REG - Neometals Ltd - Neometals Discovers Spodumene-bearing Pegmatite

NeometalsAnnouncement

13/11/2023 07:45

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RNS Number : 2273T  Neometals Ltd  13 November 2023

This announcement contains inside information

 

13 November 2023

 

Neometals Ltd

("Neometals" or "the Company")

 

Neometals Discovers Spodumene-bearing Pegmatite at Spargos Project

 
Highlights

·    Visual spodumene identified in pegmatite intercepts from historic
diamond drill core at 100% owned Spargos Project covering 55 square kilometres
of the prolific Ida Fault;

·    A review of reverse circulation and diamond drill core from
historical nickel exploration supports the potential for multiple stacked
pegmatite intrusions. Re-sampling is in progress and assays expected in Q4
2023;

·    Spargos has a geological signature analogous to Mt Marion, Kathleen
Valley and Mt Ida i.e. textbook pegmatite emplacement associated with
potassium-rich granite sources and Proterozoic dykes intersecting a
mafic/ultramafic greenstone belt; and

·    Neometals ground truthing of historic mapping has identified
pegmatitic textures in felsic outcrop in multiple locations over a 2km strike
length.

Innovative battery materials recycler, Neometals Ltd (ASX: NMT & AIM: NMT)
("Neometals" or "the Company"), is pleased to announce the discovery of
visible spodumene at its 100% owned Spargos Project ("Spargos") located 50
kilometres southwest of Coolgardie in Western Australia.

Figure 1 - Diamond Core from VQVD003 showing pegmatite intercepted between
242.3 - 246.77m under

UV wavelength 365nm (blacklight). Spodumene fluoresces orange-pink under UV
light from 242.3 - 245.5m.

A recent review of a tenement E15/1416, originally acquired primarily for its
nickel prospectivity has identified extensive pegmatites in historic reverse
circulation ("RC") and diamond drilling and surface mapping. Visual
examination of historic core has identified spodumene mineralisation under UV
wavelength 365nm ("Blacklight"), see figure 1.

Spargos is located in an area of regional interest. Specifically, the Mt Ida
fault in the Yilgarn region of Western Australia is attracting attention for
its rare metal pegmatites. The fault line hosts lithium projects such as Delta
Lithium's ("Delta") Mt Ida Lithium project with an MRE of 14.6Mt @ 1.2% Li2O
(as of October 2023, ASX Announcement: Mt Ida Lithium Project Mineral Resource
Estimate upgrade) and Liontown Resources ("Liontown") Kathleen Valley with an
MRE of 156Mt @ 1.4% Li2O and 130ppm Ta2O5 (as of April 2021, reported in
Liontown FY23 Annual report).

 

Figure 2 - Location of the Spargos Project Relative to Major Western Australia
Lithium Mines or Developments in the Goldfields Area (Publicly Available
Lithium Resource Data Sourced from Department of Mines, Industry Regulation
and Safety 1 May 2023).

Liontown and Delta's mineral resources share a similar geological setting to
Spargos with pegmatites that have intruded their greenstone belts in close
proximity to the Mt Ida fault. Both are flanked by large granite fluid sources
and have been intruded by late-stage Proterozioic dykes. Key characteristics
of Neometals Spargos project include;

·      The Mt Ida fault traversing the Neometals tenement E15/1416;

·      The fault splays bound an Archean greenstone belt consisting of
mafic, ultramafic and interbedded meta-sediments;

·      Up to 13 interpreted granite/pegmatite units intrude this
greenstone stratigraphy;

·      The Spargos greenstone belt is flanked between the Woolgangie
Monzogranite and the Burra Monzogranite, and;

·      All units are cut by late stage, Proterozoic dolerite dykes.

Figure 3 - Spargos Geology with Field Mapping and Lithium Exploration.
Location of Section 1 shown on map.

Neometals Managing Director Chris Reed said:

"We are excited by this discovery, the presence of fertile, spodumene-bearing
pegmatites in diamond core from historic nickel exploration is serendipitous.
The geological model is reminiscent of our former Mt Marion project and
analogous to significant deposits further north up the Mt Ida Fault. It is
important to note that there has been no historic or recent drilling for
lithium.

Whilst Neometals core focus remains the commercialisation of our downstream
battery materials technologies, our senior executives have the capacity and
expertise to maximise value from what could be an exceptional upstream lithium
opportunity."

Recognition of this analogous geological setting led to Neometals commencing a
review of historic data at the Spargos tenement.  Important outcomes include:

·      Historic diamond core and RC holes have recorded the presence of
multiple pegmatites down hole;

·      Of the 29 diamond core holes in the database, 20 holes recorded
pegmatite;

·      Neometals retains 11 of the original 29 diamond holes for the
Spargos project. Resampling and assaying of the priority holes (including
VQVD003) is underway (see Table 1); and

·      The Company's datasets are being updated with historic data and
field verification of interpretations and mapping currently underway.

