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ASX ANNOUNCEMENT

29th July 2022

JUNE 2022 QUARTERLY ACTIVITIES REPORT

Alicanto set for more growth at Sala zinc- silver-lead project after posting outstanding maiden Resource and strong drilling results

Mineralisation is open in all directions and drilling is ongoing

HIGHLIGHTS

  • Independent Inferred Mineral Resource Estimate (MRE) of 9.7Mt @ 4.5% Zn (Eq) at the 2.5% Zn (Eq) reporting cut-off1 at Sala Project in Sweden
  • Importantly, this includes a high-grade core from surface of 4.5Mt @ 6.0% Zn (Eq) at the 4.0% Zn (Eq) reporting cut-off1
  • The outstanding result was achieved in just over a year since Alicanto acquired Sala
  • The Resource is considered to be of a Stage One nature, with substantial growth expected given the mineralisation is open in all directions and drilling is ongoing

SALA PROJECT:

Independent JORC 2012 Inferred resource estimate at selected

lower cut-off grades at the Sala Total Zn-Ag-Pb Project1

Cut-off

Mass

Grade

Metal

grade

Tonnes

Zn

Ag

Pb

ZnEq

AgEq

Zn

Ag

Pb

ZnEq

AgEq

Grade

Grade

Grade

Metal

Metal

Metal

(Mt)

(%)

(g/t)

(kt)

(Moz)

(%)

(g/t)

(%)

(Kt)

(Moz)

(Kt)

>1.5% ZnEq

15.5

2.5

38.8

0.4

3.6

170

388.7

19.3

63.6

558

85

>2.5% ZnEq

9.7

3.2

47.3

0.5

4.5

214

311.3

14.7

44.2

437

66

>4.0% ZnEq

4.5

4.5

58.4

0.5

6.0

285

201.0

8.5

23.5

270

41

Figures have been rounded to 1 decimal place

ZnEq (%) = Zn (%) + ((Ag_rec x Ag$ x Ag(g/t) + (Pb_rec x Pb$ x Pb(%))/(Zn_rec x Zn$)

AgEq (g/t) = Ag (g/t) + ((Zn_rec x Zn$ x Zn(%) + (Pb_rec x Pb$ x Pb(%))/(Ag_rec x Ag$)

  • Sala now ranks as the largest active undeveloped zinc-silver deposit in Sweden, a country with a significant operating polymetallic base metals mining industry
  • Outstanding results during the quarter include (ASX 23 March 2022, 3 May 2022 and 28 June 2022)2:
    • 4.7m @ 24.4% Zn and 875gt Ag and 3.7% Pb from 258.6m
    • 2.8m @ 12.7% Zn and 22g/t Ag from 516.9m
    • 4.3m @ 20.7% Zn, 165 g/t Ag, 1.1% Pb from 76.4m
    • 5.9m @ 20.2% Zn, 0.2% Pb from 63.5m
  • Further results due in coming weeks
  • Two rigs targeting continued expansion of known mineralisation at Prince and Sala (200Moz silver mined historically).3

CONTACT DETAILS

ACN: 149 126 858

T: +61 8 6279 9425

Principal and Registered Office

E: info@alicantominerals.com.au

Ground Floor, 24 Outram Street

ASX: AQI

W: www.alicantominerals.com.au

West Perth WA 6005

For personal use only

GREATER FALUN PROJECT, SWEDEN

  • Preparations underway for fieldwork and geophysical testing of high priority targets to help define next stage of drilling.

CORPORATE

  • As at 30 June 2022, Alicanto remains well funded with $3.3m in cash (31 March 2022: $6.1m)

Figure 1: Overview map showing location of major polymetallic skarn deposits surrounding the Sala Silver-Lead-Zinc Project including Garpenberg and Falun. AQI tenements shown in green. The Sala project is located in a world class polymetallic skarn district with major operating mines in the area.5

ASX: AQ

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Sala Zinc-Silver-Lead Project (Sweden 100%)

Sala, which is located 100km from Alicanto's Greater Falun copper-gold project and 50km from Boliden's

only

operating Garpenberg Mine, was once Europe's largest silver producer.

When mining finished at Sala in 1908 it had produced more than 200Moz of silver at an estimated average grade

of 1,244 g/t and grades reported as high as 7,000 g/t. Sala also produced over 35,000t of lead at 1 to 2% as well

as mined zinc at an average grade of 12%3.

The host rocks have been folded and faulted with the underlying metamorphosed felsic volcanics and

pyroclastics. The series of shafts along the Sala mineralisation trend in a north-south direction, apparently

controlled by fold structures gently plunging to the north. Longitudinal sections indicate that the mineralised

zone at Sala (as indicated by mined-out workings) also plunges gently to the north.

use

Sala was re-opened in 1951 for a short time and upon closure it was believed that the mineralisation ceased at

the 320m level. However, a small drill program undertaken in 2012 demonstrated that the Sala mineralisation

continues to plunge to the north from the historic mine area and remains open and untested to the north and

down-dip.

