General Discussion Topics, page-43

I guess it's only natural to fall back to reviewing your current strengths and weaknesses . And for example with Gold - why not as it is in absolute BULL territory with respects to the Pilbara and in particular the Nearology to HEMI.

One only has to go back to some of the earlier wordings from DEG management ( below ) where you would have found quite a few ' GEM ' references to the pre-development and emerging HEMI discoveries.

You can also get a feel for the location of Mt. Dove as highlighted by the location orientation's to HEMI from these earlier comments.

" De Grey holds the dominant land position along the Mallina Basin, and we have been steadfast in our belief, theMallina Basin is a large and highly prospective gold province and yet is grossly under explored. In our view, theMallina Basin is like the Yandal Belt and the Yamarna Belt 30 and 5 years ago respectively. Both regions havesince yielded multi-million ounce gold deposits after dedicated and systematic exploration ”.

The SAST is over 15km long and issubparallel to and several kilometres south of the Mt Berghaus trend, which hosts the 181,000 ounce Mt Berghausdeposit. The SAST ( the Scooby to Antwerp Structural Trend (“SAST”). comprises a network of multiple shears and inter-related Toweranna style intrusions providingan excellent fluid pathway and numerous structural traps with potential to host large gold deposits.

ANTWERP PROSPECTAt Antwerp, located approximately 5km SW of the Hemi prospect, the new aircore drilling program has intersectedshallow high grade gold mineralisation in BWAC185 (6m @ 10.7g/t) and BWAC211 (4m @ 21.7g/t) hosted in amafic intrusion with dimensions of approximately 2.5km x 1km bound by two interpreted thrusts (Figure 2). Theseencouraging high grade results complement historic shallow widespaced drilling (200-400m) results including 8m@ 0.8g/t Au inc. 4m @ 1.3g/t Au and 16m @ 0.7g/t Au (including. 8m @ 1.3g/t Au). Further follow-up drilling isrequired to better assess the potential of this prospect.

The recent drilling results at Hemi, Scooby andAntwerp justify this large scale approach. Future drilling in 2020 will continue to systematically test the Scoobyto Antwerp Structural Trend and other similarly prospective corridors.

However I wouldn't get to excited over the KZR 3 Sisters project - Only to the extent that it is located in close proximity to the Mt. Dove tenements. Here's Why :-

KZR 3 Sisters Project - DETAILS OF THE OPTION

By exercising the option, Kalamazoo will:

(a) Acquire a 100% interest in all the mineral rights in E45/4887, ELA45/4919and E45/4722 (“DOM’s Hill”), 100% interest in all the non-lithium mineralrights in E45/4724 (“Marble Bar”) and an 80% interest in in all the nonlithium mineral rights in E47/2983 (“The Sisters”) ("the Option");

The other 20% is held with DRILLABIT PTY LTD who incidentally continues to have the Licence registered under its name from I guess what would have been the original and previous joint deal with Great Sandy. Interesting as well that the second tenement ELA47/4342 as per the map is held in the name of Talison Lithium Australia / Greenbushes Ltd which is valid out to 5th June 2028 and must also be a hangover of the Lithium rights verses ALL other mineral rights in the Great Sandy sale and KZR acquisition .

So not likely that KZR would be relinquishing its GOLD rights over these TWO tenements.

However as can also be seen in the attached couple of maps , the Mt. Dove tenement package is right in the same pocket with the likes of KZR and CZR's Top and Bottom Camp tenements and is 100% available for GOLD.

And here's a little overview of KZR's 3 Sisters project :-

Located north of the Ashburton Gold Project is Kalamazoo’s The Sisters Project (E47/2983 andELA47/4342) which covers 136km2 and is considered prospective for both epigenetic gold mineralisationassociated with the Wohler Shear Zone, as well as potential mineralised intrusions as newly identifiedat De Grey’s world class Mallina Gold Project discovery (Figure 8). This shear zone is a prospective splayfrom the Tabba, Mallina, Withnell and Berghaus Shear Zone complex that hosts much of De Grey’s goldresource including the Hemi gold deposit. At the Mallina Gold Project, De Grey recently announced theoverall oxide/sulphide Mineral Resource (JORC Code 2012) has increased to 37.3Mt @1.8g/t Au for2.2Moz, although there is expected to be a substantial resource upgrade from the recent Hemidiscovery10.

Kalamazoo has recently completed a project wide geochemical survey at The Sisters targeting theWohler Shear Zone over a structural corridor approximately 14km in length, with results anticipatedshortly. The soil sampling program covers an area of approximately 45km2 with 2,200 samples collectedalong the Wohler Shear Zone corridor for UltraFine+TM analysis in a CSIRO research project led by DrRyan Noble. The UltraFine+TM data will be used to potentially detect gold mineralisation as well as anybroad alteration halos to focus exploration toward ground geophysical surveys and drill testing. Inparallel, airborne magnetics and radiometrics surveys of the project area were carried out in late May2020, with results soon to be announced11.

The real question that remains for me is assuming the NAL / SYA / AJM Lithium ventures are valued at ZERO ( which would be silly ) , how much of the potential GOLD value is reflected in SYA's current Market Capitalisation of circa $17 million , when GSM ( additional details below ) is valued at $20 million , and CZR's basket of projects including it's current primary focus on it's Croydon Top / Bottom camp prospects is valued at $45 million.

Difficult one because with the comparison's to say CZR , they have their large Iron Ore projects as well as additional W.A gold . Plus they have Mark Creasy holding approximately 66% of the register.

But here is some information regarding the rather fair value comparison to say GSM and it's recent announced activities as well as another ' Nearology ' map enclosed below :-

Yule project - GSM ( Golden State Mining )

The Yule project is located between 45km and 65km southwest of Port Hedland in the northern Pilbara region of Western Australia.

The project has four exploration licences for a total of 656 km2 comprising the granted Yule North tenement E47/3508, the Yule South tenements E47/3503 and E47/3507, and the recently applied for Yule East tenement E 45/5570.

17 priority gold, base metal, and rare earth element target areas have been identified in Yule project.

The Yule Project is located ~13km north west of De Grey’s Hemi discovery, highlighting a significant potential for gold discovery at Yule.

New exploration license E47/4343

GSM reported that an additional exploration license application covering additional prospective ground to the east of the current Yule North tenement has been submitted bringing the total Yule project area (granted and applications) application to 702km2.

This license area not only provides an extension of the Boodarie Greenstone Belt within the Sholl Shear Zone but also a similar geological setting as the recently discovered Hemi Prospect within the Mallina Formation.

Management comments

Golden State’s Managing Director, Michael Moore said: “We are very excited by the recent De Grey drilling results which underpins our commitment to gold exploration and discovery in this very prospective and underexplored region of the Pilbara Craton.

Golden State now has 702 km2 of ground granted and under application and this will be a focus for exploration and drilling in early Q2 2020. We already have several high priority gold targets for drilling up at Yule (refer to ASX announcement dated 20 December 2019) and in light of De Grey’s recent discovery we are currently expanding on our exploration programmes and look forward to updating shareholders on this shortly.”