Coppermoly : Quarterly Activities Report and Quarterly Cash Flow Report

About this update from Coppermoly Limited

For personal use only 31 January 2022 ASX Code: COY December 2021 Quarterly Activities Report The following report details the operating and corporate activities of Coppermoly Ltd ( Coppermoly or the Company ) for the quarter ended 31 December 2021 . SUMMARY Coppermoly was granted a 320 km 2 tenement - EPM27835 (Fox Creek Project) - on the Mt Isa Inlier in northwest Queensland. The tenement area is highly prospective for base metal and gold mineralisation with numerous historic copper workings in the tenement area and geological resemblances to the Ernest Henry and Eloise Cu-Au deposits. The Company has also applied for, but has not yet been granted, a second 294 km 2 exploration licence, EPM27836 (Mount Tracey Project), immediately to the south of EPM27385. All planned exploration activity in Papua New Guinea, including the previously proposed drilling program at the Mt Nakru prospect, continued to be deferred during the quarter due to COVID- 19. Coppermoly is well capitalised with cash reserves of $2.7 million as of 31 December 2021. Exploration Projects EPM 21735 (Fox Creek Project) - Queensland During the quarter, the Queensland Department of Natural Resources, Mines and Energy ("DNR"). granted exploration licence EPM27835 (Fox Creek Project) to the Company. EPM27835 covers an area of 320km 2 in the Eastern Succession, Mount Isa Inlier, in northwest Queensland which hosts a number of significant base metals deposits including the Cannington Ag-Zn-Pb deposit and the Ernest Henry Cu- Au deposit (Figure 1). EPM27835, contains a significant portion of the Cloncurry Fault (Figure 2). The Cloncurry Fault is one of the most significant structural zones in the Eastern Succession, striking north-westly over a 150 km length and extending continuously to at least 20km depth. This fault is broadly associated with a major lithological contact, separating cover sequence units the Soldiers Cap and Corella/Staveley Formation. It is spatially associated with a series of plutons such as the Saxby Granite and Squirell Hills Granite. The Cloncurry Fault is recognised to have been a major fluid channel over a significant period of time. Numerous Cu-Au occurrences occur along this fault zone (Figure 2). The tenement area is deemed highly prospective for base metal and gold mineralisation with geological resemblances to the Eloise Cu-Au and Starra Cu-Au deposits. There are numerous historic copper workings in the tenement area. Three of those areas, are Mount Kalkadoon Cu-Au Zone, Lorna Miss Hit Cu-Au Zone and Fox Extension Cu-Au Zone. Preliminary modelling of historic data warrants further exploration on those zones (Figure 2). Page 1 of 13 Coppermoly Ltd For personal use only M t M a r g a r e t F a u l t Naraku Granite t l a u e F a ng n R i a t ou n F Saxby Granite t l u a F Wim beru Granite m i r g l i P Squirell l C Hills o n Granite c r u r y F a u l t 0 50 kilometers Town Ma jor Roa d Mine s _ ES Ma jor Fa ults EP M27835 & 27836 Mt. Is a In lie r Cloncurry Q U E E N S L A N D Bris b a n e Le g e n d Tommy Cre e k Microgra nite Willia ms S upe rs uite Ma ra munge e S uite Dole rite Dike s Qua mby Conglome ra te Double Cros s ing Me ta m Mount Albe rt Group Ma kba t S a nds tone Toole Cre e k Volca nics Ma lbon Group Milo be ds Mt Fort Cons ta ntine Volca nics S oldie rs Ca p Group S ta ve le y Forma tion Core lla Forma tion Ove rha ng J a s pilite S urpris e Cre e k Forma tion Kurba yia Comple x Booma rra Me ta morphics Lowe r Ha s lingde n Group Bulonga Volca nics Mya lly S ubgroup Ma rra ba Volca nics Wonga S uite Argylla Forma tion Ka lka doon S upe rs uite Projection: GDA94 Zone 54 Figure 1, Tenement location in the eastern Succession, Mt Isa Inlier, Northwest Queensland (Map compiled after Qld's Mines Department database - NWQ Geology 2011 ) Page 2 of 13 Coppermoly Ltd For personal use only CLONCURRY Le ge nd Ma jor Fa ulk His toric Cu-Au Mine Cu-Au Zone EP M27835 EP M27836 0 5 Pro je c tio n : MGA Zo n e 54(GDA 94) kilometers Figure 2, Te ne me nts ove r Tota l Ma gne tic Ima ge (Ma gne tic da ta clippe d from Mine De pa rtme nt Da ta ba s e NWQ_TMI 2011) The Company has also applied for a second exploration licence, EPM27836 (Mount Tracey Project), which covers an area 294km 2 immediately south of EPM27385 (Figure 2). EPM27836 is