Table 1: Diamond Holes awaiting Assay

 Hole ID   MGA       MGA        RL     Prospect  Dip  Azimuth  Depth  Hole Type  Date Drilled

East
North
 VQVD0003  299610.0  6533380.0  442.6  Spargos   -60  224      352.1  DDH        23/11/2009
 QVD09     300831.7  6532950.9  453    Spargos   -60  43       385    DDH        13/04/2005
 QVD10     300248.3  6533630.2  465    Spargos   -60  45       285.1  DDH        20/04/2005

Table 2: Holes included on cross-section with VQVD0003

 Hole ID  MGA       MGA        RL   Prospect  Dip  Azimuth  Depth  Hole Type  Date Drilled

East
North
 DDH13    299749.7  6533519.7  450  Spargos   -55  20       306    DDH        14/01/1993
 QVD11    299845.1  6533538.7  455  Spargos   -60  45       193    DDH        24/04/2005

 

Cautionary Statement

In relation to the disclosure of visual mineralisation, the Company cautions
that visual estimates by the Company's geologists of spodumene material
abundance should never be considered a proxy or substitute for laboratory
analysis. Laboratory assay results are required to determine the type and
grade of the visible mineralisation reported in geological mapping described
in this announcement. The Company will update the market when laboratory
analytical results become available.Cross-Section Of VQVD003 With Interpreted
Pegmatites

 

Figure 4 - Cross-section of Spargos historical diamond drill holes with logged
pegmatites.

Section 1 includes the sampled hole VQVD003 where multiple units of pegmatite
were intersected down hole and logged in the historical logging completed in
2009. Upon review of the pegmatites down hole interval 242.3-246.77m was
checked with a UV blacklight for the presence of Spodumene. The core was found
to florescence pink for around 3.2m of the interval from 242.3m.

The cross-section includes historic diamond holes DDH13 and QVD11 with logged
pegmatite intercepts. The logging indicates the potential for stacked
pegmatites in the Spargos greenstone belt.

 

Next Steps

The relevant sections of historic core consisting of intrusions with a
pegmatitic texture in holes QVD009 (328-340.25m, 342.78-343.61m and
375.8-377m) QVD010 (239m to 247.5m) and VQVD003 (241.7m to 248m) have been
cut, sampled and despatched to the laboratory for assaying for the full suite
of lithium, gold and rare earth minerals. Neometals will also relog all RC and
Diamond core samples and is undertaking a review to determine the extent of
planned exploration over the tenement to further increase understanding of the
extent and grade of lithium mineralisation within the Spargos project.

ASX Trading Halt

Neometals advises that trading in the shares of the Company have been halted
on the Australian Securities Exchange ("ASX") effective Monday 13 November
2023 in accordance with ASX Listing Rules, seeking a retraction and
clarification following this announcement. The Company's response to the
requested retraction and clarification can be found on the Neometals website:

https://wcsecure.weblink.com.au/pdf/NMT/02739182.pdf
(https://wcsecure.weblink.com.au/pdf/NMT/02739182.pdf) .

Cautionary Statement

In relation to the disclosure of visual mineralisation, the Company cautions
that visual estimates by the Company's geologists of spodumene material
abundance should never be considered a proxy or substitute for laboratory
analysis. Laboratory assay results are required to determine the type and
grade of the visible mineralisation reported in geological mapping described
in this announcement. The Company will update the market when laboratory
analytical results become available.

 

Authorised on behalf of Neometals by Christopher Reed, Managing Director.

 

For more information, please contact:

 

 Neometals Ltd
 Chris Reed, Managing Director & Chief Executive Officer       +61 8 9322 1182
 Jeremy McManus, General Manager - IP & IR                     +61 8 9322 1182

 Cavendish Securities plc - NOMAD & Joint Broker
 Neil McDonald                                                +44 (0)131 220 9771
 Peter Lynch                                                  +44 (0)131 220 9772
 Adam Rae                                                     +44 (0)131 220 9778

 RBC Capital Markets - Joint Broker                           +44 (0) 20 7653 4000
 Paul Betts
 Jamil Miah

 Camarco PR                                                   + 44(0) 20 3 757 4980
 Gordon Poole
 Emily Hall
 Lily Pettifar

 

About Neometals

Neometals has developed and is commercialising three environmentally-friendly
processing technologies that produce critical and strategic battery materials
at lowest quartile costs with minimal carbon footprint.

Through strong industry partnerships, Neometals is demonstrating the economic
and environmental benefits of sustainably producing lithium, nickel, cobalt
and vanadium from lithium-ion battery recycling and steel waste recovery. This
reduces the reliance on traditional mine-based supply chains and creating more
resilient, circular supply to support the energy transition.

The Company's three core business units are exploiting the technologies under
principal, joint venture and licensing business models:

 

·      Lithium-ion Battery ("LiB") Recycling (50% technology) -
Commercialisation via Primobius GmbH JV (NMT 50% equity). All plants built by
Primobius' co-owner (SMS group 50% equity), a 150-year-old German plant
builder. Providing recycling service as principal in Germany and commenced
plant supply and licensing activities as technology partner to Mercedes-Benz.
Primobius targeting first commercial 21,000 tpa plant offer to Canadian
company Stelco in the DecQ 2023;

·      Lithium Chemicals (70% technology) - Commercialising patented
ELi™ electrolysis process, co-owned 30% by Mineral Resources Ltd, to produce
battery quality lithium hydroxide from brine and/or hard-rock feedstocks at
lowest quartile operating costs. Co-funding Pilot Plant trials in 2023 with
planned Demonstration Plant trials and evaluation studies in 2024 for
potential 25,000tpa LiOH operation in Portugal under a 50:50 JV with related
entity to Bondalti, Portugal's largest chemical company; and

·      Vanadium Recovery (100% technology) - aiming to produce
high-purity vanadium pentoxide from processing of steelmaking by-product
("Slag") at lowest-quartile operating cost. Targeting partnerships with steel
makers and participants in the vanadium chemical value chain under a low risk
/ low capex technology licensing business model.

 

For further information visit www.neometals.com.au
(http://www.neometals.com.au)

 

 

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