REG - Castillo Copper Ltd - CCZ secures option to acquire two lithium projects
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.
29 September 2021
CASTILLO COPPER LIMITED
("Castillo" or the "Company")
Castillo secures option to acquire two prime lithium projects
Castillo Copper Limited (LSE and ASX: CCZ), a base metal explorer primarily focused on copper across Australia and Zambia, is pleased to announce that it has entered into a 90-day option agreement to acquire - subject to due successful due diligence - two granted, highly prospective lithium projects. The Litchfield and Picasso Lithium Projects are located in prime regions in the Northern Territory (NT) and Western Australia (WA) respectively.
Highlights
· Option secured for 90-days to acquire - subject to successful due diligence - two highly prospective lithium projects in prime locations:
1) Litchfield Lithium Project (Northern Territory) is contiguous to Core Lithium's (ASX: CXO) strategic Finniss Lithium Project which has JORC compliant ore reserves (7.4Mt @ 1.3% Li2O), with production slated to commence in H2 20221:
§ Analysing satellite imagery2 shows potential for lithium pegmatite bodies to be apparent along Litchfield's north-west boundary; this is the primary exploration target area
2) Picasso Lithium Project (Norseman region, WA) is proximal to Liontown's Resources' (ASX: LTR) Buldania Project, with a JORC compliant resource at 14.9Mt @ 0.97% Li2O3, and has mapped pegmatites4 that potentially host lithium mineralisation
· Castillo has ample funds on hand to develop core projects moving forward; meanwhile, the drilling campaign at the Arya Prospect is about to commence
Simon Paull, Managing Director of Castillo Copper, commented: "This is a strategic acquisition to complement our existing copper assets and strengthen Castillo's exposure to critical metals for the clean energy transition. We consider the projects to be highly prospective and they are situated in prime locations nearby to proven Lithium reserves. By focusing on developing copper and lithium projects, the Board is positioning Castillo to potentially create significant incremental value from the transition towards renewable energy sources and accelerating demand for electric vehicles globally."
In addition to this release, a PDF version with supplementary information and images can be found on the Company's website: https://castillocopper.com/investors/announcements/
PRIME LITHIUM ASSETS
Rationale for Acquisition
Following a recent strategic review, the Board of Castillo Copper decided it was prudent to diversify the asset portfolio and acquire quality projects prospective for lithium mineralisation. By having the ability to develop projects prospective for copper and lithium, it positions the Company strategically to potentially create significant incremental value from the transition towards renewable energy sources and surging demand for electric vehicles globally.
Litchfield Lithium Project, NT
The Litchfield Lithium Project is close to Darwin Port in a mineral rich, yet underexplored, region. In geological terms, it is in the Bynoe pegmatite field, which is known to host lithium mineralisation. A key positive for the Litchfield Lithium Project is neighbour CXO's contiguous Finniss Lithium Project which has four demonstrable spodumene lithium deposits within 1-2km of the north-west boundary.1
The JORC compliant total reserve for the Finniss Lithium Project, which comprises deposits at several prospects noted in Figure 1 above, is 7.4Mt @ 1.3% Li2O (equivalent to 97,900t Li2O1). Of these prospects, the BP33 deposit, which is >140m deep and 20-40m wide, has produced some stellar intersections across several drill-holes, including: 75m @ 1.68 % Li2O including 55m @ 1.97% Li2O5.
Based on CXO's published Definitive Feasibility Study, the Finniss Lithium Project's pre-tax NPV for stage 1 development is A$384m, with low start up CAPEX ($89m), 8 year mine life producing up to 197ktpa concentrate and production commencing H2 20226. Moreover, CXO has two binding four-year off-take agreements for 75ktpa concentrate each, with one potentially part of Tesla's supply chain6.
A closer analysis of satellite imagery4, encompassing the Litchfield and Finniss Lithium Projects, demonstrates the geology along the former's western boundary is comparable to that prevalent in the latter. As such, with the potential for lithium pegmatite bodies to be apparent in the western zone of the Litchfield Lithium Project, there is the possibility for contiguous mineralisation.
