Initial Inferred Mineral Resource Of 500,000oz At 5g/T Sets Up Labyrinth as Significant High-Grade Project

Labyrinth Resources Limited (ASX: LRL) is pleased to announce an initial Inferred Mineral Resource of 3 Mt @ 5.0 g/t Au for 500,000 oz at its Labyrinth Gold Project in Quebec, Canada.

Key Points

• Initial Inferred Mineral Resource of 3 Mt @ 5.0 g/t Au for 500,000 oz (at 3 g/t.m cut-off)
• Mineral Resource prepared by an independent Competent Person and classified and reported in accordance with the JORC Code (2012)
• Notable high-grade component of 150,000 oz at 10 g/t (above 6 g/t cut-off)
• Mineral Resource for the key Boucher Lode totals 1 Mt @ 5.7 g/t for 190,000 oz and remains open along strike and at depth
• The estimate is based on an extensive drilling database and rigorous modelling by independent consultants RSC
• The Mineral Resource exceeds the foreign estimate of 479,000 oz published in 20101
• The Resource is open in all directions, supporting substantial Mineral Resource growth potential through both near-mine and regional drilling
• The growth potential is supported by numerous recent high-grade intersections outside the Mineral Resource extent; these include 1.4 m @ 13.32 g/t, incl 0.9 m @ 20.53 g/t, in LABS 22-02 and 2.9 m @ 5.63 g/t, incl 0.9 m @ 7.9 g/t, in LABS 22-042

• This extensive known mineralisation provides a pathway to significant, rapid growth in the Resource
• Strong project outlook also underpinned by exceptional metallurgical results, with an initial bulk- leach extractable gold (BLEG) test returning 97.1% recovery
• BLEG result demonstrates that the material is free milling, which would significantly reduce capital and operating costs of any potential future operation

Next Steps:

• Planning underway for new drilling campaign with the aim of bringing known mineralisation into the Mineral Resource
• Detailed interrogation of the resource model will be undertaken to define near-mine high-grade opportunities around the existing five levels of the underground mine

The Mineral Resource was prepared by a Competent Person and classified and reported in accordance with the JORC Code (2012).

The Labyrinth project is situated within the prolific Abitibi Greenstone Belt and has been historically mined, most recently in the 1980s.

The Company rapidly progressed ~7,800 m of underground and surface diamond drilling to facilitate the conversion of the Project’s foreign estimate (reported under NI 43-101 in 2010) into a Mineral Resource reported in accordance with the JORC Code (2012).

The Inferred Mineral Resource includes mineralisation within five lodes: Boucher, McDowell, Talus, Shaft and Front West (Table 1). In addition to the known mineralisation, there is also immense potential to grow the Mineral Resource given that the key lodes remain open along strike and at depth (Figure 1).

Several of the recently reported high-grade results2 from the surface drilling campaign fall outside of the Inferred Mineral Resource reported here, due to the drill spacing, indicating the immediate potential for scale increases following infill and step-out drilling.

Labyrinth Chief Executive Matt Nixon said: “This is a very strong initial Mineral Resource which lays the foundations for ongoing resource growth.

We have exceeded the foreign estimate (reported under NI 43-101 in 20101) with our first campaign and in the process shown that Labyrinth has genuine scale with an outstanding grade of 5.0 g/t.

In addition to the Resource, drilling has established significant high-grade mineralisation which remains open at depth and along strike, paving the way for strong growth in the resource.

Drilling will now target this mineralisation to bring it into the Resource while also testing a host of regional targets.

We are confident that given the additional mineralisation we have already identified and the fact that it is open in all directions, ongoing drilling will drive the Resource and create substantial shareholder value over coming months”.

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