MINOTAUR EXPLORATION LIMITED ACN 108 483 601 ASX: MEP

MINOTAUR

EXPLORATION

24 August 2017

ASX Release

EM survey reveals compelling drill targets for Eloise JV, Cloncurry

  • Ground EM survey along 17km of Levuka Shear Zone completed

  • Data reveals numerous conductors immediately south of the Eloise copper-gold mine

  • New drill campaign designed to test 3 priority targets

  • 4 diamond holes for 2250m in close vicinity of several base metal deposits

Minotaur Exploration Ltd (ASX: MEP, "Minotaur") advises completion of an extensive ground electromagnetic ("EM") survey on strike from the operating Eloise copper-gold mine, along the Levuka Shear Zone. The survey returned multiple conductors suggestive of sulphide mineralisation; all within 12km of the Eloise mine (refer to Figure 1).

Background

The Eloise project, 55km south-east of Cloncurry, is a joint venture ("Eloise JV") between Minotaur and OZ Minerals Ltd (ASX: OZL). OZ Minerals may earn up to 70% beneficial interest in the tenements by spending up to A$10m, with A$3.2m applied to 30 June 2017. The joint venture is seeking Eloise-style copper-gold and Cannington-style silver-lead-zinc mineralisation, with both styles evident in the well endowed mineral camp around the Eloise, Altia and Maronan deposits (refer to Figures 1 and 2).

EM targets

EM lines spaced at 800m intervals, along 17km of the Levuka Shear Zone south of the Eloise mine, identified multiple high conductance responses (Figure 2). Infill surveying was completed over the priority responses, of which the following are targeted for initial drill testing:

Jericho: comprises two linear, multi-plate conductive zones 3-4km in length, modelled to be 50-275m below surface. The anomaly lies coincident to a weak magnetic unit that may represent pyrrhotite or thin banded iron formation. A central conductor occurring between the linear trends is interpreted to not be related to stratigraphy. This conductor's subdued magnetic response suggests a non-magnetic source, with similar geophysical characteristics to mineralization at the nearby Eloise mine. No prior drilling is recorded in the

area.

LEVEL 1, 8 BEULAH ROAD, NORWOOD, SOUTH AUSTRALIA 5067 T+61 8 8132 3400 F+61 8 8132 3499 Eadmin@minotaurexploration.com.au

www.minotaurexploration.com.au

Arlington: a multi-plate anomaly up to 2.5km in length, modelled to be 300-450m below surface. Magnetic inversion modelling places several Arlington conductors immediately adjacent to interpreted ironstone/ amphibolite. This setting is considered analogous to the Cannington and Pegmont deposits. Three historic

drill holes penetrated 30m into basement, reporting minor chalcopyrite and pyrrhotite/pyrite, but well above the modelled position of the conductors.

St Louis: a two-plate anomaly up to 2km in length, modelled to be 135-265m below surface. The northern plate lies on the intersection of a major northwest-striking fault and an interpreted rotational fault plane, with minimal magnetic response. No prior drilling is recorded in the area.

All targets are sited on the eastern flank of the Levuka Shear Zone, structural host of the Eloise deposit and within 12km of the mine. Close by, the Altia Pb-Ag-Zn deposit1and the Maronan Pb-Ag-Cu deposit2collectively demonstrate base metal and copper-gold prolificacy in the immediate region.

Drill program

A diamond drill campaign to investigate at least six of the new EM plates has been designed by Minotaur and endorsed by the joint venture. Planning envisages all holes being completed by mid November, contingent

upon finalisation of landowner access agreements and Native Title heritage clearance of proposed drill sites.

Some 2250m of drilling across 4 holes is proposed, as follows:

  • Jericho: two holes planned for 1020m
  • Arlington: one hole planned for 750m
  • St Louis: one hole planned for 500m

The recently completed EM program and the proposed drill campaign represent a significant on-going earn- in investment by OZ Minerals.

  1. Altia is a joint venture between Minotaur Exploration (40%) and Sandfire Resources (60%)

  2. Maronan is 100% owned by Red Metal Limited (ASX: RDM)

Figure 1: Eastern portion of the Eloise JV tenements over magnetics. The area shaded encompasses the ground EM survey.

Figure 2: High conductance EM responses to south of Eloise mine; EM image is Z component, channel 30 over magnetics

COMPETENT PERSON'S STATEMENT

Information in this report that relates to Exploration Results is based on information compiled by Mr Glen Little, who is a full-time employee of the Company and a Member of the Australian Institute of Geoscientists (AIG). Mr Little has sufficient experience relevant to the style of mineralization and type of deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the

Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code). Mr Little consents to inclusion in this document of the information in the form and context in which it appears.

Andrew Woskett

Managing Director Minotaur Exploration Ltd T+61 8 8132 3400

www.minotaurexploration.com.au

JORC Code, 2012 Edition, Table 1

n

Section 1: Sampling Techniques and Data

Criteria

JORC Code explanation

Commentary

Sampling techniques

Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

  • The EM survey within the Eloise JV area was conducted by GEM Geophysics, an external geophysical contractor.

  • The EM system used Transmitter Technologies TTX-1 transmitter (using 0.25Hz frequency) and a 3-component Jessy Deep SQUID EM sensor.

  • EM data receiver stations were spaced at 100m intervals along E-W lines and each E-W lines was spaced at 800m intervals over the wider survey area. For infill survey lines EM data receiver stations were spaced at 50m intervals along E-W lines over EM anomalies at Jericho, Arlington, Defiance, Joplin, Marlborough and St Louis.

  • Data quality was of a high standard for the whole of the survey and consistent with the type of target being sort.

Include reference to measures taken to ensure sample representivity and the appropriate calibratio of any measurement tools or systems used.

  • Internal checks of equipment was conducted prior to and during commencement of the survey to enquire the SQUID sensor was calibrated and measuring correctly and would therefore give the best representative sample results for this type of survey.

Aspects of the determination of mineralisation that are Material to the Public Report.

  • Not relevant to this report

In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1m samples from which 3kg was pulverised to produce a 30g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.

  • EM Transmitter loops were 200m x 200m in size using a moving-loop survey method. This type of system and loop configuration is considered appropriate for the survey area where the targeted basement rocks are covered by 50- 120m of younger conductive cover and for the target size of any potential mineralisation.

Drilling techniques

Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face- sampling bit or other type, whether core is oriented and if so, by what method, etc).

  • Not relevant to this report

4

Minotaur Exploration Ltd. published this content on 24 August 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 24 August 2017 07:27:05 UTC.

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