SQX Resources (ASX:SQX) confirms high grade continuity at Red Bird as modern sampling validates historical system ahead of maiden drilling

SQX Resources Executive Chairman Patric Glovac outlines the technical significance of recent surface chip channel and rock chip sampling at the Red Bird Gold Project in Arizona, with emphasis on confirmation of historical Homestake Mining data, the structural and alteration controls on mineralisation, and the integration of modern datasets to refine targeting and advance the project toward its first drill campaign.

How do the recent surface chip channel results compare with historical Homestake Mining data in terms of grade continuity and geological confidence?

The continuous surface chip channel intercept of 11.5m at 3.0g/t Au demonstrates a close alignment with historical sampling undertaken by Homestake Mining on the 0m, 17m and 30m levels, where intersections of 21.6m at 2.1g/t Au, 10.7m at 3.3g/t Au, 7.6m at 9.0g/t Au and 54.3m at 2.5g/t Au including 15.2m at 3.8g/t Au were previously reported.

“The replication of comparable assays and mineralisation thickness across surface and multiple underground levels confirms continuity within the same mineralised structural corridor and validates the historical dataset using modern sampling and assay techniques.”

The alignment of mineralisation across several vertical positions supports the interpretation that the Red Bird system hosts laterally and vertically continuous high grade structures, which can now be modelled with greater confidence within the current three dimensional geological framework.

What geological characteristics are associated with the high grade mineralisation intersected in the chip channel sampling?

The mineralised interval is hosted within brecciated rocks displaying intense silica, clay and hematite alteration, consistent with the epithermal mineralisation style recognised within the Cretaceous Bisbee Formation, which comprises limestone, sandstone and conglomerate.

Structural mapping has identified visible coarse gold within these breccias and quartz rich zones, indicating strong structural control along fault and fracture networks that acted as fluid conduits.

“Quartz veining, brecciation, silicic and argillic alteration, together with hematite and carbonate replacement, define a structurally focused mineralising system capable of producing discrete high grade shoots within broader altered envelopes.”

These geological features provide a coherent framework for interpreting the distribution of higher grade intervals within the broader alteration system.

What do the additional surface rock chip results indicate regarding the spatial distribution of mineralisation around the Red Bird workings?

Rock chip sampling from the main portal area, the Cave Tunnel zone approximately 50m to the north east, and a third zone approximately 100m to the south west returned numerous assays above 0.3g/t Au, with peak values of 12.8g/t Au from 0m Level, 7.7g/t Au and

multiple samples between 2.9g/t Au and 4.8g/t Au from intensely altered breccia and fault zones.

“The high-grade gold assays across several discrete but structurally related surface zones indicates that mineralisation is not confined to a single prospect but is developed across a broader lateral footprint surrounding the core historical workings.”

The consistency of alteration assemblages and gold tenor across these zones supports the interpretation of a laterally extensive mineralised system.

How is the current dataset being utilised to define and prioritise the maiden RC drilling program?

Surface chip channel results, historical underground data, structural mapping, LiDAR surveys and surface geochemistry are being integrated to refine the geometry and orientation of mineralised structures and to assess grade continuity between surface and underground levels.

This integrated interpretation is guiding the prioritisation of drill targets that test confirmed high grade zones and potential new areas where mineralisation remains open along strike and at depth.

“The convergence of modern assays with historical grades and structural interpretation provides a technically robust basis for targeting the most prospective positions within the mineralised system for the planned upcoming 2500m RC drilling program.”

This approach ensures that initial drilling is focused on zones supported by multiple independent datasets.

What is the longer term technical objective following completion of the initial drilling program?

The integration of surface and underground mapping, chip channel and rock chip sampling, structural interpretation, LiDAR surveying and RC drilling is directed toward establishing the continuity, thickness, grade distribution and structural controls of both high grade shoots and surrounding lower grade halos.

These datasets will underpin geological modelling and support future bulk sampling and metallurgical studies.

“The objective is to build a sufficiently constrained geological and grade model to support the preparation of a maiden JORC Mineral Resource Estimate, based on verified assay data and a well defined understanding of mineralisation architecture and structural controls.”

Red Bird advances toward drill ready status on validated high grade continuity

The convergence of modern surface sampling, validated historical underground grades, detailed structural mapping and LiDAR surveying has materially strengthened the geological model at Red Bird, with Patric Glovac, Executive Chairman of SQX Resources, noting that the demonstrated alignment of grade continuity across multiple levels and alteration domains

now provides a technically robust foundation for systematic drill testing of high grade structures and their potential extensions.

This integrated dataset positions the project to progress toward resource definition within a well constrained structural and geological framework.

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