Hammer Metals Ltd. provide an update on significant new exploration results from across its Mount Isa portfolio in North-West Queensland, including highly encouraging preliminary results from a fixed-loop EM program at Hardway, where significant copper-rare earths mineralisation was recently intersected, as well as drilling results from Kalman West and Lord Nelson. The Kalman West drilling was designed to test short-term continuity of a high-grade gold rock chip result of 4.48% Au (refer to ASX announcement, 28 August 2017). At Lord Nelson, initial drilling encountered encouraging copper mineralisation in a similar structural position to the Trafalgar trend.

A geophysical crew is currently on site conducting fixed-loop EM surveys at several prospects in order to identify conductors at depth. This work will be completed at key prospects prior to the commencement of the Company's next drilling program. In late 2022, Hammer Metals conducted an initial drill test at the Hardway prospect, located 40km to the east of Mt Isa and 1km to the north of the Barkly Highway.

Significant results from Reverse Circulation drill-hole HMHWRC001 include: 30m at 1.1% copper from 48m (oxide); and 26m at 0.14% Total Rare Earth and Yttrium Oxides from 34m. Geochemical examination of this drilling suggests there is potential for a supergene zone to be located below the oxidised zone intersected. Preliminary modelling of a recently completed fixed-loop EM survey has defined a conductor beneath the Hardway copper workings, with additional drilling planned to target this zone in the upcoming program.

See JORC Table 1 for technical specifications of the Survey. The Kalman West prospect is located 1km to the west of the Kalman Cu-Au-Mo-Re deposit. The prospect is anomalous in gold, copper, lead and zinc. Initial mapping and drilling in the area showed the potential for high-grade gold mineralisation with drill intersections of 1m at 46.3g/t Au and rock chips returning assays of up to 4.48% Au (refer to ASX announcements dated 1 October 2015, 28 August 2017 and 26 July 2021).

Mapping indicated that these high-grade results are sourced from narrow and possibly discontinuous veins, however the Tick Hill Gold Deposit is hosted in the same geological terrain as Kalman West. In order to better define the gold distribution and potential, Hammer drilled a tight five-hole, 200m program in the area surrounding the 4.48% Au sample position. Samples were analysed using Photon Assay which was utilised to deliver more accurate results in nuggety gold.

Significant intercepts from this program include: 1m at 65.4g/t gold from 9m in HKWRC015 Additionally, there is significant Au-Pb geochemical anomalism in the graphitic schist hosting the gold veins. Lord Nelson is a new prospect located at the southern end of the Neptune trend on the northern side of the regional-scale Fountain Range Fault Zone and 3.6km south-west on-trend from Trafalgar. Prospecting at the site in mid-2022 returned several rock chip samples with individual maximum copper and gold grades of copper grades of 8.34% Cu and 0.46g/t Au (refer to ASX announcement dated 26 July 2022).

Two holes were drilled (376m) as an initial test of the area. Significant intersections include:5m at 1.72% Cu and 1.18g/t Au from 14m within a mineralised envelope of 21m @ 0.59% Cu and 0.33g/t Au from surface; and 2m at 0.55% Cu and 0.22g/t Au from 22m within a mineralised envelope of 70m at 0.14% Cu and 0.04g/t Au from 1m. The ratio of gold to copper in the area is significantly higher than other prospects in the region.

Ground review is planned to prioritise zones for further investigation along strike towards Trafalgar. FLEM surveys are underway at the Hardway, Mascotte and Pommern drill targets prior to the commencement of drilling. Within Hammer's 100%-owned tenement areas, preparation is underway for further drilling at Hardway, Hope South, Mascotte, Tourist Zone and the new prospects, Bulonga and Pommern.

Wet weather delayed the commencement of the FLEM programs and has also resulted in a short delay in the commence of Hammer's 2023 drilling program. Drilling is now expected to commence in mid-March. Geophysical modelling at the Bullrush prospect will enable targeting of possible IOCG-style mineralisation beneath Cambrian Georgina Basin sediments.