Communicators

Chesser Resources Limited (“Chesser” or “the Company”; ASX:CHZ) is pleased to provide an update on drilling results from its flagship Diamba Sud Gold Project in Senegal, West Africa.

HIGHLIGHTS

Area D

-          Drilling has extended shallow high-grade oxide mineralisation at Area D, which remains open to the northwest and northeast. Results include the highest gram-metre intercepts to date;

• 16m at 23.38 g/t gold from 40m, including
  • 4m at 74.23 g/t gold from 45m
• 35m at 9.81 g/t gold from 2m, including
  • 20m at 15.48 g/t gold from 14m
• 27m at 2.71 g/t gold from 34m, including
  • 3m at 11.82 g/t gold from 54m
• 26m at 2.56 g/t gold from 17m
• 17m at 2.42 g/t gold from 54m
• 4m at 8.29 g/t gold from 16m, including
  • 1m at 24.60 g/t gold from 17m

-          Wide subvertical mineralised breccias and stockworks in fresh rock form likely feeder zones to the oxide mineralisation. Results include;

• 15m at 2.91 g/t gold from 60m
• 6.25m at 2.77 g/t gold from 67.75m
• 7m at 2.40 g/t gold from 82m
• 15m at 1.33 g/t gold from 67m
• 6.6m at 2.20 g/t gold from 65m
• 10m at 1.51 g/t gold from 65m

“We are delighted to report additional high-grade gold oxide and sulphide hits at Area D. Two holes from this program reported the highest gram-metre intercepts from the project to date, which is very encouraging at this early stage of the largest drill program undertaken on the property. The results highlight an extensive high-grade and shallow oxide system at Area D. It appears that the oxide mineralisation is broadly horizontal, with trends relating to underlying subvertical sulphide hosting structures. These structures appear to trend NE and NW and remain open for further drill testing. We are looking forward to expanding the drill program in these directions as we continue this transformative program. Drilling is currently progressing at Area A and we look forward to reporting these results as they are received.” commented Mike Brown, Managing Director and CEO of Chesser Resources.

Figure 1: Area D plan view showing historical drilling and holes reported in this release with selected significant results.[i]

The Company is pleased to report drill assay results from 3 diamond holes (DD) and 12 reverse circulation (RC) holes, totalling 621m and 1,726m respectively (Figure 1). All holes are from Area D, where the company reported a high-grade discovery earlier in the year and recently reported first results of this current drilling program[ii].

AREA D

The drilling has confirmed two very encouraging targets at Area D; a high-grade apparently flat lying oxide zone, and an underlying fresh rock sulphide mineralisation in breccias and stockworks. These appear associated with northwest and northeast trending structures, which are likely to also factor in the orientation of the oxide zones. The mineralisation remains open to the northeast and to northwest in the central area (Figure 2).

Figure 2: Area D drilling locations and outline of current oxide mineralisation, which is interpreted to be related to two principal mineralisation controls; NE-SW faulting and NW-SE faulting.[iii] Mineralisation remains open and untested to northeast, northwest and north.

Drilling results have significantly extended the thick mineralised zones intersected by previously reported holes at Area D. Most RC holes intersected significant wide oxide mineralisation within saprolitic material from shallow depths.

Figure 3: Section 1429525 showing holes reported in this release and previous drilling. Drilling has confirmed a thick and likely horizontal oxide mineralisation, with underlying subvertical breccias and stockworks.

RC Holes DSR182, DSR183 and DSR184 on the 1429525 Line have confirmed the continuity of oxide mineralisation across section A – A’ (Figure 3).

Select significant RC intersections included;

This area is interpreted by the Company as the intersection of a northeast-southwest trending structure and a northwest trending structure. Numerous structures with narrow 1-5 g/t gold intercepts within broader mineralised zones in fresh rock were intersected. These are thought to represent breccia and stockwork-like zones of structures. Interpretation and correlation with other drilling is ongoing.

Hole DSR186 marks the northern most section drilled in this zone of Area D and intersected moderately thick oxide mineralisation, indicating mineralisation likely remains open to the north-northeast (Figure 2).

Select significant RC intersections included;

Diamond drill hole DSDD019 was collared to the west of DSR186 and returned 6.6m at 2.20 g/t gold from 65m in a pyritic veinlet zone and 1m at 11.30 g/t gold from 123m.

