Cobre Limited: Further High Grade Volcanogenic Massive Sulphides Results

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

As announced to ASX on 10 June 2020, the Company was undertaking 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.

Both the RC and DD programs were recently completed, with RC drilling of 2,883m (including 120m of pre-collars for core holes) and the DC drilling of 2,086 metres (refer Figure*).

Assays from this third drill program have been received for all but the last three DC holes while the results received to date are encouraging. The latest drill results have:

1) confirmed the high VHMS grades at the Schwabe Prospect;

2) identified further mineralisation along the Zinco Lago - Lago Rame gossan trend; and

3) delivered positive results at the Costa del Islas, Piega del West and Ponchiera Copper prospects.

Drilling at the Schwabe Prospect

Three objectives were achieved following the most recent drilling at Schwabe including the:

1) generation of mineralised core samples for sighter metallurgical testing;

2) expanding upon previously drilled massive sulphide mineralisation; and

3) step out drilling to test for mineralisation at depth and along strike.

The drill hole location details and mineralised intercepts for all holes are included in Tables 1 and 2* of this announcement, with relative collar positions shown in Figures 2, 5 and 6*.

The first DC drill hole at Schwabe as part of this campaign, 20PVDD007, intersected 7m of sulphide mineralisation as two sulphide zones separated by 3 metres of internal basalt, and generated the following assay intervals: (as previously reported to ASX on 20 July 2020).

Step out drilling at Schwabe has demonstrated that VHMS mineralisation extends along strike for 500m, which includes the previous drill area. The variable copper and zinc mineralisation is associated with narrow interflow sediments between the mafic pile. Figure 2* shows the holes and significant intercepts to date.

A single deep DC hole (20PVDD015) intersected some vein halo and disseminated mineralisation 200 metres down dip from the high grade massive sulphides drilled near surface, as shown on Figure 3*. Assays are yet to be received for this deep hole.

Drilling at Zinco Lago, Zinco Rame and Lago Rame Prospects

Geologically, the Zinco Lago, Zinco Rame and Lago Rame prospects 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, 6 DC holes and 2 RC holes were drilled at Zinco Lago, Zinco Rame and Lago Rame as part of this drill campaign (refer Figure 5*). Assays have been received for 4 of the DC holes and the 2 RC holes to date as reported herein.

Mineralisation Intersected at other Drill Targets within the Perrinvale Project

Assays have confirmed intersection of mineralisation with the maiden drill programme at three of the four new prospects. The Company has completed RC drilling of the fold nose at Ponchiera Copper, Ponchiera North, Costa del Islas, and Piega del West prospects within the Perrinvale Project (refer Figure 4 and 6*). Only Ponchiera North failed to deliver some level of mineralisation in the RC assays.

Next Steps in the Exploration Program

Final assays from the recent drill program are expected in the next two weeks. The positive results from the new Perrinvale prospects supports a continuation of mapping and surface sampling with the aim of defining further drill targets.

The DHEM survey is expected to be completed within the next week, and these results will be integrated into existing datasets in order to assess further drill targets.

The Company's DC drilling contractor, Westralian Diamond Drillers, are scheduled to return to site in the coming week, with a second deep hole at Schwabe initially planned. In addition, this will enable the Company to immediately move to testing any priority targets which are identified from the ongoing DHEM work.

Cobre's Executive Chairman and Managing Director, Martin Holland, said in relation to the results from the third drilling program at the Perrinvale Project:

"The continued high-grade VHMS results at Schwabe are encouraging to see. In addition, we are pleased to have identified other VHMS potential in the area, which validates our strategy to unlock the full potential of the 381km2 Perrinvale Project.

We expect to report additional assays shortly, with DHEM surveys also underway. Drilling will recommence with a second deep hole at Schwabe to further test the down dip potential. I look forward to providing further updates from the Perrinvale Project as they become available."

To view tables and figures, please visit:
https://abnnewswire.net/lnk/SVT6K274

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