Hexagon Energy Materials : Further Airborne EM High Priority Anomalies at Halls Creek

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ASX Announcement | 7 December 2021

Hexagon Energy Materials Limited (ASX: HXG)

Further Airborne EM (VTEM) High Priority Anomalies identified

at the Halls Creek Project.

Final interpretation of the 2021 Airborne EM (VTEM) data has identified eight high priority

anomalies and a further 17 lower priority anomalies at the Halls Creek project.

Key Highlights:

• A comprehensive interpretation of the final data sets from the 2021 VTEM™ Max survey has highlighted seven high, fifteen moderate and two lower priority anomalies at Hexagon's Halls Creek Project. Hexagon's ASX Announcement of 22 July 2021 originally highlighted five High Priority Targets at Halls Creek through this survey.
• This airborne electromagnetic (AEM) VTEM™ Max survey at the Halls Creek Project was designed to target potential Volcanic Massive Sulphide (VMS) style mineralisation within The Kongie Park formation within the Halls Creek project area.
• Exploration drilling co-funding for use in the upcoming Halls Creek Project drilling program has been secured through Round 24 of the Western Australian Government Exploration Incentive Scheme (EIS).
• Discussions are underway with select parties interested in working with Hexagon to progress gold and base metals exploration at Halls Creek.

Hexagon Energy Materials Ltd (ASX: HXG; "Hexagon" or "the Company") is pleased to announce it has received the final interpretation from the VTEM™ Max survey airborne electromagnetic (AEM) survey conducted at its Halls Creek Project. Comprehensive interpretation of the final data sets has highlighted seven high, fifteen moderate and two lower priority anomalies within the project area. The seven high priority targets were selected due to their conductivity, size and proximity to other features of interest or known mineralisation.

The survey was designed to target potential Volcanic Massive Sulphide (VMS) style mineralisation within the Kongie Park Formation Project (Figure 1). These were highlighted in an extensive aero magnetic survey undertaken by HXG in 2019, including Tiger, Sophie Downs and Five Mile Bore (see ASX announcement 22nd July 2021).

Hexagon Managing Director, Merrill Gray commented: "The final interpretation of the AEM Survey has added significant value to our Halls Creek Project. Significant anomalies were identified within a well- known historic gold region. The region is receiving a great deal of renewed interest and we look forward to furthering our discussions with parties interested in working with us to progress gold and base metals exploration at Halls Creek."

"The exploration program at McIntosh is being undertaken concurrently with the Pre-Feasibility Study work on Hexagon's Northern Territory (Pedirka) Hydrogen Project, for which a progress update will be announced shortly", Ms Gray said.

HEXAGON ENERGY MATERIALS LIMITED

Australian Business Number (ABN) 27 099 098 192

Registered Office: Suite 3, 7 Kintail Road, Applecross, Western Australia 6153

t: ([phone] e: [e-mail] w: hxgenergymaterials.com.au

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Geophysical consultant Karen Gilgallon from Southern Geoscience Consultants (SGC) was commissioned to assist in the planning of the survey and has undertaken the final review and interpretation of the AEM data detailed in Table 1.

Hexagon has also successfully applied for and secured funding through the Western Australian Government's Exploration Incentive Scheme to co-fund drilling to be undertaken at the drill ready Lady Helen prospect. A total of $25,000 has been secured.

Figure 1: Location of anomalous VTEM responses on magnetic RTP image.

Next Steps

Work has commenced with SGC on preparations for follow-up surface EM (MELM) surveys across each of the high priority anomalies. The surveys will be undertaken as soon as possible, subject to geophysical crew availability and in conjunction with surface geochemical sampling and geological mapping, prior to drill testing.

Discussions are underway with select parties interested in working with Hexagon to drill and develop the identified priority targets and progress gold and base metals exploration at Halls Creek. Some of these parties have existing ground holdings in the Halls Creek area which Hexagon's tenement package would strongly complement.

Hexagon will continue to advise the market as information becomes available.

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Target ID

HC_A01

HC_A01b

HC_A02

HC_A03

HC_A04

HC_A05

HC_A06

HC_A07

HC_A08

HC_A09

HC_A10

HC_A11

HC_A12

HC_A13

HC_A14

HC_A15

HC_A16a

HC_A16b

Priority	Easting	Northing	Description
	(MGA94Z52)	(MGA94Z52)
			Close to infrastructure complex anomalies -
2	357874	7986192	ground truthing required
			Close to infrastructure complex anomalies -
2	358325	7985825	ground truthing required
			Discreet late time anomaly ~200m wide. No
1	358004	7987319	clear culture feature present, Coincident with
			Major fault intersection and demagnetisation in
			associationwith the Campbell Au occurrence
			and minor
			faults in Koongie Park units.
			Discreet late time anomaly ~200m wide. No clear
2	363206	7995163	culture feature present
			Discreet late time anomaly ~200m wide. No clear
2	362247	7996404	culture feature present
			Late time conductor high amplitude at late times
1	367875	7991746	- 500m strike length possibly joined to A6
			Early to mid-time conductor, likely shallow IP
			effects present. Coincident with AMAG target 8
			(Report SGC3614) ; Localised, strong magnetic
1	368473	7992895	units in Koongie Park, adjacent to a major fault.
			Approximately 700m moderate amplitude
2	369529	7999974	anomaly.
			Discreet 200m wide anomaly moderate
2	370349	7999581	amplitude 200m
			Discreet 200m wide anomaly moderate
2	370934	7999863	amplitude 200m
			short strike length late time anomalies offset
			from long stratigraphic conductors strongest on
1	342175	7994525	L1260
			Potentially moderate stratigraphic, near mineral
			occurrence (Moola Bulla 5, Pb, Cu, Zn, Ag), with
2	340689	7992850	to 2km length IP effect
			Short strike length late time anomalies,
1	344185	7997845
			Possible discreet anomaly - very late time board
1	376047	7985940	likely flattish conductor, coincident with discreet
			magnetics anomaly
			Possible discreet anomaly - very late time board
2	373074	7986894	likely flattish conductor
			Very late time, high amplitude - high priority for
1	374261	7997295	ground follow up
2	360651	7990698	Low amplitude late time ch30-40, 600m anomaly
2	361319	7991179	Low amplitude late time ch30-40, 600m anomaly
	Table 1: List VTEM anomalies at the Halls Creek Project.
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This announcement has been authorised by Board of Directors of Hexagon Energy Materials.

