrat gold and silver project (Figure 1) located in the Santa Cruz province of Argentina. Conserrat is host to a newly recognised and largely concealed epithermal vein field centered 25 kilometers along trend from AngloGold Ashanti's Cerro Vanguardia mine (historical and current reserves 8.9Moz Au, 137Moz Ag).

• Figure 1: Conserrat Project

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ASX ANNOUNCEMENT

20 June 2022

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• Figure 2: New gold and silver assay results from the Malvina and Andrea Sur prospects

RESULTS

MALVINA

Malvina is a new 'blind' vein discovery located in the central project area (see ASX Announcement, 5 October 2021, Gold and silver assays confirm Malvina discovery). To date, drilling has defined three meter-scale vein structures (termed M1 to M3) that are hosted in a homogenous unit of White Lithic Tuff. The structures have been traced over 1 kilometer of strike and are open to the southeast.

Infill drilling at the prospect is on sections spaced 50 to 25m apart testing the M1, M2 and M3 veins over 400m strike length and 150 vertical meters below the surface. High-grade mineralisation is defined by 25 drill holes over a 350m strike with a weighted average grade of 2.5gpt Au and 734gpt Ag (13gpt AuEq) over 3m (downhole width).

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ASX ANNOUNCEMENT

20 June 2022

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Previously reported high-grade drill intersections include:

Section 534745E
• CODD-253	14m at 8.7gpt Au, 2541gpt Ag (45 AuEq) from 67m, inc.
	7m at 17gpt Au, 4759gpt Ag (85gpt AuEq) from 67

• Figure 3: Long section of the high-grade M1 Malvina vein

New gold and silver results include

Gold and silver assay results have been received for 10 holes for 1,355m. Significant results include: Section 534745E: CODD-295:1.7m at 4.5gpt Au, 2065gpt Ag (34gpt AuEq) from 143.3m

Section 534767E: CODD-255: 2m at 2.9gpt Au, 539gpt Ag (10.6gpt AuEq) from 136.7m

Section 534672E: CODD-261: 2m at 2.5gpt Au, 507gpt Ag (9.7gpt AuEq) from 132.4m

Section 534732E: CODD-292: 3m at 3.1gpt Au, 575gpt Ag (11.3gpt AuEq) from 39.2m

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ASX ANNOUNCEMENT

20 June 2022

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Hole CODD-295 is important and extends high-grade mineralisation defined in hole CODD-253 (see ASX announcement, Bonanza silver at Malvina: 14m at 8.7gpt Au, 2541gpt Ag) a further 55 vertical meters and show that mineralisation is open at depth. Mineralisation is also open along strike and to the northwest of hole CODD 292.

Scout drilling elsewhere in the Malvina sector led to the discovery of the new Malvina Norte vein structure, located 125m north of Malvina on a separate parallel trend. The structure was defined over 600m strike on initial drill sections spaced 150m apart. While gold and silver grades are generally low, hole CORC-271 returned 2m at 1gpt Au, 23gpt Ag (1.3gpt AuEq) showing that grades are increasing to the southeast where further scout drilling is planned.

ANDREA SUR

Andrea Sur is located 2.5 kilometers from Malvina and is within the western extension of the Conserrat epithermal vein field. The prospect was initially prioritised for scout drill testing due to the presence of epithermal vein boulders extending ever 150m of strike. Surface geology is comprised mostly by younger lake sediments and colluvium, with sparce outcrop. Since the initial discovery hole (see ASX Announcement, 25 November 2021, 16m at 15gpt Au, 22gpt Ag at new Andrea Sur discovery), mineralisation has been shown to be influenced by coarse-gold.

Previously reported high-grade drill intersections include:

Section 532324E
•	CORC-183	16m at 15gpt Au, 22gpt Ag (15.6gpt AuEq) from 31m, inc.
		2m at 108gpt Au, 53gpt Ag (109gpt AuEq) from 32m
•	CORC-237	19m at 1.9gpt Au, 14gpt Ag (2.1gpt AuEq) from 40m
Section 532198E
•	CORC-240	16m at 2.6gpt Au, 9gpt Ag (2.7gpt AuEq) from 22m
		6m at 5.4gpt Au, 3gpt Ag (5.5gpt AuEq) from 25m

The current phase of drilling at Andrea Sur included 3 holes for 250.5m. Significant gold and silver assay results include:

Section 532198E

• CODD-300: 4m at 8.4gpt Au, 31gpt Ag (9gpt AuEq) from 51m, inc. 1m at 31.2gpt Au, 45gpt Ag (31.8gpt AuEq) from 52m

Mineralisation in hole CODD-300 is extends mineralisation 50m down-dip from previously reported hole CORC-240 which returned 16m at 2.6gpt Au, 9gpt Ag from 22m. Mineralisation is open at depth and along strike to the northwest where the prospective geology is overlain by a less than 5m veneer of younger lake sediments.

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