Mandrake Resources : Acquisition of HighGrade Copper Exploration Project in Chile

	Date: 25 March 2022
	ASX Code: MAN
	Capital Structure
	Ordinary Shares: 482,038,070
	Unlisted Options: 65,461,850
	(3c exercise)
	Current Share Price: 4.7c
	Market Capitalisation: $23M
	Cash: $16.2M (Mar. 2022)
	EV: $6.8M
	Debt: Nil
	Directors
	Patrick Burke
onlyNon-Executive Chairman
	James Allchurch
	Managing Director
	Lloyd Flint
	Non-Executive Director
	Company Secretary
	Roger Fitzhardinge
	Non-Executive Director
useContact Details
personalFor	First Floor
10 Outram Street

West Perth WA 6005

Australia

Tel: [phone] mandrakeresources.com.au

Delfin 1 prospect workings

Transformational Acquisition of High-Grade

Copper Exploration Project in Chile

• Binding term sheet executed for the acquisition of 100% of the high-grade Delfin Copper Project in Chile
• Staged and conditional consideration with minimal upfront cash/shares - $1M cash and 80M shares1 in the Company
• Outstanding opportunity to establish high-grade JORC complaint Resource with multiple spectacular historical drilling intersections that include:

• • 86m @ 4.83% Cu from 121m (DD-4) including: - 27m @ 7.1% Cu from 134m; and
    - 3m @ 14.4% Cu from 164m
  • 89m @ 3.2% Cu from 122m (SD-89)
  • 34m @ 3.01% Cu from 18m (SD-27)
  • 69m @ 1.90% Cu from 44m (SD-49)
• Large 84km2 tenure position with existing infrastructure and year- round access for exploration in the world's most prolific copper producing region that includes BHP/Rio Tinto's Escondida2 (11.2Bt
• • 0.8% Cu) and Codelco's Chuquicamata (10.5Bt @ 0.6% Cu)
• Outstanding greenfields exploration upside with 90% of historic drilling concentrated in a 300 x 100m area with little previous application of modern exploration techniques
• Multiple high grade shallow targets - exploration commencing Q2
• Approx $16.2M cash - Mandrake fully funded for exploration at both Delfin Copper and the Jimperding PGE-Ni-Cu Project

Figure 1: Delfin Project location with proximal major copper mines

1. 50% escrowed for 6 months from completion
2. Esconidida's current capacity is around 1.4 million tonnes of copper production per year, or 5% of total global production, making it the largest copper mine in the world ("The World Copper Factbook 2020).International Copper Study Group (ICSG)).

1

For personal use only

Mandrake Resources Ltd (Mandrake or the Company) is pleased to announce that it has entered into an agreement to acquire a 100% interest in the Delfin high-grade Copper Project comprising a 84km2 land package in the prolific copper-producing Antofagasta region of Chile.

Historical drilling highlights the prospectivity with spectacular drilling intercepts of high-grade copper mineralisation.

Mandrake intends to undertake an active exploration program commencing early Q2 2022 which will include the re-interpretation of existing geophysical data, assessment of recently submitted rock chip samples (assays pending) and drilling.

Further details of the Acquisition are provided below.

Figure 2: Delfin exploration concessions - an area of 84km2

Commenting on the acquisition Mandrake Resources Managing Director, James Allchurch, said:

"Mandrake is excited to have secured the Delfin Project, which provides the Company with an advanced high-grade copper project in a first-class mining jurisdiction.

"Historic exploration has identified several different zones of spectacular high-grade copper mineralisation including 86m at 4.83% Cu from 121m in DD-04. We see a clear opportunity to apply modern exploration and interpretation techniques to understand these zones and look to grow them ahead of a maiden JORC resource.

"Delfin boasts a historical database underpinned by over 15,000m of diamond and RC drilling that has immense potential for expansion given the broad spacing of high- grade intercepts and the fact that only 20% of drilling exceeded 140m depth.

