Communicators

-          ARC is a significant, large-scale project (5,774km2 license area) with historical exploration results and recent analysis indicative of an extensive mineral system with potential to host world-class copper deposits

-          ARC mineral system is prospective for basalt, fault, and sedimentary rock-hosted copper mineralisation; analogue of the economically significant Keweenaw Peninsula in Michigan, USA

-          Strong news flow over the upcoming quarters from the field program and results from ongoing analysis of historical data

Figure 1: Draped satellite imagery over digital terrain model. Orthogonal view is towards the north looking down Neergaard valley. New structural interpretations showing identified reverse faults and identified targets Discovery Zone, Neergaard Dal and the Knuth Fault.

GreenX Metals Limited (GreenX or the Company) is pleased announce the receipt of all the permits for the proposed 2022 field program at the Arctic Rift Copper Project (ARC or ARC Project), which will commence in the coming weeks. Five geological teams will be deployed in the field supported by All-Terrain-Vehicles (ATV). The field team and field equipment will be deployed by ship from Iceland and will access the ARC project via Independence Fjord (Figure 1).

Historical programs and latest analysis have identified a number “walk-up” native copper and copper sulphide targets that will be the priority for the upcoming field program including Discovery Zone, Neergaard Dal and the Knuth Fault (Figure 1). The field campaign is based on a program of sampling, mapping, portable core-drilling and geophysics including seismic, electro-magnetic (EM) and radiometrics. Portable XRF will be used in the field and the field team will have access to satellite internet for real time uploading of field results. The field program will be led in the field by Dr Jonathan Bell.

GreenX expects strong news flow over the upcoming quarters from the field program and results from ongoing analysis of historical data.

ARC PROJECT SUMMARY

GreenX consider the observed geological setting and features of ARC to be indicative of an extensive mineral system capable of hosting copper deposits.

The large scale of the mineral system, widespread copper anomalism, combined with multiple mineralising events are analogous to some of the most significant copper systems known worldwide. Accordingly, GreenX considers that ARC has the potential to be a globally significant metallogenic province.

Historical field programs identified widespread copper-silver occurrences at surface:

-          geochemical sampling found that 80% of stream sediment samples contain native copper

-          native copper is found in situ or as float, with individual clasts of native copper weighing up to 1 kg+

-          high grade copper sulphides, grading up to 2.15% Cu and 35.5g/t Ag over 4.5m true width, are known from trench sampling of fault zones within sediments (see GreenX announcement dated 20 January 2022 entitled “New Copper Targets Identified at ARC”)

-          assay results from individual samples are much higher grade, including:

Very high-grade copper mineralisation identified at ARC is associated with the Minik Anomaly (Figure 2), a coincident magnetic-electromagnetic-gravity feature in an area where there is a change in oxidation state and widespread native copper in stream sediments. These features are presented as the footprint of a large-scale hydrothermal system. The frequency and size of the native copper clasts, and the high grade of the copper-silver sulphides that are exposed at the surface, bode well for the prospectivity of copper deposits and will be a will be a key focus of the first field campaign.

Figure 2: ARC licence area showing historical geochemistry, the Minik Anomaly and identified faults

There are multiple targets and favourable geological settings considered to be prospective within the ARC project area, including the following.

-          The highly anomalous basalt is a high priority target that has not previously been the focus of commercial exploration. These basalts are the source of the native copper.

-          The sulphide mineralised faults passing through these basalts into the overlying sediments have been subject to first pass exploration and shown to be rich in copper and silver. The high-grade sulphides in these faults will be the focus of further exploration.

-          The permeable coarse-grained sandstone within the Jyske Ås Fm has high grade copper that is effectively unexplored. This stratiform mineralisation adds the potential for significant lateral extension of the known mineralisation exposed in the faults of the Discovery Zone.

As such, the extensive ARC mineral system is known to be prospective for basalt, fault, and sedimentary rock-hosted (‘sediment-hosted’) mineralisation that despite the attractive grades, is virtually unexplored.

Structural Geology Review

A structural review of the currently available datasets regarding ARC’s geology was recently conducted by specialist consultant Dr Mark Munro[i] (see GreenX announcement dated 20 January 2022 entitled “New Copper Targets Identified at ARC”). It was confirmed that the known copper mineralisation (Figure 2), including the native copper and Discovery Zone copper sulphides, is associated with reverse faults. Reverse faults are an important structural control on mineralisation at ARC, with the recent study both extending the known reverse faults (Eigil Fault) with associated mineralisation and identifying new reverse faults (Knuth Fault and Neergaard Valley Fault) (Figure 3).

This demonstrates known mineralised structures intersecting the Zig-Zag flood basalts (Figure 4), and further strengthens the ARC’s analogy with the prolific and economically significant Keweenaw Peninsula. At this analogy in Michigan, the mineralised reverse faults are the fluid transport conduits for the strata bound native copper deposition in flood basalts, and copper sulphides in the overlying sediments. The Keweenaw Peninsula contained a pre-mining endowment of +7 Mt of copper contained in sulphides and 8.9 Mt of native copper.

