Desert Metals : Sulphides Intersected at Belele

About this update from Desert Metals Ltd.

Sulphide Mineralisation intersected at Belele ASX RELEASE 27 JANUARY 2022 Desert Metals Limited (Desert Metals or the Company) is pleased to announce that its reverse circulation drilling program at Belele (see DM1 ASX announcement 21 January 2022) has i tersected a zone of 5-15%pyrrhotite-pyrite-(+/- trace chalcopyrite) mineralisation in multiple holes. The sulphidic zone is coincident with strong to intense potassic alteration and shearing, indicative of an orogenic gold system. The zone was intersected in all holes designed to test the only m delled conductor (RCB001, RCB002, RCB003 and RCB004). The maximum down-hole width of mineralisation was approximately 80m within hole RCB003, with the hole ending in mineralisation use at 250m (the depth limit of the current rig). Desert Metals now considers the targeted conductor to be explained by these intersections (Figure 1). A further hole (RCB005) was designed to test the semi-coincident magnetic anomaly and did not intersect a strong sulphide zone but did intersect a 30m zone of strong potassic alteration. The sulphide zone is concealed by alluvial cover and has never been drilled or tested by previous explorers. Desert Metals originally considered the project prospective for either shear zone hosted personal (orogenic) gold or volcanogenic hosted massive sulphide (VMS) base metal deposits (DM1 ASX release 30 November 2021), with the drilling results fitting the orogenic gold mineralisation model. The Company is very encouraged by the visual results from these first ever holes drilled in this area, which confirm prospective hydrothermal alteration and shearing within the Mingah Ra ge Greenstone Belt extending under cover into the licence. The results are preliminary in nature as no drill samples have been assayed, with results in this announcement coming from an bservation of the samples by a suitably qualified and experienced geologist. The Company is sending a batch of priority samples to the lab which, with further interpretation, will provide a preliminary indication as to whether these first holes have intersected gold mineralisation. For a) b) Figure 1 . a) Oblique section looking north. Red- Modelled conductive plate. Blue/ Green - isosurfaces from 3d magnetic modelling. b) ) Oblique section looking east. All 4 holes designed to test the conductor intersected the thick zone of sulphide mineralisation with intense potassic alteration and shearing. www.desertmetals.com.au 1 ASX RELEASE 27 JANUARY 2022 only Managing Director Dr Rob Stuart commented "This drilling presents a very encouraging zone of potential mineralisation that will be followed up with further drilling regardless of assay results. Confirmation that the greenstone belt extends under the Belele licence and that alteration has been intersected which is indicative of orogenic gold means that the Belele project will now be elevated to one of the Company's top priority projects". On 24 January 2022 the Company applied for an additional 287 sq km licence along strike to the north of the current drilling which it now believes to be prospective. use Innouendy drilling started The 44 hole ~3000m Aircore drilling program designed to test PGE anomalism in recent diamond drilling and soil geochemistry at Innouendy (DM1 ASX announcement 20 December 2021) began on 25 January 2022. 10 holes (~400m) have been drilled so far and the program is expected to be complete within two weeks. The program will also follow up on an airborne EM anomaly adjacent to Ni anomalism in historic drilling (DM1 ASX announcement 26 February 2021). The conductor lies approximately 100m from an historic WMC drill hole which returned 0.59% Ni over 14m and is yet to be followed up with subsequent drilling. This announcement has been approved by the Board of Desert Metals Limited Rob Stuart [email protected] Managing Director +61 8 9758 1333 personal For Competent Persons Statement The information in this announcement that relates to Exploration Results is based on, and fairly represents, information and supporting documentation prepared by Dr Rob Stuart, a competent person who is a member of the Australasian Institute of Mining and Metallurgy. Dr Stuart has a minimum of five years' experience which is relevant to the style of mineralization 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 Joint Ore Reserves. Dr Stuart is a related party of the Company, being a Director, and holds securities in the Company. Dr Stuart has consented to the inclusion in this announcement of the matters based on his information in the form and context in which it appears. www.desertmetals.com.au 2 JORC Code, 2012 Edition - Table 1 Section 1 Sampling Techniques and Data (Criteria in this section apply to all succeeding sections.) r personal use only Criteria JORC Code explanation Commentary Sampling • Nature and quality of sampling (eg cut channels, random chips, or • Sampling is yet to be done techniques specific specialised industry standard measurement tools appropriate • Reverse Circulation (RC) drilling samples will be collected as 1m to the minerals under investigation, such as down hole gamma samples split from the rig cyclone using a cone splitter. These sondes, or handheld XRF instruments, etc). These examples should samples will then be stored securely on site. Approximately 1kg of not be taken as limiting the broad meaning of