Newstead

At the Newstead Project, the recognition of cassiterite-bearing alluvial and colluvial sediments draping the flanks of Bruce’s Hill and across the broader Newstead Prospect is key to ELR’s strategy in the Newstead area. Work conducted by Malachite Resource Ltd over the area south of Sheep Station Hill broadly termed the Karaula Lead has established a JORC resource within veneer sediments.  These sediments represent a near-surface target that may warrant open cut mining and processing to produce cassiterite concentrate. The delineation of alluvial/colluvial sediments with sufficient tin grade may allow project development in a relatively short time with modest capital cost requirements.

Karaula Lead paleo-channel. Over a 400m by 200m area, excavated bulk samples contain anomalous tin content in the top 0.3-0.7m, including 4.74kg/t SnO2 over 0-0.7m in pit NST062 and 0.71kg/t SnO2 over 0-0.6m in pit NST059. Within this zone of surficial tin mineralisation, high cassiterite contents in concentrate were observed in samples to 1.2m depth from pits over a 200m by 150m area. Recovered tin contents include:

• 1.66kg/t SnO2 (2.99kg SnO2/m3 assuming 1.8t/m3 density) over 0-1.2m in pit NST115

• 0.90kg/t SnO2 (1.62kg SnO2/m3 assuming 1.8t/m3) over 0-1.2m in pit NST156

• 0.71kg/t SnO2 (1.28kg SnO2/m3 assuming 1.8t/m3) over 0-0.95m in pit NST094

The near-surface tin mineralisation remains open to the north.