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REG - Capital Metals PLC - Drill Results

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RNS Number : 6052P  Capital Metals PLC  21 June 2022

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK
VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF ENGLISH
LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMENDED.  ON
PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS
INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

 

21 June 2022

 

Capital Metals plc

("CMET" or the "Company")

Remaining Drill Results Confirm Further Exceptional Higher Grades

Capital Metals plc (AIM: CMET), a mineral sands company that is now
approaching mine development at the Eastern Minerals heavy mineral sands
project in Sri Lanka (the "Project"), one of the highest-grade mineral sands
projects globally, is pleased to announce the second half of results from the
late-2021 auger drilling programme.

Highlights

·    Drill results from Komari and Urani North, situated in the south of
the Project

·    Exceptional high-grade results of up to 86.1% Total Heavy Minerals
("THM"), including:

 -     1.5m @ 51.9% THM from 1.5m
 -     1.1m @ 41.8% THM from 0m
 -     2.5m @ 38.4% THM from 0m
 -     2m @ 36.2% THM from 1.5m
 -     2.5m @ 35.2% THM from 0.5m

·    Average grade of results from the full 560-hole 2021 drilling
programme is 19.37% THM, compared to the existing JORC resource grade of
17.6%, indicating the potential for both volume and grade increases

 

·    All results from surface to a maximum of only 3.5m depth (average
depth 1.5m from surface) ended in mineralisation providing scope for resource
extension at depth

 

Michael Frayne, Chief Executive Officer, commented:

"Results from the second half of our auger drilling campaign continued a
similarly encouraging pattern to all recent drilling campaigns and underlines
that our Project is amongst the highest-grade mineral sands deposits in the
world. These and future results are anticipated to continue to uplift the
average grade of our current global resource, which at 17.6% THM is already in
the highest quartile globally. This is expected to both expand the existing
resource and also further improve the project economics.

Based on this high grade and the recently released exceptional project
economics (see RNS 12 May 2022), we look forward to progressing the Project
into the mine development phase, underpinned by significant demand for mineral
sands and high prices."

Drilling Results from Komari and Urani North

The drill results are from the Komari and Urani North areas, located in the
southern portion of the Project (see link to map below). Extremely high-grade
zones of +30% THM were identified throughout the drilling, with 102 of the 560
drill results recording over 30% THM. As set out in the RNS on 22 May 2002,
the highest drill result returned 1m at 86.1% THM.

All drill results are from surface to a maximum of only 3.5m depth due to
limitations of augur drilling, with an average depth of 1.5m. Sonic drilling
at Komari in 2018 demonstrated the continuity of mineralisation to depth, with
results of 14m at 26.3% THM and 8m at 26.6% THM returned.

The average grade result from the 2021 drilling programme is 19.37% THM. This
result compares favourably with our current global resource grade of 17.6% THM
and indicates a potential grade and volume increase when incorporated into an
updated mineral resource estimate (MRE).

The verified assay results underwent extensive QA/QC review with assessment of
sample duplicates and heavy mineral standard samples included in the assay
process.  A Competent Person ("CP") audit of the laboratory in March 2022
confirmed the high level of accuracy and precision returned from quality
assurance samples.

High-grade and contiguous mineralisation intersected by this and previous
drill programmes warrant further exploration and resource development in the
south of Komari as part of the Company's planned drilling programme for later
this year. Material resource extensions are also anticipated where dune
mineralisation has been identified west of the current delineated resource.

Section 1 (Sampling Techniques and Data) and Section 2 (Reporting of
Exploration Results) of the JORC Code, 2012 Edition are presented in Appendix
1.

A summary of significant intercepts is presented in Appendix 2.

