Quarterly Activities Report for The Period Ended 30 September 2023

Spartan Resources Limited (“Spartan” or “Company”) (ASX: SPR) provides its activities report for the quarter ended 30 September 2023.

Summary:

Exploration / Growth

• Updated Mineral Resource Estimate (MRE) completed for the high-grade Never Never Gold Deposit at the 100%-owned Dalgaranga Gold Project in WA:
  • 3.83Mt @ 5.85g/t gold for 721,200 ounces, comprising:
    • 2.57Mt @ 7.64g/t for 630,100 ounces – “Underground” (>2.0g/t Au g/t)
    • 1.27Mt @ 2.24g/t for 91,100 ounces – constrained “Open Pit” (>0.5g/t Au g/t)
• Updated Spartan Group Mineral Resources now stand at:
  • 38.51Mt @ 1.6g/t gold for 1,964,000 ounces
• 25,000m surface drilling campaign commenced in late September targeting rapid growth of high-grade gold resources on the granted Mining Lease ~2km from the 2.5Mtpa Dalgaranga Process Plant.
• More high-grade assays received from recent drilling at the Never Never Gold Deposit:
  • 33.10m @ 8.15g/t Au from 169m, incl. 8.56m @ 19.54g/t – (DGDH036) – first hole in the new program, targeting base of conceptual open pit
  • 18.42m @ 3.63g/t Au from 293m including 1.42m @ 16.27g/t (DGRC1205- DT) – final in-fill hole from the previous campaign, not included in July 2023 MRE update.
• Initial assays received for drilling targeting the shallow Arc gold prospect:
  • 10.00m @ 2.75g/t Au from 79.00m, 5.00m @ 2.79g/t Au from 139.00m and 3.00m @ 3.67g/t Au from 153.00m (DGRC1237)

Care and Maintenance (Dalgaranga)

• Mining and processing operations remained on care and maintenance, with scheduling of ongoing care and maintenance activities underway to maintain the process plant and associated site infrastructure in a state for a rapid restart.

Corporate

• Conversion of the Delphi unsecured loan to a gold production royalty.
• Company name changed to “Spartan Resources Limited” effective 29 August 2023.
• Total cash and listed company investments at 30 September 2023 of $28.6M.
• Appointment of Alex De Rossi as General Manager Mining.

“The September Quarter has seen further significant progress towards our goal of building a high-grade gold resource inventory that will reshape the future of the Dalgaranga Gold Project (Dalgaranga) and establish the foundations of a sustainable and profitable Australian gold business.

“The key highlights of the quarter included the delivery of a major Mineral Resource update for the high- grade Never Never discovery, the commencement of a second surface drilling campaign to underpin the next phase of Resource extension and the completion of a name change and corporate rebrand that appropriately repositions Spartan in the market as a high-grade gold story ready for a new era of growth.

“Following the completion of highly successful Resource in-fill and extensional drilling programs, we unveiled an updated Mineral Resource Estimate (MRE) for the Never Never deposit totalling 3.83 million tonnes grading an exceptional 5.85g/t gold for 721,200 ounces of contained gold.

“The update – which more than doubled the contained ounces over the previous MRE delivered less than six months ago – has been achieved at an average discovery cost to date of just A$13/oz. The Never Never deposit is continuing to show outstanding grade, with the underground resource averaging an exceptional 1,590 ounces per vertical metre over a short strike length with favourable geometry.

“More than 76% of total contained ounces are now classified within the higher confidence Indicated Resource category, providing strong confidence as we move towards economic studies and mine scheduling. We now have a total Resource endowment of 1,183,300 ounces of gold within 10km of the Dalgaranga processing plant, providing a solid basis for development of our +5-year mine plan.

“Following the delivery of the updated Resource, the Company immediately embarked on a major new round of exploration drilling targeting areas with similar geological characteristics to Never Never. We’ve identified a number of compelling targets that offer the potential to deliver new high-grade discoveries. Results from this drilling will feed into our next Resource update for Dalgaranga, which is scheduled for delivery in the December 2023 Quarter.

“In light of the Company’s transformation into a compelling high-grade gold exploration and development proposition, we sought shareholder approval to change the Company’s name to Spartan Resources. We believe the new name is more closely aligned with our corporate strategy, focused on fearless execution and strong, disciplined growth. The name change became effective from the end of August.

“The substantial achievements of the quarter were appropriately reflected in a significant increase in our market capitalisation to around $360 million at the end of the quarter. While we are pleased with the growth achieved to date, we are confident that this is just the beginning of our journey.”

Environmental, Social & Governance

Safety

The Total Recordable Injury Frequency Rate (“TRIFR” 12-month rolling) for the Dalgaranga Gold Project at the end of the September Quarter was 14.2, an increase from 7.1 at the end of the June Quarter, primarily due to a reduction in worked hours on site compared to 12 months ago. No lost time injuries occurred during the Quarter.

The Company continued work on the development of its Mine Safety Management System to support all future activities.

Environmental

During the Quarter, the Company continued to maintain its environmental and regulatory compliance requirements.

The Company received an amended Prescribed Premises Licence, applicable for the duration of Care and Maintenance.

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