Andromeda Metals : Clarke - Rare Earth Identified Above Gold Mineralisation

ASX ANNOUNCEMENT

ANDROMEDA METALS LTD (ANDROMEDA, ASX: ADN)

8 February 2022

				Clarke - Rare Earth Identified Directly Above Gold
Andr meda Metals Limited			Mineralisation
only	∙	Drilling results received from potential joint venture partner Cobra
ABN: 75 061 503 375			Resources PLC November 2021 RC drilling program.
Corporate details:	∙ Significant gold intercepts include 33m at 1.03 g/t gold from 65m and
		20m at 1.5g/t gold from 88m.
ASX code: ADN	∙	Rare earth mineralisation was identified in saprolitic clays	overlying
Ca h (31 Dec 2021): $42.8m
		Clarke gold mineralisation.
Iss ed Capital:
∙ Average true width of defined Total Rare Earth Oxides mineralisation is
2,483,727,046 Ordinary Shares
		18.7m with an average grade of 597 ppm.
use
70,300,000 Unlisted Options
29,274,475 Performance Rights	∙ The highest-grade TREO 1m intercept was 9,024 ppm
		∙ The project is currently owned 100% by Peninsula Resources limited, a
Directors				wholly owned subsidiary of Andromeda Metals Limited.
Melissa Holzberger
Acti g Non-Executive Chair	Discussion
James Marsh
Managing Director	Andromeda Metals (ASX:ADN, Andromeda, the Company) is pleased to
J e Ranf	rd
advise that it has received an update from Cobra Resources PLC (Cobra)
Operati	ns Director
Andrew Shearer	detailing results from a recent 14-hole (2,144m) RC drilling program, and
Non-Executive Director	reanalyses of previous drilling undertaken at the Clarke prospect from the
Andrea Betti	Wudinna Gold Project on the Eyre Peninsula of South Australia.	Cobra is
Company Secretary
earning into the project which is currently owned 100% by Peninsula Resources
		limited, a wholly owned subsidiary of Andromeda Metals Limited.
Contact details	The Clarke prospect is located approximately 1.75 km north of the inferred
69 King William Road
Baggy Green Gold Resource which stands at 94,000 ounces at 1.4g/t gold
Unley, SA 5061
(refer ADN ASX announcement dated 8 May 2019 titled "Increased Ounces in
personal
Updated Wudinna Gold Project Mineral Resource").
PO Box 1210
Unley BC SA 5061
Tel: [phone]	Wudinna Gold Farm-in and Joint Venture
Fax: [phone]	Cobra has provided notice to the Company that it has met the Stage 2
[e-mail]
expenditure commitment under the Wudinna Gold Project Joint Venture.
www.andromet.com.au
For	The principal terms of the Wudinna Gold Farm-in and Joint Venture which was
executed on 31 October 2017 with Cobra include:
•	Cobra will sole fund $2.1 million within 3 years of execution to earn a 50%
				equity position (Stage 1 earn-in).

Andromeda Metals Ltd | ABN 75 061 503 375 | 69 King William Road Unley SA, 5061

[e-mail] | www.andromet.com.au

For personal use only

• At the end of Stage 1, a joint venture can be formed, or alternatively Cobra can spend a further $1.65 million over a further two years (total funding of $3.75 million over 5 years) to earn a 65% equity interest (Stage 2 earn-in).
• At the end of Stage 2, a joint venture can be formed, or alternatively Cobra can spend a further $1.25 million over a further 12 months (total funding of $5.0 million over 6 years) to earn a 75% equity interest (Stage 3 earn-in).
• Once a joint venture is formed, the parties will contribute to further expenditure in accordance with their respective equity or dilute using a standard dilution procedure.
• Should a party's equity fall below 5%, its equity will be compulsorily acquired by the other party at a price to be negotiated in good faith, or failing agreement, at a price determined by an independent valuer.
• Cobra must meet the requisite statutory expenditure requirements to keep the project tenements in good standing.
• Cobra will act as manager during the farm-in and thereafter while ever it holds at least 50% equity.

In Cobra Resources' maiden 2020 drilling program at Clarke drillhole CBRC0009 intercepted from 69m, 31m at 3.06 g/t, refer ADN ASX announcement dated 8 December 2020 titled "Significant high-grade gold intercepted at Wudinna Gold Project". The new drilling at Clarke has extended the gold mineralisation over 400m of strike, split into two lodes, with the mineralisation remaining open to the northwest. Highlights of the gold mineralisation are shown on Figure 1, summarised in Table 1 and presented in full in Table 5.

