Ann: Munda Drilling Returns Bonanza Gold Grades, page-2

MUNDA DRILLING RETURNS BONANZA GOLD GRADES HIGHLIGHTS

 Assay results have returned very high gold grades including “Bonanza” gold intersections from two diamond holes drilled north of the Munda Gold Pit
 A peak “Bonanza” value of 1m @ 234.7g/t Au was returned in drill hole EMD002
 Bonaza intersection is located within an exceptional broad high-grade zone of 16m @ 21.6g/t Au which includes 9m @ 35.9g/t Au
 Multiple zones intersected in both holes outside of current Munda pit boundary
 Low As and elevated Bi, Cs, K, Mo, Rb, Sr, Te & W indicates a granitic source to the mineralisation
 Gold mineralisation occurs above and below nickel sulphide mineralisation

Estrella Resources Limited (ASX: ESR) (Estrella or the Company) is delighted to advise that assay results have been returned from diamond core drilling completed at the Company’s 100% owned Munda Gold Project (Gold Rights only) at Widgiemooltha, 34km south west of Kambalda, WA. (Figure 1). Results have exceeded the Company’s expectations, returning numerous very high-grade mineralised zones which contain “Bonanza” grades as shown in Table 1 below and detailed in Table 3.

Drilling was designed to target and define interpreted high grade plunging gold shoots at depth, away from the main pit zone (Figure 2). The high grade plunging shoot interpretation is a new concept, significantly different to interpretations undertaken by previous explorers. The interpreted high-grade gold shoots were 3D modelled by The Company using implicit modelling software on historical drilling datasets.

The new drilling reported in this announcement has confirmed the high grade plunging shoot interpretation (Figure 3). This will have a significant impact on future drill targeting, allow an update to the JORC 2012 Mineral Resource, provide confidence in the 3D geological models, and allow robust economic evaluations to occur for the first time on The Project.



Multiple zones of mineralisation have been intersected, with mineralisation occurring within the upper ultramafic but mainly directly below the nickel sulphide mineralisation within the lower basaltic unit (Figure 3). The gold mineralisation is generally associated with zones of silicified and bleached or chlorite altered rocks surrounding weak to moderate quartz vein/veinlet development.

Rare thick (>10cm), late-stage quartz veins occur and contain gold mineralisation as well as remobilised nickel sulphides (Figure 4; @ 109.5m). The gold mineralised zones are low in arsenic (As) and silver (Ag), with the only exception being the shear zone in EMD001 between 86-91m which contains elevated As (max 462ppm) and Ag (max 3.49ppm) (Figure 5).
The primary mineralised gold zones (Figures 4 & 6) characteristically contain narrow stockwork veinlets with weak-moderate alteration, returning elevated bismuth (Bi), cesium (Cs), potassium (K), molybdenum (Mo), rubidium (Rb), strontium (Sr), tellurium (Te) & tungsten (W) geochemistry, indicating a granitic source to the mineralizing fluids rather than a classic shear hosted origin.

Further analysis of the structural/mineralisation controls, as well as alteration mapping, is required. In addition, geochemical modelling of the multi-element data will be used to vector towards the primary source of the mineralising fluids to better define the next stage of drill targeting.

Post the completion of the drilling at Munda, Estrella entered into a Binding Nickel Rights Sale Agreement with Mt Edwards Lithium Pty Ltd, a wholly-owned subsidiary of Neometals Ltd (ASX:NMT), to dispose of the nickel rights in the Munda Project (ASX:ESR; Munda Nickel Rights Disposal, 6 Sept 2019). This transaction allowed Estrella to share the costs of sampling and assay of the core with Mt Edwards Lithium. The transaction also allows the Company to focus on its other core assets.