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REG - East Star Resources - Talovskoye IP Survey Results

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RNS Number : 7288I  East Star Resources PLC  15 May 2025

15 May 2025

 

East Star Resources Plc

 

("East Star" or the "Company")

 

Talovskoye IP Survey Results

 

Another priority 2025 drill target demonstrating strong geophysical anomalies

 

Drill rig expected to mobilise to Talovskoye & Rulikha in two weeks

 

Further to the 24 April and 13 May 2025 announcements, East Star Resources Plc
(LSE:EST), which is exploring for copper and gold in Kazakhstan, is pleased to
announce the results of the induced polarisation ("IP") survey from the
Talovskoye high priority drill target area in East Kazakhstan.

 

This target area contains two distinct IP anomalies:

 

1.    (Western Target) A large, deep, high chargeability anomaly reaching
amplitudes of up to 45mV/V. This anomaly is approximately 400 x 400m in size,
located approximately 100m below surface, and is open at depth

 

2.    (Eastern Target) A small, narrow, near surface, high chargeability
anomaly associated with the historic Talovskoye Deposit. This response is open
to the north and shows potential to be associated with high-grade pipes,
similar to those mined in the past. The flanks and surface of the anomaly
contained historical drill results into unmined areas including:

 

·   DH_5: 8.1m @ 1.0% Cu, 0.5% Pb and 0.5% Zn from 28.7m and 5.9m @ 0.6% Cu
and 3% Zn from 48.8m

·   DH_6: 13m @ 0.75% Cu, 0.5% Pb and 0.1% Zn from surface

·   DH_7: 4.3m @ 2.0% Cu, 0.2% Pb and 1.0% Zn from 52.9m

 

East Star has begun drilling preparation with the rig expected to mobilise to
the Rulikha and Talovskoye targets in the next two weeks.

 

Alex Walker, East Star CEO, commented:

 

"The Talovskoye target area is hosted within the Talovskaya suite, which is
the same geological unit that hosts the high-grade Irtyshsky mine (30Mt @ 2.2%
Cu, 5.1% Zn 0.7% Pb and 0.4 g/t Ag) 39km to the southeast, along the Irtysh
shear zone. The Eastern Target sits within the boundaries of the historic
mining operations and has mineralisation consistently reported in drill
results along the flanks and at the surface of the anomaly. The larger Western
Target anomaly shows both scale and shape, consistent with regional VMS
deposits with potential for a large depth extent. We look forward to drilling
the high impact Talovskoye and Rulikha targets in the coming weeks."

 

 

 

 Figure 1 IP Survey over Talovskoye (110m depth slice) and the untested Western
 Target (250m depth slice)

 

 

Next Steps

 

The East Star geological team will be on site within a week to site drill
collar locations and confirm access routes and logistics for both Talovskoye
and Rulikha.

 

The drill rig used in the Verkhuba Deposit drill programme in December 2024 is
currently located at the Verkhuba site. The drilling contractor has been
notified that East Star intends to drill the Rulikha and Talovskoye target
areas prior to recommencing work at Verkhuba. Mobilisation of the drill rig is
expected to commence in the next two weeks, with drilling to commence shortly
after.

 

Survey Details

 

The Talovskoye IP Survey was conducted as a 100m pole-dipole in an east-west
and then southwest to northeast line direction on 200m line spacing and a
1,300m line length at a frequency of 0.125Hz. Measurements were carried out in
a profile-based configuration using a three-electrode forward and reverse
setup (AMN-MNA), with simultaneous recording on 32 channels and electrode
spacing of 100 m.

 

Smart Geophysics from Kazakhstan conducted the survey using GDD GRx8-32
receivers and the GDD Tx4 transmitter. Quality control and interpretation were
conducted by Mitre Geophysics Pty Ltd, based in Australia.

