Matrix Metals | Copper Production and Exploration

Matrix Metals Limited is pleased to announce that following further geological investigations and interpretive work at the Company's Mt Watson Prospect and the adjacent areas, new large zones containing oxide copper bodies have been identified and the status of the previously announced resource has been upgraded.

The newly discovered copper oxide zones occur in both the existing Mt Watson Exploration Permit and a new Application area. These zones are associated with readily recognised, highly deformed and altered fault structures, which have a collective strike length now exceeding 20 kilometres. Indications of oxide copper mineralisation are evident for most of this length, including a large exposed surface zone with copper oxide mineralisation measuring 400 by 50 metres in the Application area, and a further zone exceeding 100 by 100 metres in the Mt Watson tenement.

The Exploration Permit Application has been lodged with the Queensland Department of Natural Resources and Mines, which secures this ground adjacent to Mt Watson and hosts the recent discoveries. The new Application encompasses an area of some 95 square kilometres.

The discovery of these additional highly prospective oxide copper bodies at Mt Watson itself and in the surrounding area has increased the probability of locating additional oxide copper mineralisation.

The additional interpretive work has also allowed the previously announced inferred resource at Mt Watson of 837,000 tonne at 1.3% Copper at a cut off grade of 0.5% to be upgraded to an Indicated resource status.

The next phase of drilling at the existing Mt Watson area has been scoped and is planned to proceed following the completion of the restructure of the current funding arrangements. Geological interpretive work continues on the existing and newly applied for areas.

Yours sincerely,

Andrew Chapman
Chief Executive Officer