A supplementary version of the announcement with the drilling and resource
plan from the whole 2021 drilling programme is accessible via the link below:

http://www.rns-pdf.londonstockexchange.com/rns/6052P_1-2022-6-21.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/6052P_1-2022-6-21.pdf)

 

For further information, please visit www.capitalmetals.com or contact:

 Capital Metals plc                           Via Vigo Consulting

 Michael Frayne (CEO)

 James Mahony (CFO)
 Vigo Consulting (Investor Relations)         +44 (0)20 7390 0234

 Ben Simons / Oliver Clark                    capitalmetals@vigoconsulting.com
 SPARK Advisory Partners (Nominated Adviser)  +44 (0)20 3368 3554

 Neil Baldwin / James Keeshan
 WH Ireland Limited (Joint Broker)            +44 (0)20 7220 1666

 Harry Ansell / Katy Mitchell
 Tavira Securities Limited (Joint Broker)     +44 (0)20 7100 5100

 Jonathan Evans / Oliver Stansfield

 

About Capital Metals plc

Capital Metals is developing the Eastern Minerals Project in the Eastern
Province of Sri Lanka, approximately 220km east of Colombo. The Eastern
Minerals Project is one of the highest-grade mineral sands projects globally,
with a current JORC Resource of 17.2Mt with an average grade of 17.6% Total
Heavy Minerals, and potential for resource extension. In May 2022 a
third-party Preliminary Economic Assessment ("PEA") provided an NPV for the
Project of US$155-235M based on existing resources and without full
optimisation. The PEA outlined an attractive low-CAPEX requirement of
US$37.3M, with further expansion funded through cashflows from the Project,
expected to deliver US$645M of revenue for operating cashflows of US$391M.

 

Our goal is to become a high margin producer of mineral sands for the
international market, with a commitment to applying best-in-class mining
practices and bringing significant positive benefits to Sri Lanka and the
local community with over 300 direct new jobs to be created and over US$100m
in direct government royalties and taxes.

 

Competent Person

Information in this report relating to Exploration Results is based on data
reviewed by Mr Richard Stockwell, a principal of Placer Consulting Pty Ltd and
Technical Manager of the Company. Mr Stockwell is a Fellow of the Australian
Institute of Geoscientists and has in excess of 20 years' experience, which is
relevant to the style of mineralisation and type of deposit under
consideration, and to the activity he is undertaking, to qualify as a
Competent Person as defined in the 2021 Edition of the "Australasian Code for
Reporting of Exploration Results, Mineral resources and Ore Reserves". Mr
Stockwell consents to the inclusion of the information in the form and
context in which it appears.

 

 

 

APPENDIX 1 - JORC Table 1

 

 Criteria                                                                   Explanation                                                                      Comment
 Sampling techniques                                                        Nature and quality of sampling (e.g. cut channels, random chips, or specific     Hand auger drilling is executed by the GSMB field team using a manually

                                                                          specialised industry standard measurement tools appropriate to the minerals      operated enclosed-flight Spiral Auger (SP / SOS) system from Dormer
                                                                            under investigation, such as down hole gamma sondes, or handheld XRF             Engineering in Queensland, Australia. Drilling proceeds to the water table,
                                                                            instruments, etc.). These examples should not be taken as limiting the broad     which is intersected at an average depth, for this dataset, of 1.5m from
                                                                            meaning of sampling.                                                             surface.

                                                                                                                                                             The first 0.5m advance is withdrawn and the contents of the auger removed onto
                                                                                                                                                             a sheet and set aside for bagging. The subsequent samples are taken in the
                                                                                                                                                             same manner at 1m intervals or until the hole is abandoned at the water table.

                                                                                                                                                             The whole sample is retained.

                                                                            Include reference to measures taken to ensure sample representivity and the      All drilling is completed above the water table.
                                                                            appropriate calibration of any measurement tools or systems used.

                                                                                                                                                             Drilling and sampling activities are supervised by a suitably qualified GSMB
                                                                                                                                                             geologist who is present at all times. All drill samples are geologically
                                                                                                                                                             logged by the geologist at the drill site.