 

 

East Star Resources Plc

Alex Walker, Chief Executive Officer

Tel: +44 (0)20 7390 0234 (via Vigo Consulting)

 

SI Capital (Corporate Broker)

Nick Emerson

Tel: +44 (0)1483 413 500

 

Vigo Consulting (Investor Relations)

Ben Simons / Peter Jacob

Tel: +44 (0)20 7390 0234

 

About East Star Resources Plc

 

East Star Resources is focused on the discovery and development of copper and
gold in Kazakhstan. East Star's management are based permanently on the
ground, supported by local expertise. The Company is pursuing three
exploration strategies:

 

·    A Volcanogenic Massive Sulphide (VMS) discovery with a maiden JORC
MRE of 20.3Mt @ 1.16% copper, 1.54% zinc and 0.27% lead, in an
infrastructure-rich region, amenable to a low capex development

·    Copper porphyry and epithermal gold exploration, with multiple
opportunities for Tier 1 deposits, initially supported by an initial US$500k
grant from BHP Xplor in 2024.

 

·    Sediment-hosted copper exploration with Getech where the initial
targeting strategy is at no cost to East Star.

 

Visit our website:

www.eaststarplc.com (http://www.eaststarplc.com)

 

Follow us on social media:

LinkedIn: https://www.linkedin.com/company/east-star-resources/
(https://www.linkedin.com/company/east-star-resources/)

 

X (formerly Twitter): https://twitter.com/EastStar_PLC
(https://twitter.com/EastStar_PLC)

 

Subscribe to our email alert service to be notified whenever East Star
releases news:

 

www.eaststarplc.com/newsalerts (http://www.eaststarplc.com/newsalerts)

 

The person who arranged for the release of this announcement was Alex Walker,
CEO of the Company.

 

This announcement contains inside information for the purposes of Article 7 of
Regulation 2014/596/EU which is part of domestic UK law pursuant to the Market
Abuse (Amendment) (EU Exit) Regulations (SI 2019/310) ("UK MAR"). Upon the
publication of this announcement, this inside information (as defined in UK
MAR) is now considered to be in the public domain.

 

Competent Person Statement

 

Scientific or technical information in this disclosure related to exploration
was reviewed by Dr Tremain Woods, a full-time employee of Discovery Ventures
Kazakhstan Ltd, a 100% owned subsidiary of East Star Resources PLC. Dr Woods
is a member in good standing with the Geological Society of South Africa. He
has sufficient experience that is relevant to the commodity, style of
mineralisation or type of deposit under consideration and activity which he is
undertaking to qualify as a Competent Person under the JORC code (2012
Edition).

 

Table 2 - JORC Code, 2012 Edition
Section 1 Sampling Techniques and Data
 Criteria                                                 JORC Code explanation                                                            Commentary
 Sampling techniques                                      ·    Nature and quality of sampling (e.g. cut channels, random chips, or         ·      Samples were taken from diamond drill core through sulphide or
                                                          specific specialised industry standard measurement tools appropriate to the      oxide mineralised intervals.
                                                          minerals under investigation, such as down hole gamma sondes, or handheld XRF

                                                          instruments, etc). These examples should not be taken as limiting the broad      ·      Sampling intervals ranged from 0.1 m to over 1.0m
                                                          meaning of sampling.

                                                                                ·      Sample quality was ensured by a GKZ standard calculations to
                                                          ·    Include reference to measures taken to ensure sample representivity         ensure results from X-ray spectral analyses were representative
                                                          and the appropriate calibration of any measurement tools or systems used.

                                                                                ·      Core samples were prepared by the geological expeditions by
                                                          ·    Aspects of the determination of mineralisation that are Material to         cutting the core in half, crushing and milling the samples (the size fractions
                                                          the Public Report.                                                               aren't recorded but noted as standard fractions), then analysed with X-ray

                                                                                spectral techniques
                                                          ·    In cases where 'industry standard' work has been done this would be

                                                          relatively simple (e.g. 'reverse circulation drilling was used to obtain 1 m     ·      No core is available for verification sampling
                                                          samples from which 3 kg was pulverised to produce a 30 g charge for fire

                                                          assay'). In other cases, more explanation may be required, such as where there
                                                          is coarse gold that has inherent sampling problems. Unusual commodities or
                                                          mineralisation types (e.g. submarine nodules) may warrant disclosure of
                                                          detailed information.
 Drilling techniques                                      ·    Drill type (e.g. core, reverse circulation, open-hole hammer, rotary        ·      Drilling was conducted using standard NQ sized diamond drilling
                                                          air blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple    technique
                                                          or standard tube, depth of diamond tails, face-sampling bit or other type,

