Hammer Metals Ltd (ASX:HMX) Significant Copper and Gold Hits at Lady Jenny

20 February 2025

Price Sensitive Announcement $

Highlights:

Significant copper and gold mineralisation intersected in all holes drilled at Lady Jenny under the historical pit, confirming a strike extent of ~180m.

Highlights from these first intercepts include:

o 32m at 1.05% Cu and 0.22g/t Au from 14m in HMLJRC005 – estimated
true width of ~25m, including 20m at 1.35% Cu and 0.30g/t Au from 16m;

o 26m at 0.67% Cu and 0.34g/t Au from 37m in HMLJRC008 – estimated
true width of ~21m, including 1m at 9.08% Cu and 4.4g/t Au from 42m;

o 15m at 1.10% Cu and 0.11g/t Au from 11m in HMLJRC003 – estimated
true width at 10m; and

o 15m at 0.88% Cu and 0.12 g/t Au from 36m in HMLJRC004 – estimated
true width of ~8m, including 6m at 1.76% Cu and 0.23g/t Au from 36m.

• HMLJRC008 intersected a historical shaft at 39m above a zone of high-grade mineralisation at 42m. The plunge of this high-grade mined zone has not been tested at depth and remains a target for future drilling.
• The copper sulphide mineralisation intersected at Lady Jenny consists almost entirely of chalcopyrite. Historical operations focussed exclusively on oxide mineralisation at surface.
• A single drill-hole at Kalman Southeast has intersected 36m at 1.5% Mn from 177m down-hole. The manganese recorded at this prospect is part of an extensive manganese horizon situated to the east of the Pilgrim fault.
• Drilling at Hammer’s Bullrush JV IOCG prospect is expected to commence early next week with an RC drill program on Hammer’s 100%-owned prospects at Tourist Zone South and Revenue scheduled to commence in
  late March.

Overview:

Hammer Metals Ltd has reported final assay results from the November and December 2024 Reverse Circulation (RC) drilling program at the Lady Jenny Mining Lease in the Mt Isa region in NW Queensland. The RC program at Lady Jenny was designed to provide key information about the geometry, grade and style of mineralisation below the historical pit.

Eleven holes were completed at Lady Jenny for a total of 1,343m. Ten holes were designed to test the tabular body that was historically mined in the pit. Eight drill holes intersected zones of significant mineralisation beneath the historic workings within weakly oxidised to fresh bedrock (refer to Figure 1, Table 1).

Chalcopyrite mineralisation is variably associated with magnetite-actinolite alteration and quartz veining. Minor to trace pyrite was spatially associated with the chalcopyrite and no pyrrhotite was observed. Mineralisation thickness and grade consistency are best under the north-eastern part of the pit and the highest-grade intercept occurs in the south-west section within a relatively thinner and lower-grade mineralised zone.

The variability of grade and thickness of mineralised intercepts along strike and at depth suggests that the mineralisation consists of multiple shallowly north-plunging bodies rather than a coherent tabular body as reported historically. Future targeting will test the potential of these inferred plunging shoots within a broad envelope shown in Figure 2

Drill-hole HMLJRC009 was designed to test the observed association of chalcopyrite mineralisation with magnetite by targeting a discrete highly magnetic body located to the north-west of the pit (Figure 1). An intense magnetite alteration zone was intersected in the core of the modelled magnetic body which was not associated with any copper sulphides of significance nor actinolite alteration.

HMLJRC011 was later drilled to test the hypothesised connection at depth between the mineralised zones intersected under the historical pit and the body of intense magnetite alteration to the northwest. No significant mineralisation was intersected.

Company Notes:

Hammer’s Managing Director, Daniel Thomas, said:
“Hammer’s program has successfully confirmed the extent of the presence of copper sulphides beneath the historical oxide workings at Lady Jenny. Several other exploration targets at the property are emerging and the team will assess
geophysical methods to aid targeting for future drilling programs.

“The team’s attention now turns to our Bullrush IOCG drilling program, which we
expect to commence next week. This diamond drilling program is targeting a
classical magnetic and gravity anomaly masked by approximately 100m of cover.

“It is shaping up to be a busy start for 2025, with drilling programs also scheduled for Hammer’s 100%-owned project areas. We’re looking forward to the end of the wet season to allow us to finally test Tourist Zone South plus an exciting new VTEM target at Revenue near Mt Hope.”

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