Strata Minerals Phase 2 Drilling Expands Zelica Gold System in Western Australia

Zelica Keeps Delivering: Strata Minerals' Phase 2 Drilling Confirms a Growing High-Grade Gold System in Western Australia's Eastern Goldfields

Strata Minerals Limited (ASX: SMX) has released initial assay results from its Phase 2 reverse circulation (RC) drilling campaign at the Strata Minerals Zelica Gold Project Phase 2 drilling results in Western Australia, and the headline numbers continue to impress. With 8 out of 9 step-out holes returning significant gold mineralisation, the results reinforce what is shaping up to be a consistent, scalable, and rapidly expanding shallow high-grade gold system.

The announcement builds on a maiden drill programme that saw 22 of 23 holes intersect significant gold, and Phase 2 now extends that mineralised footprint to approximately 1km of strike and 115m of vertical depth, with the system remaining open in multiple directions. Importantly, 8 assays from the remaining holes are expected imminently, meaning more news flow is close at hand.

Phase 2 Results at a Glance: The Numbers That Matter

The Phase 2 programme comprised 17 RC holes for 2,209m, designed to step out from known mineralisation, test depth and strike extensions, and support progress toward a maiden JORC (2012) Mineral Resource Estimate. Of the first 9 holes returned, the standout intercepts from the main lode include:

In addition to the main lode results, an emerging hanging wall lode has been identified, with intercepts including:

• 1m @ 3.52 g/t Au from 92m (SZRC025)
• 1m @ 2.99 g/t Au from 91m (SZRC031)

These hanging wall intercepts are particularly significant because they suggest the potential for stacked parallel lodes adjacent to the main lode position. Furthermore, a structural characteristic of this kind, if confirmed across the broader system, could materially increase the overall scale of the Strata Minerals Zelica Gold Project Phase 2 drilling results in Western Australia.

Managing Director Peter Woods commented: "These results continue to reinforce what we're seeing as a consistent and scalable gold system at Zelica. Importantly, 8 of the 9 step-out holes received to date returned significant gold mineralisation, extending the system at depth while also highlighting the emergence of higher-grade plunging shoots and potential stacked parallel lodes. With mineralisation now proven over 1km strike and growing, and an interpreted ~9.5km mineralised corridor remaining largely untested, we believe Zelica is evolving into a much larger gold system with substantial growth potential still ahead of us."

How Phase 2 Builds on a Strong Foundation

The Phase 2 programme doesn't exist in isolation — it systematically builds on an already compelling maiden drill programme completed in early 2026. That maiden programme established the initial footprint of the Zelica Gold System with the following key intercepts:

With 22 of 23 holes in Phase 1 and now 8 of 9 Phase 2 step-out holes intersecting significant mineralisation, the overall success rate across both programmes stands at an exceptional level.

For investors, this kind of consistent hit rate in a step-out programme signals genuine geological continuity — not an isolated pocket of gold, but a coherent, laterally and vertically persistent mineralised system.

Understanding Plunging High-Grade Shoots and Their Importance

What Are Plunging High-Grade Shoots?

In gold exploration, a "plunging shoot" refers to a zone of concentrated, higher-grade mineralisation that trends at an angle through the broader mineralised system. Picture a rich vein of gold running diagonally through a larger body of lower-grade material, similar to a thick thread through fabric.

These shoots are important for several reasons:

1. Grade concentration: They represent the richest parts of the deposit and typically have the highest economic value per tonne of ore
2. Drill targeting: Once identified, they become priority targets for follow-up drilling because intersecting them delivers the strongest results
3. Resource potential: Higher-grade shoots can significantly improve the economics of a project in resource and scoping-level studies
4. Predictability: If a shoot follows a consistent plunge direction, geologists can model where it goes at depth, helping design more efficient future drill programmes

At Zelica, Phase 2 drilling is beginning to define the geometry of these higher-grade plunging shoots within the broader 1km mineralised system. Pinning down their orientation and extent is a key focus of remaining assays and future drilling.

Key Terms Explained

• RC Drilling (Reverse Circulation): A drilling method where crushed rock chips are blown up through the drill rods to the surface, enabling fast and cost-effective sampling
• g/t Au: Grams of gold per tonne of rock — the standard unit for reporting gold grade
• Hanging Wall Lode: A parallel zone of mineralisation located above the main ore body, relative to the dip of the deposit
• Strike: The horizontal length of a mineralised zone as measured along the surface
• JORC MRE (Mineral Resource Estimate): A formal, standardised estimate of the amount and grade of mineral material, reported under the Australasian JORC Code (2012 edition)
• Oxide Mineralisation: Gold-bearing rock near the surface that has been chemically altered by weathering — typically easier and cheaper to process
• Shear Zone: A structural feature formed by tectonic movement, often acting as a conduit for gold-bearing fluids

A Project with Multiple Growth Vectors

What makes the Strata Minerals Zelica Gold Project Phase 2 drilling results in Western Australia particularly compelling is the number of distinct growth dimensions playing out simultaneously.