Diamond hole DSDD018 and RC holes DSR180, DSR181 and DSR188 were drilled on the 1429475N section that DSR157 was collared (36m at 2.93 g/t gold, including 10m at 6.13 g/t gold)[iv]. Drilling has confirmed the presence of a wide and thick horizontal oxide zone. It appears to be underlain by vertical to sub vertical breccia and veinlet zones with a northwest structure appearing to control these (Figure 4).

DSDD018 appears to have intersected the mineralised northwest-southeast trending structure (Figure 2) intersected in DSR103 (53m at 2.61 g/t gold)[v]. DSDD018 intersections included:

Figure 4: Section 1429475N showing holes reported in this release and previous drilling. Drilling has confirmed a thick and likely horizontal oxide mineralisation with a northeast-southwest trend. A mineralised northwest-southeast fault dipping to the west cuts DSD018 (Figure 5).

Holes DSR180, DSR181 and DSR188 were collared to the east of DSDD018. Select significant RC intersections included;

DSR181 returned two assays at the upper detection limit of 100 g/t gold from intervals 45-46m and 46-47m, which were re-assayed at the SGS laboratory at Bamako. They returned 105.01 g/t gold and 126.00 g/t gold respectively via a 50g fire assay with a gravimetric finish. However, they are reported with a top-cut of 100 g/t gold.

Hole DSDD017 was collared to the west of DSR153 and DSR154, and intercepted numerous narrow zones of narrow gold mineralisation in fresh rock within slightly wider mineralised zones. The control on these zones is being analysed. Intercepts included 1.3m at 2.30 g/t gold from 64.35m, 1.1m at 2.90 g/t gold from 123.9m.

Drilling in the southern area returned mineralisation in holes DSR185, DSR189 and DSR190, likely associated with the northeast trending structural zone. DSR185 returned 26m at 2.56 g/t gold from 17m in oxide and 15m at 2.91 g/t gold from 60m in fresh rock, confirming both the upper oxide mineralised zone and the mineralised northeast trending brecciated zone (Figure 5). DSR190 intercepted oxide mineralisation, 6m at 2.24 g/t gold from 44m and a broad sulphide zone in fresh rock of 8m at 1.02 g/t gold from 66m. DSR189 was collared to the east of DSR190 returning high-grade oxide mineralisation of 4m at 8.29 g/t gold from 17m, including 1m at 24.60 g/t gold from 17m and 3m at 1.96 g/t gold from 129m in fresh rock. DSR191 encountered problems and was abandoned at 60m.

Figure 5: Section 1429375N showing holes reported in this release and previous drilling. It confirms horizontal oxide mineralisation associated with an underlying northeast trending breccia zone. A northeast trending post mineralised fault is interpreted (Figure 1).

NEXT STEPS

Current drill program

The RC and diamond drill rigs are currently drilling at Area A on the two structures trending southwest-northeast and the southeast extension. Greenfield targets at Western Splay and Southern Arc are also planned to be tested. The Company is expecting a steady flow of results until at least late April 2021.

Follow up drilling

The Company is currently evaluating options to accelerate further drilling campaigns following a strongly supported $8m private placement in November.[vi]  

Drilling to date at Area D has identified two very encouraging targets; a shallow high-grade, apparently flat lying oxide zone, and underlying fresh rock sulphide mineralisation in breccias and stockworks. These appear associated with northwest and northeast trending structures, which are likely to also factor in the orientation of the oxide zones.

The mineralisation remains open to the north, northeast and to northwest in the central area, with planning for follow up drilling to test these areas now underway.

Other regional exploration

The Company is planning to extend gradient array induced polarisation geophysics (GAIP) over large parts of the northern Diamba Sud block (DS1) early in 2021. GAIP has been proved to be effective for identifying structures and certain lithological units (such as granodiorites).

Table 1: Summary of significant gold intersections from Diamba Sud

Intervals are reported using a threshold of 1g/t Au or greater average over the interval equal or greater to 1m and selects all material greater than 0.35g/t Au with a maximum internal dilution of 2m. The true width of holes are unknown. Holes not included in this Table were not considered to have intersected significant gold mineralisation. Reported intervals with voids (*) excluded the void interval where included in a reported interval, with weighted averages taken for sections above and below the void and reported as a weighted average..** Results have a top cut of 100 g/t gold.

This release was authorised by the Board of Directors of Chesser Resources Limited.

