Alderan Resources : drill data review highlights Drum's gold potential

Alderan has a consolidated exploration area at Detroit covering 25.5km2 through a series of option agreements with tenement owners.

ASX ANNOUNCEMENT

18 November 2021

Alderan's drill data review highlights Drum's gold potential

HIGHLIGHTS
only	• Alderan's review of historical drilling at the Drum Gold Mine at its Detroit Project, Utah has
highlighted the potential for high grade extensions.
o Remnant gold mineralisation occurs below both the East and West pits.
o Mineralisation is open along strike and down dip to the south and southwest of both
pits.
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o High-grade gold was intersected in drill holes approximately 175m southwest of the
West Pit mined ore.
o Structurally controlled high-grade zones occur within and peripheral to both pits and
will be a key focus of Alderan's exploration.
o The southwest dipping ore horizon mined in the East Pit was not drill tested below the
West Pit.
• Drum has a strong gold mineralised footprint that has received no modern exploration since
	mining ceased in 1989.
	• Alderan is planning in-pit rock sampling, structural mapping, magnetics and drilling at Drum
	with potential to expand its current Detroit drill programme to Drum, dependent on results.

Alderan Resources Limited (ASX: AL8) (Alderan or the Company) is pleased to announce results of a review of historical drilling on the Drum Gold Mine ("Drum") within its Detroit Project, located in the Drum Mountains

personal	region of western Utah, USA.
Drum was discovered in 1982 with a
drill intercept of 15m grading 8.5g/t
gold and was mined from the
adjacent East and West pits
between 1984-891.	Over its six-
year mine life, it reportedly
produced 125,000oz of gold from
3.17 million tonnes of oxide ore
grading 1.22g/t gold. Towards the
end of its life, a small underground
operation was developed in the
For
West Pit which produced mined
grades of +4g/t gold.
Alderan's review has verified Drum's
historical production	and strongly
supports the potential for remnant
gold mineralisation below the pits
plus down dip and	along strike

extensions to the historical deposit.

Figure 1: Detroit project geology showing location of Drum Gold Mine leases.

1 Krahulec, K.: Sedimentary rock-hosted gold and silver deposits in the Northeast Basin and Range, Utah; Utah Geol Survey; Jan 2011.

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18 November 2021

The Drum Gold Mine option recently secured with North Exploration LLC, covers the historical Drum East and West open pits. The Drum Gold Mine leases have received no modern exploration since mining ceased in 1989.

onlyAlderan commenced a 10 hole (3,000m) drilling programme at Detroit in October 2021, designed to test seven copper and gold targets highlighted by Alderan's exploration at Detroit. Drill holes at Drum will be added to the current programme pending the results of Alderan's planned exploration.

Alderan Managing Director Scott Caithness said:

"Drum Gold Mine is an exciting prospect. Alderan's review of the Drum historical drilling at Detroit has highlighted its potential for significant remnant gold mineralisation plus down dip and along strike extensions to the historically mined deposits. It is particularly encouraging to see high grade gold intersected in drillholes 175m down dip to the southwest of the mined West Pit ore.

useAlderan's next steps at Drum will be to carry out in-pit rock sampling, structural and geological mapping and a magnetic geophysical survey. Drilling at Drum is also planned in Q1 2022 pending Alderan's exploration results and permits being received with the drill site permitting process already underway."

Drum Gold Mine Historical Drilling Review

Alderan has completed a review of the available historical and drilling data over the Drum Gold Mine, located in personalthe southeast of the Company's Detroit project area, to assess its potential to host an economic gold deposit.

Drum lies approximately 2.5km south-southeast of the Mizpah gold deposit which has been a focus of recent Alderan exploration.

The Drum Gold Mine (also referred to as Yellow Cat) is the largest historical mine in the Detroit District and was one of the most productive and economically important, sediment-hosted gold deposits in Utah.

The deposit lies between two east-northeast trending faults in Middle Cambrian age limestones and clastic sediments which dip gently west-southwest. Mineralisation is focused along bedding parallel and sub-parallel and high angle northeast trending faults associated with siliceous and argillic altered shale and limestone. Thin intrusive sills, dykes and pebble dykes are common.

For

Figure 2: Diagrammatic longitudinal northeast trending section though the Drum pits showing significant intersections, mineralisation, pit outlines and geology; view looking northwest.

The mine pits are both elongated north-south and approximately 400m long, 240m wide and 60m deep. Reports indicate that prior to mining the East Pit area was covered by jasperoid containing gold grading less

ASX ANNOUNCEMENT

18 November 2021

than 0.7g/t gold. This pit contained ore up to 35m thick with an overall grade of 1.2g/t gold. Mining at Drum began in the East Pit with West Pit ore generally thinner (<12m) but a higher average grade of 1.7g/t gold.

onlyAlderan has reviewed data from 404 holes drilled on an approximate 20m x 20m grid into and around the Drum deposit in the 1980s. This historical drilling was to delineate a near-surface oxide gold deposit. The average depth of the drill holes was approximately 49m, with only 11 holes drilled to over 100m (maximum hole depth 153.9m). Samples were dominantly collected at 5ft (1.54m) intervals down the holes, however a small number of holes drilled outside the pit boundaries were sampled at 10ft (3.08m) intervals.

A total of 5,425 samples were analysed by either fire assay or AAS. The highest individual assay graded 38.6g/t g ld and 24 holes ended in anomalous grades of more than 0.5g/t gold. No quality assurance and quality control information is available for the sample analysis, hence these assays are regarded by Alderan as indicative of xploration potential only. The location of the drill holes is shown in Figure 3 and the relevant drill hole information

is in Appendix 1 and 2.