1. Strike Extension

Mineralisation is now confirmed over ~1km of strike, but the broader interpreted mineralised corridor spans ~9.5km — meaning only a small fraction of the total prospective ground has been systematically tested by drilling to date.

2. Depth Potential

Current drilling has predominantly intersected oxide and transitional mineralisation to approximately 115m vertical depth. The fresh rock (primary) component of the system beneath this depth remains largely untested — a significant area of upside that typically hosts higher-grade, harder mineralisation in Archean gold systems.

3. Hanging Wall and Stacked Lode Potential

The identification of a hanging wall lode running parallel to the main lode introduces the possibility of multiple mineralised structures sitting side-by-side. If confirmed at scale, this could meaningfully increase the resource potential of the project beyond the current footprint.

4. Plunging Shoot Definition

As higher-grade plunging shoots become better defined with additional assay data, they are expected to become priority drill targets in subsequent programmes. Moreover, this could potentially deliver stronger grade concentrations at depth.

5. Felsic Intrusive Units

Deeper drilling has intersected evidence of felsic intrusive units at Zelica. While further investigation is required to determine their relationship to gold mineralisation, intrusive-related gold systems in the Eastern Goldfields can be significant — this is an early-stage but potentially meaningful observation.

Where Zelica Stands: Project Context and Infrastructure Advantage

The Zelica Gold Project is located in the Yundamindra District of Western Australia, situated between the major gold mining centres of Leonora and Laverton within the Laverton Greenstone Belt of the Eastern Goldfields Province. This is one of the most productive gold-producing regions on the planet, with a long history of significant discoveries and operating mines.

Key project attributes include:

• Tenure: Zelica is held under a granted Mining Licence (M39/1101), providing a strong foundation for advancing resource definition and assessing near-term development options — a meaningful distinction versus tenements still subject to exploration permit status
• Infrastructure: The project is located within ~50km of multiple +1Moz gold deposits and several processing mills, reducing the capital intensity of a potential development pathway
• Processing amenability: Historical metallurgical testwork has demonstrated strong gold recovery characteristics, including average gold extraction of 96% via direct cyanidation (Regal Resources, 2006), column leach recoveries of >90% within the first 10 days of percolation, and coarse crush cyanide leach results demonstrating economical gold recovery even at low processing intensity

These attributes collectively support what Strata describes as a potential low-capex development pathway — a meaningful consideration for a small-cap explorer seeking to convert exploration success into economic outcomes.

What Comes Next: Catalysts and Timeline

Strata has several near-term catalysts that investors should monitor closely:

The remaining 8 assay results from the Phase 2 programme are expected imminently and are likely to be material. They include holes drilled into the sparsely tested southern extent of the Zelica system, where Strata's geological interpretation suggests mineralisation may extend beyond the current drill area.

The Investment Case: Why Zelica Deserves Attention

The Strata Minerals Zelica Gold Project Phase 2 drilling results in Western Australia demonstrate this is not a one-hole wonder. The combination of a high drill success rate, expanding footprint, multiple structural growth vectors, established infrastructure access, a granted mining licence, and a strong metallurgical track record positions this project as a genuinely credible emerging gold discovery in one of the world's premier gold jurisdictions.

The key pillars of the investment case are:

1. Consistent, reproducible results: A combined 30 of 32 holes across two programmes intersecting significant gold demonstrates robust geological continuity — not a fluke
2. Scale potential remains largely untested: With only 1km of the interpreted **9.5km corridor** drilled to any meaningful depth, the exploration upside is substantial and systematic
3. Multiple lode potential: Hanging wall intercepts hint at a stacked lode architecture that could significantly multiply the project's resource base if confirmed
4. Low-capex development pathway: Proximity to processing infrastructure, a granted mining licence, and strong metallurgical recoveries support a potentially economic path to production without requiring large capital outlays
5. Imminent news flow: With 8 additional assay results expected shortly and a maiden MRE on the horizon, there are multiple near-term catalysts to drive re-rating

Strata Minerals (ASX: SMX) is systematically building a case for Zelica as a district-scale gold discovery in Western Australia's world-class Eastern Goldfields. With an 88% step-out hole success rate in Phase 2, an interpreted ~9.5km mineralised corridor that remains largely untested, emerging stacked lode potential, and a maiden Mineral Resource Estimate on the horizon, the project is evolving rapidly. Investors should watch closely as the remaining Phase 2 assays arrive and the geological picture continues to sharpen.

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