CORE ASSETS

Spartan Resources’ flagship Dalgaranga Gold Project is located 475km north-east of Perth and approximately 65km north-west of Mt Magnet in Western Australia.

The Dalgaranga Project includes a fully-developed gold mining operation (currently on care and maintenance) and an extensive exploration landholding with outstanding opportunities for new discoveries.

The Dalgaranga Mine was initially commissioned in 2018 and comprises a fully established gold mine, >2.5mtpa carbon-in-leach processing facility, modern camp accommodation and airstrip.

The mine produced 71,153oz for the 2022 financial year before being placed on care & maintenance in November 2022 to facilitate the implementation of a new strategic operating plan and a financial restructure.

Never Never Gold Discovery

Never Never is a new high-grade gold deposit which strikes and plunges to the west-south-west. The deposit was discovered while following up wide, high-grade drill intercepts from the earlier Gilbey’s North extension discovery immediately north of the Gilbey’s open pit at Dalgaranga and within 1km of the process plant.

Due to the high-grade and apparent scale of Never Never, this deposit now represents the foundation of the Company’s new operating and growth plan.

Never Never is distinct from the Gilbey’s North discovery due to considerable differences in tenor, thickness of mineralisation, mineralogy, scale, orientation and host structure/rock-type. Despite these differences, due to the close spatial association of the two deposits, the Never Never and Gilbey’s North deposits are collectively known as the “Never Never Gold Deposit”.

Never Never is much higher grade than any of the previously defined ore bodies at Dalgaranga and appears to be far more structural, fold and/or shear-hosted as opposed to the more stratigraphic/shale-associated historically defined Gilbey’s series of gold deposits.

On 24 July 2023 Gascoyne released an updated Never Never Gold Deposit Mineral Resource Estimate of 721,200 ounces (3.83Mt @ 5.58g/t gold).

New Strategic Plan

In February 2022, Spartan announced the details of a new 18-month exploration and strategic plan, underpinned by the Never Never Gold Deposit, targeting:

• A +300koz Au Reserve at a grade exceeding 4.0g/t at Never Never;
• A +600koz Au Resource at a grade exceeding 5.0g/t at Never Never; and
• The development of a 5-year mine plan aimed at delivering 130-150koz per annum.

This updated strategy, which would leverage the existing 2.5Mtpa CIL processing plant and associated gravity circuit at Dalgaranga, is centred around an aggressive exploration program at Never Never, comprising extensive reserve definition, resource expansion and near-mine exploration drilling targeting Never Never “look-alikes”.

Spartan anticipates regularly updating the MRE at Never Never approximately every six months, with the objective of ultimately delivering a maiden Never Never Ore Reserve, comprising both an open pit and underground component, in the first half of 2024.

Spartan is committed to maintaining the processing infrastructure at Dalgaranga in good working order and in a high state of readiness to facilitate the rapid resumption of production, pending the outcomes of the exploration success, feasibility studies and financial review.

Yalgoo Gold Project

The Yalgoo Gold Project, including the Melville Gold Deposit, hosts a Mineral Resource of 243,600oz (5.2Mt @ 1.4g/t Au), and is located 110km by road from the Dalgaranga Gold Project.

Spartan will evaluate the future incorporation of this strategic asset as part of a broader regional development plan to unlock the value of the Company’s Murchison gold assets.