Empire Metals Limited / LON: EEE / Sector: Natural Resources

12 June 2024

Empire Metals Limited

('Empire' or the 'Company')

Exploration Target for the Pitfield Titanium Project

Empire Metals Limited (LON: EEE), the AIM-quoted resource exploration and development company, is pleased to announce a JORC Exploration Target ('Exploration Target') comprised of two focus areas, the Cosgrove and Thomas mineral prospects, at the Pitfield Titanium Project in Western Australia ('Pitfield' or the 'Project'). The generation of an Exploration Target is an important milestone, and a significant first step towards the development of a Mineral Resource Estimate.

Highlights

·    The total Exploration Target, covering the Thomas and Cosgrove mineral prospects, is estimated to contain between 26.4 to 32.2 billion tonnes with a grade range of 4.5 to 5.5% TiO₂*.

·    Included within the total Exploration Target above is a subset that covers the weathered sandstone zone, which extends from surface to an average vertical depth of 30m to 40m, and is estimated to contain between 4.0 to 4.9 billion tonnes with a grade range of 4.8 to 5.9% TiO₂*.

·    Snowden Optiro, a leading Australian based, mineral resources consulting and advisory group, completed the QA/QC and geological modelling required in order to develop the JORC Exploration Target for the Cosgrove and Thomas mineral prospects;

·    The total Exploration Target covers a combined area of approximately 59km², extends down to 150m vertical depth only, and has been constrained at a 2% TiO₂ cut-off grade;

·    The Exploration Target covers an area less than 20% of the overall mineral system at Pitfield , which has been mapped by a 40km by 8km by 5km deep magnetics anomaly, supported by other data;

·    The total Exploration Target excludes numerous other high-potential prospects along the 40km strike length, which currently lack sufficient drillhole data to include in the Exploration Target;

·    Additional drilling across the Exploration Target is required and planned to advance the Exploration Target to a Mineral Resource Estimate.

\* The potential quantity and grade of the Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

Shaun Bunn, Managing Director, said: "I am delighted to announce this very impressive Exploration Target result, which truly represents an extraordinary achievement for the Company given it was only just over 12 months ago that we announced that our maiden drilling had discovered a giant, high-grade, titanium-rich mineral system. The Exploration Target is an important milestone and significant first step towards the development of a Mineral Resource Estimate. Furthermore, it provides the opportunity for comparison with other existing or emerging projects, not just within the titanium industry but also on a global mining scale. It is no surprise to us that we are on track to demonstrate that this giant titanium rich mineral system truly lies within a class of its own.

"Importantly, the Exploration Target does not include all the zones of high-grade titanium mineralisation currently identified by the Company outside of these two key prospects, both along strike and at depth, below the 150m mark, and which have the potential to significantly increase the overall titanium endowment of the Project."

Exploration Target

The Exploration Target incorporates the titanium mineralisation hosted within the interbedded succession of sandstones, siltstones and conglomerates as defined by the existing wide spaced diamond core and Reverse Circulation ('RC') drilling, that is backed up by geophysical surveys, surface mapping and soil and rock chip sampling.

Notably, the Exploration Target consists of two, distinct high-grade, near surface bedded sandstone zones, referred to as the Cosgrove and Thomas mineral prospects, which extend over an area of 39km² and 20km² respectively (Figures 1 and 2). The Exploration Target has been modelled to a vertical depth of 150m and has been constrained at a 2% TiO₂ cut-off grade.

The estimated range of potential titanium mineralisation forming the combined Exploration Target is 26.4 to 32.2 billion tonnes grading at 4.5 to 5.5% TiO₂.

The Exploration Target has been subdivided to show the potential mineralisation and each mineral prospect separately. It has been further subdivided to show the range of potential mineralisation within the weathered sandstone zone separately, which is enriched in titanium dioxide minerals (rutile and anatase) and extends from surface to an average depth of approximately 30m to 40m (Table 1).