                                                          whether core is oriented and if so, by what method, etc).                        ·      Various drilling campaigns were conducted by geological
                                                                                                                                           expeditions as detailed above

                                                                                                                                           ·      The drill holes purpose ranged from geochemical sampling using
                                                                                                                                           KGK techniques (these holes are not included in the data for this
                                                                                                                                           announcement) to deeper stratigraphic holes. Only selected holes with assay
                                                                                                                                           data through the Talovskoye deposit were included in this announcement

                                                                                                                                           ·      It's unclear if the core was orientated
 Drill sample recovery                                    ·    Method of recording and assessing core and chip sample recoveries and       ·      Core recovery was an average of 42%, the total range was from 17
                                                          results assessed.                                                                - 66% recovery

                                                          ·    Measures taken to maximise sample recovery and ensure representative        ·      Recovery logs are unavailable for drill hole data base, so the
                                                          nature of the samples.                                                           relationship between recovery and grade has not been evaluated.

                                                          ·    Whether a relationship exists between sample recovery and grade and
                                                          whether sample bias may have occurred due to preferential loss/gain of
                                                          fine/coarse material.
 Logging                                                  ·    Whether core and chip samples have been geologically and                    ·      Geologists from the various companies and expeditions completed
                                                          geotechnically logged to a level of detail to support appropriate Mineral        logging
                                                          Resource estimation, mining studies and metallurgical studies.

                                                                                ·      The logging was approved by the committee for geology
                                                          ·    Whether logging is qualitative or quantitative in nature. Core (or

                                                          costean, channel, etc) photography.                                              ·      Sections and plan maps were available to verify geology and

                                                                                structure
                                                          ·    The total length and percentage of the relevant intersections logged.

                                                                                                                                           ·      East Star geologists were able to confirm the geology at surface
                                                                                                                                           with geological mapping at a scale of 1:2000 in 2024

                                                                                                                                           ·      No details of geotechnical logging were captured in the reports
 Sub-sampling techniques and sample preparation           ·    If core, whether cut or sawn and whether quarter, half or all core          ·      Half core samples were collected for processing
                                                          taken.

                                                                                ·      Sub sampling techniques aren't clearly recorded in the reports
                                                          ·    If non-core, whether riffled, tube sampled, rotary split, etc and           available
                                                          whether sampled wet or dry.

                                                          ·    For all sample types, the nature, quality, and appropriateness of the
                                                          sample preparation technique.

                                                          ·    Quality control procedures adopted for all sub-sampling stages to
                                                          maximise representivity of samples.

                                                          ·    Measures taken to ensure that the sampling is representative of the
                                                          in-situ material collected, including for instance results for field
                                                          duplicate/second-half sampling.

                                                          ·    Whether sample sizes are appropriate to the grain size of the
                                                          material being sampled.
 Quality of assay data and laboratory tests               ·    The nature, quality and appropriateness of the assaying and                 ·      The samples were analyzed using X-ray spectral analysis, which
                                                          laboratory procedures used and whether the technique is considered partial or    requires finely powdered, homogeneous samples to ensure accurate detection of
                                                          total.                                                                           elements (Cu, Pb, Zn, Au and Ag).

                                                          ·    For geophysical tools, spectrometers, handheld XRF instruments, etc,        ·      It's unclear if Au and Ag analyses were conducted on all samples
                                                          the parameters used in determining the analysis including instrument make and    analysed
                                                          model, reading times, calibrations factors applied and their derivation, etc.

                                                                                ·      The preparation was tailored to produce a sample compatible with
                                                          ·    Nature of quality control procedures adopted (e.g. standards, blanks,       the X-ray spectrometer, typically involving pressing the powdered sample into
                                                          duplicates, external laboratory checks) and whether acceptable levels of         a pellet or fusing it into a glass bead for analysis, though the reports do
                                                          accuracy (i.e. lack of bias) and precision have been established.                not specify these steps

                                                                                                                                           ·      X-ray spectral techniques were commonly used in historical
                                                                                                                                           exploration in the soviet era. The techniques have been subsequently replaced
                                                                                                                                           by modern analytical techniques. However, they are generally viewed as having
                                                                                                                                           produced accurate results. The quality of the data has only been evaluated as
                                                                                                                                           reported historically by East Star geologists and have been represented as
                                                                                                                                           such in this announcement
 Verification of sampling and assaying                    ·    The verification of significant intersections by either independent         ·      Sampling data has been compared between reports
                                                          or alternative company personnel.