sampling. sample will be collected from each metre interval and composited into • Include reference to measures taken to ensure sample representivity one sample for every 4m. The 4m composite samples will then be and the appropriate calibration of any measurement tools or systems sent for analysis. used. • Where a 4m composite sample returns anomalous assay values, the • Aspects of the determination of mineralisation that are Material to the stored corresponding 1m samples will then be sent for follow-up Public Report. analysis. • In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information. Drilling • Drill type (eg core, reverse circulation, open-hole hammer, rotary air • RCB001, RCB002, RCB003, RCB004, RCB005, Reverse circulation techniques blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple to end of hole or standard tube, depth of diamond tails, face-sampling bit or other • Drill collars are surveyed using hand-held GPS (+/- 2 metres type, whether core is oriented and if so, by what method, etc). horizontal accuracy). Oriented with compass and inclinometer. Holes surveyed with downhole gyroscope. Drill sample • Method of recording and assessing core and chip sample recoveries • RC chip recoveries are estimated for every drill run recovery and results assessed. • Appropriate measures are taken to maximise recovery and ensure • Measures taken to maximise sample recovery and ensure representative nature of the samples. representative nature of the samples. • Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. 1 Criteria JORC Code explanation Logging • Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. • Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. • The total length and percentage of the relevant intersections logged. Commentary All drill holes are logged in their entirety. Qualitative descriptions of minerology, mineralization, weathering, lithology, colour and other features are recorded and photographed for each sample. r personal use only Sub-sampling • If core, whether cut or sawn and whether quarter, half or all core and sample • If non-core, whether riffled, tube sampled, rotary split, etc and • RC chips were sampled with a "spear" (PVC tube) from the 1m preparation whether sampled wet or dry. sample piles and composited to make roughly 4kg, 4m composite • For all sample types, the nature, quality and appropriateness of the samples. Where the sample was wet, it was dried in the sun before sample preparation technique. composite samples were collected. • Quality control procedures adopted for all sub-sampling stages to • Duplicates, blanks and standards will be submitted for analysis at a maximise representivity of samples. rate of approximately 1 per 20 samples, for quality assurance and • Measures taken to ensure that the sampling is representative of the in control. situ material collected, including for instance results for field • Drill sample sizes are considered appropriate for the style of duplicate/second-half sampling. mineralisation sought and the nature of the drilling program. • Whether sample sizes are appropriate to the grain size of the material being sampled. Quality of • The nature, quality and appropriateness of the assaying and assay data laboratory procedures used and whether the technique is considered • RC samples will undergo sample preparation and geochemical and partial or total. analysis by ALS Perth. Au-Pt-Pd analysed by 30g fire assay fusion laboratory • For geophysical tools, spectrometers, handheld XRF instruments, etc, with an ICP-AES finish (ALS Method code PGM-ICP23). A 48- tests the parameters used in determining the analysis including instrument element suite was analysed by ICP-MS following a four-acid digest make and model, reading times, calibrations factors applied and their (ALS method code ME-MS61) derivation, etc. • Certified analytical standards and blanks will be inserted at intervals • Nature of quality control procedures adopted (eg standards, blanks, of approximately 1 every 20 samples (i.e.,5% of samples). All QAQC duplicates, external laboratory checks) and whether acceptable levels samples returned results within acceptable levels of accuracy of accuracy (ie lack of bias) and precision have been established. 2 r personal use only Verification of • The verification of significant intersections by either independent or • The Desert Metals Exploration Manager has personally inspected all alternative company personnel RC chips. assaying • The use of twinned holes. • Significant assay results from RC chip 4m composite samples will be • Documentation of primary data, data entry procedures, data verified by submitting the individual 1m samples for those intervals verification, data storage (physical and electronic) protocols. • for further analysis. The same laboratory (ALS) and analytical Discuss any adjustment to assay data. methods will be used for the 1m samples • Primary drill data was collected manually on paper and digitally using Excel software before being transferred to the master database in mining software package Micromine. Location of • Accuracy and quality of surveys used to locate drill holes (collar and • Drill hole collar locations were recorded using handheld GPS. data points down-hole surveys), trenches, mine workings and other locations 3 This is an excerpt of the original content. To continue reading it, access the original document here .

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