28 Oct 2021

Wilcherry Project Nickel Sulphide Target

Alliance Resources Ltd ASX Announcement 28 October 2021 1 ASX ANNOUNCEMENT NICKEL SULPHIDE EXPLORATION TARGET IDENTIFIED AT WILCHERRY PROJECT Bonza Prospect Re - analysis of historic iron exploration drill sample pulps intersects broad zones of nickel mineralisation 1 at the Wilcherry Hill Bonza Prospect Significant assay resu lts include: • 67m @ 0.18 % Ni from 135m in 08NMRC005 to end of hole incl. 15m @ 0.28 % Ni from 138m • 87m @ 0.15 % Ni from 105m in 08NMRC013 • 42m @ 0.34 % Ni from 106m in 08NMRC018 incl. 3m @ 1.12 % Ni from 112m • 15m @ 0.18 % Ni from 166m in 08NMRC018 to end of hol e • 77m @ 0.14 % Ni from 123m in 08NMRC032 to end of hole Nickel assay results correlate with ~8 kilometre long high - magnetic anomaly interpreted to be associated with nickel - prospective ultramafic rocks Bonza Prospect target area also associated with he licopter - borne electromagnetic anomaly and gravity high anomaly Staged exploration program planned to better understand host rocks, develop mineral exploration model, and identify bedrock conductors for targeted drill testing Alliance Resources Ltd (Alli a nce) is pleased to announce that it has identified a priority nickel sulphide exploration target named Bonza Prospect at the Wilcherry Project, located in the southern Gawler Craton in South Australia . During 2021 Alliance complet ed a systematic rev iew of its’ exploration targets at the Wilcherry Project . P art of this process, which has been ongoing since 2017 , is the re - analysis of historic drill sample pulps for gold and base metals. In 2008 , Ironclad Mining drill tested a n ~8 kilometre long high - magneti c anomaly located 18 kil o metres to the west of the Weednanna Au - Fe d eposit ( Figure 1 ) for magnetite and hematite iron mineralisation . 23 RC holes (08NMRC005 - 024 & 030 - 032) , totalling 3,412 metres, were drilled along four traverses cover ing 3.9 kilometres strike lengt h of the high - magnetic anomaly. Note 1. Nickel analysis complete by ALS Laboratories on homogenous drill sample pulps using a portable XRF scan. The portable XRF scan is a semi - quantitative technique with precision and accuracy in the order of 20% depend ing on sample type . 28 October 2021 ALLIANCE RESOURCES LTD ASX: AGS ABN: 38 063 293 336 Market Cap: $ 40. 6 M @ $0.1 95 Shares on issue: 208,017,134 Principal Office: Suite 3, 51 - 55 City Road Southbank Victoria 3006 AUSTRALIA Tel: +61 3 9697 9090 Fax: +61 3 9697 9091 Email: info@allianceresources.com.au Web: www.allianceresources.com.au Projects: Wilcherry, SA (100%): g old , iron, base metals , graphite Nepean, WA (100%): gold - nickel Kalgoorlie Sth, WA (100%): gold - nickel Share Registry: Computershare Investor Services GPO Box 2975 Melbourne Victoria 3001 AUSTRALIA Tel: 1300 850 505 Fax: +61 3 9473 2500 Alliance Resources Ltd ASX Announcement 28 October 2021 2 ASX ANNOUNCEMENT 1,150 sample s were collected during the drilling program (consisting of 1m split and 3m composite samples ) and analysed for an ir on ore suite of elements using the XRF fusion technique , with assay results returning broad zones of low - g rade iron mineralisation. Alliance has located 888 (77%) of the historic drill sample pulps, representing 2,578 metres of drilling (76%), and re - anal ysed the samples at ALS commercial laboratory for Au using the fire assay technique and As, Ca, Cr, Cu, Fe , Mn, Ni, Pb, S, Sn, U, Zn using a portable XRF (pXRF) scan ner . T he pXRF scan ner is a semi - quantitative technique with precision and accuracy in the order of 20% , depending on sample type , that i s suitable as a cost effectively early - stage exploration tool to analyse for a variety of elements. Assay results have returned broad zones of > 0.1 % nickel anomalism listed in Table A including: • 67m @ 0.18 % Ni from 135m in 08NMRC005 to end of hole incl. 15m @ 0.28 % Ni from 138m • 87m @ 0.15 % Ni from 105m in 08N MRC013 • 42m @ 0.34 % Ni from 106m in 08NMRC018 incl. 3m @ 1.12 % Ni from 112m • 15m @ 0.18 % Ni from 166m in 08NMRC018 to end of hole • 77m @ 0.14 % Ni from 123m in 08NMRC032 to end of hole The majority of the rocks that host this nickel mineralisation also co ntain elevated chromium (> 0.1 % Cr) , magnesium oxide (> 18 % MgO) and low si lica (< 45 % Si) common characteris tics of ultramafic rocks. This geochemistry is distinct from skarn altered dolomite that occurs elsewhere in the Wilcherry p roject area , which a lters to forsterite (olivine) and serpentine and contains low Cr values. Preliminary geological logging of RC drill chips shows that the area is overlain by between 5 and 20 metres of transported cover ( Figure 5 ) . Weathering extends to greater that 100 me tres depth on the western side of the prospect and nickel anomalism appears to be associated with steep - dipping ultramafic rocks that are bounded to the west by metasedimentary and granitic lithologies . The u ltram afic rocks grade into mafic lithologies to the east and are the likely source of the high - magnetic anomaly as serpent ine alteration of ultramafic rocks creates magnetite. All drill holes that intersected > 0.1 % Ni are coincident with the high - magnetic anomaly ( Figure 2 ). The interpreted ultramaf ic rocks occur c oincident with a 3km long gravity high anomaly that is displaced slightly to the east ( Figure 3 ) , suggesting a thickening in the ultramafic - mafic stratigraphy, with mafic rocks to the east (as observed in drilling) . A 1,500m x 500m late ti me heli copter - borne electromagnetic ( EM ) conductive anomaly is also located within with the target area ( Figure 4 ) . This conductive anomaly may be associated with massive nickel sulphide mineralisation , deep weathering , or conductive metasediments . A groun d moving loop EM survey is required to better define the geometry and intensity of this anomaly for targeted bedrock drill testing. Discuss ion Even though the Gawler Craton is known to host volcanic and intrusive ultramafic rocks no economic concentration s of magmatic nickel sulphide mineralisation ha ve been discovered to - date . The identification of ultramafic rocks at the Bonza Prospect was not expected and analysis of Alliance’s extensive regional drilling database for the Wilcherry Project has not ident ified any other potential occurrences. Alliance Resources Ltd ASX Announcement 28 October 2021 3 ASX ANNOUNCEMENT The presence of thick zones of nickel anomalism hosted within a broad ultramafic to mafi c sequence that extends over ~8 kilometres strike length presents a priority nickel sulphide target are a that warrants further as sessment. Historic bedrock drill testing within the target zone is limited to four wide spaced traverses that were not designe d to test across the ultramafic footwall contact, which is where massive nickel sulphides often accumulate , and yet drilling has intersected up to 3m @ 1.12% Ni. This intersection of nickel mineralisation also contains 0.13% Cu (pXRF analysis) and 1.3% S ( XRF analysis) suggesting the presence of pentlandite (nickel sulphide), chalcopyrite (copper sulphide) and either pyrrhotite or p yrite (iron sulphide) that are common in magmatic nickel sulphide deposits. Future Work A s taged exploration program is planned to assess the nickel sulphide exploration potential of the Bonza Prospect . Alliance will initially complete a petrological a ssessment of historic RC drill chips to characterise the types of ultramafic and mafic rocks present , determine the volcanic or intrusive nature of the host lithologies , and develop a mineral exploration model. This mineral exploration model will then gui de future exploration, including detailed assessment of magnetic and gravity datasets, EM su rvey s , and bedrock drilling . Figure 1 . Wilcherry Project: Location of Bonza Prospect nickel sulphide target area Alliance Resources Ltd ASX Announcement 28 October 2021 4 ASX ANNOUNCEMENT Table A. Bonza Prospect: Summary of signif icant nickel assay results (> 0.1 % Ni) Hole_ID From (m) To (m) Interval (m) Ni (%) Cr (%) SiO 2 ( % ) MgO ( % ) Comments 08NMRC005 135 202 67 0.18 0.11 42 21 To end of hole incl. 138 153 15 0.28 0.12 42 15 08NMRC013 78 81 3 0.14 0.19 62 12 and 105 192 87 0.15 0.19 37 29 08NMRC018 88 91 3 0.21 0.02 55 14 and 106 148 42 0.34 0.15 33 11 incl. 112 115 3 1 .12 0.16 34 13 and 166 181 15 0.18 0.12 44 20 To end of hole 08NMRC030 81 84 3 0.11 0.23 44 4 and 189 198 9 0.17 0.09 58 2 08NMRC032 123 200 