Table 1. JORC Exploration Target Details

Summary of Relevant Exploration Data

The Exploration Target is based on the interpretation of the following geology and mineralisation data that have been collated as of the date of this announcement, (which includes previously reported Exploration Results, and information in this report that relates to previously reported Exploration Results has been crossed-referenced in this report to the date that it was reported to AIM):

·    7 diamond core drill holes completed for 2,025m;

·    101 Reverse Circulation (RC) drill holes completed for 15,010m;

·    8,390 drill hole assay results;

·    16 density measurements on diamond drill core;

·    339 surface rock chip sampling assay results;

·    detailed surface geological mapping and diamond core geological logging;

·    geophysical datasets including detailed airborne magnetics, airborne electromagnetics and airborne gravity surveys;

·    17.35 line kilometres of Dipole-Dipole Induced Polarisation ground surveys: and

·    wireframing and 3D modelling of the Cosgrove and Thomas prospects mineralised orebody.

Figure 1.  Cosgrove Mineral Prospect with plan view of Exploration Target shaded

Figure 2.  Thomas Mineral Prospect with plan view of Exploration Target shaded.

Figure 3.  Simplified geological section shown for the Cosgrove Mineral Prospect, Section 6738620N for DD24COS002 (See Figure 1)

Geology and Mineralisation Style

Pitfield is  geologically situated along the western boundary of the Yilgarn Craton, within the Neoproterozoic Yandanooka Basin which consists mainly of interbedded siliciclastic sedimentary rocks.  Importantly, the Yandanooka Basin lies near the junction of two major structures, the Darling Fault and Yandanooka-Cape Riche Lineament, which are believed to have played important roles in the development and sedimentation of the basin, hydrothermal alteration of the basin rocks and concentration of titanium mineralisation.

Regional gravity and magnetics surveys, carried out historically by the Geological Survey of Western Australia (GSWA), identified strong, extensive and coincident gravity and magnetics anomalies within the basin but lacked detail due to the wide line spacing of these historical surveys. The more detailed airborne magnetics (AM) and airborne electromagnetics (AEM) surveys undertaken by Empire (announced 21 September 2022) confirmed a field-mapped, massive alteration footprint within the host sedimentary rocks that was coincident with the historical gravity anomaly and the new, detailed magnetic and electromagnetic anomalies extending over a 40km north-south distance (Figure 4).

Figure 4.  Grey-scale magnetics map overlain by airborne gravity survey results with the location of RC and Diamond Core drillholes and the Cosgrove and Thomas Exploration Target.

The results of the airborne gravity survey (announced 29 August 2023) highlighted a high-density, central core broadly associated with the previously mapped giant iron-titanium associated alteration system at Pitfield. The high-density core is a regional-scale feature, covering an area ~30km in length and up to 6km wide. The gravity data matches the airborne magnetics flown by Empire whereby the more magnetic rocks are also located within the same central core.

Recent Exploration (2023-2024)

In 2023, the Company launched a series of drill campaigns to begin to test the grade and extent of the giant mineralised system (refer Figure 4).

Empire completed a maiden 21-hole Reverse Circulation ('RC') drill programme in April 2023, totalling 3,206m, which resulted in the discovery of titanium-rich mineralisation within the hydrothermally altered sedimentary rocks. The majority of the maiden drill holes were collared in the northern portion of the tenements, near Mt Scratch (announced 30 May 2023). 

Three deeper diamond drill holes were completed during September-October 2023, covering targets to the north (Mt Scratch), 30km to the south (Thomas property) and in the central zone (Cosgrove property). Three diamond core holes were drilled, for a total of 1,217m, all of which intersected thick, high-grade TiO₂ mineralised beds of hematite-epidote-carbonate altered sandstone, down to a vertical depth of 350m, with the bottom of each hole stopped in mineralisation also hosted by similar sandstone-rich beds (announced 29 November 2023).

During November-December 2023, Empire conducted a 40-hole RC drill programme focusing on near surface, high grade targets within the central and southern portions of the tenements, these targets being up-dip from the high-grade intersections encountered in the diamond drill holes. This second RC campaign, totalling a combined 5,718m, confirmed that shallow sandstone-rich beds hosted the higher-grade TiO₂ mineralisation, and are continuous with the deeper high-grade diamond drillhole intersections (announced 22 January 2024).

