Ann: Cayley Lode Continues to Deliver Outstanding Grades, page-2

Thursday’s Gossan Copper-Gold Project – Diamond Drilling Update
Second Parallel Lode Emerging at Shallow Depth as
Cayley Lode Continues to Deliver Outstanding Grades
Significant new intercept of 18m at 1.11% Cu from 36m within broad 299.7m interval in
interpreted Copper Lode Splay; Plus, 15m at 3.59% Cu and 2.37g/t Au in Cayley Lode
➢ Very broad zone of copper mineralisation including a significant shallow intercept of
18m at 1.11% Cu intersected in the interpreted near-surface position of the parallel
Copper Lode Splay (CLS) in drill hole SMD093:
o 299.7m at 0.40% Cu from 35m down-hole, including:
▪ 64m at 0.68% Cu from 35m, including:
• 18m at 1.11% Cu from 36m in the interpreted Copper Lode Splay
▪ 30.1m at 1.44% Cu, 0.21g/t Au and 4.4g/t Ag from 304.6m in the Cayley
Lode, including:
• 4m at 3.17% Cu, 0.26g/t Au and 7.5g/t Ag
➢ This is consistent with Stavely Minerals’ interpretation that drilling targeting the Cayley
Lode would begin to encounter the parallel CLS at shallow depths as it progressively
advances to the west.
➢ The CLS had been intercepted at depth in earlier diamond drilling including:
o 6m at 6.73% Cu, 0.84g/t Au and 15g/t Ag from 538m down-hole in SMD032, and
o 10m at 2.43% Cu, 0.30g/t Au and 11g/t Ag from 583m down-hole in SMD044
➢ The CLS has also been inferred to approach surface, as noted in a coherent zone of
copper ± gold ± silver intercepts in shallow historical air-core drilling conducted to define
the extents of the shallow chalcocite Mineral Resource, including:
o 12m at 1.08% Cu and 0.24g/t Au (no Ag assay) from 30m down-hole in TGAC004
o 9m at 1.76g/t Au (no Ag assay) from 26m and 6m at 1.1% Cu from 62m in
TGAC013
➢ The Cayley Lode continues to deliver strong results including the following new assays:
o 4.9m at 2.14% Cu, 0.33g/t Au and 9.8g/t Ag from 347m down-hole in SMD094;
o 10m at 2.33% Cu, 0.45g/t Au and 20g/t Ag from 224m down-hole in SMD095;
o 15m at 3.59% Cu, 2.73g/t Au and 18g/t Ag including 1m at 2.41% Cu, 24.6g/t Au
and 16.5g/t Ag from 222m in SMD096; and
o 4.8m at 3.56% Cu, 0.46g/t Au and 29g/t Ag from 255.8m down-hole in SMD097.
ASX Announcement 25 August 2020
Page 2
➢ In original sampling diamond drill hole SMD096 intersected 15m at 3.26% Cu, 0.62g/t
Au and 16g/t Ag from 220m down-hole.
➢ Duplicate sampling was undertaken as part of Stavely Minerals’ ongoing QA/QC
programme, with the same interval in SMD096 returned significantly higher gold grades
which may indicate there is likely to be some nuggetty particulate gold in the system.
➢ The intercepts in SMD096 and SMD097 appear to have been truncated by the Low-Angle
Structure (LAS) and may have originally been of greater width.
Stavely Minerals Limited (ASX Code: SVY – “Stavely Minerals”) is pleased to report significant
new assay results from the ongoing resource drilling programme at the shallow high-grade
copper-gold discovery at the Thursday’s Gossan prospect, part of its 100%-owned Stavely
Copper-Gold Project in Victoria (Figure 1).
An intensive resource drill-out is continuing on the south-eastern end of this (now) 1.5km
long discovery zone, with in-fill and step-out drilling continuing based on a roughly 40m x 40m
drilling grid (Figures 2 & 3). The Mineral Resource drill-out is well advanced and progressing
well.
Commenting on the latest results, Stavely Minerals’ Executive Chairman, Chris Cairns, said:
“The Cayley Lode continues to deliver consistently good widths of high-grade copper, gold and
silver mineralisation with some excellent new high-grade results from the south-eastern end
in holes 94, 95, 96 and 97.
“For some time, we have been predicting that, as the collars of drill holes testing the Cayley
Lode mineralisation at increasing depths migrate further west, the upper portions of these drill
holes should start to intercept the inferred near-surface position of the Copper Lode Splay.
“Drill hole SMD093 appears to have done exactly that. Within a very broad interval of nearly
300m at 0.40% copper from 36m, the hole has encountered the parallel Copper Lode Splay
and returned 18m at 1.11% copper. An interesting feature of the shallower intercepts in both
the Copper Lode Splay and the Cayley Lode is that, sometimes the copper and gold results are
offset – typically with the gold zone being above the copper zone. Presumably, that is a
function of the copper being more amenable to redistribution within the weathering profile.
“The identification of the Copper Lode Splay close to surface may have significant implications
for the scale of a potential Phase 1 open pit development. Clearly there is a great deal of
drilling to be done to confirm this potential, but we do now have the funding available to
pursue this opportunity aggressively.
“Of course, drill hole SMD093 also intercepted the target Cayley Lode at depth under the LAS
and returned a very handy 30.1m at 1.44% copper, 0.21g/t gold and 4.4g/t silver with a highergrade interval of 3.17% copper, 0.26g/t gold and 7.5g/t silver near the top of the larger
interval.
“These multiple lode intercepts really highlights that we have a large amount of drilling to do
before we get to the position of detailed studies, and we must caution that there is no
guarantee of a positive economic outcome when we do.