Alkane Significantly Increases Storheden Mineral Resource and Provides Exploration Update
CONTACT: NIC EARNER, MANAGING DIRECTOR & CEO, ALKANE RESOURCES LTD, TEL +61 8 9227 5677
INVESTORS & MEDIA: NATALIE CHAPMAN, CORPORATE COMMUNICATIONS MANAGER, TEL +61 418 642 556
Level 4, 66 Kings Park Rd, West Perth WA 6005, AUSTRALIA (PO Box 768, West Perth WA 6872, AUSTRALIA)
Telephone: +61 8 9227 5677 alkres.com [email protected]
ASX ANNOUNCEMENT
29 July 2026
Alkane Significantly Increases Storheden Mineral
Resource and Provides Exploration Update
Perth, Western Australia – Alkane Resources Limited (ASX: ALK; TSX: ALK; OTCQX: ALKRY) ("Alkane"
or "the Company") is pleased to announce the latest exploration results and an updated Mineral Resource
for the Storheden Deposit at its Björkdal Operation in northern Sweden.
Program Summary
The Storheden Deposit is located approximately 700 m north of the Björkdal mine, with recent drilling
intercepting gold- bearing Quartz veins along 2. 7 km strike length and to a depth of 464 m . The
mineralisation remains open in all directions.
16 extensional diamond drill holes were completed at Storheden during January -March 2026,
intercepting high-grade mineralisation within target zones defined through previous drilling campaigns.
The recent drilling has contributed to an improved understanding of the lithostructural controls on gold-
bearing Quartz veins, defining units that form targets for follow-up drilling.
New modeling at Storheden including dri lling over 2025 and 2026 has improved confidence, with
inclusion of Indicated Resources, higher grade and significantly higher contained gold ounces.
o Indicated Resources 1.07 Mt grading 2.51 g/t Au (87 koz) and;
o Inferred Resources 1.85 Mt grading 2.11 g/t Au (125 koz)
o Details to follow in the annual NI43-101 Björkdal Technical document in September 2026
Assay Highlights
From the Storheden Resource Growth campaign
o 36.1 g/t gold over 0.5 m (ETW 0.35 m) in SH26-004
o 50.9 g/t gold over 0.95 m (ETW 0.82 m) and
o 39.2 g/t gold over 0.6 m (ETW 0.46 m) in SH26-010
o 107.0 g/t gold over 0.4 m (ETW 0.35 m) in SH26-011
o 27.4 g/t gold over 0.70 m (ETW 0.49 m) in SH26-012
Note: ETW refers to the Estimated True Width of the intercept. A full list of significant Storheden Intercepts
can be found in Appendix 1.
Alkane Managing Director & CEO, Nic Earner, said:
“Storheden represents an exciting new growth prospect at Bj örkdal. The positive drilling results of this
latest campaign begin to demonstrate the scale of the deposit , with the extent and depth continuity still
unknown and open. Additionally , portions of the Mineral Resource have now been drilled to a density
sufficient to estimate Indicated Resource. Encouraged by continued positive results coupled with the
potential Storheden provides, Alkane will continue to define the extents of the deposit and lift confidence
in resources alongside the commencement of mine development to Storheden and the progression of
permitting requirements for extraction.”
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Björkdal Mine
Alkane Resources Ltd 100%
The Björkdal Gold Mine is located on the eastern margin of the Early Paleoproterozoic Skellefte Belt in
northern Sweden, which hosts numerous base and precious metal deposits, including polymetallic massive
sulphide (Zn-Cu-Pb-Au-Ag), meso- and epithermal gold, porphyry Cu, and magmatic Ni-Cu (figure 1). The
mine is located approximately 30 km northwest of Skellefteå and 750 km north of Stockholm.
Figure 1: Regional geological map of the eastern Skellefte district, showing major deposits and merged outlines of
exploration permits held by Alkane Resources.
The deposit was discovered in 1983 by Terra Mining AB through a glacial till sampling program that
identified anomalous gold values. Follow -up exploration led to the discovery of gold mineralisation in
bedrock in 1985, with o pen pit m ining commencing in July 1988 . Underground mining start ed in 2008,
while the open pit remained in operation until it was paused in 2019. Since production began in 1988, the
Björkdal Mine has produced approximately 1.69 million ounces of gold.
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Deposit Geology
The Björkdal and Storheden Deposits are hosted in volcanics and associated intrusives belonging to the
regional Skellefte Group and located within a fold-and-thrust system that developed along the northwestern
margin of the Björkdal dome (Figure 2). Free-milling gold occurs in association with steep to subvertical
Quartz veins that formed in proximity to major stratigraphic contacts, where the rheological contrast
between volcanic, intrusive and sedimentary units favoured multi-phase deformation, alteration and fluid
flow across the ductile-brittle transition. The mineralisation is classified as Mesothermal orogenic gold.1
Figure 2: Geology of the Björkdal dome and surroundings, showing outline of currently held exploration permits and
mining concessions at the Björkdal, Storheden and Norrberget deposits.
