Highlights:
• Outstanding results have been achieved through Hexagon’s 2021 ultrafine fraction soil sampling program. Including results of up to 3.63g/t 3PGE (Pd+Pt+Au).
• Significant results included:
• MIS00399 @ 3.63g/t 3PGE, 0.35% Cu, 0.18% Ni,
• MIS00746 @ 3.01g/t 3PGE, 0.27% Ni, and
• MIS01712 @ 3 g/t 3PGE, 0.24% Ni.
• Geochemical assessment of 2021 assay data has been completed by Dr. Dennis Arne, of Telemark Geosciences Pty Ltd, identifying three high priority “Drill-ready” Ni-Cu-
PGE targets within the greater Melon Patch Prospect area.
• A further 17 highly prospective Ni-Cu-PGE targets have been identified across both the greater Melon Patch, Melon Patch North and Mabel Hill prospects. Further soil
sampling (geochemical), geological mapping and geophysical work recommended and is planned for the upcoming 2022 field season.
• Unlocking Ni-Cu-PGE value at the McIntosh Project is core to Hexagon’s future energy materials strategy capitalising on the global shift to cleaner technologies.
o March 2022 has seen high-grade Nickel prices reach 20-year record highs of US$100,000 a tonne1.
The outstanding results include raw assay values of up to 3.63 g/t 3PGE (Pd+Pt+Au).
The assessment, completed by Dr. Dennis Arne, Director of Telemark Geosciences Pty Ltd (HXG ASX Announcement 16 December 2021), has identified 20 ranked target areas (Figure 1 and Table 1) which cover both the greater Mabel Hill, Melon Patch North and Melon Patch prospects including three high priority “Drill-ready” targets.
The geochemical assessment included review of the 2021 UFF soil sample data (ICP-MS geochemistry and hyperspectral). The assessment was aimed at identifying areas of interest for further geological assessment for (but not limited to) Ni-Cu-PGE mineralisation.
McIntosh lies within 30 km of recorded Ni-Cu-PGE occurrences and substantial deposits including the +2 Moz Panton PGM Project4 owned by Future Metals Limited (ASX: FME) and Panoramic Resources Limited’s (ASX: PAN) Copernicus Ni-Cu Deposit. Mcintosh lies regionally within the same geological setting as Panoramic Resources Limited’s Savannah and Savannah North Ni-Cu operations5.
Hexagon’s Managing Director, Merrill Gray, said“The 2021 UFF soils program covered an area of approximately 50km2 within our overall project area which covers 480km2
These results confirm the Ni-Cu-PGE potential at McIntosh. We are excited about the drilling program planned for 2022 which includes the three “Drill-ready” targets this work identified.
With a further program of geophysical, geological mapping and geochemical work now being planned,additional “Drill-ready” targets across the 17 other priority targets are likely to be defined. These results validate the systematic approach that the Hexagon exploration team has taken at McIntosh over the past two years.
These results couldn’t have come at a better time given market interest in Nickel and PGE’s.” (HXG ASX Announcements: – 28 June 2021, 19 August 2021, 12 October 2021, 11 November 2021).
Executive Summary Figure 1 shows the three “Drill-ready” targets and the additional areas of interest identified through the UFF 2021 soil sample assessment now completed.
The 2021 UFF soils program was designed on a 100m x 100m offset grid with 5,170 samples collected over the Melon Patch, Melon Patch North and Mabel Hill prospects. A total of 5,062 samples were analysed.
Dr. Dennis Arne has undertaken a fully integrated geochemical review of the Geochemical data from the 5,062 samples with a 52-element suite and hyperspectral minerology.
This resulted in a series of ranked variable thematic maps, gridded percentile images, RGB thematic maps and weighted sums models being generated for Ni-Cu-PGE, Cu-Mo-Au, and Au-As-Sb-W. This approach resulted in 20 ranked geochemical areas of interest being identified, including three high priority “Drill-ready” target areas as shown in Figure 1.
At each of the prospects, the sampling was designed to test areas of Panton Sill Intrusive and/or the Wild Dog Creek Gabbro/Panton Sill equivalents and their related contacts with the Tickalara Metamorphics.
While a number of geological models are being used to guide exploration (refer Appendix 1), Hexagon is amongst the first to focus on remobilised mineralisation at these contact zones.
Figure 1 – Ranked UFF priority target area over the Greater Melon Patch prospect area with the Level Pt-Pd by simplified bedrock lithology.
Panton Peridotite TargetsPanton Peridotite targets lie within the greater Melon Patch prospect area (refer Figure 2). They were identified as part of the historic geochemical review completed in 2021 by Hexagon over the McIntoshProject area (HXG ASX Announcement 28 June 2021 and 2 February 2022 and Appendix 1).
