Drill Targets Identified At Peru Base Metals Projects

Firetail Resources Limited (ASX: FTL) (“Company” or “Firetail”) is pleased to provide a due diligence update on the Picha and Charaque Copper Projects in Peru, subsequent to the execution of the binding terms sheet with Valor Resources Limited (ASX: VAL) (“Valor”) for Firetail to acquire up to 80% of the issued share capital of Kiwanda S.A.C. (“Kiwanda”)¹.

Kiwanda is a wholly owned Peruvian subsidiary of Valor and owns mining exploration concessions that are prospective for copper in Peru, South America comprising the Picha Copper‐Silver Project (“Picha”) and Charaque Copper Project (“Charaque”).

Highlights:

• Several drill‐ready targets across the Picha Copper‐Silver Project area identified in review of previous exploration data comprising geochemical sampling, geological mapping and IP/Resistivity surveys.
• Picha is prospective for epithermal, stratabound, polymetallic carbonate replacement (“CRD”) and porphyry style copper mineralisation with several untested significant surface geochemical and geophysical anomalies.
• Charaque Copper Project is subject to a farm‐in deal recently executed by Valor with Barrick Gold Corporation (“Barrick”), providing partial benefit to Firetail.
• Experienced in‐country management and technical team with proven track record will be onsite in the coming weeks to verify previous exploration work and commence drill‐planning for Firetail.

Executive Chairman, Brett Grosvenor, commented:

“The Firetail team is very pleased to progress our due diligence on these exciting assets, and we see significant value for our shareholders with this advanced copper exploration opportunity.

“The Picha Project has undergone a substantial exploration program over the past 18 months, which has identified large numbers of significant targets through surface work coupled with IP/Resistivity surveys. We are delighted to have the expertise of the existing exploration team to continue the great work they have done so far at Picha and to progress quickly to drill planning.

“We believe the Picha Copper Project presents large‐scale resource potential, in an existing mining province, and we look forward to bringing further updates on our due diligence activities to our shareholders in the coming weeks.”

Plate 1: Firetail Resources Executive Chair, Brett Grosvenor, onsite at the Picha Copper Project in Peru

Plate 2: Firetail Board site visit to Picha Copper Project in Peru

Projects

Kiwanda is a wholly owned Peruvian subsidiary of Valor and owns mining exploration concessions that are prospective for copper in Peru, South America comprising the Picha and Charaque Projects (“Projects”). Firetail has undertaken a full review of the existing exploration results at the Projects, and is pleased to present an update herewith.

Picha Copper‐Silver Project

The Picha Project is a copper‐silver exploration project, located in the Moquegua and Puno Departments of southern Peru. The Project comprises 27 mining concessions covering an area of around 200km2 and is prospective for multiple styles of copper mineralisation including epithermal, stratabound, CRD and porphyry related. Picha is located approximately 17km east northeast of the San Gabriel Au‐Cu‐Ag Project, owned by Compania de Minas Buenaventura S.A.A. (“Buenaventura”), which hosts Reserves of 14.9 MT with 4.04 g/t Au and 6.43 g/t Ag, representing 1.94MOz Au; and resources: 24.86 MT with 2.10 g/t Au and 8.46 g/t Ag2.

Exploration work completed by Valor in 2021 and 2022 comprising geochemical sampling, geological mapping and IP/Resistivity surveys has identified several exciting targets across the Project area (see Figure 1). A total of 651 rock chip and channel samples and 289 soil samples have been taken by Valor Resources at the Picha Project since 2021, full details of which are provided in Appendix 2 below.

The highest priority targets identified during the initial work by Valor in 2021 are located in the central part of the Project. These targets are drill ready with final approval expected in coming weeks, with the Peruvian Ministry of Energy and Mines (“MEM”) having already issued a DIA – “Declaracion de Impacto Ambiental” (Environmental Impact Statement for Exploration) for the Picha Project, allowing for up to 120 holes to be drilled within an area centred on the Cobremani, Maricate, Cumbre Coya and Fundicion targets.

Details of all surface sampling (rock chip, channel and soils) completed on the Cobremani, Maricate, Cumbre Coya and Fundicion targets are provided in third‐party announcements detailed in Appendix 1, and in Tables 1 and 2 detailed in Appendix 2.

Surface sampling has highlighted geochemical anomalies at several of the drill targets including channel sampling assay results of:

• 41.6m @ 1.12% Cu and 22.85 g/t Ag (Cobremani)
• 17.6m @ 1.95% Cu and 29.58 g/t Ag (Maricate)
• 32.85m @ 0.61% Cu and 209.76 g/t Ag (Cumbre Coya)

A large Induced Polarisation (“IP”) chargeability anomaly was identified by a ground survey in 2021 at the Fundicion target, potentially reflecting sulphide mineralisation or alteration relating to a large porphyry body at depth. The anomaly is around 2km long (N‐S) and up to 2km at its widest (E‐W). The IP anomaly and geochemical targets have never been drill tested. The 2021 IP/Resistivity survey consisted of 15 lines at 200m and 400m spacing for a total of 56.1 line‐km and further details are contained in Table 1 below.

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