Austral Resources Australia Ltd: Step-out Drilling Delivers 6m @ 2.95% Cu at Lady Colleen

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

Dan Jauncey CEO said:

"The 2022 drilling campaign at Lady Colleen has been completed safely and effectively with the support of our contracting partners Tulla Drilling, Rural Earthworx, and ALS Global.

The outstanding results have delivered our 2022 exploration strategy at Lady Colleen, to explore for a high-grade core within the large Mineral Resource.

Results have confirmed the presence of a continuous high-grade core at Lady Colleen.

Critically, the high-grade core remains open along strike and down plunge.

We are now updating the Mineral Resource Estimate and designing the next drilling campaign.

Following the Mineral Resource Estimate update, Austral will commence a Scoping Study to evaluate all modifying factors and determine the economic potential for open pit mining at Lady Colleen.

We look forward to advising the market with the updated Mineral Resource Estimate at Lady Colleen 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.

- Integration of both the updated resource model and pit shells were then used to optimise the design of a now completed 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 2,219.1m at LC.

The drilling of a total of 6 DDH tails totalling 926.2m has also now been completed. 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.

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;

MTKCD087

o 49m @ 1.27% Cu (from 173m downhole) including;

- 6m @ 2.95% Cu (from 189m downhole)
- 4m @ 2.54% Cu (from 199m downhole)
- 5m @ 2.18% Cu (from 217m downhole)

MTKCD088

o 48m @ 1.00% Cu from 132m, including
- 3m @ 2.85% Cu (from 169m downhole)
- 3m @ 2.69% Cu (from 178m downhole)

MTKCD087 is a step-out hole targeting potential extensions of high-grade mineralisation along strike and down plunge.

The intersection in MTKCD087 is a 70m step out along strike to the northwest from MTKCD038 (24m @ 2.08% Cu from 145m & 38m @ 3.28% Cu from 206m), and a 30m step back down dip from MTKCD086 (30m @ 2.35% Cu from 201m).

Importantly, the intersection from MTKCD087 confirms that the LC high-grade core remains open along strike and down plunge to the Northwest. (Figures 3 & 4*).

MTKCD088 is an infill hole drilled to increase resource certainty and evaluate grade continuity between existing intersections.

The intersection in MTKCD088 is a 77m step back down dip from MTKC0626 (4m @ 3.16% Cu from 107m and 6m @ 1.75% Cu from 120m) and adds 15m strike extension to the northwest of MTKCD038 (grades listed above).

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*.

*To view tables and figures, please visit:
https://abnnewswire.net/lnk/GHHJG63C

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