                                                                                                                                                             Each sample is bagged at site and transferred to the GSMB laboratory. Samples
                                                                                                                                                             are dried and weighed prior to analysis.
                                                                            Aspects of the determination of mineralisation that are Material to the Public   All samples are dried and weighed.  A riffle-split sub sample is then wet
                                                                            Report. In cases where 'industry standard' work has been done this would be      screened to determine slimes (-63 µm) and oversize material (+1mm).
                                                                            relatively simple (e.g. 'reverse circulation drilling was used to obtain 1 m      Approximately 100g of the resultant sand sample is then oven-dried and
                                                                            samples from which 3 kg was pulverised to produce a 30 g charge for fire         passed over a Franz Isodynamic Magnetic Separator to produce magnetic (M) and
                                                                            assay'). In other cases, more explanation may be required, such as where there   non-magnetic (NM) fractions. The NM fraction is then subjected to heavy liquid
                                                                            is coarse gold that has inherent sampling problems. Unusual commodities or       separation (HLS) using Lithium heteropolytungstate (LST) with a density of
                                                                            mineralisation types (e.g. submarine nodules) may warrant disclosure of          2.82g/ml.
                                                                            detailed information.

                                                                                                                                                             All fractions are weighed and reported as a percentage of the in-ground total
                                                                                                                                                             sample weight.

                                                                                                                                                             Grain counting of heavy minerals is completed by mineralogist and mineral
                                                                                                                                                             assemblage data is then reported as a percentage of the HM fraction.
 Drilling techniques                                                        Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air         All samples are generated by hand auger drilling utilising 75mm diameter
                                                                            blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or    enclosed-flight spiral auger.  Drill holes are oriented vertically by eye.
                                                                            standard tube, depth of diamond tails, face-sampling bit or other type,

                                                                            whether core is oriented and if so, by what method, etc.).
 Drill sample recovery                                                      Method of recording and assessing core and chip sample recoveries and results    Samples are assessed visually for recoveries. Samples are retrieved moist from
                                                                            assessed.                                                                        the ground. The configuration of drilling and nature of materials encountered
                                                                                                                                                             results in negligible sample loss.

                                                                                                                                                             Hand-auger drilling is ceased when recoveries become poor once the water table
                                                                                                                                                             has been reached. Water table and recovery information is included in
                                                                                                                                                             lithological logs.
 Drill sample recovery, cont'd.                                             Measures taken to maximise sample recovery and ensure representative nature of   The GSMB's trained geologists supervise drilling on a 1 team 1 geologist basis
                                                                            the samples.                                                                     and are responsible for monitoring all aspects of the drilling and sampling
                                                                                                                                                             process.
                                                                            Whether a relationship exists between sample recovery and grade and whether      No relationship is believed to exist between grade and sample recovery. The
                                                                            sample bias may have occurred due to preferential loss/gain of fine/coarse       moisture content and absence of hydraulic inflow above the water table results
                                                                            material.                                                                        in a sample size that is well within the expected size range.
 Logging                                                                    Whether core and chip samples have been geologically and geotechnically logged   Qualitative logs of geological characteristics are collected in the field to
                                                                            to a level of detail to support appropriate Mineral Resources estimation,        allow a comprehensive geological interpretation to be carried out. Drill holes
                                                                            mining studies and metallurgical studies.                                        are characterised by their location within the beach-barrier sequence to
                                                                                                                                                             assist with domaining each sequence unit in subsequent resource estimations.
                                                                            Whether logging is qualitative or quantitative in nature. Core (or costean,      Logging of sand samples in the field is qualitative and includes description
                                                                            channel, etc.) photography.                                                      of sand colour, sorting and angularity. Estimates of black HM and garnet are
                                                                                                                                                             recorded. A comments field is employed to allow further description of the
                                                                                                                                                             location or sand sample.
                                                                            The total length and percentage of the relevant intersections logged.            All drill holes are logged in full and all samples are assayed.
 Sub-sampling techniques and sample preparation                             If core, whether cut or sawn and whether quarter, half or all core taken.        All samples comprise unconsolidated sand.
                                                                            If non-core, whether riffled, tube sampled, rotary split, etc. and whether       Samples are taken in their entirety. Drill samples are oven-dried and split
                                                                            sampled wet or dry.                                                              for analysis.
                                                                            For all sample types, the nature, quality and appropriateness of the sample      Sample preparation is recorded on a standard flow sheet and detailed QA/QC is
                                                                            preparation technique.                                                           undertaken on all samples. Sample preparation techniques and QA/QC protocols
                                                                                                                                                             are appropriate for the magnetic separation and heavy mineral determinations.