77 0.14 0.18 41 26 To end of hole Note: Ni and Cr assay results determined by pXRF scan, which is a semi - quantitative technique with precision and accuracy in the order of 20% depending on sample type. SiO 2 and MgO assay results determined using the XRF fusi on technique which is a more pre cise and accurate technique . Alliance Resources Ltd ASX Announcement 28 October 2021 5 ASX ANNOUNCEMENT Figure 2 . Bonza Prospect: Nickel mineralisation in drill holes on a 1VD aeromagnetic image Legend - Maximum Nickel in Hole B lue dots: 0 – 0.1 % Ni Yellow dots: > 0.1 % Ni White dots: hole s not referred to in this report (most of these holes are shallow RAB holes) A to A’ denotes location of 6376800mN cross - section. Refer to Figure 5 . A A ’ Alliance Resources Ltd ASX Announcement 28 October 2021 6 ASX ANNOUNCEMENT Figure 3 . Bonza Prospect: Nickel mineralisation in drill holes on a 1VD gravity image Legend - Maximum Ni ckel in Hole B lue dots: 0 – 0.1 % Ni Yellow dots: > 0.1 % Ni White dots: holes not referred to in this report (most of these holes are shallow RAB holes) Alliance Resources Ltd ASX Announcement 28 October 2021 7 ASX ANNOUNCEMENT Figure 4 . Bonza Prospect: Nickel mineralisation in drill holes on a Channel 40 heli - EM image Legen d - Maximum Nickel in Hole B lue dots: 0 – 0.1 % Ni Yellow dots: > 0.1 % Ni White dots: holes not referred to in this report (most of these holes are shallow RAB holes) Alliance Resources Ltd ASX Announcement 28 October 2021 8 ASX ANNOUNCEMENT Figure 5 . Bonza Prospect: 637 6800 mN Section ( R efer to Figure 2 for cross - section location) Legend - Nickel Assay Results Black lines: not analysed for Ni B lue lines: 0 – 0.1 % Ni Red line s: > 0.1 % Ni “05” denotes hole number “08NMRC005” This announcement has been authori s ed for release by the Board. K evin Malaxos Managing Director About Alliance Alliance Resources Ltd is an Australian gold and base metals exploration company with 100% owned projects in South Australia and Western Australia. The Company’s flagship project is the Wilcherry Proje ct, located within the southern part of the Gawler Craton, approximately 45 km north of the township of Kimb a, South Australia. W E 10 06 07 12 15 11 05 13 09 14 08 >0.1% Ni mafic ultra mafic metasediment weathered rock transported cover 87m @ 0.15% Ni 67m @ 0.18% Ni incl. 15m @ 0.28% Ni Alliance Resources Ltd ASX Announcement 28 October 2021 9 ASX ANNOUNCEMENT The Mineral Resource estimate for the Weednanna Gold Deposit, part of the Wilcherry Project, is 1.106 Mt grading 4.3 g/t gold f or 152,000 oz gold (classified 85% Measured & Indicated and 15% Inferred). Refer to ASX announcement dated 9 November 2020 for details concerning the Mineral Resource and the Competent Persons consent. The maiden iron resource for the Weednanna project was announced on 19 November 2020 and totals 1.15 Mt grading 59.4% Fe (classified as 65% Me asured & Indicated and 35% Inferred). Refer to ASX announcement dated 19 November 2020 for details concerning the Mineral Resource and the Competent Persons consent. Th ere is potential to increase the size of these Mineral Resources with further drilling. Alliance is not aware of any new information or data that materially affects the information included in the above - mentioned announcements. All material assumptions an d technical parameters underpinning the above - mentioned Mineral Resource estimates conti nue to apply and have not materially changed. An independent scoping study reported a positive outcome and supports a new, 250,000 tpa gold processing plant at Weednan na. Total indicative capital cost is approximately $44 million. Refer to ASX announcemen t dated 18 April 2019 for details concerning the scoping study including the above - mentioned financial information. All material assumptions underpinning the above - ment ioned financial information continue to apply and have not materially changed. Detailed Engineering design and Mine design studies have commenced to produce Detailed Feasibility Study (DFS) level designs and cost estimates for the g old processing plant an d proposed open pit and underground mining operations. Alliance also owns an 80 person camp located on leased land in the township of