Option to acquire 888km2 Au/Cu project in WA

Cloudbreak Discovery Plc (LSE: CDL), a London Stock Exchange Main Market listed company, is pleased to announce the acquisition of the Paterson Gold-Copper-Molybdenum Project (‘The Paterson Project’), that covers 888km2 in the Paterson Province of Western Australia, located only 40km southwest of the Telfer Gold-Copper Mine operated by Greatland Gold Plc (Figure 1).

Highlights:

• The Paterson Project covers 888km2 of granted Exploration tenure, 40km south west of Greatland Gold Plc’s (GGP London and ASX) Telfer Gold Copper Mine. Telfer has produced 15Moz of gold and combined with Havieron hosts a total of 10.2Moz Au in resources.
• Drilling last completed in 1987 with multiple significant drilling intercepts including:
  • 17m @ 1.6% Cu, 317ppm Mo from 84m (87WDRC2)
    • Including 9m @ 2.6% Cu, 456ppm Mo
  • 9m @ 2.0% Cu, 0.14g/t Au, 272ppm Mo from 84m (87WDRC6)
    • Including 5m @3.1% Cu, 0.20g/t Au, 430ppm Mo
  • 11m @ 1.5% Cu, 0.10g/t Au, 181ppm Mo from 83m (87WDRC8)
    • Including 7m @ 2.1% Cu, 0.15g/t Au, 250ppm Mo
  • 13m @ 1.1% Cu, 0.29g/t Au from 107m (87WDRC14)
    • Including 6m @ 2.0% Cu, 0.27g/t Au
  • 8m @ 0.7% Cu, 310ppm Mo from 98m (87WDRC7)
  • Including 1m @ 3.3% Cu, 0.22g/t Au, 560ppm Mo
• Historic exploration looking for copper not gold
• Significant drilling intercepts are shallow and can be targeted using RC drilling
• Multiple geophysical targets identified which are yet to be drill tested
• Targets associated with magnetic lows and gravity highs
• Mobile MT, a technique utilised by industry players and the Telfer Mine in the Paterson Province, to be used over the Paterson Project area

Tom Evans, Cloudbreak’s MD, commented; ‘I am excited and delighted we have been able to secure exclusivity on this fantastic opportunity to acquire this asset, in a jurisdiction with significant activity and recent proven success. Located only 40km southwest of the Telfer Gold-Copper Mine operated by Greatland Gold Plc.

Technological advances in geophysics since the 80’s have improved greatly with the success of Mobile MT in the Paterson Province, we intend to start off with this geophysical survey, to use as another vector and data layer to refine and rank drill targets not only for copper but for gold as well.

I am excited, for the Company and its shareholders, as we progress this great opportunity and I look forward to updating the market as our exploration programs progress.’

Location

The Paterson Project (Figure 1) directly surrounds the Kintyre Uranium Deposit and is located 40km south-south-west of Greatland Gold Plc’s Telfer Gold-Copper Mine.

Figure 1: Location Plan

Exploration Completed

The Wanderer Prospect (Figure 2 and 3) was drilled between 1987 and 1990 by CRA (at significantly lower prevailing copper and gold prices) as part of its uranium exploration expenditure across its nearby Kintyre Project. The majority of drilling was only drilled to 100m from the surface, with multiple holes logged as ending in mineralisation. No follow‐up drilling has occurred in the 35 years since then. Forty-two drill holes were drilled at the Wanderer Prospect on E45/5358 tenement.

Multiple significant drilling intercepts include:

• 17m @ 1.6% Cu, 317ppm Mo from 84m (87WDRC2)
  • Including 9m @ 2.6% Cu, 456ppm Mo
• 9m @ 2.0% Cu, 0.14g/t Au, 272ppm Mo from 84m (87WDRC6)
  • Including 5m @3.1% Cu, 0.20g/t Au, 430ppm Mo
• 11m @ 1.5% Cu, 0.10g/t Au, 181ppm Mo from 83m (87WDRC8)
  • Including 7m @ 2.1% Cu, 0.15g/t Au, 250ppm Mo
• 13m @ 1.1% Cu, 0.29g/t Au from 107m (87WDRC14)
  • Including 6m @ 2.0% Cu, 0.27g/t Au
• 8m @ 0.7% Cu, 310ppm Mo from 98m (87WDRC7)
  • Including 1m @ 3.3% Cu, 0.22g/t Au, 560ppm Mo

Figure 2: Wanderer Prospect Drill Section

Figure 3: Wanderer Prospect- Drill Collar Plan and Mineralised Trend

Deal Terms

Cloudbreak has paid a A$20,000 option fee to secure two months exclusive due diligence across the Paterson Project. If Cloudbreak elects to proceed, it can acquire a 90% interest in the project via the issue of 330,000,000 shares to Mammoth Minerals Ltd (ASX:M79, ‘Mammoth’). Mammoth is to retain a 10% free carried interest in the Project until the completion of a Definitive Feasibility Study with a positive NPV.

