REG - Neometals Ltd - Spargos Exploration Update
13/02/2024 07:15
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RNS Number : 9470C Neometals Ltd 13 February 2024
13 February 2024
Neometals Ltd
("Neometals" or "the Company")
Spargos Exploration Update
Innovative battery materials recycler, Neometals Ltd (ASX: NMT & AIM: NMT)
("Neometals" or "the Innovative battery materials recycler, Neometals Ltd
(ASX: NMT & AIM: NMT) ("Neometals" or "the Company"), advises that its
review of the lithium exploration potential over its 100% owned Spargos
Project ("Spargos") indicates a low potential for lithium-bearing pegmatites.
Re-sampling and assaying of historical nickel exploration diamond drill core
and assaying of recently collected rock chip and soil samples has returned no
significant lithium assay results.
Spargos, located 50 kilometres southwest of Coolgardie in Western Australia,
sits astride the Mt Ida Greenstone Belt which hosts lithium projects such as
Delta Lithium's Mt Ida Lithium project and Liontown Resources Kathleen Valley.
As previously announced 1 (#_ftn1) , a review of historic data from Spargos
tenement E 15/1416-I identified extensive pegmatites in historic reverse
circulation, diamond drilling and surface mapping. Given the attributes of the
Spargos geological setting, Neometals set out to better understand the
prospective value of what was historically framed as a nickel opportunity.
Previous field mapping, surface sampling and drilling at Spargos focused on
areas of outcrop on the eastern side of the greenstone belt ("ESGB") (see
Figure 1 legend for location). For expediency, Neometals' exploration review
focused on the ESGB, however one of the key material findings is that the
Western Greenstone Belt ("WGB"), located 1.5km west of the ESGB, has been
interpreted to be a possible undercover and unexplored greenstone belt along a
structural splay emanating from the Ida Fault. This unexplored WGB area has
only 8 historic RAB holes of known drilling. Two discrete Potassium anomalies
have been identified on the margin of the WGB within felsic intrusive material
which are shown in Figures 4 and 5.
Exploration results were as follows:
· 11 of 12 historic ESGB diamond drill cores were re-sampled with
no significant lithium assay results returned;
· ESGB pegmatitic surface and rock chip samples (historic and
recently collected in the field) did not return significant Li2O results; and
· Collation and reprocessing of historic ESGB geophysical data
(Airborne Magnetics ("AMAG"), Airborne Versatile Time Domain Electromagnetic
("VTEM") did not identify sites for potential pegmatite intrusions.
Upon review of the reprocessed imagery, assay results and whole rock
geochemistry, Neometals has concluded that the ESGB has a low chance for
Lithium-Caesium-Tantalum ("LCT") pegmatite prospectivity.
Neometals Managing Director Chris Reed said:
"We are naturally disappointed the pegmatites in historic drilling didn't
contain lithium despite having the geological features to host lithium
mineralisation. Given the current market conditions for both nickel and
lithium, further exploration activities have been placed on hold pending a
strategic review of the Project. Our core focus remains our Primobius Lithium
Battery Recycling JV and the installation of a turn-key recycling plant for a
leading German carmaker."
Exploration Activities
Work focused on three main workstreams;
1. Assay of surface and rock chip samples on ESGB;
2. Re-sampling of ESGB diamond drill holes; and
3. Collation and reprocessing of historic geophysical data.
Previously field mapping, surface sampling and drilling at Spargos focused on
areas of outcrop to the east of the greenstone belt. The western portion of
the greenstone belt is observed to be under cover and under explored as a
result. This was evident during Neometals' November 2023 field visit with all
surface sampling (consisting of both rock chip and soil samples) taken to the
east of the green stone package. In total 118 surface samples were taken
between 2021 and 2024, see Figures 2 and 3. The November field mapping focused
on ground truthing of historical mapped pegmatite outcrop. Unfortunately,
while samples were taken in the field that appeared pegmatitic, no significant
Li(2)O results have been returned.
Surface samples collected at Spargos comprised two types:
1. Rock chips - the highest Lithium result returned was QVRK003 sampled
16/08/2021 which returned 42.6ppm (0.0043%) Li2O, see Figure 2 and Appendix 3.
2. Soil samples - Taken where no competent outcrop present - the highest
Lithium result returned was QVRK044 which returned 98.38ppm (0.0099%) Li2O,
see Figure 3 and Appendix 4.
Neometals retained core from 12 Spargos diamond holes drilled between 1994 and
2009. These holes were checked and sampled targeting all intrusions
intersected with pegmatitic texture, or of felsic origin. 11 of the 12 holes
were sampled for a total of 551 samples not including standards, see Figure 3.
