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 focus on verification of historical Homestake Mining data, the geological controls on mineralisation, and the integration of modern datasets to refine drill targeting ahead of the maiden RC program.

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 shows a strong correspondence with historical underground 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 recorded.

“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.”

This correlation provides a technically robust basis for incorporating the historical dataset into current three dimensional geological and structural modelling.

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

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

Structural mapping has identified visible coarse gold associated with breccias and quartz rich zones, indicating that mineralisation is concentrated along fault and fracture networks that acted as primary fluid pathways.

“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.”

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, including peak values of 12.8g/t Au from the 0m Level, 7.7g/t Au, and multiple samples between 2.9g/t Au and 4.8g/t Au from intensely altered breccias and fault related zones.

“High grade gold assays across several discrete but structurally related surface zones indicate that mineralisation is not confined to a single exposure but extends across a broader lateral footprint surrounding the 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 combined dataset is being used to prioritise drill targets that test both confirmed high grade zones and 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.”

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 detailed geological modelling and support subsequent bulk sampling and metallurgical studies.

“The objective is to develop 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.

Patric Glovac, Executive Chairman of SQX Resources, notes 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, positioning the project to progress toward resource definition within a well constrained structural and geological framework.

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