Kimba which will be utilised during construction and production . Competent Person The information in this report that re lates to the Exploration Results is based on information compiled by M r Anthony Gray. Mr Gray is a Member of the Australian Institute of Geoscientists and is an employee of Alliance Resources Ltd. Mr Gray has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activ ity which they are undertaking to qualify as Competent Person s as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves ’ . Mr Gray consent s to the inclusion in the report of the matter s based on their information in the form and context in which it appears. Alliance Resources Ltd ASX Announcement 28 October 2021 10 ASX ANNOUNCEMENT Table B. Summary of all RC holes drilled at the Bonza Prospect H ole ID N orthing MGA2020 Easting MGA2 020 mRL Azimuth D ip Hole Depth (m) 08NMRC005 6376799 621400 212 0 - 90 202 08NMRC006 6376801 621293 211 118 - 90 100 08NMRC007 6376800 621304 211 92 - 56 118 08NMRC008 6376799 621501 212 265 - 54 222 08NMRC009 6376798 621448 212 268 - 56 111 08NMRC010 637 6797 621202 210 266 - 90 79 08NMRC011 6376800 621547 213 316 - 90 100 08NMRC012 6376800 621360 211 89 - 90 196 08NMRC013 6376796 621439 212 1 - 89 220 08NMRC014 6376797 621474 212 0 - 90 190 08NMRC015 6376801 621380 211 90 - 60 169 08NMRC016 6375200 621899 218 89 - 61 100 08NMRC017 6375200 621796 218 89 - 61 124 08NMRC018 6375200 621746 218 93 - 61 183 08NMRC019 6375200 621849 218 90 - 61 100 08NMRC020 6373602 622900 226 0 - 90 100 08NMRC021 6373599 622799 225 56 - 90 142 08NMRC022 6373603 622697 224 93 - 60 130 08NMRC023 6373599 622602 222 89 - 61 88 08NMRC024 6373604 623002 226 271 - 61 154 08NMRC030 6377202 621404 213 283 - 90 200 08NMRC031 6377202 621352 213 12 - 90 184 08NMRC032 6377206 621303 212 0 - 90 200 Alliance Resources Ltd ASX Announcement 28 October 2021 11 ASX ANNOUNCEMENT Section 1 – Samp ling Techniques and Data Criteria JORC Code explanation Commentary Sampling techniques Nature and quality of sampling (eg. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investiga tion, such as down hole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling. • Sample type was drill cuttings from reverse circulation (RC) drilling . Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. • Industry sta ndard practice has been applied on site to en sure sample representivity. The laborator ies have applied appropriate QA - QC to sampl e preparation and appropriate calibrat ion/QA - QC to analytical instruments. Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (eg. ‘ reverse circulation drilling was used to obtain 1m samples from which 3kg was pulverised to produce a 30g charge for fire assay’ Reverse circulation drilling was used to obtain 1m split and 3m composite samples from which 3kg was pulverised to produce appr opriate sized samples for analysis. Drilling techniques Drill type (eg. core, reverse circulation, open - hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (eg. core diameter, triple or standard tube, depth of diamond tails, face - sampli ng bit or other type, whether core is oriented and if so, by what method , etc.). • Reverse cir culation drilling was completed using a 5¾” sized hammer with fac e sampling bit. Drill sample recovery Method recording and assessing core and chip sample recov eries and results assessed. • Sample reco very and quality was not routinely logged for historic RC holes . Measures taken to maximise sample recovery and ensure representative nature of the samples. • Every effort was made to ensure RC samples remained dr y to ensure the representative nature of the samples . Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. • Dry RC samples have a low potential f or sample bias . Logging Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. • All drill holes were logged by a ge ologist for lithology, weathering, colour, alteration, texture, mineralogy , and mineralisation. