CZR Resources Limited (ASX: CZR) is pleased to announce that it has completed 24 holes for 2,298 metres of RC drilling on the first of the priority targets along the Salt Creek Shear on the Buddadoo project in the Gullewa Greenstone Belt in WA's Mid West region

The three sections separated by 300 metres of slim-line, inclined (-60o ) RC holes to depths between 72 and 99 metres typically collar in transported cover and regolith but intersect a mixed sequence of mafic and felsic rocks that are typical of greenstone belt geology in the Yilgarn.

The drill-holes intersected intervals that are sheared and contain a variety of alteration types which are not evident as outcrop and are typical of alteration systems that can be gold-bearing. The first completed section on 6839000N outlines a zone of high interest with trace to moderate amounts of sulphide reported in the drillchips over an interval of about 200 metres wide between BUDRC040 and BUDRC043.

All the RC holes have been first-pass sampled on 4 metre composites and will be fire-assayed for gold. The samples are being transported to Bureau Veritas laboratories in Perth and results will be released when they are available.

The drilling programme has now been suspended in response to very wet ground conditions adjacent to the Salt Creek after the three large rainfall events (including Cyclone Seroja) over recent weeks. Accessing drill-sites in boggy conditions substantially slows the rate of drilling and risks significant damage to the equipment and station tracks.

CZR, in consultation with the drilling contractor, is rescheduling the remainder of the programme in 4 to 6 weeks when the area has had time to dry. In the near term, CZR will move the focus of its exploration team onto the planned iron-ore and gold exploration programmes on its projects in the Pilbara.

Background

The 300km2 Buddadoo Project, of which CZR holds an 85% interest, is located approximately 200km to the east of the port of Geraldton and is accessible from the bitumen road between the towns of Morawa and Yalgoo. The project is located in the western portion of the Youanmi Terrain on the Yilgarn Craton and in a region which hosts a number of large-scale and long-life gold mines. The Buddadoo project covers a 25km long section of the Salt Creek shear where it traverses the Gullewa Greenstone Belt and a structure to the west hosts the circa 1Moz Deflector gold mine that is owned by Silver Lake Resources (ASX:SLR).

Buddadoo has historical records of exploration on prospects for gold, copper and vanadiferous magnetite but with limited amounts of drilling. In the period CZR has held its interest in Buddadoo, the company has acquired an independent assessment of the gold prospectivity, processed the available geophysical data, completed programmes of surface sampling and mapping over areas of gold and vanadium prospectivity and completed a programme of 2,800 metres of exploratory RC drilling and on the vanadium gabbro (CZR releases to the ASX: 18 April 2018, 3 May 2018 and 21 November 2018).

CZR is focussed on exploring a suite of independently generated targets for orogenic gold deposits along the Salt Creek shear in the Gullewa Greenstone Belt and is also assessing the potential of the vanadiferous magnetite as an iron-ore feedstock (CZR releases to the ASX: 7 February 2019 and 31 March 2021).

Contact:

Dr Rob Ramsay

Tel: +61 8 9468 2050

Competent Persons Statement

The information in this report that relates to mineral resources, exploration activities and results is based on information compiled by Rob Ramsay (BSc Hons, MSc, PhD) who is a Member of the Australian Institute of Geoscientists. Rob Ramsay is the Managing Director of CZR Resources Ltd and a Geologist with over 35 years of experience and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Rob Ramsay has given his consent to the inclusion in this report of the matters based on the information in the form and context in which it appears.

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