Tenure

The Project consists of three granted exploration licences E45/5358, E45/5391 and E45/6244 covering a land area of 888km2.

The ground is contiguous to the west, of the Cottesloe base-metal project held by Wishbone Gold Plc.

Regional Geology

The Paterson Orogen is a 2,000km long arcuate belt of folded and metamorphosed sedimentary and igneous rocks that range in age from predominantly Palaeoproterozoic to Neoproterozoic with limited outcrops of Archaean rocks.

The eastern margin of the Paterson Orogen is masked by younger Proterozoic to Phanerozoic sedimentary rocks (Officer and Canning Basins) with sedimentary units of the late Proterozoic Savory Basin on-lapping to the southwest. The main outcropping stratigraphic packages across the bulk of the Paterson Project are the lowermost member of the Mesoproterozoic to Neoproterozoic Yeneena Group, the Coolbro Sandstone, and the Paleoproterozoic Rudall Metamorphic Complex.

Local Geology

The Paleoproterozoic Rudall Metamorphic Complex hosts the Central Tenements surrounding the Kintyre Uranium deposit. At and around Kintyre, the prospective Yandagooge Formation outcrops within the Yandagooge Inlier, consisting of a ‘basement high’ of Rudall Metamorphic Complex surrounded by Neoproterozoic sandstone and Permian glacial tillite. The basement sequence has undergone a minimum of four deformation episodes and is unconformably overlain by Neoproterozoic sandstone and conglomerate deposits of the Yeneena Basin, which have seen at least one major deformation episode.

The dominant host-rock to mineralisation at Kintyre is a garnet-rich, chert-banded, calc-silicate magnetite schistose rock, sandwiched between carbonates and shales of the Yandagooge Formation. These are amphibolite facies metamorphosed rocks, later retrogressively metamorphosed to greenschist facies during or prior to the principal mineralisation phase. Late in syn-D3 or during D4 uranium-bearing, hydrothermal fluids were introduced into the system, depositing pitchblende within northeast dipping dilational zones developed in the S3 cleavage.

In the Kintyre area, the Yandagooge Inlier is surrounded by Coolbro Sandstone, which comprises a thick quartz sandstone sequence with intercalated carbonaceous mudstone and shale interbeds (Jackson & Andrew, 1990). The Coolbro Sandstone, which represents the basal formation of the low-grade metamorphic Neoproterozoic Yeneena Supergroup, exhibits a strong slaty cleavage and has been isoclinally folded and deformed around NW trending axes.

The Central Tenements around the Kintyre deposit are predominantly covered by outcropping northwest-southeast trending, northerly dipping, and folded Coolbro sandstone. Aeolian sand covers areas in the west-central and southeast portions of the tenement. It is believed that these areas are directly underlain by an inlier of the Yandagooge Formation Rudall Metamorphics (Jackson & Andrew, 1990). Rudall Metamorphics outcrop in the west-central area and near the south-eastern corner of the tenement. The north eastern edge of the tenement has outcropping northwest-southeast trending, northerly dipping, and folded Broadhurst Formation.

Exploration Potential and Prospectivity

The Paterson Province hosts several major copper and gold operations, including the Nifty copper mine and the world-class Telfer gold mine. More recently, several new copper-gold discoveries have been made at Winu (Rio Tinto) and Havieron (Greatland Resources PLC???).

A review of a compilation of available geophysical data reprocessed using modern techniques highlights multiple anomalies, including a large ‘bullseye’ magnetic anomaly at Wanderer Prospect within the Central Tenements. The Wanderer Copper-Gold Prospect, first discovered by CRA in 1987, reveals the presence of significant copper, gold and molybdenum values in a wide zone of iron‐oxide alteration extending across more than 1 km of strike. In addition, geochemical assemblage (Cu-Au-Mo) is potentially indicative of a porphyry intrusion as the source of mineralisation. Several other targets with low-magnetics/high gravity signatures have been identified.