Figure 3: Significant reverse faults identified within ARC

Figure 4: Extension of the Discovery Zone Fault (‘Eigel’)

(Note: This fault is in Independence Fjord, at approximately (82.03046, -27.17269), and the cliff height at the top of the fault is approximately 450m. The fault displays a southwest side-up (reverse) displacement)

 Source: Photo taken in August 2021 and kindly supplied by Arctic Capacity Aps

IDENTIFIED TARGETS AND PROSPECTS

Discovery Zone

The most advanced prospect within ARC is the copper-silver bearing Discovery Zone, located at the northern end of Neergaard Dal (Figure 3). The Discovery Zone was identified in 2010 as a follow up to a geochemical anomaly identified by the government geologists in 1994.

The Discovery Zone is comprised of at least three parallel breccia faults trending northwest-southeast. The faults are traced for a minimum of 2km along strike before they disappear underneath moraine. The Discovery Zone is open in both directions.

The width of the fault breccias is variable, ranging from 1m to 25m thick. The host lithology is red sandstones of the lower Jyske Ås Fm, and they are proximal to outcrops of Zig-Zag Fm. The breccias have copper sulphide and copper oxide mineralisation. The copper-bearing species include chalcocite, brochantite, bornite, chalcopyrite, and malachite. The mineralisation is expressed in two main forms, within which there are two sub-forms:

1. Breccia bound. Mineralisation occurs in thin quartz-dominated veining within the fault breccia and contains disseminated copper sulphides (Figure 5). Assays from this material grades up to 53.8% Cu and 2,480g/t Ag (Figure 6).

Within the breccia-bound mineralisation are intensely potassic, unconsolidated materials known as ‘Black Earth’ (Figure 7). The multiple but discontinuous 0.7m to 3m horizons have lengths between 2m to 50m. The Black Earth material contains high grades of copper and silver, with reported true widths of 4.5m grading 2.15% Cu and 35.5g/t Ag (Chip Line #7, sampled interval 5.25m, estimated true width 4.5m).

2. Stratiform. Mineralisation occurs immediately adjacent to the faults and comprises lenses and blebs of chalcocite and bornite measuring from mm-scale to 15cm long (Figure 8).

Within the stratiform mineralisation is a poorly consolidated sandstone that is identified as a potentially vast target horizon within the Jyske Ås Fm. The outcrop shows pervasive interstitial chalcocite, bornite and chalcopyrite (Figure 9).

Figure 5: Mineralisation types of the Discovery Zone

Note: The photo is of the 2010 field campaign.

Figure 6: Breccia bound copper mineralisation

Figure 7: ‘Black Earth’ copper mineralisation

Figure 8: Stratiform copper mineralisation in the Jyske Ås Fm

Note: Dark minerals are mostly chalcocite, although bornite is present as well.

Figure 9: Stratiform copper mineralisation in the poorly consolidated Jyske Ås layer.

Note: The white arrows denote chalcopyrite, and the red arrows show bornite with chalcocite rims.

ABOUT THE ARCTIC RIFT COPPER PROJECT

ARC is an exploration joint venture between GreenX and GEX. GreenX can earn 80% of ARC by spending A$10 M by October 2026. The ARC Project is targeting large scale copper in multiple settings across a 5,774 km2 Special Exploration Licence in eastern North Greenland (Figure 13). The area has been historically underexplored yet is prospective for copper, forming part of the newly identified Kiffaanngissuseq metallogenic province. This province is thought to be analogous to the Keweenaw Peninsula of Michigan, USA, which contained a pre-mining endowment of +7 Mt of copper contained in sulphides and 8.9 Mt of native copper. Like Keweenaw, ARC is known to contain at surface, high-grade copper sulphides, ‘fissure’ native copper, and native copper contained in what were formerly gas bubbles and layers between lava flows.

Figure 13: ARC license area

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-ENDS-

Competent Persons Statement

The information in this announcement that relates to the Exploration Results is extracted from the announcements dated 6 October 2021 and 20 January 2022. The announcements are available to view on the Company’s website at www.greenxmetals.com. GreenX confirms that a) it is not aware of any new information or data that materially affects the information included in the announcements; b) all material assumptions included in the announcements continue to apply and have not materially changed; and c) the form and context in which the relevant Competent Persons’ findings are presented in this report have not been materially changed from the announcements.

Forward Looking Statement

This release may include forward-looking statements, which may be identified by words such as "expects", "anticipates", "believes", "projects", "plans", and similar expressions. These forward-looking statements are based on Sovereign’s expectations and beliefs concerning future events. Forward looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Sovereign, which could cause actual results to differ materially from such statements. There can be no assurance that forward-looking statements will prove to be correct. Sovereign makes no undertaking to subsequently update or revise the forward-looking statements made in this release, to reflect the circumstances or events after the date of that release.

This announcement has been authorised for release by Mr Ben Stoikovich, CEO

[i] Munro, Mark (2021). “Structural Review of the Arctic Rift Copper Project, Greenland”, Munro Geoscience Pty Ltd