Mandrake Resources Limited I ACN: 006 569 124
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This transformational acquisition of an advanced high-grade copper project gives the Company exposure to a metal with a robust supply demand thematic, driven by the global transition to a green economy.

Moving forward, Mandrake's corporate and strategic focus will be on the Delfin Project where we will have boots on the ground in the coming weeks, together with follow up exploration at the Jimperding PGE-Ni-Cu Project."

Delfin Project

The Delfin project is located in the prolific copper-producing Antofagasta region of Chile, 235km east of the capital Antofagasta and 115km south of San Pedro de Atacama (Figure 1). The location of Delfin allows for year-round access and operations.

Figure 3: Delfin prospect - significant drill intercepts

The project is largely contiguous, comprising an area of 84km2. The Delfin project incorporates a number of key prospects with Delfin 1 being the focus of historical exploration activity. Such historical work has concentrated on a 300m x 100m area and includes two artisanal mines and over 15,000m of diamond and reverse circulation (RC) drilling.

Historical work at the Delfin 1 prospect demonstrated the prospectivity of the region by encountering spectacular drilling intercepts of high-grade copper mineralisation at shallow depths as shown in Table 1.

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Note that diamond drill core referenced in Table 1 has been viewed and remains accessible. In some instances, intercepts have been quarter-cored and re-assayed, with results confirming copper grades.

Table 1: Significant assay results - Delfin 1

Drill hole	From	To	Interval	Cu Total (%)
DD-4	121	207	86	4.83
including	134	161	27	7.10
and	164	167	3	14.43
SD-89	122	211	89	3.20
SD-49	44	113	69	1.90
DD-6	113	143	30	1.86
SD-88	60	90	30	1.01
SD-95	72	87	11	1.39
SD-91	122	140	18	2.17
SD-27	18	52	34	3.01
SD-11	36	116	80	1.68

Historical drilling and exploration work has been sporadic, resulting in inconsistent geological interpretation and misunderstanding of the controls on mineralisation. The high-grade zones often appear oblique to drilling, suggesting that the historical drill orientation was not particularly favourable to identifying and defining the high-grade zones.

Mandrake is well advanced in the collation of historical exploration data, with a structured and holistic approach representing a significant opportunity to establish a high-gradeJORC-compliant copper resource.

Mandrake Resources Limited I ACN: 006 569 124
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166.5m, 10.56% Cu

171.6m, 5.68% Cu

178.2m, 7.33% Cu

179.5m, 1.95% Cu

195.2m, 2.42% Cu

195.5m, 2.42% Cu

Figure 4: Examples of copper sulphide mineralisation (bornite, chalcocite and chalcopyrite) from drill hole DD-4. Depth and Cu% assays (1m interval) shown to the right of each photograph.

Further opportunity at Delfin exists at depth with 80% of the historical drilling being shallower than the average penetration depth of only 140m. The Delfin Project also has significant potential for deeper copper porphyry mineralization given the genesis of copper mineralization at Delfin has not yet been determined.

Mandrake notes the nearby presence of porphyries constituting the largest copper mines in the world such as Escondida (11.2 Bt @ 0.8% Cu - BHP/Rio Tinto) and Chuquicamata (10.5Bt @ 0.6% Cu - Codelco).

Importantly, the Delfin 2 and Cami 9 greenfields prospects (Figure 2) represent immediate follow up targets which show similar structural settings to Delfin 1, with rock chip samples up to 10.17% Cu (Cami 9) and 3.26% Cu (Delfin 2).

Delfin 1 Prospect Geology

The mineralisation at Delfin 1 appears to reflect structurally-controlled magmatic- hydrothermal processes which have resulted in the formation of weak-moderate porphyry vein-style mineralisation as well as high-grade vein replacement and breccia style mineralisation.

A regional scale NE-SW structural corridor (Figure 3) appears to play a key role in controlling magmatism and mineralisation. This structural corridor is at least 150m wide and extends for at least 2 kilometres.

Mandrake Resources Limited I ACN: 006 569 124
First Floor, 10 Outram Street West Perth WA	5