At a regional scale, the Paterson Province has potential for large intrusive-related copper and gold targets undercover, requiring geophysical methods, such as Mobile MT by Expert Geophysics Limited, that has been successfully used in the Paterson Province as means of primary target identification.

A review of geophysical and structural data (Figure 4), has identified several compelling exploration opportunities around the existing Wanderer copper-gold project.

Figure 4: RTP Magnetics Left and Gravity Right, illustrating numerous coincident magnetic low and gravity high targets

This announcement contains information which, prior to its disclosure, was inside information as stipulated under Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310 (as amended).

For additional information please contact:

Cloudbreak Discovery PLC	Peter Huljich, Chairman Tom Evans, Managing Director	Tel: +44 207 887 6139 Tel: +44 7851 703440
Novum Securities (Financial Adviser)	David Coffman / Anastassiya Eley	Tel: +44 7399 9400

About Cloudbreak Discovery PLC

Cloudbreak Discovery PLC is a leading natural resource explorer and project generator. Cloudbreak is focused on mineral exploration and energy opportunities with the aim of bringing near-term cashflow and driving shareholder value.

Through its wholly owned but independently operated subsidiaries, the Company will develop its array of mineral assets, whilst continuing to generate new projects with a particular focus on commodities with high intrinsic value.

Cloudbreak’s generative model across the mineral sector enables a multi-asset approach to investing in the commodity cycle.

Competent Persons Statement

The Information in this report that relates to exploration results, mineral resources or ore reserves is based on information compiled by Mr Edward Mead, who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Mead is a consultant to Cloudbreak Discovery Plc and employed by Doraleda Pty Ltd. Mr Mead has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the `Australian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves’ (the JORC Code). Mr Mead consents to the inclusion of this information in the form and context in which it appears in this report.

Table 1: Significant Assays (>0.3% Cu or 0.3ppm Au)

Hole	From (m)	To (m)	Interval (m)	Cu %	Au	Mo ppm
87WDRC1	25	28	3	0.30%	0	6
87WDRC10	53	54	1	0.31%	0.25	350
87WDRC12	111	115	4	0.70%	0.35	18
87WDRC13	101	102	1	0.34%	0.07	34
87WDRC13	102	103	1	0.35%	0.09	40
87WDRC13	105	106	1	1.11%	0.12	18
87WDRC13	108	109	1	0.45%	0.04	33
87WDRC13	109	110	1	0.88%	0.06	37
87WDRC13	110	111	1	0.63%	0.16	43
87WDRC13	111	112	1	0.83%	0.09	38
87WDRC14	77	78	1	1.22%	0.15	145
87WDRC14	107	110	3	0.56%	0.17	74
87WDRC14	110	112	2	0.25%	0.65	18
87WDRC14	114	115	1	2.11%	0.59	26
87WDRC14	115	116	1	1.17%	0.17	29
87WDRC14	116	118	2	2.68%	0.28	22
87WDRC14	118	120	2	1.82%	0.15	30
87WDRC17	0	5	5	0.01%	0.38	21
87WDRC2	84	85	1	0.53%	0.02	460
87WDRC2	88	89	1	0.89%	0.04	280
87WDRC2	89	90	1	1.15%	0.04	1270
87WDRC2	90	91	1	1.68%	0.03	1000
87WDRC2	91	92	1	4.00%	0.09	610
87WDRC2	92	93	1	3.61%	0.06	620
87WDRC2	93	94	1	6.51%	0.06	220
87WDRC2	94	95	1	1.20%	0.01	15
87WDRC2	95	97	2	2.34%	0.03	44
87WDRC2	97	99	2	0.52%	0.03	40
87WDRC2	99	101	2	0.32%	0.01	49
87WDRC22	75	80	5	0.62%	0.16	13
87WDRC22	80	85	5	0.10%	0.3	9
87WDRC24	70	73	3	0.33%	0.04	34
87WDRC24	73	77	4	0.71%	0.09	41
87WDRC24	77	80	3	0.61%	0.06	30
87WDRC26	82	86	4	0.68%	0.09	28
87WDRC3	83	84	1	0.45%	0.01	7
87WDRC3	85	86	1	0.52%	0.07	140
87WDRC3	86	88	2	0.42%	0.03	69
87WDRC6	84	85	1	5.18%	0.29	620
87WDRC6	85	86	1	2.60%	0.22	720
87WDRC6	86	87	1	2.56%	0.21	350
87WDRC6	87	88	1	2.31%	0.18	290
87WDRC6	88	89	1	3.05%	0.11	169
87WDRC6	89	90	1	1.01%	0.1	81
87WDRC6	90	91	1	0.57%	0.04	59
87WDRC6	91	92	1	0.42%	0.03	42
87WDRC6	92	93	1	0.72%	0.04	121
87WDRC7	98	103	5	0.31%	0.01	46
87WDRC7	103	104	1	3.27%	0.22	560
87WDRC7	104	105	1	0.71%	0.08	360
87WDRC7	105	106	1	0.34%	0.09	1330
87WDRC8	83	84	1	0.88%	0.11	200
87WDRC8	84	85	1	2.01%	0.26	280
87WDRC8	85	86	1	2.18%	0.14	178
87WDRC8	86	87	1	2.02%	0.15	260
87WDRC8	87	88	1	3.23%	0.18	420
87WDRC8	88	89	1	2.59%	0.11	210
87WDRC8	89	90	1	1.81%	0.08	200
87WDRC8	90	92	2	0.39%	0.01	43
87WDRC8	92	94	2	0.70%	0.03	77
88WDD03	89	90	1	0.67%	0.04	53
88WDD03	90	91	1	0.36%	0.03	40
88WDD03	190	191	1	0.61%	0.08	78
88WDD03	191	192	1	0.43%	0.06	87
88WDRC27	43	44	1	0.19%	0.99	24
88WDRC28	58	62	4	0.48%	0	11
88WDRC36	90	95	5	0.32%	0.02	9
88WDRC36	95	100	5	0.46%	0.1	20

