Labyrinth Reinvigorates Exploration at Comet Vale

Labyrinth Resources Limited (ASX: LRL) (‘Labyrinth’ or ‘the Company’) is pleased to report on the Company’s activities for the March 2024 quarter. This includes an in-house evaluation of the current projects and opportunities that have not been explored previously.

Key Points

• At the beginning of the quarter, Labyrinth announced the intention to divest Labyrinth Gold Project to Gold Projects WA Pty Ltd (‘GPWA’) for a cash consideration of USD $3,500,000¹;
• Post-quarter LRL announced that the Project Sale Conditions were satisfied or waived and in addition²:
  • the deposit of USD$175,000 paid by the purchaser, GPWA, to Labyrinth is now non- refundable in all circumstances;
  • settlement is to occur by 15 May 2024; and
  • interest of 6% per annum, to be accrued from 29 February 2024.
• Labyrinth announced the successful negotiation amending the terms of the Project Acquisition Agreement with G.E.T.T. Gold Inc. with respect to the obligation to deliver a 450 ounce Physical Gold Payment by 31 December 2023³;
• The payment reduced to 200 ounces with the remaining 250 ounces to be paid upon profitable production at Labyrinth Mine (to be assumed by GPWA as part of Share Purchase Agreement (‘SPA’));
• Labyrinth received a significant tax refund of circa $470k in relation to Canadian resource expenditure⁴.
• At the beginning of the quarter, the assay results from a field program completed at Comet Vale in September 2023 were announced⁵:
  • LCV0029: 129 g/t Au, 0.1% Cu
  • LCV0033: 39.1g/t Au, 6.3% Cu and 271 g/t Ag
  • LCV0028: 28.9 g/t Au, 3.0% Cu, 0.07% Co and 0.5% Ni
  • LCV0017: 3.6 g/t Au, 8.4% Cu and 9.2 g/t Ag
  • LCV0021: 8.5 g/t Au, 0.3% Cu
• The rock chips represent part of a nearly 3km corridor of high-grade gold, copper, cobalt, nickel, tungsten and silver.

Figure 1 – Comet Vale Project location, WA

COMET VALE

During the quarter, significant focus has been placed on the divestment of Labyrinth Gold Project in Canada. Meanwhile, targeting and planning of exploration activities is well underway at Comet Vale. Strong performance in the gold price this quarter shows no signs of slowing, bolstering Labyrinth’s interest in Comet Vale Gold Project. With gold and base metal potential still high, the Company is leaving no stone unturned in finding suitable drill targets to truly test the potential.

LRL has previously announced the commitment to refocus exploration activities at Comet Vale Project near Menzies, Western Australia. The project is a joint venture project between Labyrinth (51%) and Sand Queen Gold Mines Pty Ltd (49%). In 2023 an updated Mineral Resource Estimate was completed on the Comet Vale Underground (‘UG’) and Open Pit (‘OP’) historic resource (see Table 1 and 2)⁶. Figure 2 demonstrates the substantial Resource growth potential of the currently only shallowly defined Sand George mineralisation.

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