This review has further highlighted the potential of the Melon Patch area where there is a levelled Pt+PdUFF soil anomaly stretching 2.3 kilometres in strike and up to 350metres in width. Anomalies recorded inmultiple samples at Melon Patch include anomalous levels Ni, Cu, Ag & PGE with raw assay data including
MIS0399 @ 3.63g/t 3PGE, 0.35% Cu, 0.18% Ni & MIS0146 @ 3.01 g/t 3PGE, 0.27% Ni (Figure 3 & Table 2).Figure 3 shows, on a more granular basis, the location and spacing of the UFF soil program resultsreceived in this target area.
Historic drilling completed to date in this area has consisted of nine holes drilled in four sections at~500m line spacing (Figure 2). This defined two semi-continuous peridotite (Panton Suite) hostedchromite seams with 3PGE (Pt+Pd+Au) grades including SMP002: 1m @ 1.00g/t 3PGE and SMP006: 20m@ 0.75g/t 3 PGE (Figure 4) (HXG ASX Announcement 2 February 2022).
Drilling in the area has beenlimited to the northern western trending contact of the newly defined anomaly, with the south western
portion of the anomaly remaining untested (Figure 2).
Panton Gabbro 1 Target
The Panton gabbro target lies directly to the NE of the Panton Peridotite target, set out in Section 2above, within the greater Melon Patch prospect. It consists of a levelled Ni-Cu-Au, with elevated PGE, UFFsoil anomaly striking 1.1 kilometres and up to 350 metres in width (refer Figure 2). With raw assay dataincluding MIS01712 @ 3 g/t 3PGE, 0.24% Ni & MIS00304 1.23g/t 3PGE, 0.22% Ni (Table 2).
No known drilling has been undertaken within this anomaly.
Rock chip sample MCI009 taken during the 2021 field season (HXG ASX Announcement 19 August 2021)contained elevated Ni and PGE. It sits within the newly defined anomaly and has been interpreted to bederived from a mafic source (Table 2).
Wild Dog Creek (WDC) Gabbro 1 Target
The WDC Gabbro 1 Target lies within the greater Melon Patch prospect. It consists of a levelled Ni-Cu-AuUFF soil trending anomaly with a strike length of 1.25 kilometres and up to 320 metres in width (referFigure 2). With raw assay data including MIS01899 @ 0.12% Cu, 0.10% Ni, 150ppb Au and MIS01993 @0.10% Cu, 0.14% Ni (Table 2).
More 2021 UFF Soil Sampling Program Results to come
Hexagon’s UFF soils program was conducted as part of a larger UFF soil geochemistry research programthat the CSIRO is conducting. This program uses machine learning combined with the UltraFine+TMworkflow processes developed by the CSIRO that separate the <2 μm “ultrafine” soil fractions for multielementanalysis, while taking into consideration commonly not used, physico-chemical parametersincluding spectral mineralogy, pH, EC and particle size distribution.
This new method delivers more reproducible, reliable results, with 100-250% increased detection ofconcentrations of Au, Cu and Zn than from standard <250 μm fraction analysis and removes the “nuggeteffect” in analytical results.
Next Steps for Ni-Cu-PGEs at McIntoshFirst pass Reverse Circulation (RC) drilling programs will now be progressed for the three Priority 1target/”Drill-ready” areas and be incorporated into the 2022 field season program of work.
As a result of the success of the UFF soil program a further infill soil sampling program will take place on anumber of lower priority target areas to further increase confidence levels prior to decisions to drill beingmade.
Entirely new UFF soil sampling programs will be undertaken at the Willis, Panton North and the actualMcIntosh prospects. A sampling contractor has been engaged and is expected on site by early May 2022to do this work. In addition, an Inverse Polarisation (IP) geophysical crew are due on site in mid-April tocollect data that infills the lines at the “Anomaly A” target previously run (HXG ASX 11 November 2021announcement).
All dates are subject to the conclusion of the current wet season.
All statutory approvals have been or are being submitted in relation to the 2022 field program by theCompany with outcomes expected in Q4 FY 2021/22.
In addition, on 14 February 2022 Hexagon signed a Binding Terms Sheet Earn-In Agreement with GreenCritical Minerals Pty Ltd (Green Critical Minerals). This Agreement will bring further exploration fundingand expertise to the McIntosh Project’s Graphite resources, leveraging off past investments made by Hexagon. It will result in exploration and drilling data sharing and exploration resource sharing during thefield seasons.
Co-funding for drilling secured through Round 24 of the Western Australian Government
Exploration Incentive Scheme (EIS)Hexagon successfully applied for and secured funding through the Western Australian Government’sExploration Incentive Scheme to co-fund drilling at McIntosh. A total of $100,000 has been secured.
The funding will be used to cover part of the cost of drill testing Anomaly 22 during the upcoming drillingprogram. (HXG ASX Announcement 11 November 2021).
Hexagon moving forward overall
Unlocking Ni-Cu-PGE value at the McIntosh Project is core to Hexagon’s future energy materials strategy,supporting the global shift to cleaner technologies. The 2022 field season drilling program is the key nextstep for Hexagon.
