Peako : Scout Drilling Intersects Gold and Base Metals

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Scout Drilling Intersects Gold and Base Metals

14 January 2022

Highlights

• Scout drilling intersected Au-Ag-Pb-Cu mineralisation at the Landrigan Prospect, which included:

• 1. 4m @ 6.2 g/t Au from 11m o 13m @ 40.7 g/t Ag from 11m o 15m @ 2.3% Pb from 9m
• This intercept at PRC0030 extends the strike of mineralisation previously intersected in historical drilling by a further 80m, to approximately 300m which remains open to the north-east.
• Limitations of the available drill rig restricted target testing at both Eastman and Eastman East prospects with a number of drill holes ending in mineralisation

Peako Limited (ASX: PKO, Peako) is pleased to report the results from the 'scout' RC drill program at its East Kimberley Project completed in September 2021. A total of 30 holes for 1,249 metres were completed across six prospects (refer Figure 1), supported by an Exploration Incentive Scheme drilling grant from the Western Australian Government.

The program was designed to leverage the opportunity presented by the multi-purpose nature of the rig secured for the aircore program completed in the first part of the 2021 field season. The rig was reconfigured for shallow RC drilling to expedite early-stage drill testing of 'hard rock' targets developed from a combination of geological mapping, rock chip assays and Peako's library of historical drill and geochemistry data. While predominantly aimed at testing gold-bearing vein systems, all targets were affiliated with polymetallic sulphide halo zones with potential for copper, lead, silver and zinc. Unfortunately, at a number of prospects, highly fractured ground conditions and excessive water hindered the program resulting in a number of targets not being tested due to rig limitations.

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Figure 1. Scout drilling locations at Peako's East Kimberley Project in 2021.

Landrigan Prospect

Eight reverse circulation (RC) drill holes, totaling 449m, were drilled at the Landrigan Prospect to test the near surface continuation of gold and base metal mineralisation intersected in previous Peako and historic BHP drilling (Figure 2). This zone was an attractive drill target because it was located in a fold hinge with coincident surface geochemistry.

Best results at Landrigan included:

• 4m @ 6.2 g/t Au from 11m, including 1m @ 11.6 g/t Au from 12m (PRC0030)
• 13m @ 40.7 g/t Ag from 11m (PRC0030)
• 15m @ 2.3% Pb from 9m (PRC0030)
• 14m @ 0.4% Cu from 11m (PRC0030)
• 4m @ 1.08 g/t Au from 4m (PRC028
• 12m @ 0.55% Pb from 0m (PRC028)
• 7m @ 1.04% Cu from 64m (PRC0028)
• 4m @ 1.6% Cu from 40m (PRC0029)
• 16m @ 0.7% Pb from 24m to EOH (PRC0025)

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Figure 2. Plan location of new and historical drillholes at the Landrigan Prospect on simplified interpreted geology

The Landrigan Prospect was originally identified by BHP as a base metal prospect with Peako recognising the prospect's gold potential from results of its 2019 RC drill program. That program intersected Cu-Au mineralisation with results that included 15m @ 1.04% Cu from 184m in PLRC011 and 7m @ 1.1 g/t Au from 133m in PLRC001.

The intercepts from drillhole PRC0030 extend known mineralisation at Landrigan to the northeast by 80m, resulting in a total mineralised strike length of approximately 300m. The mineralisation intersected in hole PRC0030 includes a gold rich central zone with a polymetallic envelope of Ag-Pb-Cu, with the mineralised trend open to the north-east

Eastman Prospect

Limited reverse circulation (RC) drilling at the Eastman Prospect aimed to test the interpreted near surface continuation of gold and base metal mineralisation intercepted in historical drilling where mineralisation occurred within shear-hosted veins in Koongie Park Formation host rocks.