The primary and secondary targets were selected for their potential to host lithium-bearing pegmatites intruded within the Burrell Creek Formation. Pleasingly, the current owners undertook a comprehensive surface sampling campaign, collecting up to 600 soil and rock-chip samples, which are presently being analysed at a laboratory. The assay results, which are due back shortly, will form a significant component of the preliminary due diligence.
Picasso Lithium Project, WA
The Picasso Lithium Project is circa 50km from Norseman which connects via road / rail to Esperance Port. This is a well-known lithium producing region as it hosts the Mt Marion and Bald Hill Lithium Mines which have JORC compliant total resources at 71Mt @ 1.37% Li2O7 & 26Mt @ 0.96% Li2O8 respectively.
More significantly, the Picasso Lithium Project is proximal to LTR's Buldania Lithium Project, circa 20km west, which has a JORC compliant resource at 14.9Mt @ 0.97% Li2O.9
Within the Buldania Lithium Project, there is outcropping and spodumene-related mineralisation that extends to the south-east under shallow cover along a 1.4km strike event that is open. Moreover, reflecting LTR's optimism in the Buldania Project's potential, a mining lease application has been lodged over the area which hosts the resource.9
Encouragingly, the Picasso Lithium Project hosts geology that is comparable to occurrences found in LTR's tenure and ground proximal to the Bald Hill Lithium Mine. Drilling down, the Geological Survey of Western Australia10 (GSWA) has mapped granitic pegmatites (which typically host lithium bearing minerals such as spodumene) within the Picasso Lithium Project.
Reflecting the exploration potential, a closer analysis and interpretation of GSWA's maps suggest there are potentially more outcropping granite units and mapped pegmatites in the Picasso Lithium Project's than proximal to the Bald Hill Lithium Mine.10
Within the Picasso Lithium Project, historical exploration drilling for gold-copper-zinc-lead was undertaken by Anglo Gold.11 This entailed air-core drilling along a predetermined path which largely encapsulated known outcropping pegmatites. Pleasingly, the assay results for many of the drill-holes returned elevated lithium levels (up to 75ppm Li), with >30ppm deemed significant to warrant closer geological investigation.11 Interpreting the geochemistry findings reinforces the argument that pegmatites within several target areas across the tenure have the potential to host lithium mineralisation.
OPTION AGREEMENT
Vendor Group & Asset Overview
The owners of Lithium Technologies Pty Ltd (ACN: 619683859; "LT") and Lithium Supplies Pty Ltd (ACN: 621172478; "LS"), which, in turn, each own 50% of Synergy Prospecting Pty Ltd (ACN: 622779980; "Synergy"), have granted the Company a 90-day option to acquire 100% of the outstanding shares of LT and LS and by implication 100% of Synergy. The major shareholder of LT and LS on a consolidated basis, with circa 26%, is UK-based and AIM listed Cadence Minerals plc12 (LSE: KDNC).
During this 90-day period, Castillo will be conducting due diligence on all three entities to ensure the underlying assets are in good standing and there are no material adverse issues. Under the terms of the option agreement, Castillo can exercise its right to acquire LT, LS and Synergy at any time during the 90-day period.
The primary assets of Synergy, which are wholly-owned, comprise the Litchfield Lithium Project (EL31774) in NT and Picasso Lithium Project (E63/1888) in WA. In addition, Synergy has an application in NT - EL31828 - known as the Alcoota Lithium Project, which comprises ground proximal to Alice Springs. However, further geological due diligence is required on this application to determine if it meets the criteria to be a core asset.
Between them, LT and LS hold applications for six lithium properties in San Luis Province, Central Argentina. At this juncture, further due diligence is required to determine if these applications will be progressed to grant status.
For further details on all the exploration permits - refer to Appendix A.
Option Terms & Consideration
The terms of the 90-day option are as follows:
· A$50,000 non-refundable deposit in cash on formally granting the option that will go directly to Synergy for working capital purposes.
Upon exercising the option within the 90-day period, the binding consideration terms are as follows:
· A$1m script payment in Castillo shares will become payable to the Vendor Group based on the 14-day WVAP calculated from the date of which the option agreement is announced to the ASX.