subject to approval from DNR. Papua New Guinea exploration projects The Company has continued to maintain its existing PNG infrastructure (personnel, access roads and exploration camps) and has focussed on maintaining good relations with landowners and local communities to facilitate the resumption of exploration programs. The company remains well funded to resume exploration activities on its Papua New Guinea projects when circumstances allow. Page 3 of 13 For personal use only Coppermoly Ltd Mt Nakru (EL 1043) - PNG The Mt Nakru Cu-Au project (EL 1043) comprises two known deposits, Nakru 1 and Nakru 2, which are 1.5km apart. The Mt Nakru Project hosts Mineral Resources, classified in accordance with JORC (2012), which were estimated by Mining Associates in February 2019 and are summarised in Table 1. 1 High- grade copper-zinc mineralisation has also been exposed at surface at the Nakru 2 North-West and Nakru 3 Prospects. Table 1. Nakru Project Indicated and Inferred Mineral Resource Estimate, Feb 2019 (> 0.3% Cu) Resource Mineralised Grade Metal Category Tonnes Copper Gold Silver Copper Gold Silver ( (millions) % g/t g/t (kt) (koz) koz) Indicated 7.03 1.00 0.28 1.81 70 64 409 Inferred 34.36 0.69 0.21 1.55 239 237 1,707 Total 41.39 0.75 0.23 1.59 309 300 2,116 A planned exploration drilling program at Mt Nakru to define the strike length and depth extent of the currently exposed massive and disseminated sulphides has been deferred pending the lifting of COVID- 19 related restrictions on travel between Australia and Papua New Guinea. Figure 3 - Location of Coppermoly's PNG exploration projects 1, See Coppermoly ASX Announcement 28 February 2019. The Company is not aware of any new information or data that materially affects the information included in the referenced ASX announcement and confirms that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. Page 4 of 13 For personal use only Coppermoly Ltd Simuku (EL 2379) - PNG The Simuku Project comprises Exploration Licence 2379 on the island of New Britain in Papua New Guinea (Figure 1). Mineralisation at Simuku is copper-molybdenum-gold porphyry style associated with the Simuku-Kulu Intrusive Complex, which is Upper Oligocene in age. Three and potentially four porphyry copper-molybdenum-gold prospects, spaced along a 3 to 4 km, north to northeast trending zone, have been recognised on the Simuku Project. Table 2 details the Simuku Mineral Resource, which reported in March 2020 at a 0.2% copper cut off. Table 2 - Simuku Mineral Resource Statement 2 Category Mt Cu % Au g/t Ag ppm Mo ppm Cut-Off Inferred 373.6 0.31 0.05 2.1 59 0.2% Cu Coppermoly's exploration strategy is to investigate areas adjacent to the Simuku Mineral Resource for similar styles of mineralisation to expand the overall Mineral Resource. Recent geophysical studies completed by the Company have outlined target areas near the Simuku Mineral Resource for follow up exploration. Mak Mak (EL2514) - PNG Mak Mak is a greenfield exploration tenement that lies proximal to the Nakru tenement. There are several sites within the tenement where rock chip and stream sediment samples have returned elevated copper and gold. No significant exploration activity was undertaken on the Mak Mak project during the quarter. Kori River (EL2578) - PNG EL2578 comprises 116 sub-blocks, covering an area of approximately 315 km2, that encloses the Company's existing Simuku exploration licence (refer figure 1). EL2578 includes areas near the boundary of the Simuku exploration licence that show encouraging signs for potential conductive and resistive anomalous zones. No significant exploration activity was undertaken on EL2578 during the quarter. Metelen River (EL2638) - PNG Metelen River occupies an area of 246km 2 and is located adjacent to the Company's existing Mt Nakru and Mak Mak exploration licences. Ongoing data compilation, but no fieldwork was undertaken on EL2578 during the quarter. 2 See Coppermoly ASX Announcement 4 March 2020 for full details of the Simuku Mineral Resource Estimate. The Company is not aware of any new information or data that materially affects the information included in the referenced ASX announcement and confirms that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to appl y and have not materially changed. Page 5 of 13 This is an excerpt of the original content. 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