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

10 September 2024

Empire Metals Limited

('Empire' or the 'Company')

Diamond Drilling to Commence at Pitfield:

Focused on High-Purity Anatase Deposit Within Near Surface Weathered Zone

Empire Metals Limited (LON: EEE), the AIM-quoted resource exploration and development company, is pleased to announce the commencement of the next major exploration campaign at the Thomas and Cosgrove prospects within the Pitfield Project in Western Australia ('Pitfield' or the 'Project'), with 1,000m of Diamond Core drilling planned to be completed in October. The focus of the drill campaign will be on providing a better geological understanding of the weathered cap zone, including thickness, grade and shape, as well as obtaining additional drill core samples for metallurgical test work.

Highlights

·    The thickness and TiO₂ grade of the near-surface, weathered sandstone-hosted, high-purity anatase deposit will have significant positive implications for the economics of the Project.

·    Core logging, analysis of geochemistry and mineralogical studies of drill core from previous drilling campaigns have provided a good understanding of the local weathering profile, and how weathering has affected TiO₂ grade and ore/gangue mineralogy, all of which have been used in determining the location of the proposed new diamond core drillholes.

·    Geological modelling has already identified a "saprolite" cap of weathered sandstones hosting high-grade TiO₂ mineralisation to a depth of 76m at the Thomas prospect.  The planned diamond drilling will further map out the thickness, grade, shape and extent of this mineralised saprolite cap.

·    The diamond core recovered from this next round of drilling will also be used to provide additional substantial quantities of high-grade, high-purity anatase-rich ore to accelerate the mineral processing test work that recently commenced on the weathered cap samples (announced 4 September 2024).

·    Project development team expanded with the appointment of an experienced resource and exploration geologist, with degrees in Geology, Metallurgy and Computer Science, who will assist with the exploration drilling and help build both the geometallurgical and mineral resource estimate models.

Shaun Bunn, Managing Director, said: "I am pleased to announce the commencement of the next round of diamond core drilling, which is concentrated within two centrally located, high-grade target areas, previously identified as the Thomas and Cosgrove prospects. Importantly, this drill campaign is focused on proving up the extent, grade and shape of the concentrated zone of high-purity anatase within the extensive weathered cap and providing further metallurgical samples which is of particular importance to our ongoing, project development plans.

"Furthermore, I am delighted to announce that Mr Tsog Batsaikhan has joined the Company as our Senior Geologist, and he will initially be working alongside our Exploration Manager, Andrew Faragher, assisting with the supervision of the drill programme. Tsog is a highly experienced and talented geologist with over 15 years' experience across exploration, mining and resource geology. Importantly, Tsog has recently completed a master's degree in Metallurgy from the Western Australia School of Mines and his understanding of resource geology and geometallurgy will have a real and immediate impact on the Pitfield project given the current transition from the exploration phase into process flowsheet development."

Drilling Programme

The Company recently announced that a high-grade, high-purity anatase deposit had been identified within the near-surface "saprolite" cap of strongly weathered sandstone bedrock that transitions downward into a high-grade, titanite-rich deposit within the fresh sandstone bedrock found below this weathered cap (RNS: 22 August 2024). Results from the last two drill programmes have highlighted the extent of this weathered cap that hosts the anatase deposit, especially at the Cosgrove and Thomas prospects where the Company has established a JORC Exploration Target (RNS: 12 June 2024). The thickness and TiO₂ grade of this anatase deposit will have significant implications for the economics of the Project. Mineralogical studies, combining X-Ray Diffraction (XRD), TESCAN Integrated Mineral Analyzer (TIMA)  and scanning electron microprobe (SEM) data highlighted high-purity anatase as the dominant titanium mineral within the weathered cap, potentially offering a simpler processing route for this weathered or secondary ore type, than that expected for the unweathered or primary titanite-rich ore type. Mapping the thickness, grade, shape and extent of the weathered cap, and providing substantial quantities of high-grade anatase ore for mineral processing test work are two of the key objectives of the current drilling campaign.

The planned programme involves drilling five, larger diameter 'PQ-size' diamond drillholes at both the Thomas and Cosgrove prospects, aimed at sampling the complete weathering profile in each hole, including the deeper, higher-grade parts of the weathering cap. All holes are planned for a downhole depth of 100m to ensure the weathered zone is adequately captured along with the transition from partially weathered into fresh bedrock. Holes will be drilled at an angle of 60° and an azimuth of 240° to account for the 330-340° strike of the rocks. The programme is expected to take up to four weeks to completed drilling.  Core sampling and assay results will then follow.

