SI6 Metals : Nickel sulphide mineralisation extended at Maibele

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ASX Code: Si6

ASX Announcement

21 December 2021

NICKEL SULPHIDE MINERALISATION EXTENDED AT

MAIBELE NORTH, BOTSWANA

Highlights

• Extension of AMT Survey completed across Maibele North Ni-Cu-Co-PGE Project
• Survey has defined and successfully extended anomalies from the initial survey
• New conductor targets have also been revealed
• Discussions ongoing in relation to several expressions of interest
• Approvals and drill commencement planned for next quarter

Si6 Metals Limited (ASX: Si6 or the Company) is pleased to provide an update on extensions to the Maibele AMT survey reported on in July 2021 (see ASX Announcement 14/07/2021). Si6 is exploring for base and precious metals within the Limpopo Mobile Belt in Botswana, a district known for hosting major nickel and copper producing operations.

The Company's Botswana portfolio contains an advanced Ni-Cu-Co-PGE resource at Maibele North and drilled high-gradeCu-Ag discoveries at Airstrip and Dibete. Si6 has been undertaking a multi-faceted exploration campaign employing a variety of ground geophysical techniques designed to target deeper mineralisation for follow-up drill testing.

Si6 Executive Chairman, Patrick Holywell stated, "The Maibele AMT survey has proven very effective at mapping existing Ni-sulphide mineralisation at Maibele North and has delineated a number of exceptional target areas at depth, which to date, have not been drill tested. There is certainly great potential to make additional Ni-discoveries. The 2021 geophysical survey programs have now been completed with outstanding results achieved. Commencement of drilling is eagerly anticipated and we are cognizant of the fact that it has taken some time as a result of pending approvals. Nevertheless we are confident of a successful upcoming drilling campaign and look forward to the commencement."

Figure 1: Si6 tenement portfolio in Eastern Botswana

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MAIBELE PROJECT

Si6 completed an initial 27-line Audio frequency Magnetotellurics (AMT) survey across the Maibele North orebody mid-2021. AMT is an electromagnetic geophysical technique that measures local magnetic and electric fields which are used to determine in-phase and out of phase ground resistivity values and is often used to detect accumulations of sulphide mineralisation.

The aim of the AMT survey was to search for deep extensions of mineralisation below and along strike of the current Maibele North Resource (for Resource details see Supplementary Appendix). Evidence of deeper mineralisation at Maibele North has previously been confirmed by Si6, with two adjacent holes on the Eastern section of the prospect, MADD0153 and MARD0094, where Nickel sulphides were intersected at depth in both holes (see ASX Announcement 19/03/2021).

The results of the initial survey over Maibele North provided great encouragement for the effectiveness of the AMT to detect further mineralisation and potentially extend the orebody deeper below the current resource envelope. A number of prominent anomalies were detected on the edge of the survey and Si6 recently completed a series of extensions and extra lines to close off these zones in preparation for drill targeting.

The results of the extension survey have confirmed the existence of several deep target zones and resolved some of the edge effects of the initial survey. Three notable zones are evident as follows (Figures 2 to 4):

1. A strong conductor extending vertically to depth beneath the thickest section of the Maibele North orebody
2. A large, south-dipping zone starting below, and to the south of, the main orebody and extending to edge of the survey
3. A large, south-dipping anomaly that extends mostly eastwards from the deep sulphide mineralisation intersected in holes MARD 0094 and MADD0153.

All three zones represent excellent, large drill targets and provide real potential to increase the Ni-Cu-Co-PGE sulphide mineralisation at Maibele North.

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ASX Announcement

Line 26

Line 27

MADD0153

MARD0094

A - Initial Maibele North AMT Results at 500mRL

1. Target zone ~100m below resource envelope

Never drilled

Airstrip	2. Target zone: deep,
south dipping.	3. Target zone: south dipping, down
	Never drilled
	plunge from resource envelope. Two
B - Extension Maibele North AMT Results at 500mRL	holes into zone - both have intersected
high tenor Ni-Cu-Co-PGE sulphides

Figure 2: 500mRL Depth slice of AMT results for A) Initial Maibele North (& part of Airstrip) and B) Maibele North extension at 350m vertical depth. Extension lines are marked in red. Note the multiple targets generated by the AMT, with the extension survey revealing a new target zone south of the main resource envelope. The Maibele North MRE envelope as generated by MSAextends to ~250m vertical depth, some 100m above the depth slice.

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Deep Target zone

Deep Target zones

A - Extension Maibele North AMT Results at 400mRL (450m below surface)

Target zone

Deep Target

zones

B - Extension Maibele North AMT Results at 300mRL (550m below surface)

Target zone

Deep Target

zones

C - Extension Maibele North AMT Results at 100mRL (750m below surface)

ASX Announcement

Figure 3: Series of deep depth slices of the complete Maibele North AMT survey showing the scale and intensity of south-dipping conductor targets to the south and southeast of the existing Maibele North resource. The three images represent the response from A) 450m, B) 550m and C) 750m vertically below the ground surface.

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Figure 4: Modelled 2D smooth model conductor response shown in 3D with modeled mafic-ultramafic rock

(green) seen from above. The conductors are located predominantly in the footwall of the mafic-ultramafic body.

The red model represents the complete survey with the extension data and shows the additional conductor

targets revealed.

Corporate Update and Future Work Program

The 2021 geophysical survey programs have now been completed with outstanding results achieved. The Company has been progressing its drilling plans which will likely include a combination of reverse circulation drilling and diamond drilling. Contemporaneously, the Company has continued discussions with a number of parties in relation to obtaining necessary approvals (e.g. joint venture partner and Department of Mines) and is cognizant of the delays. Further progress will be communicated to the market in due course with drilling planned to commence next quarter.

In September 2021, Premium Nickel Resources ("PNR") executed a definitive asset purchase agreement with the Liquidator of BCL Limited (Si6's Joint Venture partner) to acquire the Selebi and Selebi North Ni-Cu-Co assets and related infrastructure formerly operated by BCL. PNR is a private Canadian company, dedicated to the exploration and development of high-qualitynickel-copper-cobalt resources. The Selebi and Selebi North assets are located nearby to Si6's tenement package which includes a resource of 2.4Mt at 0.72% Ni and 0.21% Cu. PNR's redevelopment plan incorporates the use of less power and water to reach an exportable commodity (separate copper and nickel-cobalt concentrates) with a much lower environmental impact when compared to the legacy BCL processing and smelting.

The Board of Si6 is focused on unlocking the value of the highly prospective Botswanan project through exploration whilst also entertaining potential corporate and strategic transactions. Several expressions of interest in the project and the company have arisen and engagements with relevant parties are ongoing. However there is no guarantee that any of these discussions will lead to a successful transaction.

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