 Sub-sampling techniques and sample preparation, cont'd.                    Quality control procedures adopted for all sub- sampling stages to maximise      Quality assurance protocols include the application of trained geological

                                                                          representivity of samples.                                                       staff and experienced samplers. Use of plastic sheets and sample bags to
                                                                                                                                                             remove the potential of sample loss and cleaning of sample equipment between
                                                                                                                                                             samples.

                                                                                                                                                             Competent person (CP) review of laboratory techniques and flowsheet is applied
                                                                                                                                                             to ensure representative sample splitting.  Inspection of laboratory
                                                                                                                                                             procedure and equipment is completed to ensure appropriate technique, good
                                                                                                                                                             housekeeping and application of accurate sample handling and sample management
                                                                                                                                                             procedures.

                                                                                                                                                             Laboratory duplicate and standard sample geostatistical analysis is employed
                                                                                                                                                             to manage sample precision and analysis accuracy. Twin drilling is applied to
                                                                                                                                                             determine short range variability in grade and lithological character.

                                                                            Measures taken to ensure that the sampling is representative of the in-situ      Samples are taken in their entirety. Laboratory duplicates are generated for
                                                                            material collected, including for instance results for field                     precision analysis at the sample splitting stage. Results indicate a high
                                                                            duplicate/second-half sampling.                                                  level of precision is achieved.

                                                                            Whether sample sizes are appropriate to the grain size of the material being     The sample size is considered adequate for a medium-grained sand.
                                                                            sampled.
                               Quality of assay data and laboratory tests.  The nature, quality and appropriateness of the assaying and laboratory           Sample preparation and analysis of drill samples is completed by the GSMB
                                                                            procedures used and whether the technique is considered partial or total.        research laboratory in Colombo. Analysis is conducted on a split fraction of
                                                                                                                                                             the total sample and the retains are labelled and stored.

                                                                                                                                                             Techniques employed conform to contemporary analysis methodology in the
                                                                                                                                                             treatment of minerals separable by their physical properties. A CP audit of
                                                                                                                                                             the facility was completed with no recommended improvements noted.
                                                                            For geophysical tools, spectrometers, handheld XRF instruments, etc., the         None used.
                                                                            parameters used in determining the analysis including instrument make and
                                                                            model, reading times, calibrations factors applied and their derivation, etc.
 Quality of assay data and laboratory tests, cont'd.                        Nature of quality control procedures adopted (e.g. standards, blanks,            Quality assurance is maintained by laboratory duplicate and standard sample
                                                                            duplicates, external laboratory checks) and whether acceptable levels of         assaying procedure. Standard samples are provided by Placer Consulting Pty Ltd
                                                                            accuracy (i.e. lack of bias) and precision have been established.                and are submitted blind to the laboratory. As a total sample is generated by
                                                                                                                                                             the drilling, a field duplicate is not generated. A laboratory duplicate is
                                                                                                                                                             created at the sample splitting stage.

                                                                                                                                                             Standards and duplicates are submitted at a frequency of 1:20 samples. They
                                                                                                                                                             are subjected to the complete sample preparation and assaying process.

                                                                                                                                                             Analysis of sample duplicates is undertaken by standard geostatistical
                                                                                                                                                             methodologies (Scatter, Pair Difference and QQ Plots) to test for bias and to
                                                                                                                                                             ensure that sample splitting is representative.  Standards determine assay
                                                                                                                                                             accuracy performance, monitored on control charts, where failure (beyond 3SD
                                                                                                                                                             from the mean) triggers re-assay of the affected batch.

