Overview

OLDHAM RANGE POLYMETALLIC PROJECT

In December 2021 Meryllion announced that it had entered into an option agreement with Matlock Geological Services Pty Ltd (“Matlock”) in respect to E69/3461 covering approximately 147 km² of tenement area prospective for copper-nickel-cobalt-PGEs and zinc. (“Oldham Range” or “the Project”). The Project is located 320 kms west of Wiluna in Western Australia. Polymetallic base metal grades of up to 0.11% copper, 800 ppm zinc and 180 ppm lead received from several rock chip samples, between 8 - 10 times the background values.

Meryllion has been working to secure Aboriginal Heritage Clearance to allow for exploration drilling. CO-FUNDING APPROVED BY WESTERN AUSTRALIAN GOVERNMENT FOR UP TO AUD$150,000 FOR DRILLING AND UP TO AUD$15,000 OF MOBILISATION. Meryllion has evaluated sites for the proposed initial drill program, subject to all relevant authorities and stakeholder approvals.

Meryllion could earn a 100% interest in the Project by spending AUD$300,000 on exploration, based on an agreed budget, on or before, 31 December 2021. This date was subsequently extended by mutual agreement to 31 December, 2022. Following the minimum expenditure being met, Meryllion will have an exclusive right to acquire the Project at any time subject to:

1. Issuing 2,000,000 MYR shares
2. Payment of AUD$50,000
3. Granting a 1% Net Smelter Royalty for all metals produced from the Property

Due to the increased exploration activity in Western Australia and requirement to seek all regulatory approvals for drilling, Meryllion and the optionor are working together and agreed to extend the option period to 31 December 2022 to enable the parties to obtain a suitable drilling rig and complete necessary regional approval.

TECHNICAL OVERVIEW

The Company engaged RockDomain Consulting Pty Ltd (“RockDomain”) to carry out a technical evaluation and assessment of the geological setting, mineralisation, and results of the historic work programs. RockDomain provided a technical report following a site visit and an assessment of the prospectivity of the Project area and recommended follow up exploration tasks.

During August 2021, the consultants undertook a geological reconnaissance and rock chip sampling campaign over the project area. Several geological traverses were undertaken across the areas identified as most prospective. Seventeen (17) rock chip samples were collected and submitted for analysis.

The project area covers approximately 147 km² and is located in the central eastern part of Western Australia about 320 km northeast of Wiluna (Figure 1). The data considered for the assessment included, historic data, mapping and field observations, rock chip sampling and geophysical data. The aim was to provide an independent opinion of the style, distribution, geometry and controls on mineralisation as well as an assessment of the litho-stratigraphic succession for an improved geological-structural model to support future exploration.

SUMMARY

The work undertaken has confirmed that the Oldham Range Project licence E69/3461 covers part of a basement rock inlier consisting of a thick interval of weakly metamorphosed siliciclastic sedimentary rocks. In addition, the geochemical sampling has generated anomalous base metal values within the range of previously reported values. The field work could not confirm a surface expression of the geophysical anomalies.

The field observations and geochemical sampling are interpreted to indicate a possible genetic relationship for mineralisation with the mapped structural and also potentially geophysical and geochemical anomalies. The multi-element geochemical assemblage (Cu, Zn, Pb, Ni, and Cr) is interpreted to have originated from primary hydrothermal solution of yet an undetermined source and not simply background enrichment of the bedrock. Furthermore, the type of geochemical element assemblages observed together with the gossanous nature of the surface material and the association with a geophysical anomaly add to the strength of the exploration target.

TARGETING STRATEGY

Meryllion is of the view that the geochemical sampling conducted in the past has been validated and that support for conceptual targets is confirmed. The Consultant’s view is that the proposed drill targets are technically sufficiently supported to warrant a further round of exploration work including drilling. The following rationale has been applied in arriving at this conclusion:

• Surface expression, geological-structural evidence of fluid flow and leakage
• Level of geochemical enrichment for a range of base metal elements
• Spectrum of geochemical element association
• Repeatability in surface sampling
• Association with geophysical anomalism, and 
• Size

The most effective and efficient test of the defined target areas is by drilling. Two aspects of the target areas have to be considered when selecting a testing method and strategy. First, it is recommended to drill test by implementing one or two top-to-toe RC drill hole traverses including at least 2 to 3 drill holes.

Basic commercial criteria can also be applied to constrain the target dimension. Given the location of the project area any discovery must be of a significant size and ideally at not too great a depth. This means that drill traverses can be 100 m apart and a drilling depth for RC holes of about 150 m would be a thorough test (Figure 2).

It is recommended that:

1. The gossan target is tested with a line of 50 m spaced RC drill holes angled at 65 to the south-southwest.
2. The VTEM-1 target is tested with a fence of 3, 150 m deep RC drillholes.
   • It might be warranted extending one of the RC drill holes if possible with an diamond tail

The VTEM-2 target is tested with a fence of 3, 150 m deep RC drillholes.

RockDomain supports the next step of proposed exploration work which will include several traverses of RC (reverse circulation drilling) and possibly diamond tails across the proposed target areas. A measure of success for the work would be the confirmation of a primary metal association of the type identified in surface samples which would serve as evidence of hydrothermal alteration.

GOVERNMENT CO-FUNDED EXPLORATION DRILLING

The Western Australian Department of Mines, Industry Regulation and Safety approved co-funding for the Oldham Range Project up to a maximum of AUD$150,000 for drilling and a maximum refund of AUD$15,000 for mobilisation costs.

Drilling is to be undertaken between 1 December 2021 and 30 November 2022 in order to access the co-funding above.