Alderan Resources : AL8 drilling at Drum and Mizpah highlights upside potential

ASX ANNOUNCEMENT

22 March 2022

only	Alderan drilling at Drum and Mizpah gold deposits highlights
upside potential
	HIGHLIGHTS
		• The mineralised systems at Alderan's Drum and Mizpah oxide gold deposits at its Detroit
		Project in Utah, USA have potential to be significantly larger than historically defined. Alderan
		has recommenced drilling at Drum.
use	• Mizpah hole 3DD22-001, 350m west of the modelled oxide gold deposit, has intersected 69m
@ 0.18g/t Au including 5m @ 0.78g/t Au in contact metamorphosed carbonates and clastics.
• Alderan's first hole at Drum, 9DD22-001, intersected 6.3m @ 2.9g/t Au and 1.5m @ 5.6g/t Au
		within a thick gold mineralised interval of 16.2m @ 1.04g/t Au, verifying and extending
		historical drill intersections in Drum's East Pit.
		• 9DD22-001 result provides confidence in Alderan's modelling of remnant gold mineralisation
		below the pit - Alderan's in-pit rock samples at Drum assayed up to 10.7g/t gold.
personal	• Hole 9DD22-003 completed below Drum's East pit targeting high-grade remnant gold
mineralisation. Core oxidized to 111m downhole and targeted stratigraphy traversed - results
		expected in April.
		• Drum has not received modern exploration since mining ceased in 1989.
		• Next steps - verification drilling, further resource modelling to understand oxide gold
		economics at Mizpah and Drum and deposit drill outs.
For
	Figure 1:
			Drilling at
			Drum
			Gold
			Mine.

ASX ANNOUNCEMENT

22 March 2022

Alderan Resources Limited (ASX: AL8) (Alderan or the Company) is pleased to announce drilling has recommenced at the Drum Gold Mine (Drum) within its Detroit Project, located in the Drum Mountains region of western Utah, USA.

onlyDrum Drilling

Alderan's drilling at Drum aims to confirm the presence and grade of remnant oxide gold mineralisation which the Company has modelled from historical drill hole data. Once this is completed, the focus will move to extending and delineating the deposit which is open both down dip and along strike.

Alderan's initial hole at Drum, 9DD22-001, intersected a thick oxide gold mineralised interval of 16.2m grading 1.04g/t Au from 60.2m downhole which included higher grade intervals of 6.3m grading 2.9g/t Au and 1.5m usegrading 5.6g/t Au1. This result verifies gold grades in historical holes drilled into the East Pit and also provides confidence in Alderan's modelling of gold mineralisation remaining at Drum when mining ceased in 1989 (see

Figures 2 & 3)2.

Alderan has completed hole 9DD22-003 (a redrill of hole 9DD22-002 which was abandoned) designed to test the southern end of the East Pit, where Alderan modelling indicates a 10-20m zone of oxide mineralisation grading +1.0g/t Au remains below the pit bottom, at a depth of 145.24m. Historical holes neighbouring the trace of 9DD22-002 include DM-12 which intersected 67m @ 0.9g/t Au from surface with last assay 2.8g/t Au and DM-

24 which intersected 22.9m @ 1.2g/t Au from 47.2m downhole with its final assay 1.9g/t Au (see Figure 4). personalLogging has highlighted that oxidation extends to 111m downhole and that the hole traversed the stratigraphy that hosts mineralisation in the East Pit. Sampling of the hole is complete with all samples delivered to ALS

l boratories for analysis. For

Figure 2: Plan showing completed and proposed drill holes at Drum on modelled mineralisation from historical drill holes.

1. Alderan ASX announcement dated 25 February 2022.
2. Alderan ASX announcements dated 18 & 19 November 2021, 30 December 2021

ASX ANNOUNCEMENT

22 March 2022

The drill rig is now at Site A-1 on the north-western side of the West Pit where it will drill to the north to test down dip from Alderan in-pit rock samples which contained up to 10.7g/t Au (see Figure 5) and in the vicinity of onlyhistorical drill holes YC-114 and YC-115 which intersected 9.1m @ 2.0g/t Au from 49m downhole and 7.6m @

2.8g/t Au from 43m downhole respectively.

Alderan Managing Director Scott Caithness said: "Drum is clearly a high potential oxide gold deposit. Historical drill holes have thick high grade gold intersections such as 23m @ 5.0g/t Au, individual drill sample assays grade up to 39g/t Au, the deposit is open and the potential for primary gold mineralisation below the oxide h rizon has never been tested. Alderan's in-pit rock sampling with assays up to 10.7g/t Au and its first verification drill hole which intersected 16m @ 1.0g/t Au provide confidence in its assessment that there is significant remnant oxide mineralisation and high gold grades.

use"Once 3-4 verification holes have successfully been completed, Alderan's focus at Drum will move to extending and delineating the deposit.

"It is also exciting to see the highly anomalous gold in the bold step-out hole 3DD22-001 at Mizpah as it suggests that the mineralised system could be much larger than modelled from historical drilling. The Mizpah forward programme will be largely the same as Drum with verification drilling followed by deposit delineation.

Further resource modelling to understand the economics of a potential oxide gold mine development at Drum

and Mizpah is also an important next step as it will help set targets and guide the deposit evaluation process." personalFor

Figure 3: East-west cross section showing mineralised intersection along trace of hole 9DD22-001.

ASX ANNOUNCEMENT

22 March 2022

For personal use only

Figure 4: North-south section through Drum East Pit that shows potential high grade remnant gold mineralisation below the

southern pit bottom which is the target of hole 7DD22-003.

Figure 5: Alderan in-pit rock sample assays at Drum plus completed and proposed drill holes. Samples in the pit above the trace

of hole 9DD22-003 and the proposed trace of the hole from Site A-1 contain high gold grades up to 10.65g/t.

ASX ANNOUNCEMENT

22 March 2022

Mizpah Drilling

onlyGold assays received for hole 3DD22-001, drilled to a depth of 164.89m, are highly anomalous and suggest the Mizpah deposit could be significantly larger than modelled from historical drilling. Assays down 3DD22-001 range up to 0.98g/t Au within an intercept of 69.5m grading 0.18g/t Au from 87.48m downhole which includes 5m @ 0.77g/t Au (see Figure 6).

The hole was designed to test the down dip extent of Alderan's DD20M-006 mineralised intercept which intersected 83m @ 0.41g/t Au from 35.8m downhole including 6.9m @ 1.98g/t Au3. Due to its close proximity to the Basin Porphyry intrusive complex, the hole traversed a sequence of interbedded metamorphosed carbonates and fine-grained clastic sediments consistent with stratigraphy throughout the Detroit district. The metamorphism has resulted in the development of marbles, skarns and hornfels and the contacts between the carbonates and

useclastics are sheared and brecciated.

The amount of gold encountered down 3DD22-001 is regarded as highly significant as it suggests that the Mizpah mineralised system could be significantly larger than previously defined. The hole is approximately 190m down dip of the DD20M-006 intersection and 350m down dip to the west of the margin of the Mizpah deposit.

Alderan's modelling of historical drilling indicates that Mizpah currently has a north-south strike length of approximately 350m and down dip width of 200m. The deposit is open along strike to the north and south and

hole 3DD22-001 suggests that the gold mineralisation could extend for a further 350m down dip. personalFor

Figure 6: Plan showing Mizpah gold mineralised blocks above 0.15g/t Au cut-off grade based on historical drill holes, significant

historical drill hole intersections and the location of hole 3DD22-001.

3 Alderan ASX announcement dated 21 August 2021.