The drillholes have been planned based on the previous Reverse Circulation ("RC") and diamond drilling results. Core logging, analysis of geochemistry and mineralogical studies of drill core from previous drill campaigns have provided a good understanding of the weathering profile, and how weathering has affected the TiO₂ grade and the ore/gangue mineralogy, all of which have been used in determining the location of the proposed new holes.

Logging of the previous diamond holes clearly shows that the anatase-rich ore zone transitions downwards from surface through strongly weathered saprolitic sandstones to partially weathered sandstones, and ultimately fresh sandstones where the anatase has transitioned to titanite as the dominant titanium ore mineral.  The strongly weathered saprolite zone has significantly more kaolinite and less carbonate, chlorite, and epidote. As the hole transitions from weathered sandstone bedrock above to fresh sandstone bedrock below the mineralogy changes, with increases in carbonate, chlorite and epidote and much less kaolinite.

Mineralogical XRD data from one of the RC drillholes (RC23COS019) show depletion of albite and chlorite and addition of kaolinite and quartz in the strongly weathered saprolite zone, corroborating the logging data. The XRD data also highlight anatase as the dominant titanium ore mineral in the weathered zone with titanite increasing downwards as the host sandstones transition from weathered to fresh.

Geochemical data also shows depletion in Ca⁺², Mg⁺² and Na⁺ ions from host sandstones within the weathered zone. Depletion in Ca⁺² is due to the dissolution of carbonate from the host rocks, leaving small cavities, and the weathering of titanite (CaTiSiO₅) to anatase (TiO₂). The loss of Mg⁺² and Na⁺ is primarily from the weathering of chlorite and albite respectively, two common gangue minerals found in the unweathered host sandstones. Using these elements as pathfinders has provided an excellent proxy for the depth of weathering, corroborated with diamond core logging.

The geochemical mapping of the Thomas and Cosgrove prospects has aided the optimal location of next phase drill targets that will further define the  geology, structure, shape and grade distribution of the near-surface anatase deposit, all required for consequent mineral resource estimation, as well as providing the opportunity to collect representative metallurgical samples in the form of larger diameter PQ diamond drill core.

Thomas Prospect

The geochemical analysis of the geological model prepared for the Thomas prospect shows that the depth of weathering varies from 22m to 76m from surface, with the central core of the prospect averaging a significant 54m below surface.  The grades within these weathered zones vary between 5.0% to 7.4% TiO₂, with the central core averaging 6.25% TiO₂. The central core has been selected as the proposed site for four of the diamond drillholes, two of these holes (PH#4_DD_TOM_MET003 and 006) are situated between RC holes RC24TOM021 and RC24TOM022 which are drilled 600m apart along strike (refer Figures 1 and 2). Logging of these two RC drillholes showed weathering to 74m and 54m respectively and the grade within the weathered zones averaged 6.8% and 7.0% TiO₂, respectively.

An additional two diamond drillholes (PH#4_DD_TOM_MET004 and 007) are planned 600m to the east of the first four drillholes, located between RC drillholes RC24TOM019 and RC24TOM023 which are weathered to 38m and 58m depths below surface and grade 6.0% and 5.5% TiO₂, respectively. These diamond drillholes have been designed to test the width extent of the high-grade anatase mineralisation within the central core of the Thomas prospect.

The final diamond drillhole (PH#4_DD_TOM_MET001) is located between RC23TOM002 and RC23TOM003, which were originally drilled to test the up-dip extension of the high-grade bedrock mineralisation previously identified in one of the initial diamond drillholes (DD23TOM001) completed in November 2023.  These two RC drillholes are weathered to 48m and 36m and grade 7.4% and 6.8% TiO₂, respectively. The proposed diamond drill hole will test the strike extent of the high-grade zone in DD23RCTOM002 represented as a deep magnetic low within the magnetics data.

Figure 1: Location of planned diamond drillholes and depth of weathering of existing holes at the Thomas Prospect.

Note, two additional diamond drillholes have been located (labelled Priority 2 in Figure 1) to allow flexibility in the programme in case of access issues due to ground conditions, however it is not intended to drill either of these at this particular stage.

Figure 2: Location of planned diamond drillholes and grade of TIO₂ mineralisation in weathered zone in existing holes at the Thomas Prospect.

Cosgrove Prospect

The geochemical analysis of the geological model prepared for the Cosgrove prospect indicates  more variable weathering depths than at Thomas, with weathering only as deep as 8m in some parts. The deepest weathering identified so far extends down 58m from surface and the average depth of weathering is 34m.  It is important to note that the depth of weathering is partly dependent on the position of the drill hole in relation to the topography. Drillholes lower down the slope show shallower depths of weathering than those closer to, or on the top of higher ground.  Similar to the Thomas prospect, the grades within the weathering zone are also variable, ranging from 4.0% to 7.2% TiO₂.

