Exploration at South Darlot Gold Project
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ABN: 32 072 871 133
Central Iron Ore Ltd.
Suite 1 Level 2, 49-51 York Street, Sydney 2000 Australia
Tel. 61 2 9397 7555
NEWS RELEASE Symbol: CIO-TSXV
September 25, 2021 For Immediate Dissemination
Exploration at South Darlot Gold Project
VANCOUVER, BRITISH COLUMBIA – (GLOBE NEWSWIRE – September 25, 2021),
Central Iron Ore Ltd. (CIO – TSX.V) (“CIO” or “the Company”) is pleased to announce that
an opportunity arose to drill as a drilling contractor had spare capacity.
At the Endeavour prospect 5 holes for 192 metres were drilled to test the ex tension of the
mineralisation to the west. Significant mineralisation includes:
21ENRC-03: 2m (1.6m true width) at 9.7 g/t Au from 52 meters down hole.
On M37/632 12 holes for 72 6 metres were drilled to test an anomalous structure identified
from a drone magnetic survey . Sample assay results from this drilling has yielded one
encouraging result which was in hole 21SDRC12 and intersected 4 metres at 0.45 g/t Au from
24 to 28 metres down hole.
Drone Magnetic Survey
A drone magnetic survey was flown over 4 blocks over the South Darlot licenses on 20m flight
lines and a 20m flying height for all blocks with a section over the Endeavour mineralisation
flown with a 10m line spacing. The information collected from this survey was used in
collaboration with an e arlier 1999 survey and a drill target on M37/632 was generated.
Analysis and interpretation of the data is ongoing and additional drill targets focussing on
structural breaks in the geology will be made.
Trial DGPR Survey
A trial Deep Ground Penetrating Radar (DGPR) survey was conducted by Ultramag
Geophysics over the Endeavour and Mermaid prospects with a series of seven lines surveyed
on an approximate twenty -meter line spacing. Analysis and interpretation of the data is in
progress.
Red 5 Joint Venture
The original Joint Venture was formed in 2011 with a predecessor of Red 5 Limited, who on
August 2017 acquired from Gold Fields Limited the fully owned subsidiary Darlot Mining Pty
Limited which held the Joint Venture interest. CIO’s fully owned subsidiary South Darlot Pty
Ltd is registered at the Department of Mines, Industry Regulation and Safety with a 51%
interest.
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CIO maintains it is entitled to an interest of at least 70%. This is disputed by Red 5 Limited.
Red 5 Limited and CIO are in advanced negotiations to resolve this matter, which resolution
will only be binding upon the execution of a definitive binding agreement. We anticipate that
the matter will be resolved in the near term.
British King
Under the terms of Tenement Acquisition Agreement dated 30 October 2014 regarding the
sale of British King by CIO to BK Gold Mines Pty Limited , the British King Mine has now
reverted to 100% beneficial ownership by CIO. CIO is registered on title for 49% and has
received signed transfer forms from BK Gold Mines Pty Limited to Central Iron Ore Limited for
the transfer of a further 51% interest as agreed.
The registration of unencumbered title of that 51 % interest is being delayed by Silverstream
SE22, who provided funding to BK Gold Mines Pty Limited to fund their acquisition under the
Tenement Acquisition Agreement . Silverstream SE22 has refused to remove the caveats
which prevents registration of the transfers. CIO maintains that such refusal has no legal
foundation and is evaluating its options which includes commencing legal proceedings.
SOUTH DARLOT GOLD PROJECT (Western Australia)
The Company’s South Darlot Gold Project area is located approximately 320km northwest of
Kalgoorlie in Western Australia and includes:
• The British King Mine which is National Instrument 43-101 – Standards of Disclosure
for Mineral Projects (“NI43-101”) compliant. The British King Mine is 5km southwest of Red 5
Limited’s Darlot Mine. The British King Mine is currently in care and maintenance.
• A number of tenements which are subject to a joint venture with subsidiaries of Red 5
Limited (“Red 5”), details of which are set out below.
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Figure 1: Locality map of the South Darlot project
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RED 5 JV Project (Formerly Barrick Joint Venture Project)
The tenements set out in the table below (“Red 5 JV Tenements”) are the subject of a joint
venture between the Company and subsidiaries of Red 5 Limited (“Red 5 JV”) and are situated
southwest of Red 5’s Darlot gold mine and are contiguous with CIO’s current holdings in the
area. The Red 5 JV Tenements are detailed below.
Table 1: List of South Darlot tenements
Project Tenement Status Area (ha)
Barrick JV M37/421 Granted 381
Barrick JV M37/552 Granted 200
Barrick JV M37/631 Granted 776
Barrick JV M37/632 Granted 595
Barrick JV M37/709 Granted 98
Barrick JV M37/1045 Granted 90
Endeavour Prospect – RC Drilling
The Endeavour mineralisation is characterised by a planar, laminated quartz vein with minor
sulphides including pyrite, galena and traces of chalcopyrite. Enveloping this is stringer
mineralisation over 1 – 3 metres with grades between 0.5 – 2.0 g/t Au. Th is laminated vein
and halo mineralisation is hosted in a highly weathered felsic volcanic. Preliminary petrology
suggests the gold is secondary in nature and present as small blebs of electrum or particulate
grains associated with pyrite.
A total of five holes were drilled at the Endeavour prospect in July 2021. Four of the holes
targeted shallow positions in an attempt to determine the up dip presence of the Endeavour
mineralisation. The fifth hole was drilled to extend the mineralisation to the west of the
Endeavour quartz lode.
The four shallow holes intersected a narrow 1 to 2 m wide quartz vein but failed to record any
significant mineralsiation and it must now be concluded there is a depletion zone in the highly
weathered upper horizon of this mineralised system.
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Figure 2: Plan of the Endeavour prospect on the Emperor Fault
The fifth hole 21ENRC-03 targeted the quartz lode west of the known position of the lode and
intersected 2 m @ 9.7 g/t Au from 50 metres down hole (true width of 1.6 metres). Figure 2 to
4 shows a plan, cross section and long section of the Endeavour lode and the spatial
relationship of the intercept relative to historical drilling.
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Figure 3: Plan of tenements and collar locations of recent drilling
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Figure 4: Cross section of the Endeavour showing hole 21ENRC-03
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Figure 5: Long section of the Endeavour mineralised system showing 21ENRC-03