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ASX: ANX

8TH MARCH 2022

WHIM CREEK PROJECT EXPLORATION UPDATE

  • New gold target fast-tracked for drilling2
  • PGE drill targets defined2 - heritage clearance and Programmes of Work under application
  • Multiple geochemical anomalies confirmed by infill UltraFine+™ sample analysis2

Anax Metals Limited (ASX: ANX) ("Anax" or "the Company") is pleased to provide the complete results from its innovative UltraFine+™ 2021 soil sampling program at the Whim Creek Project, including a new, well confined, structurally controlled gold anomaly at HLF Prospect 2, prioritised for drilling in 2022, along with the new platinum drill targets.

The Whim Creek Project, located in the West Pilbara Mineral Field of Western Australia, has been explored continuously since the 1880's, when copper and gold were first discovered there. Historical exploration has focused on developing and extending the known copper-zinc-lead- silver volcanic hosted massive sulphide (VHMS) deposits within defined geological boundaries, with intermittent regional exploration.

As part of its 2021 regional exploration of the 80%-owned Whim Creek Project, Anax applied the innovative UltraFine+™ soil sampling method to widen the search for gold and base metals, as well as platinum group metals (PGMs) across the width of the highly prospective Whim Creek Greenstone Belt.

Initial results were reported in July and October 20211,2, with reporting of further infill results delayed due to increased demand for laboratory services. UltraFine+™ results are now complete, and have confirmed and extended the gold, nickel-cobaltand PGE anomalies 2, some of which have been prioritised for follow-up exploration in 2022.

The Company's Managing Director, Geoff Laing commented:

"These results are very encouraging and confirm the potential to diversify the prospectivity of the Whim Creek Project. The known polymetallic VMS deposits show potential for extension, while the geological and structural setting provides prospectivity for gold along strike from De Grey's Mallina Project. Layered mafic intrusives at Whim Creek were historically underexplored for nickel-cobalt and PGM potential. We will continue to pursue these new targets in parallel with growing the base metals inventory to ensure we explore the Whim Creek Project to the fullest extent."

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Figure 1: UltraFine+™ soil sampling anomalies in relation to GSWA 1:100,000 geological mapping on aerial imagery

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UltraFine+™ Method

LabWest's UltraFine+™ soil analysis method extracts the <2 micron clay particles from a soil sample for microwave digestion and analysis by inductively coupled plasma mass spectroscopy (ICP-MS). This generates a broad suite of elements with cohesive anomalies and less 'spikey' (or patchy) results than standard soil sample analysis techniques. The method was developed by CSIRO to detect gold mineralisation beneath surface cover and has been found to be equally effective for base metals, rare earths and lithium exploration. It is used extensively across the Pilbara Region where gold exploration has boomed since De Grey's Hemi discovery. This boom has put pressure on the LabWest facility leading to unavoidable delays in sample processing and reporting of Anax's infill analysis results.

Anax's announcement of 27 July 20212, confirmed the potential for the UltraFine+™ method to define cohesive anomalies of platinum group metals (PGMs), which infill and extensional soil sampling have now confirmed, as illustrated in Figure 1, above.

In late 2021, Anax subscribed to the CSIRO UltraFine+™ research programme in order to verify the many anomalies and extract additional benefit from the machine learning techniques being offered as part of that programme, however the outcomes of that work will remain confidential until the conclusion of the research.3

Priority Targets

Figure 1, above, illustrates the numerous discrete geochemical anomalies identified from the UltraFine+™ 2021 regional soil sampling programme. Each anomaly will be considered in relation to its regolith environment, local geology and potential source rocks for follow-up exploration.

Near mine ('brownfields") targets adjacent to the Whim Creek open pit, namely Manhattan and Federal City1, and the Mons Cupri open pits, namely MC NW Extension, MC Southwest, Comstock Hill were UltraFine+™ sampled to follow up on historical soil anomalies. Each anomaly has been verified and drilling is being planned at prioritised targets. Further details will be announced separately. Near-mine areas not yet covered by UltraFine+™ sampling (rectangular areas demarcated in Figure 1, above) will be sampled during the 2022 field season.

