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

12 January 2023

Empire Metals Limited

("Empire" or "the Company")

2023 Exploration Programmes Underway

at Pitfield and Eclipse-Gindalbie Projects

Empire Metals Limited (LON: EEE), the AIM-quoted resource exploration and development company, is pleased to announce that exploration field work is progressing well at the Pitfield Copper Project ("Pitfield"), and that drilling has also recommenced at the Eclipse-Gindalbie Project, both located in Western Australia.

Highlights

·    Field work at Pitfield has been focused on under-explored areas of the project to generate new exploration data that will add significantly to the Company's understanding of the size and nature of this potential "Giant" copper province.

·    Pitfield has the potential to contain multiple sediment-hosted stratabound copper ("SSC") deposits across a 40km N-S magnetic anomaly (as announced on 21 September 2022).

·    Empire's exploration team has completed two field campaigns, collecting soil and rock samples as well as surface mapping of geological features.

·    Surface mapping has resulted in a number of rock samples being collected which have confirmed copper enrichment along with quartz and magnetite - all key elements of the SSC model.

·    A contract geophysical survey crew was mobilised in December to Pitfield and completed five traverses of Dipole - Dipole Induced Polarisation ("DD-IP") for a total of 8,450 Line metres.

·    The aim of the DD-IP survey is to resolve conceptual sediment-hosted strata bound copper (SSC) mineralisation targets supported by existing geological mapping and surface sampling results.

·    Further soil sampling and DD-IP surveying is expected to continue in Q1 2023 with a view to expediting a maiden drill programme at Pitfield to evaluate the economic potential of SSC targets defined by the current work.

·    At Eclipse-Gindalbie a small Reverse Circulation ("RC") drilling campaign was carried out, commencing 3 January, targeting a new area around the historical South Gippsland #3 mine, which to date has been under-explored.

Shaun Bunn, Managing Director, said: "Great progress has been made on our two main exploration camps at Pitfield and Eclipse-Gindalbie over recent weeks as we set ourselves up for a major exploration push during H1 2023. What is particularly exciting is that we have found a way to speed up our field activities at Pitfield, having been able to contract an IP surveying team that could mobilise to site in mid-December, well ahead of our previously announced exploration schedule.

"Our highly experienced exploration team has now completed two field campaigns and is currently undertaking a third campaign which completes this initial phase of geochemical mapping. Once the geophysical data from the DD-IP survey is interpreted, and the soil and rock sampling assays are received, we will be in an excellent position to identify potential copper sulphide targets beneath the surface soil anomalies for an initial drilling campaign at Pitfield."

IP Survey Details

Induced Polarisation (IP) is a survey technique where electrodes induce and measure a potential field in the ground. From this data, the soil chargeability and apparent resistivity can be measured.

Over selected areas, from 8 December 2022 to 17 December 2022, Kinematex Pty Ltd ("Kinematex") carried out five traverses of Dipole - Dipole IP ("DD-IP") for a total of 8,450 Line metres (refer Table 1).

Table 1.DD-IP Survey Lines completed (GDA2020 MGA Z50)

The project area lies upon numerous freehold cropping and grazing lots. The survey area is characterised by an undulating topography, shallow soil profile with localised areas of sand cover, mainly steeply-dipping clastic metasedimentary sequences, local small porphyritic granite intrusions commensurate with a rift basin setting.

Along with the survey data collected the survey team recorded simple field observations as described by survey line below:

Line PM01           6753800mN

The line traversed displayed harvested canola crops, gullies, and an undulating topography. Malachite and mudstone with copper oxidation was noted at 368960mE (Sample PT001 & PT002). Small blocks (50mm x 50mm) of clastic sedimentary rocks were evident in the crop fields.

Line PM02           6753000mN

Figure 2. Line PM02

Line PM03      6752250mN

The line was moved 100m South due to a parallel star picketed fence straddling native vegetation along the line from approx. 369100mE to 369800mE. Perpendicular fence intersections are notable at 368608mE & 369890mE. The line displayed thick vegetation, a steep gully to the west with conglomerate boulders, and ferruginous duricrust on the eastern and western end of the line. The remainder of line was underlain by undulating topography and harvested wheat crops. Small blocks of dark clastic sedimentary rocks are notable in the wheat crops.

Figure 3. Line PM03

Line PM04           6752000mN

The line traversed a steep gully with conglomerate boulders to the east with ferruginous duricrust, epidotised and potassic granite at 370820mE. The western extents of the line were very conductive.