Neometals is disappointed to report that no significant results were returned,
see Table 1. The felsic intrusive material bearing coarse plagioclase, and
described as having pegmatitic texture, encountered in the historical drilling
at Spargos does not fit the Lithium-Caesium-Tantalum ("LCT") pegmatite
category. Key indicative accessory minerals such as large muscovite,
tourmaline, and beryl are absent, and whole rock geochemistry is not
supportive of a fractionated system being present. Again, all historic diamond
holes were drilled into the Spargos ESGB as they were designed to test
historic nickel targets, see Figure 3.
Existing airborne magnetics ("AMAG"), Airborne Versatile Time Domain
Electromagnetc ("VTEM") and radiometric data for Spargos was collated and
provided to external geophysical consultancy groups for assessment and
reprocessing with particular focus on identifying sites for potential
pegmatite intrusions within the Spargos greenstone belt. Upon review of the
reprocessed imagery, poor Li(2)O assay results and whole rock geochemistry,
Neometals has concluded that the Spargos ESGB has a low chance for LCT
pegmatite prospectivity.
Neometals is however pleased to confirm that a previously unexplored
greenstone belt has been identified west of the main Spargos project, WGB. The
textural grain of the domain is akin to the nearby exposed greenstone basement
rocks despite being of lower amplitude. The shape of the magnetic domain is
somewhat dendritic and drainage-like, but the VTEM data does not exhibit any
obvious sign of paleochannel there. The western magnetic domain is interpreted
to be a possible undercover and unexplored greenstone belt along a structural
splay emanating from the Ida Fault. Note this interpretation is consistent
with the Geological Survey of Western Australia 100k interpreted bedrock map,
see Figure 1.
The identification of 8km strike length of previously unexplored greenstone
belt on a structural splay off the Ida fault which is untested for lithium,
nickel and gold mineralisation provides an opportunity for future limited
exploration.
Figure 1 - Location of Spargos relative to the Ida Fault overlying Geological
Survey of Western Australia 100k interpreted bedrock map. Shown on map is the
eastern area greenstone belt where previous exploration has focused
highlighted in orange hatch. Highlighted in blue hatch is the new western
greenstone belt which Neometals will focus on for
further mineral exploration.
Figure 2 - Updated Spargos geology map with the point locations for all rock
chip samples taken and assayed for Li(2)O.
Figure 3 - Updated Spargos geology map with the point sample locations of
soil samples plus the collar location of all diamond holes sampled for Li(2)0.
Figure 4 - Reprocessed AMAG and VTEM data depicting interpreted western green
stone belt outlined in white west of the historical Spargos exploration area.
Figure 5 - Review of the high-resolution radiometrics revealed two discrete
potassium
highs, possible sub-cropping felsic intrusive material within metasediments.
Next Steps
· Field mapping to investigate two discrete Potassium (K) anomalies
identified in reprocessed high-resolution radiometrics, see Figure 5; and
· A strategic review of the project
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 Capital Markets Limited - 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, fully integrated, 21,000tpa plant offer
to Canadian company Stelco in the JunQ 2025;
· 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 JV with related entity
to Bondalti, Portugal's largest chemical company; and
· Vanadium Recovery (100% technology) - aiming to enable
sustainable production of 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/)
Competent Person Attribution
The information in this report that relates to the discussion of Exploration
Results is based on information compiled by Owen Casey, who is a member of the
Australian Institute of Geoscientists. Owen Casey is a full-time employee of
Neometals Ltd and has sufficient experience relevant to the styles of
mineralisation and type of deposit under consideration and the activity being
undertaken, to qualify as a Competent Person as defined in the December 2012
Edition of the "Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves". Owen Casey has consented to the
inclusion of the matters in this report based on his information in the form
and context in which it appears
Appendix 1 Significant Intercepts and Results
No significant Li(2)O intercepts or results were returned for the samples
submitted. Drill hole and surface sample tables contain max Li(2)O values
returned below.
Appendix 2 Historic Diamond Drill Hole Sampled Detail
Hole ID MGA MGA RL Prospect Dip Azimuth Depth Hole Type Date Drilled Max Li(2)O (ppm) in hole
East North
QVD04 299816 6533143 466 Spargos -60 45 186.6 DDH 2/10/2004 139.9
QVD05 301271 6532960 454 Spargos -60 45 198.9 DDH 27/09/2004 64.6
QVD07 300830 6532949 459 Spargos -60 45 336.7 DDH 16/10/2004 189.4
QVD09 300832 6532951 459 Spargos 45 -60 384.8 DDH 13/04/2005 213.1
QVD10 300248 6533630 478 Spargos -60 45 285.1 DDH 20/04/2005 146.4
QVD11 299845 6533539 472 Spargos -60 45 192.6 DDH 24/04/2005 94.7
QVD12 300678 6532642 464 Spargos -60 40 186.6 DDH 2/09/2015 86.1
QVD13 300159 6533541 478 Spargos -60 45 404.2 DDH 1/01/2015* 204.5
QVD14 300449 6533428 470 Spargos -60 45 408.4 DDH 1/01/2015* 437.0
QVD15 300199 6533694 477 Spargos -67 137 297 DDH 1/01/2016* 120.6
VQVD0002 299650 6533690 477 Spargos -61 48 313 DDH 23/11/2009 135.6
VQVD0003 299610 6533380 470 Spargos -60 224 352 DDH 2/12/2009 189.4
(*) Dates are approximate as not recorded in historical logs.