Discussion of Results

Alderan used this historical drill hole information and assays to develop a 3D model of the gold distribution at

Drum. This model suggests the following:
use	• Drum has exploration potential for 1.2-1.5 million tonnes of remnant mineralisation at a grade of 1.1-
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1.4g/t gold (42,000-67,000 ounces). It should be noted that this exploration potential quantity and grade
is conceptual in nature, that there has been insufficient exploration to estimate a Mineral Resource and
that it is uncertain if further exploration will result in the estimation of a Mineral Resource.
• Drum mineralisation remains open along strike to the south and down dip to the southwest where drill
holes include YC-174 which intersected 15.2m grading 4.5g/t gold (including 6.1m at 10.3g/t Au) which
is 75m from the West Pit boundary and 150m from historical ore.
• The ore horizon (Tatow Member of Pioche Formation) mined in the East Pit remains open down dip to
the southwest and has not been drill tested below the West pit.
• Drum has both long and high grade historical drill intercepts. The longest intercept grading not less than
1.0g/t gold is 70.1m in hole DM-9 and the highest grade individual assay over a 5ft sample interval is
38.8g/t gold. Significant intersections include:
	Hole	From (m)	To (m)	Length (m)	Gold Grade (g/t)
		YC-58A	13.7	27.4	13.7	6.4
		includes	16.7	21.3	4.6	18.1
		YC-60	9.1	33.5	24.4	2.7
For		includes	18.3	25.9	7.6	7.6
	YC-113A	19.8	42.7	22.9	5.0
	includes	27.4	36.6	9.1	10.8
	YC-169	25.9	61.0	35.1	4.3
	includes	35.1	53.3	18.3	7.7
	YC-174	73.2	88.4	15.2	4.5
	YC-242	30.5	68.6	38.1	3.2
	includes	45.7	60.9	15.2	6.4
	YC-250	53.3	62.5	9.1	5.5

• The block model mined ore at Drum is consistent with historical records and estimated to be approximately 6% higher at 3.1Mt grading 1.3g/t containing 133,000 oz gold.

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18 November 2021

Figure 3 below shows the block model draped over Alderan's recently acquired digital terrain model of the Drum mine area. It highlights that there are two sub-parallelsouthwest-northeast trending higher grade zones, one on the northern side of the pits and one on the southern side. These zones are parallel with the sub-vertical King

onlyTut Fault which is noted in historical reports as a key control on mineralisation and trends along the south eastern edge of the pits.

usepersonalFigure 3: Oblique view from south of Drum Gold Mine 3D block model on digital terrain model showing historical drill holes and section lines. Mineralisation can be seen subsurface extending below both pits and open to the south and southwest. The block

model has been estimated from the historical (1980's) drill hole data applying Multiple Indicator Kriging technique. The waste blocks which grade lower than 0.1g/t gold are not shown.

Figures 4 and 5 below are northeast-southwest long sections (A-A') through the East and West pits of the Drum mine. Figure 4 shows the drill holes and gold mineralised intersections used to develop the block model. Significant gold (+1.0g/t Au) intersections can be seen immediately outside the historical pit boundaries to the Forsouthwest of each pit. High grade gold also occurs in holes drilled 175m to the southwest of the historic ore in the West Pit with an intersection of 15.2m grading 4.5g/t Au from 73.2m downhole in hole YC-174. This highlights

that the mineralisation is open down dip to the southwest.

igure 5 shows the block model developed using the historical drill data. This model again highlights the high grade gold mineralisation extending to the southwest of both open pits suggesting that the deposit is open. It also demonstrates that the mineralisation occurs in two parallel stratigraphic horizons which dip 20-30 degrees to the southwest. These horizons are interpreted to be the favourable Middle Cambrian Tatow member of the Pioche Formation and younger Middle Cambrian Chisholm Formation which both consist of interbedded fine grained calcareous clastic sediments and limestones. They both range in thickness from 50-70m and are separated by the 50-70m thick Howell Limestone. It is evident that the East Pit's mineralised Tatow member has been inadequately drilled down dip to the southwest of the East Pit.

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18 November 2021

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Figure 4: Northeast-southwest long section (A-A') through the Drum Gold Mine which shows the historical (1980s) drill holes and
gold intersections and the East and West open pits.
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Figure 5: Northeast-southwestlong section (A-A')showing the Drum Gold Mine block model based on historical (1980s) drill holes and Alderan's interpreted geology. The modelled gold mineralisation extends below and to the southwest of the historical pit boundaries indicating potential for remnant mineralisation. Also, the mineralisation is modelled within two separate stratigraphic horizons, the Tatow Member of the Pioche Formation and the Chisholm Formation which dip approximately 20-30degrees to the southwest. The Tatow has not been adequately drilled down dip to the southwest of the East Pit.

ForFigures 6 and 7 are north-south cross sections (B-B') through the East Pit which reportedly mined higher tonnage but lower grades than the West Pit. Figure 6 shows the historical drill holes and gold mineralised intersections used to develop the block model. Significant gold (+1.1g/t Au) intersections can be seen immediately to the south of the historical pit boundary suggesting that the mineralisation is open in this direction.

igure 7 shows the block model developed from the historical drill holes in Figure 6. The model suggests that there were three higher grade horizons interbedded with lower grade ore that was mined in the East pit. The mineralisation extends outside the pit boundary to the south and remains open in this direction