In July 2022, the Company announced a maiden JORC 2012-compliant Inferred Resource at Sala. The Resource

estimate, which was independently estimated by leading Perth-based Cube Consulting, was based on the

previously reported data by Alicanto which has included over 20,771m of diamond drilling completed since the

personal

acquisition of the project in February 2021.

The Company delivered the maiden Resource in a little over a year since acquisition, with the mineralisation

system remaining open for further growth both at depth below the Prince and Sala Lodes and from surface along

the prospective lithological horizon.

The reported Maiden Resource comprises a total of 9.7Mt @ 4.5% zinc (Eq) containing over 311,000 tonnes of

zinc, 15Moz of silver and 44,000 tonnes of lead reported at the 2.5% Zn (Eq) cut-off.1

Included in the Maiden Resource is a coherent near surface high-grade breccia zone dominated by semi massive

sphalerite which contains the majority of 4.5Mt @ 6.0% Zn (Eq) containing 8.5Moz of Silver and 201,000 tonnes

of Zinc reported at the 4% Zn (Eq) cut-off. The Company is continuing to target near surface and down plunge

extensions of this area with ongoing diamond drilling with further results expected to be released to the Market

as they become available.1

The maiden Resource estimate covers the Prince Lode, located immediately to the South of the historic Sala

Mine. The Price Lode trends towards the north-northeast and has been defined over 950m of strike and 700m

down dip.

For

During the quarter the Company drilled 4,570m of diamond core drilling concentrating on the Prince Lode, Sala

extensions and a new antiform structure parallel to Sala.

The Prince Lode, which is a zinc-dominated mineralised zone located immediately to the south of the historic

Sala Mine, was the main area of drill testing by Alicanto during the quarter investigating the southern extensions

of the Prince Lode. Drilling returned the following exceptional results (Refer 3 May 2022 and 28 June 2022 2):

• 1.7m @ 132 g/t Ag, 1.4% Zn, 1.9% Pb, from 260.25m and

• 2.8m @ 22 g/t Ag, 12.7% Zn from 516.9m and

• 2.5m @ 173 g/t Ag, 1.6% Zn, 2.8% Pb from 553.9m and

• 4.1m @ 14 g/t Ag, 4.5% Zn from 587.2m in SAL-228

• 2.9m @ 46 g/t Ag, 1.3% Pb from 512.63m (including 0.5m @ 177 g/t Ag, 5.9% Pb from 512.6m)

• 2.5m @ 54 g/t Ag, 0.4% Zn, 0.3% Pb from 598.1m

• 3.3m @ 31 g/t Ag, 0.6% Pb from 625m

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ASX: AQ

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Drilling also concentrated on the continuation of historic Sala mine, which sits immediately to the north of the Prince Lode. The Sala Lode, which is a Silver dominated, zone trends in toward the north-northwest and has been defined over 350m of strike and 485m down dip. Previously reported drill results from the Sala Lode include (3 May 2022 and 28 June 20222):

  • 3.8m @ 2.6% Pb, 653 g/t Ag,
  • 1.9m @ 0.6% Zn, 164 g/t Ag, 2.3% Pb
  • 1.3m @ 110 g/t Ag and 1.5% Pb
  • 3.3m @ 3.6% Zn, 142 g/t Ag, 2.6% Pb
  • 3.9m @ 53 g/t Ag, 0.7% Pb
  • 0.4m @ 242 g/t Ag, 2% Pb

Drilling during the quarter also intersected a highly mineralised north west trending antiform structure, 200m to the south-west of the Sala Mine. The structure is interpreted to be a parallel mineralised structure to the Sala Mine. The Sala Mine orebody itself is hosted in a north west trending synform and associated fault structure with high grade mineralisation concentrated around the hinge of the fold and fault intersection.

The new antiform structure include drillhole SAL22-26, which intersected a shallow (120m from surface) massive sulphide zone of sphalerite and galena with native silver:

  • 4.7m @ 24.4% Zn, 875 g/t Ag and 3.7% Pb from 249.4m (3 May 20222)

Figure 2: Massive sulphides intersected in Drillhole SAL2226

This is the first time this fold and associated fault control on high grade mineralisation has been identified in Alicanto's drilling around the Prince lode although it is known to be associated with the mineralisation at the Sala Mine. This structural control on the dominantly stratabound Prince mineralisation is an exciting development for the project as it not only provides a vector for targeting these zones of structural enrichment around Prince but also plays an important role in the regional targeting around the Sala Project with the likelihood of repeated fault and fold structures to the southwest.

ASX: AQ

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For personal use only

Figure 3: Long Section demonstrating the high-grade zone which totals 4.5Mt @ 6.0% Zn (Eq). The main portion of this material is related to the high-grade breccia zone consisting of massive to semi massive sphalerite, galena and native silver. The high-grade zone forms a coherent near surface zone which remains open. (ASX 23 March, 3 May and 28 June 2022)2

Figure 4: Sphalerite dominated breccia in hole SAL22-28. Interval assayed 2.8m@ 12.7% Zn @22g/t Ag from 516.9m (refer ASX 28 June 2022)2

ASX: AQ

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Alicanto Minerals Limited published this content on 28 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 July 2022 22:03:09 UTC.