Additional Historical Drill Holes From Horden Lake Confirm Multi-Element And Expansion Potential

Rafaella Resources Limited (ASX:RFR) (‘Rafaella’ or the ‘Company’) is pleased to provide the details of an additional 8 historical drill holes on the Horden Lake Cu-Ni-PGE deposit (‘Horden Lake’ or the ‘Project’), for which acquisition terms have been agreed as announced to the market on 13 September 20221. These additional holes relate to the El Condor drilling programme conducted in 2012 and had not been validated by the Company’s CP at the time of the acquisition announcement.

Highlights

• Additional 8 drill holes being reported part of a 12-hole, 2037m campaign conducted in 2012 with a focus on co-products apart from Cu and Ni. In-fill and step-out holes at the NE edge of the 2009 Mineral Resource Estimate (‘MRE’) yielded exceptional grades across a range of battery and precious metals, demonstrating the potential for by-product credits within the MRE, as well as strike extension.
  
• Assay highlights include:
  • HN-12-82: 7.7m averaging 2.75 % Cu, 0.45 % Ni, and 0.05 % Co, with 40.1 g/t Ag, 0.47 g/t Pd, 0.41 g/t Pt, and 1.30 g/t Au
    
  • HN-12-84: 15.8m averaging 1.72 % Cu, 0.35 % Ni, and 0.03 % Co, with 25.9 g/t Ag, 0.33 g/t Pd, 0.05 g/t Pt, and 0.32 g/t Au
    
  • HN-12-88: 26.9m averaging 2.19 % Cu, 0.58 % Ni and 0.05 % Co, with 30.5 g/t Ag, 0.56 g/t Pd, 0.16 g/t Pt and 0.27 g/t Au
    
  • HN-12-91: 12.3m averaging 1.10 % Cu, 0.25 % Ni, and 0.01 % Co, with 16.4 g/t Ag, 0.19 g/t Pd, 0.14 g/t Pt, and 0.15 g/t Au
    
• These 12 holes are not currently incorporated in the previously announced NI 43-1012 (2009) MRE* of 16.55Mt comprising 8.76Mt of Indicated @ 0.88% Cu, 0.21% Ni, and 7.79Mt of Inferred at 0.87% Cu, 0.25% Ni.
• Caracle Creek International Consulting Inc. (‘Caracle Creek’), who prepared the 2009 mineral resource estimate and conducted the 2008 and 2012 drilling campaigns, has been retained to produce an updated JORC compliant mineral resource estimate and prepare the go-forward drilling programme planned for this coming winter.
• The Horden Lake acquisition is seen as transformational to the Company given its large defined MRE, shallow mineralisation, access to infrastructure and renewable power, extensive suite of metals, and potential for expansion of the existing MRE along the current 1300+ metre northeast-southwest trend.

Background

The Company, through its 100% owned subsidiary 9426-9198 Québec Inc., has agreed the acquisition of the transformational Horden Lake polymetallic deposit. Horden Lake is an advanced project located approximately 140 km north of the mining town of Matagami, and 300 km north of the Company’s wholly owned Belleterre-Angliers Cu- Ni-PGM project, also in Quebec.

A binding agreement dated 2 September 2022 for the acquisition of the Horden Lake executed with Gestion Ora-Mirage Ltée (‘Seller’) on the following terms:

• Consideration of C$4 million, with an initial payment (already settled) of C$400,000 non-refundable deposit (other than for material breach by the Vendor), followed by the balance within 90 days from signing.
  
• Vendor to retain a 1% net smelter return.
• Acquisition is by the wholly owned subsidiary, RFR Quebec, of 18 claims covering the Horden Lake deposit. RFR Quebec is the holder of the Belleterre-Angliers exploration project and hence offers an efficient structure for the future deployment of capital to fund the Quebec battery metals portfolio.

The Project is located in northwest Quebec, benefiting from close access to the Route Billy-Diamond Highway, a major road linking Matagami and the Le Grande Hydroelectric Power Dam to the north, along with associated hydroelectric power lines, passing within 18 km of the Project.

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