The planned diamond drillholes are focussed in two areas where there is a deeper zone of weathering and higher grade TiO₂ mineralisation (refer Figures 3 and 4). Holes PH#4_DD_COS_MET001 and 002 are designed to test between holes RC24COS016, 017 and 018 which were weathered to 40m, 30m and 32m respectively with grades of 6.8%, 6.5% and 6.8% TiO₂ respectively. These diamond drillholes are located towards the northern end of the Cosgrove prospect where previous rock chip samples returned grades >15% TiO₂, distinguishing this surface area as one of the more enriched zones at Pitfield.

Planned holes PH#4_DD_COS_MET002 and 003 are located within the central zone at Cosgrove where there is higher ground. These diamond drillholes are designed to test the higher grade weathering profile associated with RC drillholes RC23COS019 and DD23COS001.  These RC drillholes intercepted weathered vertical depths of 36m and 34m, with grades of 7.2% and 5.9% TiO₂, respectively.

Figure 3: Location of planned diamond drillholes and depth of weathering of existing holes at the Cosgrove Prospect.

Figure 4: Location of planned diamond drillholes and grade of TiO₂ of existing holes at the Cosgrove Prospect.

As per the proposed Thomas prospect drilling, two additional diamond drillholes (labelled as Priority 2 in Figure 2) have been planned and located as alternatives given that access to that part of the Cosgrove prospect is still wet due to recent rains.

Exploration Team Recently Expanded

Tsog Batsaikhan has joined the Company as Senior Geologist, and will initially be working alongside the Exploration Manager, assisting with the supervision of the drilling contractor and the logging of the diamond drill core. Tsog has over 15 years of international experience as a geologist, working across all aspects of the mining industry including exploration, open-pit and underground mining, and resource definition and geological modelling.

Tsog has recently completed a master's degree in Metallurgy from the Western Australia School of Mines and his understanding of the relationships between the gangue minerals and the titanium ore minerals found at Pitfield, both within the weathered zone and the fresh bedrock, will be key to a successful project outcome. The development of a geometallurgical model will be critical to the optimisation of other important aspects of development work such as process design and mineral resource definition.

Acceleration of Metallurgical Testwork Programme

Testwork conducted to date has been on the fresh bedrock titanite ore, however the discovery of concentrated, high-purity anatase in the overlying weathered bedrock cap has significant positive implications for the economics of the Project, necessitating a shift in the testwork focus. The diamond core recovered from this next round of drilling will be used to provide additional, substantial quantities of high-grade, high-purity anatase-rich ore to accelerate the mineral processing test work that has already commenced on the weathered cap samples (announced 4 September 2024).

Diamond core samples collected from the drill campaign carried out through February and March 2024 have been composited and submitted to the laboratory for crushing/grinding ahead of mineral concentration testwork. These samples will undergo initial gravity separation testing over the coming weeks.

In the meantime, as announced on 4 September, the Company's overall mineralogical and metallurgical testwork programme has been expanded, engaging international and locally based expert consultants, and utilising Australian based government and commercially owned laboratory facilities. A wide range of high-potential mineral processing and hydrometallurgical techniques are under consideration and multiple studies have commenced looking at ore characterisation, comminution, gravity and magnetic separation, flotation, leaching and product finishing.

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 5).

Figure 5. Pitfield Project Location showing the Mid-West Region Infrastructure and Services.

Since commencing its maiden drill campaign in March 2023, the Company has completed a total of 107 drillholes for 17,003m (including seven diamond core holes for 2,025m), of which 67 RC drillholes and six diamond core drillholes were drilled within the Cosgrove and Thomas prospects (Figure 6). The drilling shows a high-grade (>5% TiO₂), more than 1km wide central core running on a north-south trend through both mineral prospects, which could join between the two prospects thereby representing a potential total strike length of more than 20km. Significantly, the RC drillhole results clearly indicate elevated TiO₂ grades are present within the top 40m (RNS: 15 May 2024).

Figure 6.  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.

Competent Person Statement

The technical information in this report that relates to 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 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 exploration and resource development company (LON: EEE) with a primary focus on developing Pitfield, an emerging giant titanium project in Western Australia.

Exploration activity at Pitfield has confirmed the discovery of a new giant mineralised system extending over 40km by 8km by 5km deep. Drilling campaigns have confirmed high-grade TiO₂ mineralised zones across thick bedded intervals to a vertical depth of ~350m, confirming Pitfield as a world class, district-scale titanium mineral system.

Empire is now accelerating the economic development of Pitfield, with the objective of becoming a leading producer of high value titanium dioxide products.

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.