· Note, the Vendor Group will be subject to a 6-month voluntary escrow period for 50% of the shares and 12-months for the 50% balance from the date of settlement. In addition, both parties agree to sign off on a binding term sheet.
Incremental consideration terms are applicable if the following milestones are achieved:
· A$1m script payment in Castillo's shares to the Vendor Group based on the 14-day WVAP if two drill-holes produce assayed intercepts greater or equal to a true width of at least 10m @ 1.3% Li2O.
· Note, the two holes will be at least 100m apart, but not greater than 200m.
· A$1m script payment in Castillo's shares to the Vendor Group based on the 14-day WVAP if a JORC compliant total inferred resource of at least 7Mt @ 1.3% Li2O is modelled by SRK Consulting.
· In the event of commercial mining operations commencing, a 2% NSR will be payable to the nominees of the facilitator.
NEXT STEPS
For the lithium projects, the initial focus will be on the following areas:
· Commencement of due diligence on the Litchfield and Picasso Lithium Projects.
· For the Litchfield Lithium Project, return of assays for circa 600 surface samples.
In Queensland, the following is set to take place over the coming weeks:
· Commencement of drilling at the Arya Prospect.
· Return of all Big One Deposit assays from the laboratory, which will enable the geology team to interpret the results then formulate the next drilling campaign.
There are several ongoing steps for the Zambia operations, including:
· Complete the IP survey at the Luanshya & Mkushi Projects then analyse the results for incremental targets for test-drilling; and
· Commence work on the inaugural drilling campaign for the Luanshya Project.
For further information, please contact:
Castillo Copper Limited
+61 8 6558 0886
Simon Paull (Australia), Managing Director
Gerrard Hall (UK), Director
SI Capital Limited (Financial Adviser and Corporate Broker)
+44 (0)1483 413500
Nick Emerson
Luther Pendragon (Financial PR)
+44 (0)20 7618 9100
Harry Chathli, Alexis Gore
About Castillo Copper
Castillo Copper Limited is an Australian-based explorer primarily focused on copper across Australia and Zambia. The group is embarking on a strategic transformation to morph into a mid-tier copper group underpinned by its core projects:
· A large footprint in the Mt Isa copper-belt district, north-west Queensland, which delivers significant exploration upside through having several high-grade targets and a sizeable untested anomaly within its boundaries in a copper-rich region.
· Four high-quality prospective assets across Zambia's copper-belt which is the second largest copper producer in Africa.
· A large tenure footprint proximal to Broken Hill's world-class deposit that is prospective for zinc-silver-lead-copper-gold.
· Cangai Copper Mine in northern New South Wales, which is one of Australia's highest grading historic copper mines.
The group is listed on the LSE and ASX under the ticker "CCZ."
References
1) CXO ASX Release - 21 September 2021 (Annual Report)
2) NT satellite imagery. Available at: https://strike.nt.gov.au/wss.html
3) LTR ASX Release - 2 August 2021
4) Satellite imagery from Geological Survey of Western Australia. Available at: https://www.dmp.wa.gov.au/Geological-Survey/Geological-Survey-262.aspx
5) CXO ASX Release - 11 April, 28 June & 18 December 2018
6) CXO ASX Release - 26 July 2021
7) MIN ASX Release - 31 October 2018
8) Alita Resources - 20 March 2019 (121 Mining Conference Presentation). Available at: http://www.allianceminerals.com.au/wp-content/uploads/2019/03/02088109.pdf
9) LTR ASX Release - 2 August 2021
10) Satellite imagery from Geological Survey of Western Australia. Available at: https://www.dmp.wa.gov.au/Geological-Survey/Geological-Survey-262.aspx
11) Anglo Gold Reports - WAMEX A97556. Available at: https://geodocs.dmirs.wa.gov.au/Web/documentlist/10/Report_Ref/A97556
12) Cadence Minerals profile. Available at: https://www.cadenceminerals.com/about/strategy/
Competent Person Statement
The information in this report that relates to Exploration Results for "Litchfield" and "Picasso" is based on information compiled or reviewed by Mr Geoffrey Reed, a Non- Executive Director of CCZ. Mr Reed is both a shareholder and director of Bluespoint Mining Services, a company which is a shareholder of Castillo Copper Limited. Bluespoint Mining Services provides ad hoc geological consultancy services to Castillo Copper Limited. Mr Reed is a member of the Australian Institute of Mining and Metallurgy (CP) (member #250422) and has sufficient experience of relevance to the styles of mineralisation and types of deposits under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, and Mineral Resources. Mr Reed is a member of the Australian Institute of Geoscientists. Further, Mr Reed consents to the inclusion in this report of the matters based on information in the form and context in which it appears.