Table 1: Significant gold intercepts form the 2021 exploration program

	Hole ID			From			To			Interval			Au (g/t)			Including
CBRC0050	65		98		33		1.03			Including 9m @ 2.09 g/t Au [65-75m]
																Including 8m at 0.61 g/t Au [32-40m]
CBRC0043	30		126		96		0.55			Including 20m at 1.5 g/t Au [88-108m]
																Including 10m at 0.92 g/t Au [114-124m]
CBRC0042	83		102		19		0.79			Including 5m at 2.65 g/t Au [83-87m]
CBRC0044	109		118		9		0.23

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personal use only
For	Figure 1: Plan view of Clarke 2021 RC drilling program plotted over Total Magnetic Intensity
	Additionally, Rare Earth Element (REE) mineralisation has been identified in the saprolitic clays
	that overlie the gold mineralisation. Cobra geologists, supported by CSIRO XRD analysis and
	evaluation, have interpreted the REEs to be absorbed on to the saprolitic clays, a style of REE
	mineralisation known as Ionic Absorbed Clays (IAC). If confirmed to be IAC, the REE grades and
	intercepted widths will compare favourably to other IAC rare earth projects. Significant Total
	Rare Earth Oxides (TREO) intercepts are presented in Table 2, shown on cross sections
	Figure 3 to Figure 6, and are provided in full in Table 6.

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For personal use only

Table 2: Significant TREO intercepts, reported as downhole and true width

	DH	DH	DH	Depth	True		Praseodymium	Neodymium	Terbium	Dysprosium
	TREO
Hole ID	From	To	Intercept	From	Width	Pr6O11	Nd2O3	Tb4O7	Dy2O3
(ppm)
	(m)	(m)	(m)	Surface	(m)
		ppm	ppm	ppm	ppm
CBRC0042	42	51	9	38.1	8.2	561	25	92	2	10

CBRC0043	33	54	21	31	19.7	569	27	97	2	13
Inc	41	46	5	38.5	4.7	1160	66	240	6	31
CBRC0044	33	54	21	31	19.7	717	35	129	3	16
Inc	35	45	10	32.9	9.4	1030	56	202	4	25
CBRC0045	33	57	24	31	22.6	638	25	95	3	16
Inc	33	36	3	31	2.8	993	33	125	3	16
Inc	39	41	2	36.6	1.9	1972	108	400	10	51
Inc	54	57	3	50.7	2.8	1053	26	114	6	43
CBRC0046	21	64	43	19.7	40.4	669	31	113	2	13
Inc	21	36	15	19.7	14.1	852	45	160	3	16
Inc	51	61	10	47.9	9.4	830	34	124	3	16
CBRC0047	20	30	10	18.8	9.4	682	36	127	3	17
Inc	25	28	3	23.5	2.8	1322	68	246	6	37
CBRC0048	20	57	37	18.8	34.8	629	35	120	3	17
Inc	20	21	1	18.8	0.9	9024	688	2293	52	277
CBRC0049	17	27	10	16	9.4	513	23	83	2	12
CBRC0050	16	21	5	15	4.7	380	16	57	1	6
CBRC0050	51	55	4	47.9	3.8	456	20	71	1	7
CBRC0051	15	23	8	14.1	7.5	783.2	35	117	3	15
Inc	19	21	2	17.9	1.9	1447	61	207	5	29
CBRC0052	18	42	24	16.9	22.6	435.2	18	65	2	9
CBRC0053	13	25	12	11.8	10.9	413	19	67	1	7
CBRC0054	18	35	17	16.9	16	920.1	40	139	3	15
Inc	22	28	6	20.7	5.6	1446	67	238	5	26
CBRC00091	30	50	20	29.5	19.7	550	28	101	2	13
Inc	31	39	8	30.5	7.9	875	48	176	4	21

1 Drilled in 2020, re-analysed for REEs

Rare earth mineralisation is open in all directions and the continuity and consistency of rare earth mineralisation indicates that there may be a significant opportunity to increase the extent of the mineralisation's footprint. Similar saprolite horizons are also developed over the at Barns, White Tank and Baggy Green Deposits. Targeted REE analyses of the drill samples used to define these deposits presents as a low-cost exploration opportunity to define further rare earth mineralisation in the region.

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Project Description

The Wudinna Gold Project Joint Venture comprises a 2,027km2 land holding in the Gawler Craton. The Wudinna Gold Project within the Joint Venture tenement holding comprises a cluster of gold prospects which includes the Barns, White Tank and Baggy Green Deposits (refer Figure 2).

Figure 2: Wudinna Gold Joint Venture location plan

The Central Gawler Gold Province is a belt of gold-dominant mineralisation which formed approximately 1590 million years ago during the regionally extensive Hiltaba/GRV tectonothermal event. Gold mineralisation at the Barns, White Tank and Baggy Green Deposits is hosted by variably deformed granodiorite/gneiss interpreted to belong to the Tunkillia Suite, a group of 1690Ma granitoids that form important host rocks in the Central Gawler Gold Province.

Resource estimates for the Barns, White Tank and Baggy Deposits are shown in Table 3.

Table 3: Wudinna Gold Camp Mineral Resource

	Deposit			Classification			Mt			Grade (g/t Au)			Gold ounces
				Indicated	0.41		1.4		18,000
	Barns			Inferred	1.71		1.5		86,000
				Total	2.12		1.5		104,000
	White Tank			Inferred	0.28		1.4		13,000
	Baggy Green			Inferred	2.03		1.4		94,000
		Total	4.43		1.5		211,000
				Note: inconsistencies in totals due to rounding

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