King River Resources : Tennant Creek Drilling

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King River Resources Ltd (ASX:KRR) is pleased to announce the discovery of new ironstone bodies 35km east of Tennant Creek under Cambrian cover rocks of the Georgina Basin.

A total of 11 RC holes for 2,376m were drilled at two of KRR's Tennant East prospects, Lone Star Trend and Commitment with the newly discovered ironstones intersected at Commitment. Assay results from the ironstones are geochemically anomalous indicating they are prospective for hosting IOCG gold mineralisation.

Commitment Drilling

Two holes for 474m were drilled targeting a large NW striking airborne magnetic anomaly and coincident gravity anomalies 35km east of Tennant Creek and 10km east of the eastern most known Tennant Creek IOCG deposit (hole locations in Table 1). The area is under Cambrian cover of the Georgina Basin and previous exploration overlooked the anomaly due to this cover - KRR holds the ground between the known deposits and Commitment (Figure 1).

Warramunga

Outcrop

EL31619 - KRR

Prioritised Targets for ground geophysical survey work

Lone Star Trend Drilling

Strongly altered hematite altered shales

Figure 1: Tennant East Drilling, New ironstones intersected 35km east of Tennant Creek and 10km beyond eastern most

deposit on the Lone Star Trend at Tennant Creek.

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Drilling found the cover to be only 30 to 70m deep with both holes intersecting ironstone in Warramunga Formation basement rocks. The eastern most hole (TTRC009) targeted a gravity anomaly offset from the main airborne magnetic anomaly and intersected hematite rich ironstone - the cause of the gravity response. The western most hole targeted the main airborne magnetic anomaly and intersected a hematite/magnetite ironstone surrounded by a broad zone of magnetite alteration (Figures 2 and 3). Both ironstones were geochemically anomalous with Cu, Co, Bi anomalies many times above background (Table 2). The presence of these anomalous indicator metals indicate that the new ironstones may be prospective for hosting IOCG gold mineralisation (Stolz et al. 1994) and warrant further exploration.

Coincident Magnetic and Gravity Target

Magnetite and Hematite Ironstones Intersected

Airborne

Magnetic

Anomaly

Figure 2: Commitment Drilling, showing targeted airborne magnetic anomaly and gravity anomalies as isosurfaces.

TTRC010

Cambrian Cover

Magnetite

and Hematite

Ironstone

Airborne

Magnetic

Anomalies

Figure 3: Commitment drill section: TTRC010 with airborne magnetic anomaly/gravity anomalies as isosurfaces.

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The main airborne magnetic anomaly is over 1km in strike length and a detailed ground magnetic survey has commenced to help delineate the magnetite rich zones and any relevant structures for more targeted drilling.

The discovery of Warramunga Formation units and geochemically anomalous ironstones under the Cambrian cover demonstrates the potential of KKR's other targets in its Tennant East Project. A selection of targets have now been prioritized for ground magnetic and gravity surveys with five other areas selected for prioritized ground geophysical work (Figure 1 - red ovals), including the areas immediately southwest and northeast of the Metallic Hill, Blue Moon, Lady May, and Gigantic historic IOCG gold mine trends (all between 200-800m of the tenement boundary), where ground magnetic work will be commenced after the Commitment survey is completed.

Lone Star Trend Drilling

Eight holes were drilled to test 3 gravity/magnetic targets at Lonestar Trend. The Lone Star Trend prospect is an area of coincident magnetic and gravity anomalies less than 1km east of Emmerson Resources Mauretania deposit where 20m @ 38.5g/t Au was returned in a diamond drill hole last year (Emmerson Resources ASX announcement 4/7/19). This and other nearby deposits follow NW-SE and EW trends that can be seen in the geophysical results. Two holes were drilled to test the main gravity and magnetic anomaly, three to test a northwest trending zone and three to test an east west trending zone. The drilling intersected strongly hematite altered shales with the best results from the main gravity anomaly where drilling intersected broad veining and with zones of very strong hematite alteration with associated elevated values in bismuth, arsenic, antimony and zinc (Table 2). Work is planned to extend the gravity survey to the edge of the tenement (westward) - to within 700m of Emmerson Resources Mauretania deposit.

Magnetic

Anomaly

E-W Trending Mag/

Grav AnomalyGravity

Anomaly

NW-SE Trending Mag/

Grav Anomaly

Coincident Magnetic and

Gravity Target

possible zoned ironstone body

Figure 4: Lone Star Area - 3D view showing magnetic (red) and gravity (grey) isosurfaces of 2019 ground magnetic and

gravity survey models. Drilling targeted 3 trends of coincident magnetic and gravity anomalies.