                                                                                                                                                             A high level of accuracy and precision are displayed in geostatistical
                                                                                                                                                             analyses to date.
 Verification of sampling and assaying                                      The verification of significant intersections by either independent or           Significant intersections are customary from hand auger and sonic core
                                                                            alternative company personnel.                                                   drilling at the Eastern Minerals Project. Results in excess of 20% THM are
                                                                                                                                                             common and in some cases, substantially higher concentrations are intersected.
                                                                                                                                                             Placer Consulting considers this to be reasonable and consistent with beach,
                                                                                                                                                             berm and foredune accumulations in a highly-mineralised region.  No audit
                                                                                                                                                             analyses have been completed on these exploration results.
                                                                            The use of twinned holes.                                                        Twinned holes are drilled across a geographically-dispersed area to determine
                                                                                                                                                             short-range geological and assay field variability.  Twin drilling is applied
                                                                                                                                                             at a frequency of 1:25 drill holes.

                                                                                                                                                             Geostatistical analysis of twin drilling data awaits the return of all assay
                                                                                                                                                             results.
                                                                            Documentation of primary data, data entry procedures, data verification, data    Field logging data, photo's and maps are generated in the field by the GSMB
                                                                            storage (physical and electronic) protocols.                                     geologist and provided to CMET staff in excel spreadsheet, pdf document and
                                                                                                                                                             jpeg files. These data are stored in the master database at the Colombo office
                                                                                                                                                             and on a secured cloud-storage facility that is accessible by invitation.
                                                                            Discuss any adjustment to assay data.                                            Assay data adjustments are made to convert laboratory collected weights to
                                                                                                                                                             assay field percentages and to account for moisture.
 Location of data points                                                    Accuracy and quality of surveys used to locate drill holes (collar and           These exploration results are located by GSMB staff using hand-held GPS.
                                                                            down-hole surveys), trenches, mine workings and other locations used in          Mineral resources are not considered in this report.
                                                                            Mineral Resources estimation.
                                                                            Specification of the grid system used.                                           The Kandawala Sri Lanka Grid is used to locate the drill collars.
 Location of data points, cont'd.                                           Quality and adequacy of topographic control.                                     Elevations are not recorded for these exploration results.

 Data spacing and distribution                                              Data spacing for reporting of Exploration Results.                               Drill spacing relates to the sequence stratigraphic unit and their extent.
                                                                                                                                                             Drill holes are generally spaced at 5m-east intervals in the beach and tidal
                                                                                                                                                             zones. The Berm zone is drilled at 15 - 50m east spacings dependent on their
                                                                                                                                                             lateral extent.
                                                                            Whether the data spacing and distribution is sufficient to establish the         No mineral resource or ore reserve is considered in this report.
                                                                            degree of geological and grade continuity appropriate for the Mineral
                                                                            Resources and Ore Reserves estimation procedure(s) and classifications
                                                                            applied.
                                                                            Whether sample compositing has been applied.                                     Samples are not composited.
 Orientation of data in relation to geological structure                    Whether the orientation of sampling achieves unbiased sampling of possible       Sample orientation is vertical and approximately perpendicular to the dip and
                                                                            structures and the extent to which this is known, considering the deposit        strike of the mineralization, which results in true thickness estimates.
                                                                            type.                                                                            Drilling and sampling is consistent with the anisotropy of the mineralisation.
                                                                            If the relationship between the drilling orientation and the orientation of      There is no apparent bias arising from the orientation of the drill holes with
                                                                            key mineralised structures is considered to have introduced a sampling bias,     respect to the strike and dip of the deposit.
                                                                            this should be assessed and reported if material.
 Sample security                                                            The measures taken to ensure sample security.                                    All samples are numbered, with sample splits, residues and HM sinks stored
                                                                                                                                                             securely at the GSMB pending completion of the programme. Samples will be
                                                                                                                                                             transferred for secured storage at CMET property upon completion.
 Audits or reviews                                                          The results of any audits or reviews of sampling techniques and data.            The Competent Person completed an audit of the GSMB laboratory. Personnel,
                                                                                                                                                             equipment and procedures represent best practice and no recommended
                                                                                                                                                             improvements were forwarded. Data are monitored by CMET staff and reviewed by
                                                                                                                                                             the CP as they are returned.

