Nov 18, 2024

Alderan Resources Hits 8m @ 2.8% Cu within 26m @ 1.3% Cu at New Years Prospect, Cactus District, Utah

Introduction:

Alderan Resources Limited (ASX: AL8) has reported significant copper intercepts from drilling at its New Years prospect in the Cactus copper-gold district in Utah, USA, highlighted by 8m @ 2.8% Cu within a broader 26m @ 1.3% Cu from surface.

Drill Results:

26m @ 1.3% Cu from surface including 8m @ 2.8% Cu and 6m @ 1.5% Cu (NY2024-DDH3)
30m @ 0.78% Cu from 10m including 8m @ 1.3% Cu and 4m @ 1.7% Cu (NY2024-DDH2)
10.7m @ 1.5% Cu within 27.4m @ 0.85% Cu from surface (Historical hole NY-2)
13.7m @ 2.3% Cu within 19.8m @ 1.7% Cu from 22.9m (Historical hole NY-6)

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Project Overview:

The New Years prospect is located within Alderan's Cactus copper-gold project in Utah, USA. The project covers approximately 5,000 acres of prospective ground in a historical copper mining district. The area has excellent infrastructure access, being located near major highways and power lines.

The Cactus district is known for its historical copper production, including the neighboring Cactus copper-gold deposit which mined ore grading 2.0% copper. Alderan's drilling has confirmed that mineralization at New Years occurs in tourmaline breccia, the same host rock as the Cactus deposit.

Program Details:

The current program consisted of three diamond drill holes totaling 319 meters, designed to verify historical drilling results from the 1960s. Two of the holes successfully intersected significant copper oxide mineralization near surface. Detailed re-modeling of geophysical data has highlighted 12 additional targets for follow-up across three zones - Copperopolis, Northern and Sigmoid. Geological mapping, soil sampling extensions, and permitting for further drilling are currently underway.

Understanding These Results:

The drill results confirm the presence of shallow, high-grade copper oxide mineralization at New Years. The intercepts are consistent with and verify historical drilling, demonstrating potential for a near-surface oxide copper deposit. Maximum copper grades over 2m sample intervals reached 4.6% and 3.2% in the two mineralized holes.

The presence of copper sulphide mineralization at depth (e.g. 2m @ 0.93% Cu, 0.23 g/t Au from 72m in NY2024-DDH2) suggests potential for primary copper mineralization below the oxide zone. This indicates the prospect may have similarities to the neighboring Cactus deposit in terms of mineralization style and depth extent.

Management Commentary:

Scott Caithness, Managing Director of Alderan Resources, stated:

“The lab assays for drill holes NY2024-DDH2 and NY2024-DDH3 clearly demonstrate that Alderan’s New Years prospect has potential for a near surface oxide copper deposit. The holes have intersected thick zones of near surface copper oxide mineralisation with intercepts of 26.0m grading 1.31% Cu from surface and 30.0m grading 0.78% Cu from 10m down hole. These intersections back up both visual estimates and pXRF spot readings on the core and verify the historical intercepts down holes NY-6 and NY-2 of 13.7m @2.32% Cu within 19.8m @ 1.67% Cu from 22.9m down hole and 10.7m @ 1.52% Cu within 27.4m @0.85% Cu from surface respectively."

“There are also indications of potential for primary copper sulphide mineralisation at New Years with hole NY2024-DDH2 intersecting a 2m interval from 72m down hole grading 0.93% Cu, 0.23g/t Au and 47.8ppm silver and hole NY2024-DDH3 intersecting a 10m zone of anomalous copper from 72m downhole with grades up to 0.54% copper."

“The detailed re-modelling of the geophysics has identified 12 magnetic anomalies for follow-up and geological mapping of the Cactus District is underway to gain a better understanding of the geological setting of potential deposits. Extending Alderan’s soil sampling grid to cover these anomalies will help to prioritise them for further exploration. “

Next Steps & Catalysts:

Alderan is currently conducting geological mapping of the Cactus District and extending soil sampling grids to cover the additional magnetic targets identified through geophysical remodeling. This work will help prioritize targets for future exploration.

The company is also in the process of permitting a follow-up drilling program at New Years. This program will aim to extend the known mineralization and test newly identified geophysical targets across the project area.

Commodity Outlook:

Copper remains a critical metal for the global energy transition, with demand expected to grow significantly in coming years due to its use in renewable energy technologies and electric vehicles. The United States is actively seeking to secure domestic copper supplies, potentially benefiting projects like Cactus that are located in favorable mining jurisdictions.

Conclusion:

Alderan's initial drilling at New Years has confirmed the presence of high-grade, near-surface copper oxide mineralization with potential for deeper primary copper sulphides. The results validate historical data and demonstrate the prospect's potential. With multiple additional targets identified across the project area, Alderan is positioning itself to continue exploration at the Cactus copper-gold project.

Sources:

AL8 Drill Results Announcement

Additional Figures:

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Jan 16, 2022