OPERATIONS UPDATE 64NORTH PROJECT (JULY 27)

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“The prospectivity of the 64North Project is outstanding, with RML in the fortunate position to have 4 prospects worthy of drill testing and any of which could be the next Pogo or Fort Knox giant sized gold mine. With the Alaskan summer season in full swing and teams active on multiple prospects and drilling high priority targets at the Aurora and Echo Prospects, there is a lot of news flow to come.”
 
- Managing Director, Duncan Chessell

EXECUTIVE SUMMARY:

• The Company continues to focus drilling efforts on the Aurora and Echo Prospects adjacent to the Pogo Gold Mine – see below details of recently completed Hole #3 and #4 at the Aurora Prospect, assays pending
• Echo Prospect drilling planned to commence in ~ 2 weeks
• Recent capital raise ensures the Company has sufficient funds to achieve a 30% interest in the 64North Project by spending 1st year earn-in requirements in 2020
• Preparations for drilling at the E1 Prospect and a regional field program have commenced during the current Alaskan summer field season
• Fully funded exploration on multiple drilling targets and prospects with news flow for the remainder of 2020
• Webinar – 11:30AM SYD Tuesday 28 July registration via https://us02web.zoom.us/webinar/register/WN_VExQnulfTSSTxiM7Zk9_2w


FULL RELEASE:

The recent capital raise has provided Resolution Minerals with sufficient funds to complete the 1st year earn-in to secure a 30% interest (US$5m expenditure) at the 64North Project upon completion of the planned activities outlined below. A commitment to regional exploration and rents (US$1m of the US$5m total) was part of the agreement with project vendor Millrock Resources. Securing of these funds with the recent capital raise and deploying operationally during the Alaskan summer field season was an important step to ensuring the conditions of the earn-in were met. The Company has identified two (2) high priority regional prospects, E1 and Boundary with the majority of regional funds to be deployed to progress these prospects to drill testing. The regional work is in parallel with on-going drilling testing of the compelling Aurora and Echo Prospects adjacent to the Pogo Gold Mine.


Drilling Aurora Prospect
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• Completed Hole #4 (20AU04) intersected the same host rock as Pogo Gold Mine (BQF paragneiss) for the entire hole. Significant alteration and increasing sulphides at depth led the geology team to extend hole #4 to 1,090m (Figure 3).

• Final detailed logging of hole #4 will be completed shortly.

• Assays will be released at the same time for Hole #3 and #4 expected in ~5 weeks. Minor delays are due to overloading of laboratories with the current surge in gold exploration in North America.

• Planned shallower holes to the centre and eastern side of the Aurora Prospect (A7, A10, A11 and A14) can be completed, following the helicopter supported drilling at Echo. Assays from Holes #3 and #4 will be received prior to commencing further drilling at Aurora and allow RML to apply the knowledge gained to refine drill targeting from these results and the new ZTEM data.

• The Aurora holes can be drilled all year-round using road access.

• The tracked mounted drill rig (Ruen Drilling) at the Aurora Prospect will remain on hold, ready to drill further targets at the Aurora Prospect, while the crew drills the Echo Prospect in August.



Drilling Echo Prospect

• Drilling on the Echo Prospect (total of 950m) in two (2) shallow holes with a helicopter rig will commence in approximately 2 weeks to make use of the better weather during mid-summer.

• Drill targets are being refined using the recently acquired geophysics surveys, see below.


Geophysics Aurora, Echo and (NST) Goodpaster Prospects

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• Airborne ZTEM and magnetics geophysical surveys has been completed (Figure 2).
• Preliminary results support compelling drill targets at Aurora and Echo and provide the technical team with comparison data collected over Northern Star’s Goodpaster Discovery - 800m from RML’s claim boundary.

• Processing of data, QA/QC, structural analysis and production of 3D inversions is underway and is planned to be reported to the market in 2 weeks.

• The company will present a technical briefing on the dill targeting via webinar with the results of the geophysics in approximately 2 weeks.


E1 Prospect

• An airborne magnetics geophysical surveys has been completed in the last few days over the E1 prospect to assist with drill targeting. The results of the survey will be released to the market upon final processing.

• An access trail from the Pogo Gold Mine road will be pushed south 20km to the E1 prospect to facilitate access for heavy equipment and drill rigs, expected to be completed by the end of August.

• Planned September and October trenching, sampling, mapping and likely shallow RC drilling.


Regional exploration – other

• Geophysical CSAMT survey will commence on the Boundary Prospect next week, to progress the prospect to drill ready for early summer next year. The Boundary Prospect is a high priority potential Pogo-style system located on the eastern extent of the Pogo Trend.

• Field crews are conducting other minor regional works to progress some of the 30 Prospects identified from conceptual towards drill ready (Figure 4).


About ZTEM geophysics surveys

ZTEM (Z-Axis Tipper Electromagnetic System) is a passive Electromagnetic (EM) technique used to map subsurface resistivity and conductivity. ZTEM can penetrate conductive cover (often causing interference in other EM systems) to depths beyond 1km and is excellent for discriminating subtle resistivity contrasts. The heli-borne magnetic data will be used to define the likely structural controls for mineralisation within the prospect areas. The new data will be analysed in conjunction with knowledge learnt from the current drilling and CSAMT data to define new drill targets and refine existing drill targeting.

The Goodpaster Prospect and Pogo Gold Mine are structurally controlled, with alteration and associated gold and sulphide mineralised zones expressed as subtle resistivity contrasts (i.e. weakly conductive). Therefore, the combination of close spaced airborne ZTEM and magnetics data, with existing wide spaced ground acquired CSAMT lines will be a very powerful tool for further defining drill targets within an Intrusion-related Gold System (IRGS) setting. Furthermore, RML is collecting data across neighbouring Northern Star’s (ASX:NST) Goodpaster Prospect to allow for direct comparison with potential targets on RML’s ground (Figure 2).

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About the Prospects

Aurora Prospect

RML’s Aurora Prospect is a large-scale potential, high priority target zone (2km x 5km), with host rocks, surface geochemistry, structures and geophysical signature that make it a look-alike to the Goodpaster Prospect and Pogo Gold Mine (Error! Reference source not found. and Error! Reference source not found.). Drilling operations are continuing on the Aurora Prospect.

Echo Prospect

The Echo Prospect in the north of the West Pogo Block is directly down dip from the Goodpaster Prospect (Figure 1). A single line of CSAMT survey data collected in 2019 identified a number of valid drill targets, on a narrow corridor through the centre of the Echo Prospect (Figure 1). The airborne surveys are a cost- effective means to widen the zone of potential drill targets. Ground preparation in July will allow RML to be drill ready for August.

E1 Prospect

The E1 Prospect is potentially analogous to the Fort Knox Deposit (11.5 Moz Au) at Fairbanks, a large intrusion hosted IRGS. Limited historical drilling (3,000m) was conducted (maximum grade 14g/t Au) prior to any airborne geophysics and the large 40km2 geochemical footprint make the E1 Prospect a high priority drill target (see RML Investor Presentation announced on 13 July 2020 for more details). 


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Resolution Minerals - A Geo’s view of the Aurora Prospect Targets