Australian Silica Quartz : South Stirling Ni-Cu Project - Positive Drilling Results

AUSTRALIAN SILICA QUARTZ GROUP LIMITED

SOUTH STIRLING Ni/Cu PROJECT - POSITIVE DRILLING RESULTS

HIGHLIGHTS

only	➢ Highly anomalous nickel values from first aircore drilling at ASQ's
	100% owned ~1,600km2 South Stirling Project
	➢ ASQ's first drill hole at the South Stirling Project, aircore hole SS001
	designed to check the validity of an anomalous historic drillhole
use	confirms the previous result and extends the thickness of the
anomaly
➢ SS001 intersections:
	• 12m from 26m @ 0.70% Ni and 0.06% Cu, within;
	• 21m from 21m @ 0.58% Ni and 0.06% Cu
personal	➢ Maximum values of 9,237ppm (0.92%) Ni from 28-30m and
1,007ppm Cu from 38-42m consistent with the previously reported
	Iluka result
	➢ Mineral assemblages seen in thin sections of drill chips indicates the
	mineralisation is structurally controlled
	➢ Drill hole SS001 completed on the road reserve as ASQ does not
	currently have land access to the surrounding freehold farming
	property
	➢ ASQ considers the results highly encouraging in the context of the
	numerous major structures present within the project area
	➢ Newexco Pty Ltd have recently completed a project wide review of
For	historic geophysics and surface geochemistry resulting in 15 high
priority targets as a combination of magnetic interpreted intrusions
with coincident geochemical anomalies
	➢ Areas of planned airborne EM surveying and surface geochemistry
	surveys have been finalised and planning is underway to undertake
	this work later in 2022

3 June 2022

ASX Code: ASQ

AUSTRALIAN SILICA QUARTZ

GROUP LTD

ABN: 72 119 699 982

DIRECTORS:

Robert Nash

Non Executive Chairman

Luke Atkins

Non Executive Director

Neil Lithgow

Non Executive Director

Pengfei Zhao

Non Executive Director

CHIEF EXECUTIVE OFFICER AND COMPANY SECRETARY:

Sam Middlemas

Head Office:

Suite 10, 295 Rokeby Road

Subiaco WA 6008

Mail:

Suite 10, 295 Rokeby Road

Subiaco WA 6008

1. [phone]

1. [phone]

1. [e-mail]

1. www.asqg.com.au

Share Registry:

Automic Group

GPO Box 5193

Sydney NSW 2001

1. 1300 288 664 (within Australia)

1. [phone] (international)www.automicgroup.com.au

Suite 10, 295 Rokeby Road, SUBIACO WA 6008

Phone: [phone] Fax: [phone] www.asqg.com.au

For personal use only

Australian Silica Quartz Group Limited (ASX:ASQ, 'ASQ' or 'the Company') provides the following update on the Company's exploration activities at its 100% owned South Stirling Project in the Southwest of Western Australia.

Background

ASQ has established the South Stirling Ni/Cu Project by way of four exploration lease applications lodged covering 1,603 km2 over the Albany Fraser Mobile Belt, South-Western WA where the Company has identified a historic end of hole aircore drilling assay with anomalous nickel and copper that was never followed up. ASQ considers the application area has potential for Nickel-Copper magmatic sulphide mineralisation associated with mafic-ultramafic intrusions emplaced into granulite facies country rocks. (Refer full detail in the 23 September 2020 ASX announcement Exploration Update).

Figure 1: South Stirling Project Location Plan with ASQ silica sand tenements shown for context, (Competitor leases not shown)

Aircore Drilling

The company recently twinned the anomalous historic drillhole completed by Iluka Resources Limited ("Iluka") by way of a single vertical aircore hole SS001 (Figure 2). The Iluka hole (W00324) returned an end of hole assay of 1.5m at 0.79% Ni, 934 ppm Cu from 28.5m. Iluka recorded the rock type as saprolite suggesting fresh basement rocks had not been reached. ASQ's SS001 was terminated at 52m due to difficult drilling conditions prior to intersecting fresh basement rock.

The encouraging assay results from SS001 are presented in Table 1 and include intersections; 12m from 26m

• 0.70% Ni and 0.06% Cu, within 21m from 21m @ 0.59% Ni and 0.05% Cu with maximum recorded values of 9,237ppm (0.92%) Ni from 28-30m and 1,007ppm Cu from 38-42mconsistent with the previously reported Iluka result.