Mr Reed has not verified any of the information regarding any of the properties or projects referred to herein other than the "Litchfield" and "Picasso" Properties.
The London Stock Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this release.
APPENDIX A: TENEMENT & APPLICATION SCHEDULE
Australian exploration permits
Asset
Holder
Interest (%)
Status
Licence Expiry Date
Licence Area (Has)
Litchfield (EL31774)
Synergy Prospecting Pty Ltd
100%
Granted
14/02/2025
231,100
Picasso
(E63/1888)
Synergy Prospecting Pty Ltd
100%
Granted
25/10/2023
273,000
Alcoota
(EL31828)
Synergy Prospecting Pty Ltd
100%
Application made on 19/02/2018
N/A
786,000
Argentina exploration permits
Asset
Holder (Ultimate)
Interest (%)
Status
Licence Expiry Date
Licence Area (Has)
Conejo
Lithium Technologies Pty Ltd
100%
Pending grant
1,100 days from 30 days after grant
8,916
Lulu
Lithium Technologies Pty Ltd
100%
Pending grant
1,100 days from 30 days after grant
9,815
Martin
Lithium Technologies Pty Ltd
100%
Pending grant
1,100 days from 30 days after grant
8,254
Carpa
Lithium Supplies Pty Ltd
100%
Pending grant
1,100 days from 30 days after grant
9,954
Chutunsa
Lithium Supplies Pty Ltd
100%
Pending grant
1,100 days from 30 days after grant
9,948
Lagu
Lithium Supplies Pty Ltd
100%
Pending grant
1,100 days from 30 days after grant
8,915
APPENDIX B: JORC CODE, 2012 EDITION - TABLE 1
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
Criteria
JORC Code explanation
Commentary
Sampling techniques
· Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.
· Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.
· Aspects of the determination of mineralisation that are Material to the Public Report.
· In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.
· Litchfield
The Litchfield project and surrounds has a very limited amount of publicly available soil geochemistry survey results.
· Picasso
Regional aircore drilling was undertaken within tenements E15/946 and E63/1083-1084 (Now part of Picasso) in late 2010. Bostech Drilling was contracted to complete this work utilising their light truck mounted Bostech Drillboss 200 (Atlas Copco XRV9, Compressor - capacity 350psi & 600cfm). Holes were drilled to blade refusal along existing tracks in a program of regional traverses. These traverses were completed to better understand the depth of cover and the regolith environment and to gain an understanding of the basement geology. Drill hole localities are depicted in Figure 5.
Drilling techniques
· Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).
· Litchfield
There are no reported drill holes located within the Litchfield tenement
· Picasso
Regional aircore drilling was undertaken within tenements E15/946 and E63/1083-1084 (Now part of Picasso) in late 2010.
Drill sample recovery
· Method of recording and assessing core and chip sample recoveries and results assessed.
· Measures taken to maximise sample recovery and ensure representative nature of the samples.
· Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.
· Litchfield
N/A
· Picasso
Drilling to blade refusal was utilised to identify the distribution of anomalous gold. Collar locations were surveyed using a hand-held GPS with a nominal accuracy of +10 m. Drill holes were pegged in the field using GPS and then the actual location of the hole was picked up after drilling.
Logging
· Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.
· Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.
· The total length and percentage of the relevant intersections logged.
· Litchfield
N/A
· Picasso
Aircore drilling was geology, Alteration and weathering logged
Sub-sampling techniques and sample preparation
· If core, whether cut or sawn and whether quarter, half or all core taken.
· If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.
· For all sample types, the nature, quality and appropriateness of the sample preparation technique.
· Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.
· Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.
· Whether sample sizes are appropriate to the grain size of the material being sampled.
· Litchfield
N/A
· Picasso
Samples were collected from the cyclone in single meter intervals and laid on the ground in rows of ten for geological logging. Four-meter composite samples weighing approximately 3kg in total were collected from the sample piles using a scoop and submitted for gold analysis.
The magnetic susceptibility of these samples was measured, in the bag, with a KT9 magnetic susceptibility meter
Quality of assay data and laboratory tests
· The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.
· For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.
· Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.
· Litchfield
N/A
· Picasso
. A 750g composite sample of the last meter (or two meters, if bottom of hole sample recovery is inadequate) in each hole was collected using a scoop and submitted for multi-element analysis.
Blanks and standards were routinely submitted for quality control purposes, at a nominal ratio of 1 in 40 samples.
All samples were submitted to Genalysis Intertek Laboratory Services for analysis. At the laboratory, samples were dried in an oven at 120 degrees and then pulverised in an LMS mill to a nominal size of -75 microns. The milled pulps were weighed out (to 25g) and underwent stepwise aqua regia digestion in a temperature-controlled laboratory. The analyte was then presented to a graphite-furnace AAS (method AR25/GF) for gold analysis, with the detection limit for this method being 1 ppb Au.
Verification of sampling and assaying
· The verification of significant intersections by either independent or alternative company personnel.
· The use of twinned holes.
· Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.
· Discuss any adjustment to assay data.
· Litchfield
N/A
· Picasso
No adjustment is made to any historical assay data.
Location of data points
· Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.
· Specification of the grid system used.
· Quality and adequacy of topographic control.
· Litchfield
N/A
Picasso
See Figure 5
Data spacing and distribution
· Data spacing for reporting of Exploration Results.
· Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.
· Whether sample compositing has been applied.
· Litchfield
N/A
· Picasso
See Figure 5
Orientation of data in relation to geological structure
· Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.
· If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.
· Litchfield
N/A
· Picasso
N/A
Sample security
· The measures taken to ensure sample security.
· Litchfield
N/A
· Picasso
Chain of Custody procedure by Anglo Gold11
Audits or reviews
· The results of any audits or reviews of sampling techniques and data.
No formal audit or review of sampling techniques has been
undertaken
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
Criteria
JORC Code explanation
Commentary
Mineral tenement and land tenure status
· Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.
· The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.
· Litchfield
See Appendix A.
The majority of the Litchfield tenement is classified under Primary Land Use as 'Conservation and Natural Environment, Production and Agriculture' use. The majority of the tenement is classified as vacant crown land (other) owned by the North Territory
Government. The tenement lays within the Darwin Rural Water Control District and northern portions of the lease
are noted to be within the Darwin Harbour District sensitive area of conservation significance. There are no Native Title Determinations over the Litchfield project area
· Picasso
See Appendix A
The area has been classified entirely as 'minimal use' by the Australian Government's Department of Agriculture and Water Resources, which are areas of land that are largely unused.
Exploration done by other parties
· Acknowledgment and appraisal of exploration by other parties.
· Litchfield
The large majority of historical exploration, even in recent times, has focussed on the known tin occurrences and workings dating back as far as the late 1800's. Even where there is significant new ground to explore and expand on, recent exploration has focused on previous workings. It appears very little attention has been paid to reconnaissance over other nearby areas such as the western portion of the Litchfield project. This includes limited work by Grigm Resources and Altura Lithium Operations, who have held ground over the Litchfield project (from 2008 to 2014) (Grigm Resources, 2014) (Altura Exploration, 2012).
· Picasso
Historic exploration data was compiled from DMP open file (WAMEX) reports and othersources. Exploration has occurred within the project area for at least 40 years with many companies exploring for a number of different commodities during that time. Goldfields,Newmont, Sipa, Avoca and WMC amongst others, explored for lode style gold mineralization whereas Epsilon and CRA explored for uranium/lignite in palaeo-channels. Asarco, as one of the earlier explorers in the area explored for palaeo-placer deposits of both gold and uranium.
Geology
· Deposit type, geological setting and style of mineralisation.