                                                                                ·      No verification sampling of the historical assays has been
                                                          ·    The use of twinned holes.                                                   conducted

                                                          ·    Documentation of primary data, data entry procedures, data
                                                          verification, data storage (physical and electronic) protocols.

                                                          ·    Discuss any adjustment to assay data.
 Location of data points                                  ·    Accuracy and quality of surveys used to locate drill holes (collar          ·      Drill hole location have not been confirmed, the hole locations
                                                          and down-hole surveys), trenches, mine workings and other locations used in      are digitised from hand drawn sections and maps in historical reports
                                                          Mineral Resource estimation.

                                                                                ·      The drill holes are evaluated against available SRTM topography
                                                          ·    Specification of the grid system used.                                      (30 m accuracy)

                                                          ·    Quality and adequacy of topographic control.
 Data spacing and distribution                            ·    Data spacing for reporting of Exploration Results.                          ·      Historical drilling for the Talovksoye deposit was spaced at less

                                                                                than 100 m, drill hole spacing does not seem to be regular
                                                          ·    Whether the data spacing and distribution is sufficient to establish

                                                          the degree of geological and grade continuity appropriate for the Mineral        ·      16 holes were drilled in the vicinity of the Talovksoye deposit
                                                          Resource and Ore Reserve estimation procedure(s) and classifications applied.

                                                                                ·      Significant intercepts are reported for results only noted
                                                          ·    Whether sample compositing has been applied.                                potentially economic intercepts of copper, lead and zinc

                                                                                                                                           ·      A historical resource for Talovksoye was completed in 1992, only
                                                                                                                                           P1+P2 resources were declared. However, the lack of drilling was noted as a
                                                                                                                                           limitation of the historical work and an additional 9,250 m of drilling was
                                                                                                                                           recommended
 Orientation of data in relation to geological structure  ·    Whether the orientation of sampling achieves unbiased sampling of           ·      Drill holes seem randomly orientated, but generally towards the
                                                          possible structures and the extent to which this is known, considering the       west. The volcaniclastic and volcanic lithologies seem to strike NW, dipping
                                                          deposit type.                                                                    70° to the W. Although this has not been verified by East Star

                                                          ·    If the relationship between the drilling orientation and the                ·      It's unclear if any relationship exists between mineralisation ad
                                                          orientation of key mineralized structures is considered to have introduced a     drilling orientation
                                                          sampling bias, this should be assessed and reported if material.
 Sample security                                          ·    The measures taken to ensure sample security.                               ·      Not applicable
 Audits or reviews                                        ·    The results of any audits or reviews of sampling techniques and data.       ·      East Star resources has sampled the top of the Talovskoye
                                                                                                                                           Deposit, the samples did prove the existence of mineralisation. However, no
                                                                                                                                           physical materials were available to verify the drill results.

                                                                                                                                           ·      East Star plans to further verify the Talovskoye Deposit which is
                                                                                                                                           located close to the IP targets in future work programmes.

 
Section 2 Reporting of Exploration Results
 Criteria                                                          JORC Code explanation                                                            Commentary
 Mineral tenement and land tenure status                           ·    Type, reference name/number, location and ownership including               ·    The Talovksoye deposit is located in the eastern part of exploration
                                                                   agreements or material issues with third parties such as joint ventures,         license 1799-EL (the "License"). The license was issued to Rudny Resources
                                                                   partnerships, overriding royalties, native title interests, historical sites,    Limited on 28 July 2022 for initial period of 6 years with a possibility of
                                                                   wilderness or national park and environmental settings.                          further five years extension subject to reduction of the license area by 40%

                                                                   ·    The security of the tenure held at the time of reporting along with         ·    East Star resources have servitude for exploration from the local
                                                                   any known impediments to obtaining a licence to operate in the area.             Akim (administrative head), and local landholders, over some areas within the
                                                                                                                                                    Licence and the license can be explored under these agreements. Additional
                                                                                                                                                    agreements will be required for the Talovskoye deposit

