Alicanto Minerals (ASX: AQI) is pleased to announce the start of an extensive drilling campaign aimed at establishing a maiden JORC complaint Resource early next year at its Sala silver-lead-zinc project in Sweden.

Sala produced more than 200Moz of silver at an estimated grade of 1,244 g/t with local grades reported as high as 7,000 g/t. Mining ceased in 1908 and very little modern exploration has been completed3. The Sala Project is located 50km from Boliden's operating Garpenberg Mine. Garpenberg has produced over 40Mt of ore and has a current resource of 151.5Mt @ 2.75% Zn, 1.3% Pb and 86.6g/t Ag8.

Alicanto Managing Director Peter George said: 'In light of the strong results and visuals reported from our initial drilling and our desire to establish a Resource as quickly as possible, we have increased our drilling capacity from one rig to three. 'The grades within our initial focus area are exceptional and we believe that this is just the start. 'Sala was only mined down to 290 m and they pulled out more than 200Moz of silver and 35,000t of lead. 'We have already identified multiple lodes up to 35m in width of high-grade mineralisation more than 800m along strike from the old mine at 500m down dip of surface mineralisation with strong indications of a lot more in the vicinity'.

Alicanto's Exploration Strategy at Sala

The company has developed a strategy around delivering a major polymetallic mining project at Sala through exploration and resource development.

Confirmation and step-out drilling completed by the company with partial results and visuals has confirmed to the company that the assessment of the potential tonnage and grade of the central target area is warranted.

Visuals from Alicanto's second and third holes (SAL21-02, SAL21-03) indicate similar style and tenor of mineralisation as SAL21-01 with multiple lenses of sulphide mineralisation. Assays are pending for SAL21-02 and SAL21-03 and SAL21-04 (AQI: ASX 03.08.2021), these dispatches have now been prioritised at the lab to speed up the turnaround time, which is now up to 6 weeks.

Alicanto to date has completed four holes and a total amount of 4,000m of drilling. The completed drilling fits within a larger planned 14,000m (24 hole) program that covers the area of interest for the maiden resource.

With the success of the 140m step-out hole down-dip from the deepest known mineralisation at Sala (DD hole SAL-001) combined with the work in the recently completed desktop study of historical mining and drilling, Alicanto has evidence to suggest the following: The mineralised corridor that hosts the multiple stacked high-grade lodes continues along strike to the North and South and at depth including a historical drilling intercept 600m to the South of the target area that intersected 3.0m @ 8.2% Zn, 3 g/t Ag only 25m from surface.2

A historical intersection approximately 200m below the deepest mined zone at Sala contains high-grade mineralisation (6.1m @ 185 g/t Ag, 1.0 % Pb). Combined with high-grade mineralisation intersected by SAL 001 by Alicanto at 500m depth (down dip), this suggests that there is a strong possibility that the mineralisation down-dip of the old workings at Sala is still open. (AQI: ASX: 15.02.2021, 04.05.2021, 03.08.2021)1,2

Historical drilling 200m along strike (to the North-West) from the historical workings at Sala intersected very high-grade mineralisation (0.7m @ 844 g/t Ag, 16.3% Pb and 1.8% Zn).

Stage 3 - Regional exploration

Historical review of data at the Sala Project suggests almost no modern systematic exploration has been conducted over the greater project area, with historic work focussed on the underground extraction at the Sala mine. Alicanto intends to take a back-to-basics approach to the greater tenement package and complete regional exploration over the entire highly prospective tenement package. Some shallow diamond drilling exploration work was undertaken from just before WW2 which resulted in the Avesta Jernverks AB applying for and being awarded multiple mining tenements8. Much of this information was lost at the end of WW2 and little to no modern exploration has been undertaken in the majority of these now lapsed mining tenements.

Even though there is little historical drilling information; the knowledge that the Avesta Jernverks AB drilled shallow (sub 100m holes) in these areas and applied for mining tenements it is indicated that that mineralisation was intersected in these areas. The company geologists are currently evaluating targets within the greater project area

About Alicanto Minerals

Alicanto Minerals Limited (ASX: AQI) is an emerging mineral exploration company focused on creating shareholder wealth through exploration and discovery in world class mining districts of Scandinavia. The Company has a highly prospective portfolio in Sweden, including the Greater Falun Copper-Gold and the SalaSilver Projects in the Bergslagen Mining District, Sweden.

Contact:

Paul Armstrong

Tel: +61 8 9388 1474

Competent Persons Statement

The information in this report that relates to Exploration Results is based on and fairly represents information compiled by Mr Erik Lundstam, who is a Member of The Australian Institute of Geoscientists. Mr Lundstam is the Chief Geologist for the Company. Mr Lundstam has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the JORC 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Lundstam consents to their inclusion in the report of the matters based on his information in the form and context in which it appears.

Forward Looking Statements

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors constitute, among others, continued funding, general business, economic, competitive, political and social uncertainties; the actual results of exploration activities; changes in project parameters as exploration strategies continue to be refined; renewal of mineral concessions; accidents, labour disputes, contract and agreement disputes, and other sovereign risks related to changes in government policy; changes in policy in application of mining code; political instability; as well as those factors discussed in the section entitled 'Risk Factors' in the Company's rights issue prospectus. The Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward looking statements, however there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this news release and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results, except as may be required by applicable securities laws. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.

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