Lyons River Project

Overview

Lyons River is located approximately 1,100km north of Perth and approximately 220 km to the north-east of the coastal town of Carnarvon, Western Australia.

Dalaroo’s Lyons River is a strategic (100% owned) land position of 703 km² within the Proterozoic Mutherbukin Zone of the Gascoyne Province. The Company believes the district is an emerging Broken Hill Type (“BHT”) / Sedimentary Exhalative (“SEDEX”) deposit setting.

Lyons River Project location diagram

Geology Gascoyne Province structural and metamorphic zones after
GSWA Record 146

Sweet Spot for BHTs/SEDEXs

Combination of all previously completed exploration work has led to the development of a conceptual model that suggests the Lyons River Project is prospective for Broken Hill Type (BHT) deposits.

Geoscience Australia’s 2019 study, using surface wave tomography and a parameterisation for anelasticity at seismic frequencies shows 85% of the world’s sediment hosted base metal deposits occur within 200km of the edges of thick lithosphere.[1] The Australian model shows striking correlation between major sediment hosted deposits and edge of thick lithosphere, defined by 170km LAB contour. Lyons River Project is located 156km from the 170km LAB contour.

Distribution of SEDEX deposits, function of lithospheric thickness in Australia.

A total of eight RC drill holes for 1,989 metres ranging in depth from 219 to 287 metres were completed in the December Quarter 2021. The RC drill programme at the Four Corners prospect was designed to test several base metal targets and follow up on the encouraging Pb-Zn results corresponding with the metamorphosed stratabound sequence of pyritic psammitic and pelitic rocks intersected previously by four EIS funded diamond drill holes during late 2020 within the 2.5km long IP anomaly peaking at 33 mV/V. Previously outlined lead-zinc-copper mineralization (comprising – values of up to 2.3% Pb, 0.3% Zn, 0.9% Cu & 4g/t Ag) at the Central zone occurs over a strike length 200m.

RC drill rig at Four Corners prospect

Dalaroo’s RC drilling programme was successful in intersecting zones of interbedded psammitic to pelitic plus mafic lithologies together with multiple zones of disseminated base metal sulphides associated with significant pyrite intervals. The psammitic to pelitic and mafic lithologies display varying garnet intensities that appear laterally extensive. In addition to extending Pb-Zn mineralsation along strike, the programme has provided geological constraints on the underlying stratigraphic package at Four Corners prospect, which will be crucial for targeting of future work programs at Lyons River.

Multi-element assay results received, highlight encouraging Pb, Zn and Ag intersections including:

Drill LRRC001 intersected 1m @ 0.43% Pb, 0.95% Zn and 7.5 g/t Ag from 47m
Drill hole LRRC006 with 9m @ 0.34 % Pb, 0.21% Zn and 1g/t Ag from 141m including 5m @ 0.48% Pb, 0.26% Zn and 1.3 g/t Ag from 144m

Four Corners prospect, drill hole location map with historical holes, Dalaroo’s recently completed RC drill holes and base metal results.

These encouraging RC drill results when coupled with the previous EIS ($125,000 grant) funded 2020 diamond drill results of 0.2m @ 3.05% Pb, 1.37% Zn and 3 g/t Ag in drill hole LRDD003 has outlined a zone of Pb-Zn-Ag mineralization over a strike length of over 500m which remains open to the north, east and west. Coeval galena and sphalerite have been observed with trace amounts of chalcopyrite in the diamond holes.

(A) Base metal mineralisation at 223.2 m in LRDD003 assaying 0.20 m @ 3.05% Pb, 1.36% Zn and 3 g/t Ag from 223.2 m. (B) Mineralogy assemblage from Bruker spectral scan in LRDD003, biotite-calcite-quartz-anorthoclase-sphalerite-galena

Of special note are the significant intervals of Ag assays that have been intersected in the RC drill programme at Four corners with two holes (LRRC001 and LRRC006) returning Ag values of up to 7.5g/t. The presence of Ag confirms that the Pb-Zn base mineralization outlined to date supports a BHT/SEDEX setting model.

Encouragingly several zones of favourable hydrothermal carbonate alteration have also been identified.

Manganese (Mn)-rich carbonate, as observed in LRDD003, is known to occur commonly with high grade base-metal mineralisation in other BHT deposit settings. The meta-sedimentary package has been extensively intruded by a series of pegmatite dykes, some of which are K-felspar rich with moderate to intense hematite alteration.

Four Corners prospect drill section 371900E.

Four Corners prospect drill section 371700E with drill hole LRDD003

The Four Corners prospect is only one of five “regional” Pb-Zn soil geochemical prospects identified at Lyons River within a Proterozoic basin setting covering an area of 30 km by 10 km.

Lyons River, Four Corners prospect and new five Pb-Zn soil geochemical prospects/targets

Next steps at Lyons River

Exploration activities planned for the Four Corners prospect at the Lyons River Project include, a specialist geophysical contractor to conduct surface IP and radial/downhole IP surveys in the June Quarter 2022. The IP anomaly NE and SE zones remain open to the east, IP survey lines will be extended further to the east to determine the eventual size of the currently defined 2.5km strike length anomaly.

Over the broader Lyons River Project, aircore (AC) drilling is proposed at the Browns and Crawfords soil geochemical anomalies also during the June Quarter 2022. Browns is a 2km strike length Pb-Zn geochemical anomaly and Crawfords comprises multiple soil geochemical anomalies covering an area of 3km X 3km.

Heritage surveys are being planned for further drill testing at Four Corners and AC drill drilling at Browns and Crawfords.