Comet Resources

Overview

Comet Resources' flagship Barraba copper project encompasses 2,375 hectares across project license EL8492 near the town of Barraba, 550 kilometers north of Sydney. Comet Resources finalized the acquisition of the Barraba copper project in April 2020. Under the updated terms of the acquisition, Comet Resources is expected to pay AU$150,000 in cash for the project, in addition to AU$200,000 in shares at $0.01 per share. Following the closing of the agreement, the company announced it had successfully closed a private placement of AU$650,000 at $0.01 per share.

The Barraba copper project sits along the Peel Fault line and encompasses the historic Gulf Creek and Murchison copper mines. The project area is known to contain volcanogenic massive sulfide-style mineralization, with historical workings at the Gulf Creek mine producing high-grade copper and zinc briefly during the turn of the 19th century.

In October 2020, Comet Resources gained access to officially begin exploring the Barraba copper project. The agreement finalised a significant portion of freehold land in the EL8492 region of the project, while accessible land includes the historical, high grade Murchison Copper Mine.

The Murchison Copper Mine is a volcanogenic massive sulphide deposit that has produced previously copper at 3 percent average grade from surface with historical assays returning grades of over 5 percent copper.

In addition to its flagship Barraba project, Comet Resources has also committed to a binding Heads of Agreement for the acquisition of the high-grade Santa Teresa gold project in Baja California, Mexico. The Santa Teresa project is located in the El Alamo district, which is home to historical production of between 100,000 and 200,000 ounces of gold. The property comprises two mineral claims totaling 202 hectares, with minimal exploration conducted on the property. Santa Teresa hosts a non-JORC2 inferred mineral resource estimate of 64,000 ounces of gold grading at 8.7 g/t gold which was reported at a 4 g/t cutoff.

Comet Resources is also developing the Springdale graphite project in Western Australia, which is located 30 kilometers east of Hopetoun. According to the Fraser Institute, Western Australia ranks as the second most attractive jurisdiction for mining investment.

Company Highlights

• Acquisition of the Barraba copper project offers the opportunity for further exposure to the battery metals industry, as well as adding the base metals sector
• Historical workings of the Gulf Creek copper mine returned multiple lodes grading between two and six percent copper (average 5 percent) combined with zinc grades historically higher than copper grades
• Comet raised AU$500,000 to fund exploration on Barraba according to the project's final acquisition terms
• Gained access in October 2020 to begin exploring the Barraba copper project, which includes the historical, high grade Murchison Copper Mine
• Acquisition of the Santa Teresa gold property provides exposure to the precious metals market, with a non-JORC2 inferred mineral resource of 64,000 ounces of gold grading at 8.7 g/t gold
• Santa Teresa gold project is located in the El Alamo district, home to between 100,000 and 200,000 ounces of historical gold production
• 100-percent-owned high-grade Springdale graphite project is located on freehold land with access to grid power, piped gas and sealed roads directly to the nearest port
• Springdale project is located in Western Australia, the Fraser Institute's second-ranked mining jurisdiction in the world for 2018
• The highest-grade intersection at Springdale returned 3.23 meters at 51.02 percent total graphitic carbon (TGC) from 35.27 meters within 42.5 meters at 17.02 percent TGC from 20 meters
• Directors and founders hold approximately 18.3 percent of currently outstanding shares, reflecting the company's belief in the success of its projects