                                                                                                                                                    ·    Some other areas within the Licence are restricted in access due to
                                                                                                                                                    hydrogeological constraints. Additional permission will be required to gain
                                                                                                                                                    access to drill within these areas. However, the IP survey was not conducted
                                                                                                                                                    on these areas

                                                                                                                                                    ·    There are no known legal or security impediments to obtaining a
                                                                                                                                                    mining license
 Exploration done by other parties                                 ·    Acknowledgment and appraisal of exploration by other parties.               ·    Table of previously completed exploration

Principal author, year  Period     Exploration                                                                     Results
                                                                                                                                                    1948                    1948       Prospecting and exploration at Talovskoye and Openyshevskoye deposits by        Identified polymetallic deposits in Rudny Altai, including early recognition
                                                                                                                                                                      Priirtysh Geological Exploration Party.                                         of Rulikha and Talovskoye potential.
                                                                                                                                                    1950-1954               1950-1953  Prospecting and exploration by Shemonaikha Party of Altai Expedition, focusing  Confirmed polymetallic mineralization in the Rulikha area, establishing a
                                                                                                                                                                      on geological mapping and initial drilling.                                     foundation for further exploration.
                                                                                                                                                    1955-1963               1954-1962  Geological mapping, drilling, and reserve calculation by Shemonaikha GRP.       Delineated Rulikha deposit's geological structure; reserves calculated as of
                                                                                                                                                                      Consolidated report in 1957 calculated reserves for Rulikhinskoye.              01.01.1957, confirming VMS-polymetallic mineralization (Cu, Pb, Zn).
                                                                                                                                                    1968                    1968       Geological structure and mineral resource assessment of M-44-57-B, G;           Provided regional geological context, supporting Rulikha's placement within
                                                                                                                                                                      M-44-58-A-v sheets.                                                             the Aleysk anticlinorium.
                                                                                                                                                    1965-1970               1965-1969  Geological prospecting by Shemonaikha GRP, including geophysical surveys and    Refined geological and geophysical understanding of Rulikha, identifying
                                                                                                                                                                      drilling.                                                                       ore-hosting structures.
                                                                                                                                                    1971                    1968-1971  Geological and geophysical work by Priirtyshskaya Party at Rulevsky site.       Further delineated Rulikha's mineralization, confirming its association with
                                                                                                                                                                                                              Talovskaya-Gerikhovskaya formation contact.
                                                                                                                                                    1979                    1979       General prospecting at Buzanikhinsky area, adjacent to Rulikha.                 Identified additional mineralization potential near Rulikha, supporting
                                                                                                                                                                                                              regional prospectivity.
                                                                                                                                                    1983                    1978-1982  Detailed prospecting by Minsk GRP at Rulikhinsko-Vydrikhinsky area; drilling    Confirmed extent of Rulikha mineralization, refined ore zone boundaries, and
                                                                                                                                                                      and geophysical surveys.                                                        identified vein-type ores.
                                                                                                                                                    1983                    1979-1983  Detailed prospecting by Ubin GRP at Talovsko-Rulevsky area, focusing on         Positive assessment of Talovskoye; Rulikha flanks showed limited economic
                                                                                                                                                                      Talovskoye and Rulikha flanks.                                                  potential but warranted further study.
                                                                                                                                                    1992                    1989-1992  Deep drilling (6,785 m), geophysical logging (6,607 m gamma), 737 geochemical   Negative assessment for Rulikha deep horizons (to 1000 m); vein-type ores in
                                                                                                                                                                      samples, 16 core samples; X-ray spectral analysis for Cu, Pb, Zn, Co, Mo.       borehole No. 323 (3.60-5.84% Zn) uneconomic. Talovskoye deemed promising with
                                                                                                                                                                                                              P1/P2 resources, recommended for further drilling (9,250 m).
                                                                                                                                                    1948                    1948       Prospecting and exploration at Talovskoye and Openyshevskoye deposits by        Identified polymetallic deposits in Rudny Altai, including early recognition
                                                                                                                                                                      Priirtysh Geological Exploration Party.                                         of Rulikha and Talovskoye potential.
                                                                                                                                                    ESR                     2024       Drilling of six verification and in-fill holes, topography survey, development  MRE report
                                                                                                                                                                      of lithological model
 Geology                                                           ·    Deposit type, geological setting, and style of mineralisation.              ·    Talovksoye is Volcanogenic Massive Sulphide (VMS) deposit. Historical
                                                                                                                                                    reports do not clarify the type of VMS deposit