Table 2: Collar location and Hole Type

Hole ID	Easting	Northing	RL (m)	Total Depth (m)	Dip	Azimuth	Hole Type
87WDRC1	402140	7521450	430	104	-60	180	RC
87WDRC2	402180	7521450	430	120	-60	180	RC
87WDRC3	402220	7521450	430	120	-60	180	RC
87WDRC4	402200	7521410	430	120	-60	180	RC
87WDRC5	402170	7521410	430	120	-60	180	RC
87WDRC6	402160	7521450	430	116	-60	180	RC
87WDRC7	402180	7521470	430	120	-60	180	RC
87WDRC8	402200	7521450	430	109	-60	180	RC
87WDRC9	402260	7521450	430	98	-60	180	RC
87WDRC10	402060	7521460	430	89	-60	180	RC
87WDRC11	402030	7521480	430	120	-60	180	RC
87WDRC12	402010	7521440	430	120	-60	180	RC
87WDRC13	401250	7521520	450	120	-90	0	RC
87WDRC14	401250	7521480	450	120	-90	0	RC
87WDRC15	401210	7521520	450	114	-90	0	RC
87WDRC16	401250	7521560	450	109	-90	0	RC
87WDRC17	401290	7521520	450	115	-90	0	RC
87WDRC18	401330	7521490	450	119	-90	0	RC
87WDRC19	401170	7521600	450	120	-90	0	RC
87WDRC20	401210	7521560	450	120	-90	0	RC
87WDRC21	401250	7521440	450	120	-90	0	RC
87WDRC22	401642	7521465	450	98	-60	180	RC
87WDRC23	401658	7521465	450	100	-60	180	RC
87WDRC24	401675	7521465	450	100	-60	180	RC
87WDRC25	401700	7521465	450	96	-60	180	RC
87WDRC26	401662	7521493	450	100	-60	180	RC
88WDRC27	401245	7521605	450	80	-60	240	RC
88WDRC28	401280	7521600	450	81	-60	240	RC
88WDRC29	401220	7521690	450	69	-60	250	RC
88WDRC30	401140	7521760	451	54	-60	250	RC
88WDRC31	401135	7521800	448	69	-60	240	RC
88WDRC32	401250	7521750	450	106	-90	0	RC
88WDRC33	401250	7521700	440	87	-60	200	RC
88WDRC34	401250	7521335	450	105	-90	0	RC
88WDRC35	401950	7521360	430	106	-90	0	RC
88WDRC36	401950	7521285	450	106	-90	0	RC
88WDRC37	401950	7521425	440	106	-90	0	RC
87WDD01	401950	7521500	415	287.7	-61	181	DD
87WDD02	401985	7521555	440	117	-70	180	DD
88WDD03	401250	7521500	420	212.7	-90	0	DD
88WDD04	402180	7521480	434	200.8	-90	0	DD
90WDD05	401950	7521425	440	409.9	-90	0	DD

Source