Gold-bearing Quartz veins in the Björkdal deposit are localised along a sheared, partially offset and skarn-
altered marble horizon, which hosts pockets of irregular but high-grade Quartz veins (figure 3). The marble
acted as a major detachment between moderately W- to NW-dipping thrust-duplex systems that developed
within its respective hanging and footwall , in conjunction with folding and antiformal doming . Mineralised
Quartz veins in the Storheden Deposit are similarly located along steeply dipping shears that developed
within the Upper Skellefte Group, along the contact with sediment in the overlying Vargfors Group. Reverse
shears acted a s conduits for ore- bearing fluids and facilitated fracturing in surrounding rocks . Major
structures and contacts subdivide the deposit s into blocks with distinct styles of veining, with h igh-grade
mineralisation favoured by structural complexity.
1 Weihed et al. 2003 - Structural Evolution of the Björkdal Gold Deposit, Skellefte District, Northern Sweden: Implications for Early Proterozoic
Mesothermal Gold in the Late Stage of the Svecokarelian Orogen. Economic Geology 95, p.1291-1309.
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Figure 3: Plan overview and sections of Björkdal-Storheden, showing Storheden drill intercepts in relation to modelled
mineralised veins and major contacts. A close-up of Storheden is provided in figure 4.
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In both Björkdal and Storheden, the principal set of minerali sed Quartz veins strike NE -SW, with veins
ranging from centimetre- to metre-scale. Visible gold is often found along reactivated vein margins and is
closely associated with Bismuth-Tellurides and Scheelite. Pyrite and Pyrrhotite constitute common
sulphides, which occur with lesser Chalcopyrite, Bornite, Molybdenite, Sphalerite and Galena. Arsenopyrite
occurs in a subset of veins at Storheden, while rare Magnetite veinlets are present below the marble in the
Björkdal deposit.
Two main phases of hydrothermal activity have been proposed within the Björkdal dome:
• Early widespread hydrothermal alteration (Silica- Biotite-Albite-Actinolite-K-feldspar-Hematite-
Epidote-Sericite) in the interior of the dome has been compared to a porphyry -style or intrusion-
related system ( figure 2). Although no significant Cu- Au-Mo mineralisation has so far been
identified within the dome, this alteration could be associated with early porphyry Cu±Au±Mo and
intrusion-related gold deposits elsewhere in the district, such as Tallberg and Älgträsk located 30
km west of Björkdal ( figure 1). The alteration event may have preceded the deposition of the
marble, which is interpreted to mark an erosional unconformity.
• Late hydrothermal activity was linked to orogenic -style gold mineralisation , where competence
contrasts enhanced by early alteration likely influenced later structures. At this stage, the marble
acted as an impermeable cap for hydrothermal fluids and provided a favourable environment for
gold precipitation. The sheared offset of the marble in the Björkdal deposit ( figure 2) provided a
pathway for mineralised fluids across the stratigraphy, linking mineralisation in Storheden with the
Björkdal deposit and several smaller gold prospects extending towards the SE.
Storheden
Mineralisation at Storheden was discovered by Terra Mining AB, prior to the establishment of the tailings
dam. Subsequent exploration efforts have been hampered by a lack of understanding of the mineralisation
and the limitations imposed by the expanding tailings.
Starting in 2023, a renewed focus was placed on Storheden, including a re-evaluation of the geology based
on the structural controls established within the Björkdal deposit. Three diamond drilling campaigns were
conducted from 2023 to 2025, leading to the merger of Mandalay R esources with Alkane R esources.
These campaigns extended the known footprint of the Storheden Deposit to more than 2.7 km strike length
and a depth of 464m , resulting in an initial Inferred Mineral Resource of 1.77 Mt grading 1.74 g/t Au ( 99
koz Au).1
Auriferous Quartz veins at Storheden are distributed across several stratigraphic intervals in the U pper
Skellefte Group and its transitional contact with the overlying Vargfors Group, with the style and geometry
of veining influenced by the nature of the host rock (figure 3-4). Within the Skellefte Group, steeply SE-
dipping mineralised veins occur preferentially within sheared and altered andesitic units, which dip
moderately (40-50°) to the north. Higher up in the stratigraphy, closer to the Vargfors Group, Quartz veins
appear to form larger panels, dipping steeply (70°) towards the W-NW. The change in geometry is similar
to the difference observed in the Björkdal deposit between veins located below and above the marble
(figure 3). The similarities between the two deposits could indicate t hat there is a degree of structural
repetition, in which the distribution of mineralised zones in Björkdal could help inform on mineralisation in
Storheden.
Veining in Storheden is further influenced by the presence of massive mafic sills, which constitute
rheological anomalies within the stratigraphy (figure 4). They are interpreted to act as focal points for
1 ASX announcement 15 October 2025 – ‘Björkdal Resources and Reserves Statement FY25’
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deformation and fluid flow, often defining the hanging and footwall of minerali sed zones. These units
provide useful exploration targets for future drill testing.
Figure 4: Detailed plan view, long section and cross section of Storheden, showing 2026 intercepts in relation to
previous drilling, modelled wireframes and target zones.