 

 

 Criteria                                                          Explanation                                                                      Comment
 Mineral tenement and land tenure status                           Type, reference name/number, location and ownership including agreements or      The exploration results are coincident with the granted Exploration Licence
                                                                   material issues with third parties such as joint ventures, partnerships,         EL2017/199 wholly owned by CMET JV partner Damsila Exports (Pvt) Ltd.
                                                                   overriding royalties, native title interests, historical sites, wilderness or

                                                                   national park and environmental settings.                                        A f.o.b. royalty of 7% is payable to the government.
                                                                   The security of the tenure held at the time of reporting along with any known    There are no known impediments to the security of tenure over the area
                                                                   impediments to obtaining a licence to operate in the area.                       containing the reported exploration results.
 Exploration done by other parties                                 Acknowledgment and appraisal of exploration by other parties.                    CMET and partners have completed the only systematic exploration of this
                                                                                                                                                    region of the Eastern Minerals Project. The reported results offer support to
                                                                                                                                                    previous drilling and in some cases, higher HM grades and greater lateral
                                                                                                                                                    extent.
 Geology                                                           Deposit type, geological setting and style of mineralisation.                    Exploration results are indicative of modern, low slimes tidal, beach and berm
                                                                                                                                                    detrital heavy mineral sand deposits. Holocene dunes are truncated by the
                                                                                                                                                    modern marine successions and are also heavily mineralised. Heavy minerals are
                                                                                                                                                    derived originally from the neighbouring Precambrian metamorphic terrane and
                                                                                                                                                    from Pleistocene dune deposits. Two monsoon seasons provide ample winnowing
                                                                                                                                                    action on HM deposits and generate both northerly and southerly long-shore
                                                                                                                                                    drift.
 Drill hole Information                                            A summary of all information material to the understanding of the exploration    An intercept table is listed in the report.
                                                                   results including a tabulation of the following information for all Material

                                                                   drill holes:                                                                     Results support previous releases on exploration results and mineral

                                                                                resources.
                                                                   · easting and northing of the drill hole collar

                                                                   · elevation or RL (Reduced Level - elevation above sea level in metres) of
                                                                   the drill hole collar

                                                                   · dip and azimuth of the hole

                                                                   · down hole length and interception depth

                                                                   · hole length.

                                                                   If the exclusion of this information is justified on the basis that the
                                                                   information is not Material and this exclusion does not detract from the
                                                                   understanding of the report, the Competent Person should clearly explain why
                                                                   this is the case.
 Data aggregation methods                                          In reporting Exploration Results, weighting averaging techniques, maximum        Mineral intersections are reported at a 5% HM bottom cut, as is customary for
                                                                   and/or minimum grade truncations (e.g. cutting of high grades) and cut-off       the Eastern Minerals Project resources. No top cut is applied.
                                                                   grades are usually Material and should be stated.

                                                                   Where aggregate intercepts incorporate short lengths of high grade results and   No data aggregation is required.
                                                                   longer lengths of low grade results, the procedure used for such aggregation
                                                                   should be stated and some typical examples of such aggregations should be
                                                                   shown in detail.
 Data aggregation methods, cont'd.                                 The assumptions used for any reporting of metal equivalent values should be      No metal equivalents are used for reporting of exploration results.
                                                                   clearly stated.
 Relationship between mineralisation widths and intercept lengths  These relationships are particularly important in the reporting of Exploration   All drill holes are vertical and perpendicular to the dip and strike of
                                                                   Results.                                                                         mineralisation.
                                                                   If the geometry of the mineralisation with respect to the drill hole angle is    Mineral deposits typically approximate a horizontal to shoreward dipping
                                                                   known, its nature should be reported.                                            accumulation.  intercepts are approximately true thickness
                                                                   If it is not known and only the down hole lengths are reported, there should
                                                                   be a clear statement to this effect (e.g. 'down hole length, true width not
                                                                   known').
 Diagrams                                                          Appropriate maps and sections (with scales) and tabulations of intercepts        Refer to main body of the report.
                                                                   should be included for any significant discovery being reported These should
                                                                   include, but not be limited to a plan view of drill hole collar locations and
                                                                   appropriate sectional views.
 Balanced reporting                                                Where comprehensive reporting of all Exploration Results is not practicable,     Reporting of results is restricted to results returned subsequent to the 4(th)
                                                                   representative reporting of both low and high grades and/or widths should be     April 2022 from the 2021 GSMB drilling in the Komari Region of the Eastern
                                                                   practiced to avoid misleading reporting of Exploration Results.                  Minerals Project. Intercepts are disclosed in an unambiguous way at >5%
                                                                                                                                                    THM.
 Other substantive exploration data                                Other exploration data, if meaningful and material, should be reported           No additional, substantive information has returned from the drill sample
                                                                   including (but not limited to): geological observations; geophysical survey      analyses included in this report.
                                                                   results; geochemical survey results; bulk samples - size and method of
                                                                   treatment; metallurgical test results; bulk density, groundwater, geotechnical
                                                                   and rock characteristics; potential deleterious or contaminating substances.
 Further work                                                      The nature and scale of planned further work (e.g. tests for lateral             Mineralogical results are anticipated from the total sample set.
                                                                   extensions or depth extensions or large-scale step-out drilling).
                                                                   Diagrams clearly highlighting the areas of possible extensions, including the    Refer to main body of report.
                                                                   main geological interpretations and future drilling areas, provided this
                                                                   information is not commercially sensitive.