Competent persons' attributions

The information within this announcement that relates to Exploration Results and Geological data at the Halls Creek Project is based on information compiled by Mr Michael Atkinson and is subject to the individual consents and attributions provided in the original market announcement and reports referred to in the text of this announcement. Mr Atkinson is not aware of any other new information or data that materially affects the information included in the original market announcement or reports referred to, and all material assumptions and technical parameters have not materially changed.

Mr Atkinson is a consultant to the Company and a member of The Australian Institute of Geoscientists. He has sufficient experience relevant to the styles of mineralisation and types of deposits under consideration and to the activities currently being undertaken to qualify as a Competent Person(s) as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results Mineral Resources and Ore Reserves and he consents to the inclusion of the above information in the form and context in which it appears in this report.

ABOUT HEXAGON ENERGY MATERIALS LIMITED

Hexagon Energy Materials Limited (ASX: HXG) is an Australian company focused on the development of clean energy projects and exploration for energy materials projects.

Hexagon is developing a business to deliver decarbonised hydrogen into export and domestic markets. The Pre-Feasibility Study for the NT (Pedirka) Hydrogen Project located in Australia's Northern Territory, utilising gasification and carbon capture and storage (CCS) is in progress.

Hexagon plan is to progressively increase its renewable energy inputs and lower its carbon emissions as it transitions from blue to green hydrogen production, on a commercial basis, over time.

Hexagon also owns the McIntosh Nickel-Copper-PGE and Graphite project in Western Australia (WA) and the Halls Creek Gold and Base metals project also in WA. In the US, Hexagon has an 80 per cent controlling interest of the Ceylon Graphite project in Alabama.

Hexagon is actively progressing value accretive transactions consistent with its strategy, skill set, and focus on clean energy and clean energy materials.

To learn more please visit:www.hxgenergymaterials.com.au

FOR FURTHER INFORMATION, please contact:
Hexagon Energy Materials Limited	Media Enquiries
Merrill Gray	Nick Howe
Managing Director	GRACosway
[e-mail]	[e-mail]
[phone]	[phone]

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Appendix 1: JORC Table 1 Hall Creek

Section 1 Sampling Techniques and Data

only

Criteria

JORC Code Explanation

Commentary

Sampling

•

Nature and quality of sampling

● The Airborne Electromagnetics, Versatile Time Domain

techniques

•

Include reference to measures taken to

Electromagnetics (VTEM) surveying was completed by

ensure sample

representivity and

the

UTS Geophysics PTY LTD, using the VTEM Max system

appropriate

calibration

of

any

in May 2021.

measurement tools or systems used.

Drilling

•

Drill type (e.g., core, reverse circulation,

●

Not Applicable

Techniques

open-hole hammer, rotary air blast,

auger, Bangka, sonic, etc) and details

(e.g., core diameter, triple or standard

tube, depth of diamond tails, face-

use

sampling bit or other type, whether core

is oriented and if so, by what method,

etc).

Drill

sample

•

Method of recording and assessing core

●

Not Applicable

recovery

and chip sample recoveries and results

assessed.

• Measures

taken to

maximise

sample

recovery

and

ensure

representative

nature of the samples.

• Whether

a

relationship

exists between

sample recovery and grade and whether

sample bias may have occurred due to

personal

preferential

loss/gain

of

fine/coarse

material.

Logging

•

Whether core and chip samples have

● VTEM Airborne EM data is recorded 0.1sec.

been geologically

and

geotechnically

logged to a level of detail to support

appropriate

Mineral

Resource

estimation,

mining

studies

and

metallurgical studies.

• Whether

logging

is

qualitative

or

quantitative in nature. Core (or costean,

channel, etc) photography.

• The total length and percentage of the

relevant intersections logged.

Sub-sample

•

If non-core, whether riffled, tube

● VTEM data recordings were taken at 0.1Sec.

techniques

and

sampled, rotary split, etc and whether

sample

sampled wet or dry.

preparation

•

For all sample types, the nature, quality

and appropriateness of the sample

preparation technique.

• Quality control procedures

adopted for

all sub-sampling stages to maximise

representivity of samples.

•

Measures taken to ensure that the

sampling is representative of the in situ

material collected, including for instance

For

results for field duplicate/second-half

sampling.

• Whether sample sizes are appropriate to

the grain size of the material being

sampled.

Quality of assay

•

The nature, quality and appropriateness

• The noise levels on the VTEM data are approximately

data

and

of the

assaying

and

laboratory

0.001pV/Am4

laboratory tests

procedures used and whether the

technique is considered partial or total.

•

Nature of quality control procedures

adopted

(e.g.,

standards,

blanks,

duplicates,

external

laboratory

checks)

and whether acceptable levels of

accuracy (i.e., lack of bias) and precision

have been established.

Verification

of

•

The verification of significant intersections

•

Not Applicable

sampling

and

by either independent or alternative

assaying

company personnel.

• The use of twinned holes.

•

Documentation of primary data, data

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