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography. • Sample loggi ng is qualitative (e.g. colour) and quan titat ive (e.g. % minerals) in nature depending on the feature being logged. The total length and percentage of the relevant intersections logged. • All holes were logged from start to finish. Sub - sampling techniques and sample preparation If core, wheth er cut or sawn and whether quarter, half or all core taken. • Not applicable . If non - core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry. • Most samples were collected a s 3 m composite scoop samples . • Some 1m split samp les were collected to produce ~3kg sub - samples for submission to the analytical laboratory. For all sample types, the nature, quality and appropriateness of the sample preparation technique. • Th e sample preparation techniques described a bove are appropr iate to provide representat ive samples to a laboratory for drying, crushin g, pulverising, and subsampling for analysis . Quality control procedures adopted for all sub - sampling stages to maximize representivity of samples. • S tandards, blanks, and duplica t es were inserted during the drilling program. Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second - half sampling. • The sa mpling measures described abov e ensured the sampling was representative of the in - situ material. Whether sample sizes are appropriate to the grain size of the material being sampled. • T he samples sizes are considered appropriate to the grain size of the material being sampled. Qual ity of assay data and laboratory tests The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. • Historic sample preparation was completed by SGS and consisted of dryi ng, crushing and pulverising <3kg samples to 85 - 90% passing - 75µm. • SGS completed analysis in 2008 for an iron ore suite of elements; Fe, SiO 2 , Al 2 O 3 , MgO, TiO 2 , K 2 O, CaO, P, Mn, S, Na 2 O using the XRF fusion technique. • XRF is the stand ard analysis techn ique used by the iron ore industry and is considered appropriate to measure total iron. Alliance Resources Ltd ASX Announcement 28 October 2021 12 ASX ANNOUNCEMENT Section 1 – Samp ling Techniques and Data Criteria JORC Code explanation Commentary • Comp ressed historic drill samples pulps were homogenised before re - analysis. • ALS completed g old analysis using the 30g fire assay technique with AAS finish and a po rtable XRF (pXRF) scan to determine As, Ca, Cr, Cu, Fe, Mn, Ni, Pb, S, Sn, U, Zn . • Fire assay is considered to be a total digestion technique for gold. • pXRF scan is a semi - quantitative technique with precision and accur acy in the order of 20% depending on sample type. For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibration factors applied and th eir deviation, etc. • Not applicab le. Nature of quality control procedures adopted (eg. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie. lack of bias) and precision have been established. • QAQC procedures used at SGS during 2008 a re unknown. • At ALS each fire (usually 84 pots) contains one blank and a minimum of two standards and three du plicates to monitor accuracy and precision of results from the individual fire. • Standards and du plicates are used to monitor the accuracy and p recision of pXRF scan resu lts . Verification of sampling and assaying The verification of significant intersections by either independent or alternative company personnel. • Alternative Company personnel have verified the significant results that are table d in this report. The use of twinned holes. • Twinned holes have not been used to verify sampling and assaying. Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. • Each sample bag is labelled with a unique sample number assigned at the point of sampling in the field. Sample numbers are used to match analyses from the laboratory to the in - house database containing down ho le drill data. Discuss any adjustment to assay data. • No as say data has been adjusted. Location of data points Accuracy and quality of surveys used to locate drill holes (collar and down - hole surveys), trenches, mine workings and other location used in Mineral Resource estimation. • All holes have been surveyed b y a registered surveyor using a DGPS. Expected horizontal and vertical accuracy is +/ - 25cm. • All holes have been accurately down hole surveyed using a gyroscope with the exception of holes 08NMRC005, 014, 015, & 032 which were not down hole surveyed. S pecification of the grid system used. • GDA2020, MGA Z one 53. Quality and adequacy of topographic control. • The elevati on (mRL) of all holes drilled h a s been accurately surveyed by a registered surveyor using a DGPS. Data spacing and distribution Data spacing for reporting of Exploration Results. • Refer to Table B . Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure (s) and classifications applied. • Exploration results reported in t his document will not be used for Mineral Resource or Ore Reserve estimation . pXRF scan is a semi - quantitative technique with precision and accuracy in the order of 20%, depending on sampl e type, that is not suitable for Mineral Resource or Ore Reserve estimation . • Drill hole spacing is sufficient to report meaningful geological interpretation. Whether sample compositing has been applied. • Samples consist of 1m split and 3m composite RC samples. • All sample pulps sent for re - analysis utilised the original drill sample pulp, without further compositing. Orientation of data in relation to geological structure Whether the orientation of sampling achieves unbiased sampling of possible stru ctures and the extent to which this is known, considering the deposit type. • The Bonza Prospect is an early - stage exploration target. As the orientation of the host lithologies was unknown at the time of drilling holes are oriented - 60 ° to the east, west, and vertically to determine prospect g eological orientations. • The targeted ultramafic stratigraphy is indicated by high magnetism striking north - northwest. RC drilling w as planned on east - west oriented traverses, broadly perpendicular to the magnetic an omaly . • As the ultramafic stratigraphy is now thought to be steeply dipping, the vertical drill holes have likely drilled down stratigraphic units. Alliance Resources Ltd ASX Announcement 28 October 2021 13 ASX ANNOUNCEMENT Section 1 – Samp ling Techniques and Data Criteria JORC Code explanation Commentary If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material. • The relationship between the drilling orientation and the orientation of key mineralised structures is not considered to have introduced a sampling bias . S ample security The measures taken to ensure sample security. • RC sub - samples are stored on - site pr ior to being transported to the laboratory for analysis. Sample pulps are returned to the Company and stored in a secure location. Audits or reviews The res ults of any audits or reviews of sampling techniques and data. • N o audits or reviews of gold or pXRF sampling technique s and data have been undertaken . • External review or audit s conducted by Golders (31/07/2008 and 17/12/2008), SKM (14/09/2010) and Rung e (31/07/2012) verif y iron sampling techniques, data and QA/QC methods meet JORC standards. Section 2 – Reporting of Exploration Results Criteria JORC Code explanation Commentary Mineral tenement and land tenure status Type, reference name/number, loca tion and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interest s, historical sites, wilderness or national park and environmental settings. • The Bonza Prospect is part of the Wilcherry Project (Project), comprising EL’s 5875, 5931, 6072, 6188, 6379 , 6475 , and EL6521 , owned by Alliance ( 100%) . The Project is located within the Gawler Craton in the northern Eyre Peninsula, South Australia. There is a royalty of 2% of the NSR payable to Aquila Resources Ltd . The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area. • The tene ments are in good standing with no k nown impediments to obtain ing a licence to operate in the area. Exploration done by other parties Acknowledgement and appraisal of exploration by other parties. • The a rea has been explored since the 19 70’s by companies including Pan Continental Mining, Asarco, Murumba Minerals, S h ell Co. of Australia Ltd (later Acacia Resources Ltd), WMC R esources Ltd, Aberfoyle Resources Ltd , Anglogold Australia Ltd, Aquila Resourc es Ltd, Trafford Resources Ltd, Ironclad Mining Ltd (later Tyranna Resources Ltd). • D rilling has been complete d in the Bonza Prospect area by the following exploration companies - • 19 8 3 - 1985 : Shell Company • 2008: Ironclad Mi ning Geology Deposit type, geological setting and style of