 

APPENDIX 2 - Intercepts Table

 BHID        INTERCEPT
 K44BM1      1.5m @ 51.9% THM from 1.5m
 K43T        0.4m @ 48.4% THM from 0.5m
 K43TE       1.1m @ 41.8% THM from 0m
 K44TE       1m @ 41.3% THM from 0.5m
 K41TE       0.5m @ 39.2% THM from 0m
 K66TE       1.5m @ 39.0% THM from 0m
 K41BE1      2.5m @ 38.4% THM from 0m
 K65TE       1.3m @ 37.9% THM from 0.5m
 K45T        0.3m @ 37.5% THM from 0m
 K45BM1      1.5m @ 36.7% THM from 0m
 K43BE1      2m @ 36.2% THM from 1.5m
 K46BE1      2.5m @ 35.2% THM from 0.5m
 K43BM1      1.5m @ 35.0% THM from 0.5m
 K42BE1      2.5m @ 35.0% THM from 0.5m
 K46T        0.3m @ 34.2% THM from 0.5m
 K48BM1      2.3m @ 33.4% THM from 0.5m
 K47BM1      2.5m @ 33.3% THM from 0m
 K45TE       1.5m @ 30.8% THM from 0m
 K44BE1      2.5m @ 30.2% THM from 0.5m
 K67TE       1.3m @ 29.5% THM from 0m
 K46TE       1m @ 29.2% THM from 0m
 K65T        0.3m @ 27.2% THM from 0m
 K42TE       1m @ 27.1% THM from 0.5m
 K48TE       0.7m @ 24.4% THM from 0m
 K67BE1      1.5m @ 24.0% THM from 0m
 K43BM2      1.5m @ 23.4% THM from 0m
 K41BM2      1.5m @ 21.9% THM from 0m
 K47TE       0.8m @ 21.5% THM from 0.5m
 K64BE1      1m @ 21.1% THM from 0m
 K63BE1      0.9m @ 20.9% THM from 0.5m
 K67T        0.3m @ 20.6% THM from 0m
 K62BM2      2.2m @ 20.4% THM from 0m
 K42BM3      1.5m @ 20.3% THM from 0m
 K44BM2      1.5m @ 19.7% THM from 0.5m
 K41BM1      1.5m @ 18.4% THM from 0m
 K48BE1      1m @ 18.3% THM from 0m
 K46BM1      1.5m @ 18.2% THM from 0m
 K66T        0.3m @ 18.1% THM from 0m
 K61BM2      1.7m @ 18.0% THM from 1.5m
 K63TE       1m @ 17.7% THM from 0m
 K42BM1      1.5m @ 17.7% THM from 0m
 K42BM2      1.5m @ 16.9% THM from 0.5m
 K57TE       0.9m @ 16.1% THM from 0.5m
 K49BM1      2.5m @ 15.9% THM from 0.5m
 K64TE       1.1m @ 15.6% THM from 0m
 K50BM1      2.5m @ 15.6% THM from 0m
 K66BE1      1.5m @ 15.5% THM from 0m
 K49TE       1.2m @ 15.3% THM from 1.5m
 K50TE       1.1m @ 15.2% THM from 0m
 K47BE1      1.1m @ 15.1% THM from 0m
 K58TE       1m @ 15.1% THM from 0m
 K64T        0.3m @ 14.6% THM from 0m
 K59TE       1m @ 14.5% THM from 0m
 K66BM1      2.2m @ 14.4% THM from 0m
