Anchor Resources : 15/09/2017 – Exploration Update – PDF

Anchor Resources Limited

ABN: 49 122 751 419 ASX Code: AHR

Website: www.anchorresources.com.au

15th September 2017 EXPLORATION UPDATE

HIGHLIGHTS

• Further fieldwork at Anchor's Walsh River/Aspiring project in Far North Queensland has discovered additional gold-silver epithermal veins in the Fluorspar epithermal camp. Follow up work is planned.

• Additional rock chip sampling at Doolan has demonstrated gold-bearing polymetallic quartz veins have potential to extend over a strike length of greater than 1 km.

• Native Title has been extinguished over a portion of the Gemini project (EL 6388) tenement and, subject to land access arrangements and regulatory approvals, the planned geophysical survey will be carried out later this year.

Figure 1: Location of Anchor projects in eastern Australia

Aspiring Project, EPM 19447 and Walsh River Project, EPM 25958 (Anchor 100%) Queensland - gold, silver, copper, lead & zinc

The Aspiring and adjacent Walsh River tenements are located in the Chillagoe mining district, which forms part of the larger Hodgkinson Province in Far North Queensland.

In late 2016 low sulphidation epithermal gold-silver mineralisation was discovered by Anchor at the Fluorspar Group of workings, and granite-related gold-silver-copper-lead mineralisation was verified in a greisen-sulphide alteration zone and a peripheral polymetallic vein at Doolan (see Anchor ASX Quarterly Activity Report dated 21 April 2017).

The Fluorspar Group workings and Doolan greisen-sulphide alteration zone are within EPM 25958 (Walsh River) and located 33 km apart. Part of the Doolan mineral system is interpreted to extend into the adjoining EPM 19447 (Aspiring) tenement. The prospects

are genetically and geochemically different. The location of the Fluorspar and Doolan prospects is shown on Figure 2.

Figure 2: Location of Fluorspar and Doolan prospects

Fluorspar Area

Geological reconnaissance and rock chip sampling continued around the Fluorspar and Doolan prospect areas within EPM 25958 (Walsh River) during the current Quarter with a program of field work completed in July-August 2017.

At Fluorspar, assay results from composite rock chip samples confirmed the discovery of a third quartz vein having epithermal textures and containing anomalous gold values, named Magnificent (after a historic mineral occurrence in the area). The vein system can be traced sporadically over a strike length of 1,100 metres with anomalous gold values

>0.1g/t extending over a length of approximately 970 metres (Figure 3). The epithermal textured quartz vein is interpreted to have been emplaced along a structure informally named the Magnificent Fault. The Magnificent Fault strikes 340°N and has a probable sub-vertical dip. The exact width of the fault and epithermal quartz vein at surface cannot be determined with any confidence because of poor outcrop exposure. Rock chip samples collected from sporadic discontinuous sub-crop along the 1,100 metre long zone yielded numerous gold values ranging from to 0.21g/t Au to 0.87g/t Au (average 0.38g/t Au from a total of 14 samples). Silver values range from 0.14g/t Ag to 15.55g/t Ag (average 3.7g/t). Arsenic values are anomalous and range from 18ppm As to 1,920ppm As (average 254ppm As), with a number of samples >100ppm As. Lithium values are anomalous and range from 258ppm Li to 317ppm Li (average 292ppm Li). Base metal values (copper, lead and zinc) are not anomalous.

Figure 3: Magnificent epithermal quartz vein rock chip gold geochemistry

Textures in quartz are typical of formation in an epithermal environment and include lattice-bladed (pseudomorphic replacement of coarse carbonate), quartz vuggs lined with euhedral quartz crystals, encrustation, quartz replacing chalcedony, and growth zoning in coarser quartz grains and crystals. Porcelaneous quartz is also present. These textures are interpreted as indicative of the chalcedonic, vapour phase zone at, or near, the top of an epithermal vein system. Conceptually the combination of lattice-bladed and other epithermal quartz textures, anomalous gold, silver and arsenic geochemistry, very low copper, lead and zinc geochemical values, and strongly anomalous lithium values suggest higher grade gold and silver mineralisation could exist at depth where boiling has occurred in the hydrothermal system. Breccia textures with clay filled voids are evident in some epithermal quartz samples.