The latest drill program at Pitfield was completed in late March, and consisted of 40 RC drillholes totalling 6,086m, and four diamond core drillholes totalling 807m. The RC drillholes ranged between a downhole depth of 148m to 154m, whilst the diamond holes were all drilled to a downhole depth of 202m. Excellent core recovery was achieved from the diamond drilling, commencing from surface to the end of the hole (announced 15 May 2024 and 28 May 2024).

Methodology to Determine the Grade and Tonnage Range for the Exploration Target

Snowden Optiro, a leading Australian based, mineral resources consulting and advisory group, completed the QA/QC and geological modelling required in order to develop the JORC Exploration Target for the Cosgrove and Thomas mineral prospects.

Preparation of the Exploration Target involved the integration of multiple datasets, providing differing levels of confidence. Accordingly, different techniques have been used to calculate the volume, tonnage and grade estimates of the mineralisation, appropriate to different types of information available.

Volume (Tonnage) Estimates

Volume estimates were calculated using the drillhole data from RC and diamond drilling generated over the three drilling programmes. Due to the homogeneous and continuous nature of the mineralisation throughout Pitfield a spacing of up to 1km between drill lines and up to 600m between holes is justified. Wireframing of grade shells and geology was carried out in Leapfrog.

Surface mapping and extensive rock chip sampling has provided a more detailed understanding of the geology and extents of the mineralisation.  It has also led to a better understanding of the nature of the strongly weathered zone that acts as a surficial cap across the Cosgrove and Thomas mineral prospects and more broadly the overall mineral system as outlined by the magnetics anomaly. However, the Exploration Target has primarily been generated based on the drill data over the three drilling programmes.

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Density

Density measurements were taken on core from four diamond holes, two at the Cosgrove Prospect and two at the Thomas Prospect. A total of 16 density samples were collected at various depths downhole from the shallower, strongly weathered zone and from the fresh bedrock zone below.

Density has been estimated at 2.23 g/cm3 for the weathered zone sandstone  and 3.10 g/cm3 for the fresh bedrock sandstone.

TiO₂ Grade Estimates

Grades of TiO₂ were determined by Intertek Minerals using a four acid digestion followed by an ICP OES instrumental analytical technique for over range (>2% TiO₂).

A range of the TiO₂ grade was calculated based on all assay results from drilling within the modelled bodies of mineralisation for both Cosgrove and Thomas Prospects, generally with a cut-off grade of 2% TiO₂, resulting in an average grade in the range of 4.5 - 5.5% TiO₂.

Analysis of the assay data within the Exploration Target areas highlighted that 2% TiO₂ was a natural and appropriate cut-off grade to be used in the estimation.

Depth and Area

The Exploration Target has been modelled to a vertical depth of 150m based on the final depths of the majority of the RC and Diamond holes drilled with the target area.

Steeply ENE-dipping mineralised beds at both the Cosgrove and Thomas prospects are open at depth, as all holes drilled ended in mineralisation, as well as along strike to both the north and south of both prospect areas.  The thickness of the bedded mineralisation can also be considered open as drilling across the mineralised zone has not closed this off. Any increase in the Exploration Target outside the current modelled areas would need to be supported by additional drilling and grade analysis.

Variance

The variance used within the Exploration Target results is based on the geological mapping and consequent interpretation of host geology, rock chip sampling, drill data and 3D modelling methodology used to define the Exploration Target. As the mineralisation and geology is extremely consistent and continuous across the project area drilled to date, it is possible to apply a variance to the modelled tonnes and grade for each the weathered zone, and the fresh bedrock zone and, in addition, to their combination.

Pathway to a Mineral Resource Estimate

The proposed exploration activities designed to test and to move from an Exploration Target to a Mineral Resource Estimate will comprise the following activities:

RC and Diamond Core Drilling Campaigns

Exploration and resource definition drilling is planned to continue at the Project, with diamond core and RC rigs planned to operate later in 2024 and early 2025 to complete the drill-out within the Exploration Target and upgrade the mineralisation to JORC Mineral Resource status.