-END-

For Further information, please contact:

Mike Brown, Managing Director

Mikeb@chesserresources.com.au

Mobile: +1 778 822 4345

Please follow the link to view full news release:

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Figure 6: Schematic regional geology of eastern Senegal, showing the Diamba Sud Project and its proximity to both the SMSZ, and the major gold operations and projects on or adjacent to splays off the SMSZ.

ABOUT CHESSER RESOURCES

Chesser Resources is an ASX listed gold exploration company with projects located in Senegal, West Africa. Chesser has announced a high-grade gold discovery at its Northern Arc target on its flagship Diamba Sud project. The Company currently holds ~300km2 of highly prospective ground in this underexplored world-class gold region. The Company has a corporate office located in Brisbane, Australia and a corporate and technical team based in Dakar, Senegal.

Diamba Sud is the Company’s flagship project, covering 53.2km2 over the gold-bearing Kedougou-Kenieba Inlier, Diamba Sud consists of two blocks referred to as DS1 in the north and DS2 in the south.

The Project is located ~2km to the west of the Senegal Mali Shear Zone (SMSZ), a major regional structure and host to numerous multimillion-ounce gold deposits including; B2Gold’s 7.6Moz Fekola mine, Barrick’s 18Moz Loulo-Gounkoto complex and AngloGold Ashanti/IAMGold’s Sadiola and Yatela mines (acquired by Allied Gold). DS1 lies 7km to the west of the 5.5Moz Gounkoto mine and to the immediate east of the privately owned 0.5Moz Karakaene mine.

Competent Person’s Declaration

The information in this report that relates to the Diamba Sud and Diamba Nord exploration results, Mineral Resources and Exploration Targets is based on information compiled by Mr Mike Brown, BSc Hons, MAIG, who is employed as Managing Director for Chesser Resources Ltd. Mr Brown has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.’ Mr Brown consents to the inclusion in the announcement of the matters based on his information in the form and context that the information appears.

Forward looking statements

Statements relating to the estimated or expected future production, operating results, cash flows and costs and financial condition of Chesser Resources Limited’s planned work at the Company’s projects and the expected results of such work are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by words such as the following: expects, plans, anticipates, forecasts, believes, intends, estimates, projects, assumes, potential and similar expressions. Forward-looking statements also include reference to events or conditions that will, would, may, could or should occur. Information concerning exploration results and mineral reserve and resource estimates may also be deemed to be forward-looking statements, as it constitutes a prediction of what might be found to be present when and if a project is developed.

These forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable at the time they are made, are inherently subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation: uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms; changes in planned work resulting from logistical, technical or other factors; the possibility that results of work will not fulfil projections/expectations and realize the perceived potential of the Company’s projects; uncertainties involved in the interpretation of drilling results and other tests and the estimation of gold reserves and resources; risk of accidents, equipment breakdowns and labour disputes or other unanticipated difficulties or interruptions; the possibility of environmental issues at the Company’s projects; the possibility of cost overruns or unanticipated expenses in work programs; the need to obtain permits and comply with environmental laws and regulations and other government requirements; fluctuations in the price of gold and other risks and uncertainties.

[i] Refer to ASX announcements on 25 March 2019, 10 April 2019, 6 May 2019, 14 May 2019, 26 August 2019, 3 September 2019, 21 January 2020, 21 March 2020, 17 June 2020, 28 July 2020 for drilling results. The Company is not aware of any new information or data that materially affects the information contained in those announcements.

[ii] Refer to ASX announcements on 28 July 2020 and 24 November 2020 for drilling results. The Company is not aware of any new information or data that materially affects the information contained in that announcement.

[iii] Refer to ASX announcements on 25 March 2019, 10 April 2019, 6 May 2019, 14 May 2019, 26 August 2019, 3 September 2019, 21 January 2020, 21 March 2020, 17 June 2020, 28 July 2020 for drilling results. The Company is not aware of any new information or data that materially affects the information contained in those announcements.

[iv] Refer to ASX announcement on 28 July 2020 for drilling results. The Company is not aware of any new information or data that materially affects the information contained in that announcement.

[v] Refer to ASX announcement on 3 September 2019 for drilling results. The Company is not aware of any new information or data that materially affects the information contained in that announcement.

[vi] Refer to ASX announcement on 30 November 2020 for private placement details. The Company is not aware of any new information or data that materially affects the information contained in that announcement.