Australian Gold and Copper Limited’s Moorefield Gold Project

Drill Ready Gold and Polymetal

Background

The Moorefield project comprises two granted exploration licences covering 481.5km2 (EL7676 ‘Moorefield’ and EL8669 ‘Derriwong’). The project includes the drill ready 15km long Boxdale – Carlisle Reefs orogenic gold trend defined by strong surface geochemical anomalism and significant existing drill results, including:

36m at 1.21g/t Au from 81m (MFRC017, Carlisle Reefs)¹
30m at 1.60 g/t Au from 80m (MFRC013, Carlisle Reefs)²
19m @ 1.28g/t Au from 114m (BDRC001, Boxdale)³
15m @ 1.00g/t Au from 85m (BDRC003, Boxdale)⁴

Other high priority drill ready prospects, include the Pattons Prospect, considered prospective for Au-Cu mineralisation and characterised by several discrete magnetic features underlying a gold anomalous exhalative horizon within the Girilambone Group (multipoint rockchip anomalism over 400m, up to 6.14g/t Au).

¹ MAG ASX Announcement dated 17 October 2017, “Gold Mineralisation Extended at Carlisle Reefs”, page 2. The Company is not aware of any new information or data that materially affects the information included in the relevant market announcement and all the material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed.
² MAG ASX Announcement dated 17 October 2017, “Gold Mineralisation Extended at Carlisle Reefs”, page 2. The Company is not aware of any new information or data that materially affects the information included in the relevant market announcement and all the material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed.
³ ASX Announcement dated 17 May 2017, Magmatic IPO Prospectus, page 35. The Company is not aware of any new information or data that materially affects the information included in the relevant market announcement and all the material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed.
⁴ ASX Announcement dated 17 May 2017, Magmatic IPO Prospectus, page 35. The Company is not aware of any new information or data that materially affects the information included in the relevant market announcement and all the material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed.

Previous Exploration

The Boxdale mine, originally referred to as the Coronation Mine started in 1955 and the Carlisle Reef Prospect has reports of alluvial mining being carried out as early as 1894 with reef mining beginning in 1897.

Modern exploration activity has included augur and rockchip surface geochemistry, high-resolution aeromagnetic and ground magnetic surveys and limited shallow drilling.

A total of 271 auger holes have been completed along the Boxdale-Carlisle Reefs Trend at the Elswick Road, Boxdale East, Boxdale, Boxdale NW and The Dam prospects (for a total of 1,387.5m). Auger hole depths range from 3 to 15m, averaging 5.1m. The last 1.5m was sampled at auger refusal depth. At the Elswick Road gold prospect auger drilling defined a gold–arsenic auger geochemical anomaly over 1.4km in length and up to 140m wide associated with anomalous gold in rock chip results.

A total of 241 surface rock chip samples were collected at the Carlisle Reefs, L’Estrange Reef, Pattons, Golden Gulch, Elswick Road, Boxdale and The Dam prospectsHigh-grade gold in rock chips was returned from Carlisle Reefs gold prospect over 1.2km of strike, related to quartz-arsenopyrite-pyrite veined, quartz-sericite-carbonate altered schist. In addition, significant gold in rock chip results were returned from L’Estrange Reef gold prospect over 200-300m of strike and at Patton’s gold prospect over 400m of strike and define drill ready zones.

RC drilling was completed at both Boxdale by Gold Fields and at Carlisle Reefs by Magmatic Resources Ltd, with both programs returning significant intercepts, including:

36m at 1.21g/t Au from 81m (MFRC017, Carlisle Reefs)⁵
30m at 1.60 g/t Au from 80m (MFRC013, Carlisle Reefs)⁶
19m @ 1.28g/t Au from 114m (BDRC001, Boxdale)⁷
15m @ 1.00g/t Au from 85m (BDRC003, Boxdale)⁸

Exploration Potential

The project area includes two distinct geological domains:

The Ordovician Girilambone Group consists of multiply deformed metasediments of lower grade greenschist facies. The metasediments are host to several occurrences of orogenic-style gold mineralisation
Recent reinterpretations of eastern Australian geology (Cayley 2017) indicate a possible link and similarities between the Moorefield Project area and the Bendigo Zone, host to the Fosterville Gold Deposit in the Victorian Goldfields

Silurian Derriwong Group, considered correlations of the Mineral Hill Volcanics that host the Mineral Hill gold-polymetallic deposit 30km NW of EL7675

Carlisle Reefs – Boxdale Trend, Carlisle Reefs cross section

⁵MAG ASX Announcement dated 17 October 2017, “Gold Mineralisation Extended at Carlisle Reefs”, page 2. The Company is not aware of any new information or data that materially affects the information included in the relevant market announcement and all the material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed.
⁶MAG ASX Announcement dated 17 October 2017, “Gold Mineralisation Extended at Carlisle Reefs”, page 2. The Company is not aware of any new information or data that materially affects the information included in the relevant market announcement and all the material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed.
⁷ASX Announcement dated 17 May 2017, Magmatic IPO Prospectus, page 11. The Company is not aware of any new information or data that materially affects the information included in the relevant market announcement and all the material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed.
⁸ASX Announcement dated 17 May 2017, Magmatic IPO Prospectus, page 11. The Company is not aware of any new information or data that materially affects the information included in the relevant market announcement and all the material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed.

Boxdale – Carlisle Reefs Gold-Copper Trend

The drill ready 15km long Boxdale – Carlisle Reefs orogenic gold trend within the Ordovician Girilambone Group, is defined by strong surface geochemical anomalism and significant existing drill results, including:

36m at 1.21g/t Au from 81m (MFRC017, Carlisle Reefs)⁹
30m at 1.60 g/t Au from 80m (MFRC013, Carlisle Reefs)¹⁰
19m @ 1.28g/t Au from 114m (BDRC001, Boxdale)¹¹
15m @ 1.00g/t Au from 85m (BDRC003, Boxdale)¹²

Pattons Gold Copper Prospect

The drill ready Pattons Prospect is considered prospective for Au-Cu mineralisation and characterised by several discrete magnetic features underlying a gold anomalous exhalative horizon within the Girilambone Group (multipoint rockchip anomalism over 400m, up to 6.14g/t Au).

Ghost Hill Gold Copper Zinc Prospect

Previously explored by Getty, Shell and Billiton primarily for base metals. Ghost hill is hosted within limestone and volcanic units of the Derriwong Group. Historic exploration defined a polymetallic (Au – Cu – Zn – Pb – Bi) magnetite skarn hosted in limestone stratigraphy, associated with a large (2.5km x 1.5km) magnetic high anomaly. Limited historical drill testing has returned anomalous gold & base metal intersections, incl: 6m @ 1.3g/t Au, 0.13% Pb, 0.15% Zn from 102m (GDDH1).

⁹MAG ASX Announcement dated 17 October 2017, “Gold Mineralisation Extended at Carlisle Reefs”, page 2. The Company is not aware of any new information or data that materially affects the information included in the relevant market announcement and all the material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed.
¹⁰MAG ASX Announcement dated 17 October 2017, “Gold Mineralisation Extended at Carlisle Reefs”, page 2. The Company is not aware of any new information or data that materially affects the information included in the relevant market announcement and all the material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed.
¹¹ASX Announcement dated 17 May 2017, Magmatic IPO Prospectus, page 11. The Company is not aware of any new information or data that materially affects the information included in the relevant market announcement and all the material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed.
¹²ASX Announcement dated 17 May 2017, Magmatic IPO Prospectus, page 11. The Company is not aware of any new information or data that materially affects the information included in the relevant market announcement and all the material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed.