Minotaur Exploration : Iris-Electra results confirm copper-gold potential

MINOTAUR EXPLORATION LIMITED ACN 108 483 601 ASX: MEP

MINOTAUR

EXPLORATION

24 November 2016

Highlights

• Four additional diamond holes testing Iris North and Iris South completed by the Minotaur-OZ

  Minerals joint venture near Cloncurry

• Assays confirm iron sulphide hosted, copper-

  gold mineralisation consistent with 2 initial holes

• Mineralisation defined along 600m of strike

• Geophysics indicate 2.7km strike potential for copper sulphide mineralisation

• Electra conductive plate indicates a sizeable prospect, not yet drill tested

The Iris-Electra Prospect

The Iris-Electra copper-gold prospect lies under shallow cover approximately 5km north-east of the Eloise copper-gold mine (Figure 1). The prospect

sits along the Levuka Shear Zone within Mt Norna Quartzite, a regionally significant rock unit that hosts the Eloise and Osborne copper-gold mines

and South32's (ASX: S32) Cannington silver-lead-zinc mine. Minotaur's geological model for Iris-Electra

is iron sulphide, copper-gold (ISCG) mineralisation similar in style to the Eloise copper-gold deposit.

Latest Drill Assays

An accelerated program of 4 diamond drill holes at Iris was completed by the joint venture between Minotaur and OZ Minerals (ASX: OZL). This drill program followed promising results from the inaugural 2 diamond drill holes at Iris which returned anomalous copper and gold values associated with

pyrrhotite over broad intercepts, confirming Iris as a significant new ISCG discovery (refer to ASX announcement released 19 October 2016). Those results prompted the Minotaur-OZ Minerals joint venture to place a further 4 drill holes into the Iris conductors (Figures 2, 3 & 4, Table 1). These holes utilised existing heritage-cleared drill pads for expediency. All 4 holes successfully intersected hydrothermally altered breccia zones exhibiting

various degrees of anomalous chalcopyrite (copper sulphide) mineralisation.

Significant intercepts from the latest round of drilling include:

• 20m @ 0.18% Cu and 0.03g/t Au from 228m, and

• 5.8m @ 0.48% Cu and 0.06g/t Au from 277m

• 26m @ 0.73% Cu and 0.61g/t Au from 168m,

• including 0.4m @ 12.35% Cu and 14.3g/t Au from 175.3m EL16D09:

• 40m @ 0.25% Cu and 0.06g/t Au from 390m,

• including 12m @ 0.52% Cu and 0.17g/t Au from 409m

  EL16D10

• 36m @ 0.2% Cu and 0.09g/t Au from 154m

Copper-gold mineralisation is now documented along 600m of strike, reinforcing the potential scale of the mineral system. In addition, the presence of high-grade intervals within the broader mineralised

intercepts is considered a promising indicator of the prospect's potential.

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

Figure 1: Minotaur's 'Eloise' tenements and the 'Iris' and 'Electra' ground EM targets over magnetics, referenced to the Eloise copper-gold mine, owned and operated by FMR Investments Pty Ltd. Locations of Altia and Maronan base metals deposits shown.

Figure 2: Late time Z-component EM image (plan view) of Iris conductors with completed drill holes

Figure 3: a) left image shows gridded conductivity (red and white zones are conductive) of the X-component EM data of channel 35. Yellow polygons are the modelled conductive plates; b) right image shows conductive plates over RTP1VD magnetics

Interpretation of drill results and ground EM

The persistent nature of mineralisation in the drilling completed at Iris indicates a large mineral system with potential for higher grades in the vicinity of the EM conductors, as seen in hole EL16D08 where a chalcopyrite rich zone returned 0.4m at 12.35% Cu and 14.3g/t Au.

Mineralisation is open in all directions at Iris and, as reported on 16 November 20161, the in-fill ground EM grid completed over the Electra EM anomalies (Figure 3) shows conductive bodies modelled along 2.7km of strike, from about 130m below surface at Iris South to about 470m below surface at Electra (Figure 4).

Of special interest is the outstanding scale of the modelled conductor at Electra relative to those at Iris (Figure 4). Modelling and interpretation of the Electra EM anomaly and its relationship to Iris continues. Given the clear association at Iris between high conductance and the coexistence of chalcopyrite and pyrrhotite, results to date indicate that the Electra conductor is prospective for copper sulphide mineralisation and

merits drill testing.

1 2.7km conductive trend, Iris-Electra, at Eloise JV

Figure 4: Long-section looking west showing Iris and Electra modelled EM conductors and drill hole traces for hole EL16D04-05 and EL16D07-10.

Next steps

This collation of highly encouraging results from the first work program has given the joint venture sound reason to continue drill testing Iris and Electra. Field activity will diminish during the Queensland wet season, until March 2017. It is anticipated drilling will recommence at Iris-Electra around that time.

In the interim, geochemical assessment and geological modelling will provide a design basis for the next round of drilling, while native title heritage clearances are sought for drill site establishment.