mineralisation. • The geology in the Bonza Prospect area is charac terised by a north we st striking high - magnetic unit of steep - dipping ultramafic rocks that grade into mafic rocks to the east. It is uncertain at this stage if these rocks are intrusive or volcanic. The western side of the prospect area consists of Pal eo - Proterozoic Hutchinson Group meta se diments and granitoids of uncertain age . • The prospect area is overlain by between 5m and 20m of transported cover and is deeply weathered in the area of metasediments to greater than 100m depth. • Th e ultramafic rocks may be prospective for magmatic ni ckel sulphide deposits. Drill hole Information A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: • easting and northing of the d rill hole collar; • elevation or RL (reduced Level - elevation above sea level in metres) of the drill hole collar; • dip and azimuth of the hole; • down hole length and interception depth; • hole length. If the exclusion of this information is justified on the ba sis t hat the information is not material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case. • Refer to Table B and Figure s 2 to 4 in the body of this report for the lo catio n of all RC holes d iscussed in this report . Table A contains the details of all holes containing > 0.1 % Ni referred to in this report. Alliance Resources Ltd ASX Announcement 28 October 2021 14 ASX ANNOUNCEMENT Section 2 – Reporting of Exploration Results Criteria JORC Code explanation Commentary Data aggregation methods In reporting Exploration results, weighting averaging techniques, maximum and/or minimum grade truncation (eg. cutting of high grades) and cut - off grades are usually material and should be stated. • The r esults are weighted averages by sample length. No high - grade cuts have been applie d. Results are reported for all i nterval s of greate r than 0 . 1 % Ni . Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregation should be shown in detail . • Lengths of lo w grade results have been incorpo rated where the adjacent hig her grade resul ts are of sufficient tenor such that the weighted average remains close to or above the lower cut - off grade. The assumptions used for any reporting of metal equi valent values should be clearly stated. • No metal equivalents are reported. Relationship between mineralisation widths and intercept lengths These relationships are particularly important in the reporting of Exploration Results. If the geometry of the mi neralisation with respect to the drill hole angle is known, its nat ure should be reported. If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg. ‘down hole length, true width not known’). • As say results are reported as down hole lengths because the true width is not known. Diagrams Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported. These should include, bu t not be limited to a plan view of drill hole collar locations and appropriate sectional views. • Refer to figures in the body of this report. Balanced reporting Where comprehensive reporting of all Exploration Results is not practicable, representative r eporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results. • The result s reported represent all s ignificant assay results averaging greater than 0.1 % Ni . The location of all holes containin g less tha n 0.1 % Ni are reported in Table B and Figures 2 to 4. Other substantive exploration data Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density; groundwater, geotechnical and rock characteristics; potential del eterious or contaminating substances. • The Bonza Prospect area is characterised by an ~8km long north - northwest trending magnetic anomaly and a coincident gravity high anomaly that is centred slightly to the east . • A helicopter - borne aeromagnetic survey has defined a late channel conductive anomaly in the prospect area . Further work The nature and scale of planned further work (eg. tests for lateral extensions or depth extensions or large - scale step - out drilling). Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provid ed this information is not c ommercially sensitive. • Refer to main body of announcement .
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