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Suite 10, 295 Rokeby Road, SUBIACO WA 6008 Phone: [phone] Fax: [phone] www.asqg.com.au

For personal use only

Table 1: South Stirling Project Aircore hole SS001 - Summary Geochemistry

	From						Gold	Cobalt			Copper			Nickel			Platinum
	(m)			To (m)			(ppb)	(ppm)			(ppm)			(ppm)		Palladium (ppb)	(ppb)
1		5			X	15.3		6.4		28.5		1.5	0.5
5		9			X	7.4		9.8		22.8		0.6	0.7
9		14			X	4.7		14.1		20.8		0.8	1.1
14		18		1	77.7		31.1		175.3		1.4	2.1
18		20		2	211.1		41.9		591.6		1.6	3.4
20		21		3	200.2		120		1,206.6		5.8	5.3
	21			22							150			4,218
	22			23			Note: samples 21-			173			4,905
	23			24					126			2,559
					26m not retained,
	24			25			results are pXRF of			147			4,400
	25			26			chip trays			117			5,877
26		28			X	400.1		134.9		7,047.4		19.8	14
28		30		1	627.7		429.5		9,236.9		26.2	20.2
30		32		2	697.9		758.6		7,686.3		23.5	21.4
32		34		4	525		425.8		5,865.1		29.5	20
34		35		1	759.1		936.8		4,014.1		21.2	18.4
35		36		2	703.8		870.1		5,653.5		14.1	19.4
36		37		1	468.8		845.1		6,569.6		11.5	7.8
37		38		1	503.1		805.8		7,605.5		8.4	4.8
38		42			X	402.2		1,007		3,994.6		14	8.7
42		44			X	265.5		553.2		2,001.9		25.3	10.2
44		45			X	169.1		300.4		1,030.8		17.8	5.8
45		49			X	58.3		82		572.4		11.6	2.4
49		52		33	37.5		64.6		413.6		17.9	1.2

Petrography and mineralogy descriptions of selected drill chips show the mineralisation to occur in nickeliferous siderite with common evidence of concentrations of predominantly weathered Ni/Cu/Fe sulphide minerals. The association of siderite with sulphides is thought to be highly unusual and although the exact style of mineralisation is not known, it is likely the mineralised zone represents transported or in situ material formed within a local structural boundary such as the nearby WSW/ENE orientated major fault mapped by the Geological Survey of Western Australia (Figure 2).

The indication that significant concentrations of nickel and copper are present and may be associated with the numerous linear structures found within the project area is encouraging and potentially points to the faults acting as conduits for the movement of metals from any sulphide rich intrusions present within the basement sequence.

ASQ's drilling was limited to the road reserve due to land access restrictions where it was possible to twin the anomalous Iluka hole. ASQ will continue efforts to establish neighbouring land access in order to further assess this anomaly.

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Suite 10, 295 Rokeby Road, SUBIACO WA 6008 Phone: [phone] Fax: [phone] www.asqg.com.au

For personal use only

Figure 2: ASQ aircore drill hole SS001 location plan with Historic Iluka drill holes shown on the reduced to pole (RTP) aeromagnetic image (note the mapped Major Faults, locations of these are expected to be approximate)

Program Planning

ASQ commissioned exploration industry consultants Newexco Exploration Pty Ltd to complete reviews of the existing surface geochemistry and geophysics data and assist with target generation for the South Stirling Project.

Newexco applied an advanced magnetic and radiometric processing suite to the South Stirling dataset in order to better delineate magnetic source rocks that may represent mafic intrusions. These interpreted intrusions have been prioritised against the surface geochemistry data yielding a number of areas that justify further work (see Figure 4).

Five areas totalling ~770km2 have been identified as a priority for airborne electromagnetic surveying (see Figure 3). Planning is underway to complete this work later in 2022. Additional areas that require ground truthing by surface sampling will also be assessed in H2 2022.

Any bedrock conductors identified by the AEM will be confirmed by ground electromagnetics surveys following establishment of land access and prior to drill testing.

Project Partners

ASQ is actively seeking joint venture partners for strategic involvement in the South Stirling Project. With +100km in length of the Albany Fraser Mobile Belt - Biranup Zone secured by +1,600km2 of 100% owned tenements, the scale and prospectivity of the Project presents a rare opportunity for a motivated group to get involved. Discussions are underway with several well credentialed parties who have expressed an interest in earning into the project by way of funding the exploration ASQ plan to carry out or by undertaking the exploration themselves.

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Suite 10, 295 Rokeby Road, SUBIACO WA 6008 Phone: [phone] Fax: [phone] www.asqg.com.au

For personal use only

Figure 3: ASQ Aircore Drillhole SS001 Chip Trays

Figure 4: South Stirling Project interpreted magnetic intrusions (shown on the RTP aeromagnetic image) prioritised against the surface geochemistry, and planned areas for Airborne EM surveying

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Suite 10, 295 Rokeby Road, SUBIACO WA 6008

Phone: [phone] Fax: [phone] www.asqg.com.au