Landowner and Aboriginal Heritage Clearance

Access agreements have previously been negotiated with the various landowners whose properties are impacted by the Exploration Target area.

Aboriginal Heritage surveys are also required to gain access to the Exploration Target areas and these are conducted on an ongoing basis with representatives of the Yamatji Marlpa Aboriginal Corporation (ILUA: Yamatji Nation Agreement WI2020/002). The Company obtains clearance for each drill campaign, as such further Heritage Monitoring and/or Surveys are planned as part of continued exploration activities within the Exploration Target areas.

Approvals

Approvals of Programs of Work required for exploration drilling to evaluate the Exploration Target, have been obtained, however these approvals will require updating to support future drill holes on closer spacing to continue to advance the Exploration Target towards a Mineral Resource Estimate.

Exploration Licences

The Exploration Target areas are located within granted Exploration Licences E70/5876 and E70/5465. The Company also holds adjacent Exploration Licences E70/6320 and E70/6323. No further Exploration Licences are required to be granted.

Metallurgical test work

Mineralogical and metallurgical studies are underway on bulk metallurgical samples, collected from the diamond core recovered from DD23TOM001 and DD24COS002. The bulk samples are representative of the fresh bedded sandstone hosted mineralisation and the near-surface, strongly weathered zone of mineralisation. This testwork programme will include ore characterisation as well as testing of various unit processes for mineral separation and titanium extraction from the minerals.

Mineral Resource Estimate

The Company will engage a suitably qualified professional consultant to assist with the completion of a Mineral Resource Estimate. The consultant will be responsible for preparation of the Mineral Resource Estimate, consistent with the requirements of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves 2012 (the "JORC Code") or the JORC Code that is in effect as at the date of publication of the Mineral Resource Estimate.

The Pitfield Project

Located within the Mid-West region of Western Australia, near the northern wheatbelt town of Three Springs, Pitfield lies 313km north of Perth and 156km south of Geraldton, the Mid West region's capital and major port. Western Australia is ranked as one of the top mining jurisdictions in the world according to the Fraser Institute's Investment Attractiveness Index published in 2023, and has mining-friendly policies, stable government, transparency, and advanced technology expertise. Pitfield has existing connections to port (both road & rail), HV power substations, and is nearby to natural gas pipelines as well as a green energy hydrogen fuel hub, which is under planning and development (refer Figure 6).

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Figure 6. Pitfield Project Location showing the Mid-West Region Infrastructure and Services.

Competent Person Statement

The technical information in this report that relates to the Exploration Target for the Pitfield Project has been compiled by Mr Andrew Faragher, an employee of Eclipse Exploration Pty Ltd, a wholly owned subsidiary of Empire. Mr Faragher is a Member of the Australian Institute of Mining and Metallurgy. Mr Faragher has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Faragher assumes responsibility for matters related to Section 1 and Section 2 of the appended JORC Table 1. Mr Faragher consents to the inclusion in this release of the matters based on his information in the form and context in which it appears.

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014, as incorporated into UK law by the European Union (Withdrawal) Act 2018, until the release of this announcement.

**ENDS**

For further information please visit www.empiremetals.co.uk  or contact:

About Empire Metals Limited

Empire Metals is an AIM-listed (LON: EEE) exploration and resource development company with a project portfolio comprising copper, titanium and gold interests in Australia and Austria.

The Company's strategy is to develop a pipeline of projects at different stages in the development curve. Its current focus is on the Pitfield Project in Western Australia, which has demonstrated to contain a newly recognised giant titanium-rich mineral system that hosts a globally significant titanium discovery.

The Company also has two further exploration projects in Australia; the Eclipse Project and the Walton Project in Western Australia, in addition to three precious metals projects located in a historically high-grade gold producing region of Austria.

JORC Code, 2012 Edition - Table 1

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)