Cobre Limited: New High Grade Volcanogenic Massive Sulphide Result

Sydney, Australia - Cobre Ltd. (ASX:CBE) is pleased to provide an update on its current drilling program at the Perrinvale Volcanic-Hosted Massive Sulphide (VHMS) Project located in Western Australia.

As announced to the ASX on 10 June 2020, the Company has commenced its third Diamond Core (DC) and Reverse Circulation (RC) drilling program at the Perrinvale Project with the twin aims of extending current VHMS mineralisation and drill testing new VHMS targets.

The RC drilling has now been completed with 2,883m drilled (including 120m of pre-collars for core holes), with the DC drilling expected to be completed in the coming week (refer Figures*).

Drilling at Schwabe Prospect

One of the objectives of this drill campaign at Schwabe was to generate a mineral sample for sighter metallurgical testing. To this end, three DC holes were drilled with assay results now received for the first hole, along with visual and portable XRF observations for the second and third holes (refer Figures 2 and 3*). These early results provide further confirmation of the presence of high-grade VHMS mineralisation at Schwabe with mineralised core to be delivered to the metallurgical laboratory this week for testing.

The first DC hole at Schwabe, 20PVDD007, intersected 7m of sulphide mineralisation as two sulphide zones separated by 3 metres of internal basalt, generating the following assay intervals:

Sulphide zone: 3.5m@ 3.4% Cu, 0.8% Zn, 0.10% Co, 368 ppm Pb, 1.1 g/t Au, & 16.5 g/t Ag from 48.0m

Internal Basalt: 3.0m@ 0.03% Cu, 0.02% Zn, 0.00% Co, 7 ppm Pb, 0.01 g/t Au, & 0.1 g/t Ag from 51.5m

Sulphide zone: 3.5m@ 2.0% Cu, 1.4% Zn, 0.07% Co, 344 ppm Pb, 0.3 g/t Au, & 7.4 g/t Ag from 54.5m

The third DC hole at Schwabe, 20PVDD014, encountered a semi massive to massive mineralised horizon as can be seen in Figure 1* below.

A deeper DC hole at Schwabe is currently testing the down dip potential of the mineralisation (via a tail on previous drill hole 20PVRC025 - refer Figure 2). This drilling is targeting the mineralised horizon approximately 100m down dip of the previous DC holes at an expected depth of ~350m.

RC holes have also been completed on 'step-out sections' located 80m north and 80m south of previous drilling at Schwabe (refer Figure 2*). These RC holes have confirmed strike continuity of the mineralised horizon to the north and south, as defined by interflow sediments and variable amounts of sulphides between the basalt flows. Assays are required to understand the full significance of these step-out results. Other RC drilling at Schwabe has tested Moving Loop Electromagnetic(MLEM) conductors north, west and south-west of main prospect area. The final RC samples were submitted to the laboratory on 9 July 2020.

Drilling at Zinco Lago, Zinco Rame and Lago Rame Prospects

Geologically, the Zinco Lago, Zinco Rame and Lago Rame prospect areas are located along the same stratigraphic horizon on the western side of a broad syncline. The Schwabe prospect is located ~2km away on the eastern side of this syncline in the same stratigraphic position.

In total, 4 DC holes and 2 RC holes have been drilled at Zinco Lago, Zinco Rame and Lago Rame as part of this drill campaign. The DC has now been cut and submitted for assay, along with the RC samples.

Visual observations from drill core and RC chips confirms the continuity of the mineralised horizon along trend at all three prospects. The deeper holes drilled to the east at Zinco Rame and Lago Rame have intersected a potential sub-parallel zone of mineralised sediments. The combination of exploration drilling, surface mapping and modelled conductors suggests an increase from ~2.5km to ~3.8km of prospective stratigraphy in this location.

Other Drill Targets within the Perrinvale Project

The Company has also completed RC drilling at Ponchiera Copper, Ponchiera North, Costa del Islas, and Piega del West Prospects within the Perrinvale Project (refer Figure 4*). A total of 1,488 RC samples have been submitted for multi-element assay from these locations, with assay results expected progressively over the coming weeks.

Cobre's Executive Chairman and Managing Director, Martin Holland, said in relation to the results from the third drilling program at the Perrinvale Project: "While we await final assays, I am pleased that the early results from our third drilling campaign at the Perrinvale Project has identified the presence of additional VHMS mineralisation in our exploration area. In particular, our preliminary drill results suggest continuity of the mineralised interflow horizon to the north and south of the high-grade massive sulphides at the Schwabe Prospect.

In addition, the discovery of a second package of interflow sediments to the east of the existing Zinco Lago - Lago Rame gossan trend is also exciting. We look forward to reporting the next set of assay results when available, as well as the outcome from the metallurgical sighter test work from the Schwabe core sample."

*To view tables and figures, please visit:
https://abnnewswire.net/lnk/86AC44SF

About Cobre Limited:

Cobre Ltd. (ASX:CBE) is a Sydney based company focused on mineral exploration in Western Australia. The company recently discovered a new high grade VMS deposit enriched in Copper, Gold, Zinc and Silver in Western Australia from its maiden drill program in June 2019.

Source:

Cobre Ltd.

Contact:

Cobre Ltd. Martin Holland E: info@cobre.com.au WWW: www.cobre.com.au