· Litchfield
Localised late-stage pegmatites have intruded into the heavily deformed Burrell Creek meta-sediment units in the immediate area. The pegmatites, which are the targets for lithium mineralisation in the Litchfield project area, are believed to ultimately originate from the Two Sisters Granite.
· Picasso
Pegmatites occur in the greenstones at the Mt Belches-Bald Hill pegmatite belt. Further, pegmatites have also been mapped in the Archaean granite in the Picasso Project. There are a large number of pegmatite occurrences, with 69 government mapped pegmatites throughout the Picasso Project area. The majority of the pegmatites occur in the east of the project area, though pegmatites are also recorded in the south and west of the project.
Drill hole Information
· A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:
o easting and northing of the drill hole collar
o elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar
o dip and azimuth of the hole
o down hole length and interception depth
o 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.
· Litchfield
N/A
· Picasso
Attached.
Data aggregation methods
· In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.
· Where aggregate intercepts incorporate short lengths of high grade results and 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.
· The assumptions used for any reporting of metal equivalent values should be clearly stated.
· . Litchfield
N/A
· Picasso
Significant assays reported in Figure 5
Relationship between mineralisation widths and intercept lengths
· These relationships are particularly important in the reporting of Exploration Results.
· If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.
· If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg 'down hole length, true width not known').
· Litchfield
N/A
· Picasso
Down-hole lengths reported
Diagrams
· Appropriate maps and sections (with scales) and tabulations of intercepts 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.
Maps for each project are included in the announcement
Balanced reporting
· Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.
Not applicable.
Other substantive exploration data
· Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey 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.
Commencement of due diligence on the Litchfield and Picasso Lithium Projects
Further work
· The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).
· Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.
Commencement of due diligence on the Litchfield and Picasso Lithium Projects.
For the Litchfield Lithium Project, return of assays for circa 600 surface samples.
TABLE B1: PICASSO DRILLING DETAILS
NAC087
6454217.53
432545.8
347
33
-90
360
MGA51_94
12/12/2010
AC
NAC088
6454499.12
433188.06
345
13
-90
360
MGA51_94
12/12/2010
AC
NAC089
6454964.3
434047.27
336
23
-90
360
MGA51_94
12/12/2010
AC
NAC090
6455624.62
434645.26
329
13
-90
360
MGA51_94
12/12/2010
AC
NAC091
6456451.31
435179.29
319
13
-90
360
MGA51_94
12/12/2010
AC
NAC092
6457241.91
435793.71
315
48
-90
360
MGA51_94
12/12/2010
AC
NAC093
6458064.62
436321.52
317
26
-90
360
MGA51_94
12/12/2010
AC
NAC094
6458947.88
436697.52
319
20
-90
360
MGA51_94
12/12/2010
AC
NAC095
6459777.13
437250.49
327
13
-90
360
MGA51_94
12/12/2010
AC
NAC096
6460677.14
437633.9
329
16
-90
360
MGA51_94
12/12/2010
AC
NAC097
6461649.86
437873.71
322
31
-90
360
MGA51_94
12/12/2010
AC
NAC098
6462594.06
438145.5
330
13
-90
360
MGA51_94
12/12/2010
AC
NAC099
6463530.86
438497.13
337
13
-90
360
MGA51_94
12/12/2010
AC
NAC100
6464357.73
438985.3
337
31
-90
360
MGA51_94
12/12/2010
AC
NAC101
6465223.1
439392.89
338
15
-90
360
MGA51_94
12/12/2010
AC
NAC102
6466036.42
440055.5
334
43
-90
360
MGA51_94
12/12/2010
AC
NAC103
6466702.1
440423.38
340
49
-90
360
MGA51_94
11/12/2010
AC
NAC114
6461438.7
443489.47
321
13
-90
360
MGA51_94
13/12/2010
AC
NAC115
6462329.98
443763
334
31
-90
360
MGA51_94
13/12/2010
AC
NAC116
6463296.98
443875.8
335
13
-90
360
MGA51_94
13/12/2010
AC
NAC117
6464132.15
444309.43
330
13
-90
360
MGA51_94
13/12/2010
AC
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