Ann: Drilling results demonstrate wide gold zones at El Zorro, page-16

COMMENTARY
Drill holes ZDDH00028 and ZDDH00030 were drilled in the southern sector of the Ternera Prospect
to test mineralisation of the CC200, CC175 and CC150 faults. Hole ZDDH00028 intersected high
grade quartz veins associated with the CC150 and CC175 faults.

ZDDH00030 intersected the CC200, CC175 and CC150 fault zones with broader zones of welldeveloped gold mineralisation. ZDDH00030 requires additional sampling with intercepts of 3.60m@ 1.41g/t Au from 195.40m and 0.95m @ 5.12g/t Au both open downhole. Hole ZDDH00030 from
199.40m was not been continuously sampled, additional infill samples have now been submitted
for analysis. Both holes further define the southern extensions of the deposit and additional drilling
is planned to expand the southern zone.

ZDDH00029 returned a wide mineralised intercept of 176.30m @ 0.85g/t Au. ZDDH00029 drilled
through three higher grade zones associated with the CC475, CC450 and CC425 fault zones,
including 2.00m @ 33.00g/t Au from 91.00m associated with the CC450 fault. Mineralisation
between the fault zones is well developed within sheeted vein complexes interpreted to connect
each of the CC fault zones. This drill intercept is associated with the high chargeability IP anomaly
detected by the recent geophysics survey (Figure 2 and ASX announcement 10th August 2020).
Partial assays were received for ZDDH00031 which has been drilled to a depth of 320m. Assays
have been received from 0.00m to 156.00m with mineralisation open downhole. ZDDH00031
returned a wide well mineralised intercept of 54.00m @ 1.69g/t Au from 72.00m and an additional
deeper high grade intercept of 6.70m @ 11.57g/t Au from 118.30m.Mineralisation is associated
with the CC450 and CC425 fault zones and interconnecting sheeted vein complexes.
Mineralisation is associated with the high chargeability IP anomaly (Figure 2).
Results further indicate and confirm that wide high-grade zones of gold mineralisation are
correlated to the high chargeability IP response detected in the recent geophysics survey. This
further enhances the potential scale of the Ternera Prospect, and two holes have already been
completed approximately 200m north of the northernmost hole drilled to date (Figure 2).


1.) This is really good commentary, we have found extensions on the southern end adding to the prospect of this entire batholith being mineralised
2.) More results due very soon on more extension drilling
3.) This is looking more and more like a very good IRGS system as the the vein complexes are connecting from fault zones
4.) We now have a decent model to build an MRE away from drilling everything as the IP anomalies were tested and are hosting higher grade gold

A very good campaign with more good news to come, management ticking the boxes and drilling effective campaigns, they are not just sticking holes in the ground to see if any gold comes up. So even when you minus the gold hits and the fantastic results, they are now defining the mineralisation model.