Short Term Trading Week Starting: 6th Mar, page-66

STTCOMP MLS, FA Long

Current SP: $0.009/0.010
MC: $9.18M
Cash: Approx. $497k as of 31/12/2016


Drilling at Manindi Intersects Broad Zones of Massive to Semi Massive Sulphide Mineralisation The initial drilling campaign comprised five drill holes for 827 meters and was completed on 3 February 2017. The Company is currently awaiting the results of the multi - element assay results, following which MLS plans to undertake further drilling. This first phase drilling campaign has intersected broad zones of massive to semi massive sulphide mineralisation, characteristic of a volcanogenic massive sulphide (VMS) deposit, similar to other base metal sulphide deposits in the Yilgarn Craton, particularly Golden Grove near Yalgoo to the west of Manindi, and Teutonic Bore - Jagua r in the Eastern Goldfields to the east of Manindi . Additionally, the drilling has intersected a previously unknown zone of massive to semi massive zinc mineralisation closer to surface than existing mineralisation.

The Company drilled two holes in the region of the existing mineralised zone at Kultarr, testing for potential extensions of the current resource. The drilling at Kultarr intersected a previously unknown massive to semi massive zinc mineralised zone over a width of 7.2 metres . This has greatly increased the potential to delineate additional tonnage, and suggests that there are further mineralised zone s in the region of the current defined resource area. This newly discovered zinc mineralisation sits stratigrahically higher than previously recognised , suggesting mineralisation may be far more extensive and closer to surface than previously understood. The Company is awaiting multi - element assay results and once received and analysed, a follow - up drill campaign will be completed which will test for additional mineralised zones beneat h the existing resource at Kultarr and along the newly discovered zone. The interpreted stacking of the mineralised zones at Manindi is common to VMS style deposits, and is similar to other VMS deposits in the Yilgarn Craton . In addition, s everal high pri ority targets have been identified through this initial phase of drilling, including a significant EM Conductor at Kultarr North , which is considered a primary potential resource extension target that has not been adequately drill tested. The current JORC Measured, Indicated and Inferred resource which has been defined at Kultarr , remains open along strike and down dip .