Past McIntosh drill core that was being held in Hexagon’s warehouse, collected during Hexagon’sGraphite focussed drilling programs, completed between 2015 and 2019, potentially containing Nickeland Copper mineralisation (logged at the end of drill hole THGDD178 below the current Wahoo graphitedeposit (HXG ASX Announcement 2 February 2022)) has now been resampled and is currently beinganalysed for Ni-Cu-PG, with results expected shortly.
Across the rest of Hexagon’s portfolio of assets, commercial negotiations with parties in relation to theHalls Creek Gold and Base Metals ground holdings are continuing, as are negotiations in relation to thekey components of the WAH2 Future Energy/Clean Hydrogen project (HXG ASX Announcement 7 March2022).
The McIntosh Project area has proven Ni-Cu-PGE mineralisation potential. An historical drill intersectionwithin mapped Panton Suite contained: 20 m @ 0.75 g/t 3PGE.
Other intersections were also recorded (HXG ASX Announcement 2 February 2022).
McIntosh lies within 30 km of known Ni-Cu-PGE occurrences and substantial deposits including the +2Moz Panton PGM Project6 owned by Future Metals Limited (ASX: FME) and Panoramic Resources Limited(ASX: PAN) Copernicus Ni-Cu Deposit and regionally includes Panoramic Resources’ Savannah andSavannah North Ni-Cu operations7.
B. Exploration Models used to Guide Ni-Cu-PGE Exploration at McIntoshFollowing discovery of the Sally Malay/Savannah deposit, a Voisey’s Bay8 style exploration model
(potential for massive Ni-Cu sulphide mineralisation) was adopted to guide historic exploration datainterpretations and drill targeting over the McIntosh Project area.
This approach was based on the manysimilarities that the deposits share including age, tectonic setting, mineralisation suite and intrusionstyles. Similarly, a Stillwater/Bushveld Complex “reef” type PGE mineralisation model was applied toPanton Sill and equivalents (WDG) based on PGE bearing chromitites and associated harzburgitic sequences.
Exploration in the 1980s also defined mineralisation at the Copernicus deposit and Eileen Bore, thatshowed fault-controlled remobilisation of Ni-Cu-Co mineralisation.
A further potentially applicable exploration model being pursued by Hexagon at McIntosh is a larger,lower grade disseminated Ni sulphide deposit, such as that seen at Santa Rita Ni deposit in Brazil held byAtlantic Nickel Ltd9, and Selebi Phikwe Ni deposit in Botswana, held by Premium Nickel Resources10.
These are both examples, within similar age, high grade metamorphic terranes, of large, low grade maficto ultramafic hosted deposits.
In addition, the Uitkomst Complex in South Africa is considered analogous to geology mapped at the McIntosh Project. The Uitkomst Complex is a satellite Bushveld age (2.05–2.06 Ga) mafic to ultramaficayered complex that displays an “inverted” sequence of mafics that become progressively ultrabasicupwards. Ni-Cu-Co-PGE mineralisation is associated with gabbro hosted disseminated to massivsulphides at its base with harzburgitic chromeiferous horizons located higher up in the layered sequence.
This exploration model fits both the Cr and Ni-Cu mineralisation recorded with Panton Sill type intrusivesand possibly fits with the mineral assemblages of the Wild Dog Creek Gabbro (refer Figure 7).
APPENDIX 2
2022 UFF Soil Program Ranking Criteria Used
The following sets out the ranking system using in Dr. Arne’s assessment and follow up actions that havebeen recommended:
• A Priority 1 area included multiple samples all showing anomalous levels of Cu, Ni, Au and PGE,often associated with elevated Co and Cr, with other samples elevated in at least one of theseelements, all hosted within a sizable mafic to ultramafic body.
With PGE and/or magmatic Ni-Cu mineralisation demonstrated through historical drilling and/orrecent rock chip sampling.
Follow up: Immediate RC drill target/“Drill-ready” target.
• A Priority 2 area is more limited samples, all showing anomalous levels of Cu, Ni, Au and PGE oftenassociated with elevated Co and Cr, with other samples elevated in at least one of these elements.
These results are not supported by rock chip sampling or historical drilling, or in a small mappedintrusive body.
Follow up: Possible drill target pending additional sampling and/or geological mapping.
• A Priority 3 area is where at least one sample showing anomalous levels of Cu, Ni, Au and PGE,possibly associated with elevated Co and Cr, with other samples elevated in at least one of theseelements. These results were not supported by rock chip sampling or historical drilling.
Follow up: Early-stage target with further work required to increase confidence levels pre-drilling.
• Other priorities are where several samples with anomalous levels of either Cu, Ni, Au and PGE, butno samples were elevated in all elements where there were some possible associations.
Follow up: Early-stage target with substantial further work required to increase confidence levelspre-drilling.
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