                                                                                                                                                    ·    The mineralization at Talovskoye is lenticular massive and
                                                                                                                                                    disseminated sulphides hosted in volcaniclastic units sub horizontal units

                                                                                                                                                    ·    Mineralisation occurs as base metal rich units

                                                                                                                                                    ·    The area has seen post depositional deformation in the form of
                                                                                                                                                    folding and faulting
 Drill hole Information                                            ·    A summary of all information material to the understanding of the           ·    Not applicable
                                                                   exploration results including a tabulation of the following information for
                                                                   all Material drill holes:

                                                                   o  easting and northing of the drill hole collar

                                                                   o  elevation or RL (Reduced Level - elevation above sea level in metres) of
                                                                   the drill hole collar

                                                                   o  dip and azimuth of the hole

                                                                   o  down hole length and interception depth

                                                                   o  hole length.

                                                                   ·    If the exclusion of this information is justified on the basis that
                                                                   the information is not Material and this exclusion does not detract from the
                                                                   understanding of the report, the Competent Person should clearly explain why
                                                                   this is the case.
 Data aggregation methods                                          ·    In reporting Exploration Results, weighting averaging techniques,           ·    Not applicable
                                                                   maximum and/or minimum grade truncations (e.g. cutting of high grades) and
                                                                   cut-off grades are usually Material and should be stated.

                                                                   ·    Where aggregate intercepts incorporate short lengths of high-grade
                                                                   results and longer lengths of low-grade results, the procedure used for such
                                                                   aggregation should be stated and some typical examples of such aggregations
                                                                   should be shown in detail.

                                                                   ·    The assumptions used for any reporting of metal equivalent values
                                                                   should be clearly stated.
 Relationship between mineralisation widths and intercept lengths  ·    These relationships are particularly important in the reporting of          ·    Not applicable
                                                                   Exploration Results.

                                                                   ·    If the geometry of the mineralisation with respect to the drill hole
                                                                   angle is known, its nature should be reported.

                                                                   ·    If it is not known and only the down hole lengths are reported, there
                                                                   should be a clear statement to this effect (e.g. 'down hole length, true width
                                                                   not known').
 Diagrams                                                          ·    Appropriate maps and sections (with scales) and tabulations of              ·    Relevant diagrams have been included in the body text
                                                                   intercepts should be included for any significant discovery being reported
                                                                   These should include but not be limited to a plan view of drill hole collar
                                                                   locations and appropriate sectional views.
 Balanced reporting                                                ·    Where comprehensive reporting of all Exploration Results is not             ·    Not applicable
                                                                   practical, representative reporting of both low and high grades and/or widths
                                                                   should be practiced to avoid misleading reporting of Exploration Results.
 Other substantive exploration data                                ·    Other exploration data, if meaningful and material, should be               ·    The Measurements are carried out in a profile-based configuration
                                                                   reported including (but not limited to): geological observations; geophysical    using a three-electrode forward and reverse setup (AMN-MNA), with simultaneous
                                                                   survey results; geochemical survey results; bulk samples - size and method of    recording on 32 channels. Electrode spacing of 50 m (1 line) and 100 m (10
                                                                   treatment; metallurgical test results; bulk density, groundwater, geotechnical   lines), according to technical specification
                                                                   and rock characteristics; potential deleterious or contaminating substances.

                                                                                                                                                    ·    Two separate surveys were conducted - E-W orientated survey totalling
                                                                                                                                                    4.3 line kms and a NE-SW survey totalling 3.9 line kms. The NE-SW survey was
                                                                                                                                                    chosen as it is most likely perpendicular to the strike of theTalovskaya Suite

                                                                                                                                                    ·    The survey was completed using GDD Instrumentation (Canada). GDD Tx4
                                                                                                                                                    transmitter and GDD GRx8-32 receivers were used for the survey

                                                                                                                                                    ·    Results were verified by the Geophysical Contractor - Smart
                                                                                                                                                    Geophysics Limited. The results were sent to Mitre Geophysics for processing,
                                                                                                                                                    interpretation and modelling
 Further work                                                      ·    The nature and scale of planned further work (e.g. tests for lateral        ·    East star is planning to model historical drill results at the nearby
                                                                   extensions or depth extensions or large-scale step-out drilling).                Talovskoye deposit

                                                                   ·    Diagrams clearly highlighting the areas of possible extensions,             ·    East Star is planning a drill programme to test the chargeability
                                                                   including the main geological interpretations and future drilling areas,         anomalies
                                                                   provided this information is not commercially sensitive.