To date, no direct connectivity has been established between the Storheden and Björkdal deposits .
However, their comparable style of mineralisation indicates that that they share a common source of ore-
bearing fluids at depth, likely at the base of the fold -and-thrust system hosting both deposits (figure 3).
Mineralised veining in Björkdal currently extends to almost double the depth that has been tested at
Storheden, further indicating that it has significant down-dip potential. Storheden also remains open to the
west, where there is a possibility for the minerali sed system to connect with veining above marble in the
Björkdal deposit, although drilling in this area is challenging due to thick overburden and the location of the
tailings.
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Drilling Results
Following the last update on the Storheden Deposit 1, 16 extensional diamond drill holes have been
completed between January and March 2026, totalling 7,965 m (figure 3). Drilling was focused on Target
Zones A and B, defined during previous drilling campaigns . These are situated close to existing mine
infrastructure, both surface and underground, at a horizontal distance of 700-800 m.
A total of 14 holes were drilled in Target Zone A, including SH26-001 to SH26-012, and SH26-015 to SH26-
016, which successfully extended high -grade mineralisation 450 m along strike to the east (f igure 4).
Mineralisation in this zone remains open to the west and east, as well as at depth. These drill holes
intercepted mineralized Quartz veins with an encouraging consistency in frequency, strike and dip. Visible
gold occurred in multiple veins, returning high -grade intercepts including 50.9 g/t Au over 0.95 m from
406.2 m in drill hole SH26-010 and 107 g/t over 0.40 m from 293.3-293.7 m in drill hole SH26-011 (figure
5).
Figure 5: Core tray photograph of high-grade veining in SH26-010 (406.2-407.15 m), and in SH26-011 (293.3-293.7
m).
There remains a gap between wireframes modelled from the 2026 campaign and previous drilling, due to
a lack of accessible drill sites to test this area. However, veining is expected to be continuous across this
gap, and new surface sites are being prepared to allow this space to be targeted with follow-up drilling.
1 ASX announcement 19 December 2025 – ‘Alkane Doubles the Tested Depth Extent of the Storheden Deposit at Björkdal’
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In the 2026 campaign, two additional drill holes (SH26-013 and SH26-014) also depth-tested Target Zone
B, with hole SH26-013 intercepting multiple veins with visible gold (figure 4). Current drilling is insufficient
to define a resource in this zone, but the intercepts demonstrate its potential to host further mineralisation
and will be targeted with follow-up drilling.
Updated Mineral Resource
The Storheden Mineral Resource estimate has been updated to incorporate 28 additional diamond drill
holes (14,061 m drilled) completed during the 2025 exploration program and the first months of 2026 (figure
6). The updated geological model comprises 74 mineralised wireframes, with all previously interpreted
mineralised domains reviewed and refined where required to incorporate the new drilling information. The
revised interpretation provides improved confidence in the geometry and continuity of the mineralised
zones and forms the basis of the updated Mineral Resource estimate.
The updated Mineral Resource includes Indicated Resources of 1,075 kt at 2.51 g/t Au (87 koz Au) and
Inferred Resources of 1,846 kt at 2.11 g/t Au (125 koz Au). This marks an increase of approximately 26%
in Inferred contained gold from the previous Inferred Resource (1.77 Mt grading 1.74 g/t Au for 99 koz1)
as well as the creation of Indicated Resources totalling 87 koz of contained gold. The increase in Mineral
Resources reflects the successful conversion of recent drilling results into the geological and resource
models, resulting in an expansion of the interpreted mineralised domains together with improved definition
of existing mineralisation.
Mineral Resources at Storheden, as of 7 June 2026
Category Inventory (kt) Gold grade
(g/t)
Contained Gold
(koz)
Indicated 1,075 2.51 87
Inferred 1,846 2.11 125
Notes:
1. Mineral Resources are estimated using drill hole and sample data as of 7 June 2026.
2. Mineral Resources are classified and reported in accordance with the guidelines of the JORC Code (2012); the
classifications are consistent with Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards for
Mineral Resources and Mineral Reserves (CIM (2014) definitions).
3. Mineral Resources are estimated using an average gold price of US$3,100/oz and an exchange rate of 10.0 SEK/US$.
4. High gold assays for the underground mine were capped at 60 g/t Au for the first search pass and 40 g/t Au for subsequent
passes.
5. Interpolation was by inverse distance cubed (ID3) utilising diamond drill, reverse circulation, and chip channel samples.
6. Underground Mineral Resources are estimated at a cut-off grade of 0.65 g/t Au.
7. A nominal 2.5 m minimum mining width was used to interpret veins.
8. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
9. Numbers may not add due to rounding.
10. Competent Person for the Storheden Mineral Resource estimates is Reno Pressacco, M.Sc.(A)., P.Geo., FGC, Associate
Principal Geologist with SLR, who is a Competent Person as defined by JORC (2012).
Figure 6: Perspective view of the Storheden Block Model looking to the NE.
1 ASX announcement 15 October 2025 – ‘Björkdal Resources and Reserves Statement FY25’