Gregory Project

Location:	200 - 280km North of Mount Isa
Tenement Area:	2,055km²
Ownership:	100%
Primary Target:	iron-oxide copper gold (IOCG)

Highlights:	multiple IOCG targets / geophysical anomalies
	90km strike length over Mt Isa - Gunpowder Fault Zone
	evidence of significant iron-oxide alteration
	minimal prior exploration

Exploration within the Gregory Project is targeting iron-oxide copper gold (IOCG) deposits in Proterozoic basement rocks under deep sedimentary cover. The Gregory Project tenements overlie a projected 90km long extension of the Mount Isa - Gunpowder Fault Zone - a regionally significant fault system associated with a number of significant base metal deposits.

The Mount Isa Mineral Province is recognised as one of the most significant IOCG provinces in the world. Numerous IOCG discoveries have been made in the Mount Isa region over the recent past including Selwyn, Eloise, Osborne, Mt Roseby, Ernest Henry, Trekelano, Swan, Amethyst Castle and Rocklands. The IOCG deposit class also includes the giant Olympic Dam deposit in South Australia*.

Exploration for IOCG systems in Australia is primarily concerned with the use of remote geophysical methods to "prospect" under cover for iron oxide alteration typically associated with the deposits. At a local scale the recognition of characteristic zones of hydrothermal mineral alteration can be important as an indicator of proximity to IOCG systems.

Geophysical data from within the Gregory Project area provides indicators of the presence of iron oxide alteration, in close proximity to granitic intrusives, within a complex structural setting. Drilling data also provides direct evidence of the development of intense iron-oxide (magnetite) alteration which may be of an IOCG or skarn-type affinity. As such Mt Isa Metals considers the project area to be highly prospective for the discovery of IOCG deposits.

The key exploration features of the Gregory Project are summarised as follows:

Initial Drilling Intersected Sheared, Brecciated and Iron-rich Rocks - Initial drill testing of two geophysical anomalies by MET intersected variable width intervals of sulphides (mainly pyrite with minor chalcopyrite) as disseminations and stringers associated with magnetite and hematite-albite alteration. Low order copper anomalism intersected in both initial holes, AUGDD001 and NEUDD001, confirm the project area as a "live" copper system.
Major mineralising fault zone - The project area overlies a 90km strike length of the projected northern extension of the Mt Isa - Gunpowder Fault Zone. To the south of the project area numerous significant deposits owned by third parties lie within and adjacent to this major mineralising fault system including: the Mount Isa, Mount Oxide, and Gunpowder copper deposits*, and the Mount Isa, Hilton and George Fisher silver-lead-zinc deposits*.
Association with granitic intrusives - Elongate gravity lows that extend along the length of the project area are interpreted as low density granitic intrusives. IOCG or skarn-type systems can be spatially associated with granitic intrusives which may act as a source for metal-bearing fluids or provide a regional heat source to drive deposit forming systems or both.
Development of iron-oxides - The presence of multiple high order magnetic anomalies suggests development of discrete zones of iron-oxide alteration (magnetite) which may be associated with IOCG mineralising systems.
Structural complexity - The geophysical signatures within the project area suggest structural complexity of the target Proterozoic age host rocks. Complex structure may provide enhanced pathways for fluid flow and assist in the focus of metal bearing fluids. The development of arcuate (curved) magnetic trends to the southern end of the project area also suggests potential for possible dilatent (open) fault zones which are also considered favourable for deposit formation.
Discordant gravity and magnetic anomalies - Detailed geophysical data acquired over the project area has identified offset gravity and magnetic anomalies. These features present immediate exploration targets that may represent hematite dominated IOCG alteration overprinting an earlier magnetite assemblage.
Concealed targets/limited prior exploration - Target host rocks within the project area are concealed by a thick sequence of younger sediments that discouraged prior exploration. Public records indicate that only one historical exploration drill hole has ever been completed to basement within the entire Gregory Project area. Drill hole NDS-D2, located at the southern margin of the project area intersected basement at 238m.
Significant scale of opportunity - The substantial tenement position held by MET at Gregory and large number of geophysical anomalies presents a significant scale of opportunity.

To date MET has only completed two deep diamond drill holes within the entire Gregory Project area. A significant amount of additional exploration drilling is warranted to test all identified targets and to fully assess the IOCG potential of the project area.

* Not assets of the Company