Geology

·    Deposit type, geological setting, and style of mineralisation.

·    Talovksoye is Volcanogenic Massive Sulphide (VMS) deposit. Historical
reports do not clarify the type of VMS deposit

·    The mineralization at Talovskoye is lenticular massive and
disseminated sulphides hosted in volcaniclastic units sub horizontal units

·    Mineralisation occurs as base metal rich units

·    The area has seen post depositional deformation in the form of
folding and faulting

Drill hole Information

·    A summary of all information material to the understanding of the
exploration results including a tabulation of the following information for
all Material drill holes:

o  easting and northing of the drill hole collar

o  elevation or RL (Reduced Level - elevation above sea level in metres) of
the drill hole collar

o  dip and azimuth of the hole

o  down hole length and interception depth

o  hole length.

·    If the exclusion of this information is justified on the basis that
the information is not Material and this exclusion does not detract from the
understanding of the report, the Competent Person should clearly explain why
this is the case.

·    Not applicable

 

Data aggregation methods

·    In reporting Exploration Results, weighting averaging techniques,
maximum and/or minimum grade truncations (e.g. cutting of high grades) and
cut-off grades are usually Material and should be stated.

·    Where aggregate intercepts incorporate short lengths of high-grade
results and longer lengths of low-grade results, the procedure used for such
aggregation should be stated and some typical examples of such aggregations
should be shown in detail.

·    The assumptions used for any reporting of metal equivalent values
should be clearly stated.

·    Not applicable

Relationship between mineralisation widths and intercept lengths

·    These relationships are particularly important in the reporting of
Exploration Results.

·    If the geometry of the mineralisation with respect to the drill hole
angle is known, its nature should be reported.

·    If it is not known and only the down hole lengths are reported, there
should be a clear statement to this effect (e.g. 'down hole length, true width
not known').

·    Not applicable

Diagrams

·    Appropriate maps and sections (with scales) and tabulations of
intercepts should be included for any significant discovery being reported
These should include but not be limited to a plan view of drill hole collar
locations and appropriate sectional views.

·    Relevant diagrams have been included in the body text

Balanced reporting

·    Where comprehensive reporting of all Exploration Results is not
practical, representative reporting of both low and high grades and/or widths
should be practiced to avoid misleading reporting of Exploration Results.

·    Not applicable

Other substantive exploration data

·    Other exploration data, if meaningful and material, should be
reported including (but not limited to): geological observations; geophysical
survey results; geochemical survey results; bulk samples - size and method of
treatment; metallurgical test results; bulk density, groundwater, geotechnical
and rock characteristics; potential deleterious or contaminating substances.

·    The Measurements are carried out in a profile-based configuration
using a three-electrode forward and reverse setup (AMN-MNA), with simultaneous
recording on 32 channels. Electrode spacing of 50 m (1 line) and 100 m (10
lines), according to technical specification

·    Two separate surveys were conducted - E-W orientated survey totalling
4.3 line kms and a NE-SW survey totalling 3.9 line kms. The NE-SW survey was
chosen as it is most likely perpendicular to the strike of theTalovskaya Suite

·    The survey was completed using GDD Instrumentation (Canada). GDD Tx4
transmitter and GDD GRx8-32 receivers were used for the survey

·    Results were verified by the Geophysical Contractor - Smart
Geophysics Limited. The results were sent to Mitre Geophysics for processing,
interpretation and modelling

Further work

·    The nature and scale of planned further work (e.g. tests for lateral
extensions or depth extensions or large-scale step-out drilling).

·    Diagrams clearly highlighting the areas of possible extensions,
including the main geological interpretations and future drilling areas,
provided this information is not commercially sensitive.

·    East star is planning to model historical drill results at the nearby
Talovskoye deposit

·    East Star is planning a drill programme to test the chargeability
anomalies

 

 

 

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