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Peako's 2021 scout drilling at Eastman involved 3 RC holes for 98m with anomalous results including:

• 28m @ 0.28% Zn from 0m to EOH (PRC0017)
• 4m @ 0.18% Pb from 36m (PRC0022)
• 12m @ 0.22% Zn from 36m to EOH (PRC0022)
• 6m @ 0.69% Pb, 0.51% Cu and 0.38% Zn from 16m to EOH (PRC0031)

Whilst the Pb-Zn-Cu anomalism confirm that mineralisation at Eastman potentially extends near-surface, no significant intercepts are reported. Problems with ground conditions and high water return encountered by the scout drill rig hampered drillholes reaching target depths with a number of holes abandoned and more significantly all drill holes were abandoned in mineralisation. Near surface strike extensions to mineralisation at Eastman remain untested.

Eastman East Prospect

The Eastman East Prospect is approximately 650m east of the Eastman Prospect with planned drilling originally designed to test an undrilled VTEM feature coincident with a historic Cu-Zn soil anomaly in the Koongie Park Formation volcano-sedimentary sequence. Four holes for 87m, were drilled at Eastman East with 72m coming from a single drill hole (PRC0018). Highly fractured and broken ground conditions restricted effective drill testing of this area with the scout drill rig configuration and the shallow holes failed to reach the VTEM target.

Assay results confirmed near surface Zn-Pb anomalism identified by the historical soil geochemistry and results included:

• 16m @ 0.27% Zn and 0.16% Pb from 45m (PRC0018)
• 5m @ 0.62% Pb from 0m to EOH (PRC0019)
• 5m @ 0.5% Pb from 0m to EOH (PRC0020)
• 5m @ 0.39% Pb from 0m to EOH (PRC0021)

Gypsy Prospect

Five holes totaling 162m were drilled at the previously undrilled Gypsy Prospect. The holes were designed to test Au-Cu bearing quartz-breccia veins hosted by a massive serpentinised gabbro. The drilling at Gypsy returned no significant assays results.

Louisa Prospect

A single 45m hole was drilled at the Louisa Prospect to test a shear zone that hosted pyritic quartz veins proximal to the contact between ultramafic rocks and a diorite intrusion. The Louisa Prospect has been subjected to limited work by previous explorers (Freeport and Inco) who concentrated on the PGE potential of chromite seams within the ultramafics and did not assess potential for shear-hosted gold. Assay results from drilling at Louisa returned weakly elevated Ni analyses that are consistent with their ultramafic host rock geology.

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Appaloosa Prospect

At the Appaloosa Prospect, Peako drilled 9 holes for a total of 408m. The holes principally targeted Au (±Cu and Pb) bearing gossanous veins in a serpentinised gabbro host. The secondary target for the drilling was malachite-bearingquartz-carbonate veins and shear zones within the same gabbro host rock.

The scout drilling at this prospect did not intersect anomalous mineralisation.

Next Steps

Recent reverse circulation drill results have defined polymetallic gold-rich mineralisation at the Landrigan Prospect as a well-developed system continuous for over 300m and open to the north-east. At Landrigan, Peako will integrate recent multi-element assay results with a stratigraphic facies study from the BHP core relogging. Outcomes from this evaluation work will underpin our forward work program to expand the current footprint of mineralisation including strike and depth extensions of known mineralisation at Landrigan as well as untested opportunities in the Eastman area.

The Eastman Tenement hosts a significant strike length of Lamboo Ultramafics which are associated with PGE and Ni-Co mineralisation throughout the region. Peako will review the PGE potential of the Eastman Tenement given other explorers recent success in the East Kimberley exploring the Lamboo Ultramafics for PGEs and Ni.

For more information

Rae Clark

Director, Peako Limited | [phone] | [e-mail]

References

Further details relating to the information provided in this release can be found in the following Peako ASX announcements:

12	August 2021	Scout RC Drilling Program Commenced
21	July 2021	East Kimberley Exploration Update
5 May 2021	Reconnaissance Field Work Discovers Extensive Base and Precious Metal-
		rich Quartz Vein Systems
30 January 2020	Infill RC Sample Results
28 November 2019	East Kimberley Drilling Results Extend Known Copper-Gold
		Mineralisation

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