Quarterly Report: Ending 30 September 2022

Breaker Resources (ASX: BRB) is pleased to present its Quarterly Report.

Key Highlights

Lake Roe Gold Project (100%)

• The underground development strategy advances with completion of the Tura underground scoping study as one of several underground prospects – stage 1 could produce 88,000oz at cash cost of A$1,087/oz and total cost of A$1,390/oz.¹
• Infill drill holes at Tura aimed at increasing the JORC categorisation continue with the latest holes drilled during the quarter returning more high-grade gold intercepts², including:
• •5.0m @ 6.35g/t within 10.0m @ 3.43g/t from 108.6m in BBDD0146;
• •3.58m @ 10.58g/t within 10.4m @ 3.94g/t from 349m in BBDD0144.
• Three diamond rigs are onsite drilling on dayshift only with a focus on increasing the Indicated component of the underground resource at Tura and the northern flat lodes.
• Underground geotechnical study commissioned, while heritage and permitting work advances.

Manna Lithium Project (20%)

• GL1 continues to drill at Manna with drill results returning good intercepts of spodumene to 150m depth in the initial discovery area.³
  
• Breaker divested its remaining shareholding in GL1 at $2.066 net per share banking $15.02M.⁴
  
• Breaker retains its 20% interest, which is free carried through to positive bankable feasibility study, and other milestone payments of $20m over time.

Ularring Gold-Copper & Nickel-PGE Project (100%)

• Work permits and access agreements finalised over some of the Ularring tenements. POWs also granted over the tenement, targeting Ni-PGE and Cu-Au mineralisation.
  
• Drilling of four diamond drill holes targeting Nickel – Copper – Platinum metals should commence by the end of October. The drill program is co-funded by the government’s industry Exploration Incentive Scheme (EIS).

Corporate

• Lisa Wynne appointed CFO & Company Secretary on July 1, 2022⁵
  
• Cash increased to $23.3M during the quarter.
• Subsequent to the end of the quarter, Managing Director Tom Sanders departed the company and has resigned from the Board. The Group’s Non-executive Chairman, Peter Cook has stepped into an interim CEO role with a planned recruitment and selection process to take place.

Lake Roe Gold Project (100%)

The Lake Roe Gold Project (“LRGP”) is located 100km east of Kalgoorlie. Breaker provided an updated resource estimate for the LRGP on December 20, 2021 estimating a total mineral resource of 1.7 million ounces (32 million tonnes at 1.6g/t Au). There are three main components to the overall resource:

1.The Bombora Prospect (containing 1.5 million oz of gold)
2.The Claypan Prospect (containing 132,000oz of gold)
3.The Kopai-Crescent Prospect (containing 69,000oz of gold)

The resource estimate was prepared and signed off by expert industry consultants, Snowden Optiro.

In April 2022, the company commenced initial open pit optimisations applying the currently available best estimates of input costs. Whilst multiple mining options presented, pit shell 41 was chosen as optimum. This scenario gave a potential pit shell to 215m depth and contained 8.4 million tonnes at 1.6g/t Au for ~427,000oz mined2 (refer Figure 1 for diagrammatic long section) at an estimated waste:ore ratio (Strip ratio) of 12.5:1.

A second conceptual pit shell (shell 74) was analysed at a revenue factor of 1.66 to determine reasonable prospects for eventual economic extraction. This shell contained 17 million tonnes at 1.4 g/t containing 764,000 ounces and a strip ratio of 17.4:1.

An underground mining study for the extraction of mineralisation below shell 74 was commissioned. This work would initially be for the Tura lode (completed) and then the ‘Northern Flats’ lodes (pending).

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