Austral Resources Australia Ltd: Lady Colleen Assays Confirm 5m @ 5.74% Copper

Brisbane, Australia - Copper producer Austral Resources Australia Ltd. (ASX:AR1) is pleased to announce assay results from the diamond drilling hole ("DDH") program, part of the in-progress Lady Colleen drilling program that includes Reverse Circulation drilling ("RC").

Dan Jauncey CEO said:

"These further outstanding results are aligned with our exploration strategy at Lady Colleen, which is to explore for a high-grade core within the large Mineral Resource to exploit through open pit mining.

"Results continue to confirm and define the continuity and extent of a high-grade core at Lady Colleen. Critically, the high-grade core remains open along strike and down plunge.

"As a result of these outstanding results, the Austral Board has approved a Scoping Study to evaluate all critical modifying factors and clearly determine the economic potential at Lady Colleen.

"We look forward to updating the market with further results over the coming weeks."

Lady Colleen ("LC") is located on an existing Mineral Lease (ML90170) and contains a JORC Mineral Resource Estimate of 7.9MT at 0.84% Cu - see Table 1* below.

The quoted resource was calculated in 2013 by the previous mine owner and released by Austral in its IPO prospectus.

As previously announced, Austral has commenced evaluation of the potential at LC for a lower tonnage, higher grade sulphide resource that could be economically open pit mined. Progress to date includes.

- Updating of the LC sulphide resource by an independent resource geologist, confirming the continuity of the higher-grade core of the LC resource.

- Pit shell evaluation of the updated LC sulphide resource with positive results warranting further detailed mine design and economic evaluation.

o Integration of both the updated resource model and pit shells were then used to optimise the design of a now in-progress drilling program with multiple targets being identified

o Infill of the current LC resource and upgrade portions of the Inferred Resource to Indicated and Measured status

o Potential extensions of the resource within and immediately outside or adjacent to the Pit shells with step out drilling

o To the north and northeast of the current resource envelope targeting potential extensions of mineralisation along strike and down plunge, and

o Evaluation of the oxide and transitional cap over the sulphide resource.

Drilling Update

Austral has now completed the drilling program with a total of 17 RC drill holes for 2,229.4m at LC.

The drilling of a total of 6 DDH tails totalling 906.7m is in progress. A plan view of collar locations and section lines is displayed in Figure 1*, with sections displayed in Figure 2*. Drillhole design details are listed in Table 2*.

All RC & DDH tail drillholes are sampled on 1m intervals and submitted to ALS Laboratory for analysis.

Austral has previously and will continue to update the market as results for LC are received. Results to date have been outstanding and have;

- verified the current geologic resource model and validated the targeting strategy applied

- increased knowledge on the structural and stratigraphic controls on high-grade mineralisation

- confirmed the continuity of the high-grade core at LC which remains open along strike to the north-west and down plunge to the north-east, as indicated in Figure 3 and Figure 4*.

Assays are detailed in Appendix 2*. Significant intersections include;

MTKCD086.

o 30.0m @ 2.35% Cu (from 201.0m downhole)
- Including 8.0m @ 3.55% Cu (from 209.0m downhole)
- Including 2.0m @ 6.77% Cu (from 215.0m downhole)
- Including 5.0m @ 5.74% Cu (from 223.0m downhole)

MTKD011.

- 31.2m @ 2.22% Cu (from 242.8m downhole)
- Including 15.0m @ 2.86% Cu (from 258.0m downhole)
- 1.2m @ 9.96% Cu (from 292.0m downhole)

MTKCD085.

- 13.0m @ 1.14% Cu (from 206.0m downhole)
- Including 1.0m @ 4.96% Cu (from 211.0m downhole)

MTKCD086 & MTKD011 are both step-out holes targeting targeting potential extensions of highgrade mineralisation along strike and down plunge.

The intersection in MTKCD086 is a 37m step out along strike to the north-west and 31m step out down dip to the north-west from MTKC0545 (16m @ 2.612% Cu from 177m).

The intersection in MTKD011 is a 54m step out down plunge of MTKC0548 (33m @ 4.528% Cu from 168m).

The intersections of high-grade mineralisation in both MTKCD086 and MTKD011 are open along strike and down plunge (Figures 3 & 4*).

Further drilling will be designed and completed to evaluate the potential continuation along strike and down plunge of the high-grade mineralisation, as indicated in Figures 3 & 4*.

On completion of the drilling program and once all assays are received, the LC resource model will be updated to enable generation of a new Mineral Resource estimate which is expected in Q4 2022.

*To view tables and figures, please visit:
https://abnnewswire.net/lnk/F0U08EZX

About Austral Resources Australia Ltd:

Austral Resources Australia Ltd. (ASX:AR1) is a copper cathode producer operating in the Mt Isa region, Queensland, Australia. Its Mt Kelly copper oxide heap leach and solvent extraction/electrowinning (SXEW) plant has a nameplate capacity of 30,000tpa of copper cathode. Austral is developing its Anthill oxide copper mine which has an Ore Reserve of 5.06Mt at 0.94% Cu. The Company expects to produce 40,000t of copper cathode over a four-year period from mid-2022.

Austral owns a significant copper inventory with a JORC compliant Mineral Resource Estimate of 60Mt at 0.7% Cu and 1,940km2 of highly prospective exploration tenure in the heart of the Mt Isa district, a world class copper and base metals province. The Company is implementing an intensive exploration and development programme designed to extend the life of mine and increase then review options to commercialise its copper resources.

Source:
Austral Resources Australia Ltd.

Contact:

Jane Morgan Investor and Media Relations Manager T: +61-405-555-618 E: jm@janemorganmanagement.com.au