Line GC01            6739000mN

The line traversed a small gully to the west and a small area of native vegetation in the centre of the line. The remainder of the line presents as moderately undulating harvested wheat crops with small exposures of ferruginous duricrust, granite and clastic sedimentary rocks. The eastern extent of the line was sandy and very resistive.

Figure 5. Line GC01

Field Mapping, Soil and Rock Sampling

Extensive Cu, Ag, Ni and Zn anomalies have previously been highlighted in historic surface sampling (as announced on 23 November 2022). In the context of sedimentary rock sequences, copper values >100ppm, nickel >50ppm and silver >0.5ppm are considered highly anomalous and may indicate the presence of significant SSC mineral systems. By multiplying the assays for all four elements to produce an overall  mineralised factor several Cu-Ag-Ni-Zn anomalous zones, each stretching over several kilometres, become clearer (Figure 6).

The current geological mapping and soil sampling programme aims to both extend these mineralised zones even further, and define substantial new areas of metal anomalism compatible with SSC systems. The current work is targeted at unexplored portions of the project with soil sample lines positioned in the northern, central and southern areas of the licence.

Two field trips have been completed to date, with the third and final field trip of the phase of the initial geological mapping and soil sampling programme now underway.  To date, over 550 soil samples have been collected, along with a number of rock samples of interest, including a malachite-bearing silicified breccia (copper carbonate mineral), a magnetite-enriched sandstone, and several samples with intense iron-oxide enrichment. These rock specimens are particularly encouraging as they confirm the presence of copper enrichment along with quartz and magnetite - all key elements of the SSC model.

Figure 6. Surface sampling by CRA highlighting combined Cu-Ag-Ni-Zn anomalism showing soil sampling lines.

RC Drilling Campaign at Eclipse-Gindalbie

The combined Eclipse-Gindalbie Gold Project consists of two adjacent mining leases, located near the historic gold mining town of Gindalbie, situated 55km north-east of Kalgoorlie. Empire holds a 75% interest in the 306ha Eclipse mining lease (M27/153), which contains the Eclipse and Jack's Dream historical gold mine workings, and which have been to date the focus of the Company's drilling campaigns. Since commencing its involvement at Eclipse in August 2020, Empire has completed five exploratory drilling programmes, consisting of 124 RC drill holes for a total of 11,001 metres and nine diamond drill holes for a total of 1,200 metres.

In February 2022 Empire entered into a Tribute Agreement that gives Empire the exclusive right to explore, develop and mine within a granted area on Maher Mining's 100% owned mining lease M27/158, which sits adjacent to the eastern border of the Eclipse licence area and extends the current area for exploration targets by over 200% to a total of 943ha. The "granted" area covers 643ha of highly prospective ground containing historic gold mines located along a series of northwest-southeast striking mineralised trends. The main trend containing the Company's Eclipse and Jack's Dream deposits aligns with several of the old workings to the southeast including the Golden Puzzle, Laurel and Bulletin mines. Other, sub-parallel north-west - south-east striking trends have been identified which include the Homeward Bound and South Gippsland #3 mines.

Following on from successful drilling campaigns in February 2022 and June 2022, targeting historical gold workings within the Gindalbie licence area, the Company decided to carry out a small RC campaign consisting of nine RC drill holes for 770m. This drilling is focused around the historical South Gippsland #3 mine where previous drilling by the Company found evidence of kaolin-rich clays within the intensely leached upper part of the weathering profile. Kaolin is an important source of alumina and hence the Company decided to drill to test the extent and quality of this material and to determine what association it may have with the adjacent high grade South Gippsland #3 gold mine.

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 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 initial focus has been on the high-grade Eclipse and Gindalbie Gold Projects in Western Australia.  The Company expanded its exploration licence area in April 2022 from 9.5km² to 1,728km² with the acquisition of the Pitfield Copper-Gold Project and the Walton Copper-Gold Project in Western Australia, and the Stavely Copper-Gold Project in the Stavely Arc region of Victoria. 

Empire also holds a portfolio of three precious metals projects located an historically high-grade gold production region comprising the Rotgulden, Schonberg and Walchen prospects in central-southern Austria.

The Board continues to evaluate opportunities through which to realise the value of its wider portfolio and reviews further assets which meet the Company's investment criteria.