Lefroy Exploration : Outstanding High-Grade Gold and Copper

ASX RELEASE-23 February 2021

Outstanding High-Grade Gold and Copper

Mineralisation Intersected at Burns

• • Assay results have been received for the initial ten RC holes of a 22-hole combined RC/Diamond drilling program totalling 4026m undertaken at the Burns Au-Cu prospect earlier this year

• • A single traverse containing two RC holes that targeted the eastern margin of the Burns magnetic anomaly intersected an outstanding intercept in drill hole LEFR260 containing:

  • o 60m at 5.22g/t Au and 0.38% Cu from 112m down-hole to end of hole, including:

    •  20m at 12.2g/t Au, 0.87% Cu and 1.7g/t Ag from 144m

• • The intersection is hosted within fresh hematite altered porphyry and is a significant new development on the underexplored eastern side of the Burns anomaly. The mineralisation in LEFR260 is open

• • The Burns Au-Cu system is coincident with a discrete magnetic high related to magnetite alteration within basalt and diorite porphyry. A similar magnetic anomaly, known as Smithers, has been located 300m to the north of the current drilling. This anomaly remains untested.

• • The thick high-grade gold intersection in hole LEFR260, combined with previously reported native copper hosted by basalt and the broad magnetite alteration system provide support for a larger primary intrusion related Au-Cu-Ag system at Burns

• • Further assay results pending.

Chairman, Gordon Galt, commented "The intersection in LEFR260 is outstanding by any measure and is quite exciting. LEX will follow up as soon as possible. We will need to look north, south, east and deeper from this discovery hole to establish the structure/s which have delivered this intersection. The next phase of drilling is being scheduled now and will include immediate diamond drilling to extend and support the mineralisation discovered in LEFR260".

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ASX Announcement

23 February 2021

Lefroy Exploration Limited (ASX: LEX) ("Lefroy" or "the Company") is pleased to provide an update on the combined reverse circulation (RC) and diamond drilling program that commenced in January at the Burns Prospect. Burns is within the Eastern Lefroy tenement package, which is part of the wholly owned greater Lefroy Gold Project (LGP) located 60km south east of Kalgoorlie (Figure 1).

The Non-JV Eastern Lefroy tenement package covers 249km2. It now spans 40 strike kilometres from the Hang Glider Hill prospect in the north west to Lake Randall in the south east as one contiguous wholly owned land package. The Lefroy Gold Project in its entirety covers 621km2.

The Burns Prospect lies within the Lake Randall Exploration Hub that is immediately south east of the Lucky Strike-Havelock-Erinmore BIF trends. The hub contains tenement E15/1715 that covers an area of approximately 20km2 containing the Burns gold-copper prospect which was originally discovered by Octagonal Resources Limited ("Octagonal") in 2011.

Figure 1 Lefroy Gold Project tenement plan highlighting the Burns prospect and proximity to Lucky Strike. Refer to Figure 2 for the inset map.

The Burns gold (Au) copper (Cu) prospect is situated on the eastern margin of a large interpreted felsic intrusion, termed the Burns Intrusion. The intrusion does not outcrop and is represented by a distinctive annular aeromagnetic and gravity geophysical signature (Figure 2) (refer LEX ASX release 16 September 2020). The relationship between the larger Burns Intrusion and the Au-Cu mineralisation that is associated with porphyry intrusions at the Burns Prospect is unclear. The tenement (E15/1715) covering the greater Burns system was granted to LEX on 31 August 2020.

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ASX Announcement

23 February 2021

Drill Program

An initial 22-hole combined RC and diamond drill program totalling 4026m, designed to evaluate the depth and strike extensions to the Burns Au-Cu system (LEX ASX release 12 January 2021), was completed on 12 February 2021. The program evaluated the previously defined Burns Prospect at depth on four, 40m spaced sections, with two 40m spaced step-out sections testing the northern strike extent. Two RC holes evaluated the underexplored eastern side of the Burns anomaly.

Figure 2 Inset plan highlighting tenement E15/1715, the Burns prospect, extent of the Burns Intrusion and the strike extension of the Lucky Strike BIF with compiled previous drill holes. Refer to Figures' 3 and 4 for the Burns drill hole plan.

The holes (Table 1) are either RC or RC pre-collared diamond holes that have evaluated a 240m strike section of the Burns magnetic anomaly (Figure 3). This includes four RC pre-collared diamond holes (LEFR266, 268, 272 and 273) that targeted the depth and strike extensions to previous drill hole OBUDD001 which intersected two broad zones of gold and copper mineralisation within basalt and porphyry on the west side of the Burns anomaly.

The RC and diamond drilling intersected epidote altered basalt and variably hematite altered diorite porphyry. The altered basalt and porphyry are variably magnetite-altered in places represented either by massive magnetite veins, veinlets, or disseminations. This magnetite alteration results in a strong discrete magnetic feature at Burns (Figure 3).

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ASX Announcement

23 February 2021

Figure 3 Inset plan highlighting drill hole plan at the Burns prospect over a magnetic image (TMI RTP) prepared from merged ground and aeromagnetic data. The warm colours highlight a strong magnetic response from the bedrock (refer to Figure 4 for detailed drill hole plan).

Assay results have been received (Table 2) for the ten RC holes of the 22-hole program. The majority of the results received were for 7 RC holes drilled on two new 40m spaced step out sections immediately to the north of the previously drilled area (Figures 3 & 4).

Results were also received for two holes (LEFR259 & 260) drilled on the northern most prior drill section (Figure 4) and designed to evaluate the underexplored eastern side of the Burns magnetic anomaly (Figure 3). These holes are the only holes in this phase of drilling to evaluate the eastern side.

Most of the reported assay results (Table 2) are from 4m composites samples, prepared by taking a portion from each 1m drill spoil sample to prepare a 4m interval. However, in drill hole LEFR260, 1m rotary split samples were submitted for a 20m down hole interval based upon visual indicators (alteration, sulphides) recorded by the geologist at the time of drilling. (refer Table 2 for sample type).

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