Greenfields targets lie along the north-western and south-eastern boundaries of the tenure, where limited exploration has previously been done. Structural and geophysical signatures suggested prospectivity for gold in these areas5 and Anax conducted extensive regional UltraFine+™ soil sampling in 2021 to pursue gold across the greenstone belt.

Gold

Gold contributes to the Resources defined at the Whim Creek Project and patchy gold anomalism had been reported in historical soils, both near mine and further afield. Anax's regional UltraFine+™ soil sampling has generated a new, well confined, structurally

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controlled anomaly at HLF Prospect 2, located along strike from Quartz Ridge. HLF gold coincides with arsenic anomalism, an indicator element for gold, and follows a GSWA mapped northeast-trending shear, making it a high-prioritytarget for drilling in 2022.

The Loudens Fault is a known mineralised structure along which numerous prospects and historical workings lie. Rock chip sampling has confirmed sporadic gold along the fault, adjacent to the Loudens Platinum anomaly. Further gold anomalism is evident at Whim Maar which will be followed up with rock chip sampling to confirm in situ source.

Platinum Group Metals

Identification of anomalous platinum in UltraFine+™ soils2 was followed up with rock chip sampling (up to 65ppb Pt and 65ppb Pd - see Appendix A results, below), confirming well confined anomalism coincident with layered mafic intrusives and continuous over:

  • 2.6km at Loudens (Pt up to 90ppb in soils),
  • 2.2km at Mays Find (Pt up to 43ppb in soils),
  • 1.6km at Airstrip North (Pt up to 77ppb in soils) and
  • 1km at Airstrip South (Pt up to 56ppb in soils).

The Loudens Volcanics form the south-eastern boundary of the Whim Creek Greenstone Belt, while the Sherlock and Opaline well layered mafic intrusives follow the north-western boundary. All belong to the Archean Pilbara Supergroup and are known elsewhere in the region to be mineralised with PGMs and nickel-cobalt massive sulphides4. Structural disruption offsets the geochemical anomalies in places, for example, the Loudens Pt anomaly is offset along an east- west structure at its northern end.

Roughly half of the Whim Creek exploration tenement E47/3495 has been explored with regional UltraFine+™ soil sampling in 2021. The continuity of the layered mafic intrusives bounding the Whim Creek Greenstone Belt suggests further prospectivity towards the south- west, which Anax will investigate in 2022 and beyond.

Nickel-Cobalt

Kent Well shows a well confined nickel-cobalt anomaly in soils. While this anomaly lies partly outside of Anax's ground, it suggests potential for further deposits along strike to the southwest, supported by patchy nickel-cobalt mineralisation at Mays Find.

Base Metals

The Whim Maar zinc anomaly and sporadic gold may be the result of outwash from historical mining across the low-lying coastal plains. Detailed rock chip sampling across this area is planned to verify the anomalies. Copper anomalism along ridges north of the Whim Creek pit suggests further prospectivity may have been obscured by historical mining practices.

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Next Steps

Further gridded regional exploration soil sampling using the UltraFine+™ method will cover the rectangles marked with dotted lines in Figure 1, with exploration to the south-west to extend platinum and nickel-cobalt anomalism in due course.

2022 rock chip sampling will enable verification of in situ mineralisation at the defined anomalies, some of which will be fast tracked for drilling, including HLF Gold, Loudens Platinum and Airstrip Platinum.

Drilling of near-mine base metal targets at Whim Creek and Mons Cupri and gold at HLF will be scheduled to follow on from the metallurgical and geotechnical diamond drilling programmes currently underway at Whim Creek. Platinum targets are awaiting heritage clearance ahead of drilling.

Figure 2: Location of the Whim Creek Project showing existing base metal Resources in relation to

neighbouring tenure

This ASX announcement has been approved for release by the Board of the Company.

ENDS

For further information, please contact

Anax Metals Limited

20 Kings Park Road, West Perth WA 6005 Email: info@anaxmetals.com

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Anax Metals Ltd. published this content on 07 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 March 2022 21:40:05 UTC.