 K65BE1      1.5m @ 13.5% THM from 0m
 K60TE       1.1m @ 13.1% THM from 0m
 K66BM2      2.3m @ 12.9% THM from 0m
 K56BE1      1.5m @ 12.8% THM from 0.5m
 K49T        0.4m @ 12.8% THM from 0m
 K57BE1      1.1m @ 12.6% THM from 0m
 K61BM3      2.3m @ 12.5% THM from 0m
 K61BM1      1.8m @ 12.1% THM from 0m
 K62BM3      2.3m @ 12.0% THM from 0m
 K68T        0.3m @ 11.8% THM from 0.5m
 K55BE1      1.3m @ 11.8% THM from 0m
 K50BM2      1.5m @ 11.4% THM from 0m
 K58BE1      1.2m @ 11.4% THM from 0.5m
 K62BM1      2.2m @ 11.0% THM from 0m
 K42T        0.3m @ 11.0% THM from 0m
 K60BE1      1.3m @ 10.8% THM from 0m
 K54BM1      2.5m @ 10.5% THM from 0m
 K53BM1      2.5m @ 10.4% THM from 0m
 K48T        0.3m @ 10.1% THM from 0.5m
 K49BM2      1.5m @ 9.85% THM from 0m
 K63T        0.2m @ 9.82% THM from 0m
 K54BE1      1.2m @ 9.72% THM from 0m
 K62TE       1m @ 9.44% THM from 0m
 K59BE1      1.2m @ 9.05% THM from 0m
 K50T        0.4m @ 9.05% THM from 0m
 K60BM1      2.5m @ 8.46% THM from 0m
 K56TE       0.9m @ 8.23% THM from 0m
 K58T        0.3m @ 8.01% THM from 0m
 K61T        0.5m @ 7.89% THM from 0m
 K47T        0.4m @ 7.87% THM from 0.5m
 K52BE1      1.5m @ 7.24% THM from 0m
 K49BE1      1.5m @ 7.08% THM from 0m
 K50BE1      1.5m @ 7.05% THM from 0m
 K51BE1      1.5m @ 6.98% THM from 0m
 K61BE1      1.3m @ 6.98% THM from 0m
 K53BE1      1.2m @ 6.92% THM from 0m
 K57T        0.4m @ 6.43% THM from 0m
 K62BE1      1.3m @ 6.05% THM from 0m
 K62T        0.4m @ 5.43% THM from 0m
 K53TE       0.9m @ 5.42% THM from 0.5m
 K60T        0.4m @ 5.29% THM from 0.5m
 K61TE       1m @ 5.25% THM from 0m
 K55TE       1m @ 4.96% THM from 0m
 K68TE       0.7m @ 4.89% THM from 0.5m
 K54TE       1.1m @ 4.82% THM from 0m
 K53T        0.3m @ 4.60% THM from 0m
 K55T        0.3m @ 4.34% THM from 0.5m
 K54T        0.3m @ 4.17% THM from 1.5m
 K51T        0.3m @ 3.80% THM from 0m
 K59T        0.3m @ 3.70% THM from 0.5m
 K56T        0.3m @ 3.33% THM from 0m
 K51TE       1m @ 2.91% THM from 0m
 K52T        0.3m @ 2.80% THM from 0m
 K52TE       1.1m @ 2.34% THM from 0m
 K68BE1      1m @ 1.59% THM from 0m

 

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