Appendix 3 Rock-chip Details
Rock Chip Sample ID Easting Northing RL Sample Type Sample Date Comments Li(2)O (ppm)
QVRK001 300814 6532418 470 ROCK 16/08/2021 Not recorded 12.3
QVRK002 300692 6532307 471 ROCK 16/08/2021 Not recorded 1.3
QVRK003 300498 6532096 467 ROCK 16/08/2021 Not recorded 42.6
QVRK004 300615 6532334 474 ROCK 16/08/2021 Outcropping SIF unit or large gossan, massive rather laminated 1.9
QVRK005 300593 6532352 474 ROCK 16/08/2021 Outcropping SIF unit, massive rather than laminated 0.9
QVRK006 300580 6532287 474 ROCK 16/08/2021 Sheared mafic? striking obliquely to outcropping SIF unit 3.4
QVRK007 300594 6532281 473 ROCK 16/08/2021 Laminated sediments, less iron compared to SIF units previously sampled 2.2
QVRK008 300595 6532274 473 ROCK 16/08/2021 Possible quartz porphyry, with large 2 to 5mm quartz phenocrysts 13.3
QVRK010 300401 6532337 471 ROCK 16/08/2021 laminated sediments/volcanics parrel to SIF/Gossan unit sample id QVRK011 5.6
QVRK011 300400 6532339 471 ROCK 16/08/2021 SIF/Gossan massive compared to the laminated sediments/volcanics 4.1
QVRK012 300613 6532334 468 ROCK 6/12/2021 A thick 5m wide Gossan Duping the high Iron grades of QVRK04 1.4
QVRK013 300617 6532354 467 ROCK 6/12/2021 Possible narrow gossan 4.3
QVRK014 300593 6532350 467 ROCK 6/12/2021 A cross cutting splay off the Large Gossen unit 0.5m thick 1.0
QVRK015 300601 6532350 468 ROCK 6/12/2021 Taken along strike of QVRK13 and 14. Possible cross-bedded Sifs or further 1.3
gossen enrichment
QVRK016 300541 6532363 469 ROCK 6/12/2021 Bedded SiF unit with a gossan cap rock 1.5
QVRK017 300511 6532360 470 ROCK 6/12/2021 Taken along strike of QVRK11 - thick unit of gossan 1.4
QVRK018 300401 6532334 467 ROCK 6/12/2021 Laminated SiF unit with brecciated qtz, limonitic clays interbedded with the 10.5
thin sif units, SIF units themselves look iron rich
QVRK019 300448 6532327 470 ROCK 6/12/2021 Skinny laminated 1-3cm scale sif units, iron poor, high number of interbedded 1.3
clays
QVRK020 300468 6534323 470 ROCK 6/12/2021 Laminated SiF unit with along strike of QVRC19, SIF units themselves look iron 0.8
rich again
QVRK021 300715 6532641 460 ROCK 6/12/2021 A stacked series of skinny SiF units 1.2
QVRK022 302572 6530051 489 ROCK 16/02/2023 Fine grained felsic rock taken from outcrop at the south of the tenement. Fine 5.6
grained plagioclase groundmass.
QVRK023 302567 6530058 489 ROCK 16/02/2023 Medium grained felsic rock with courser plagioclase than QVRK024 31.6
QVRK024 302563 6530054 489 ROCK 16/02/2023 Felsic igneous rock with pegmatitic texture. Course plagioclase crystals and 38.7
quartz
QVRK025 300758 6532181 469 ROCK 16/02/2023 Banded BIF outcrop 0.6
QVRK026 300775 6532190 467 ROCK 16/02/2023 Course granite sample with course plagioclase and quartz. Minor biotite 6.2
QVRK027 300812 6532426 470 ROCK 16/02/2023 Felsic igneous rock with pegmatitic texture. Course plagioclase crystals and 8.6
quartz
QVRK028 300810 6532439 470 ROCK 16/02/2023 RC chips from historic RC waste. Appears to be felsic material with course 17.9
plagioclase
QVRK029 300992 6532594 461 ROCK 16/02/2023 Fe-stained RC chips of felsic origin 2.6
QVRK030 300328 6533045 466 ROCK 16/02/2023 RC chips from historic RC waste. Appears to be felsic material with course 6.9
plagioclase
QVRK031 300329 6533046 466 ROCK 16/02/2023 RC chips from historic RC waste. Appears to be felsic material with course 4.5
plagioclase
QVRK032 299447 6536726 465 ROCK 16/02/2023 Granite sample from outcrop to the north of the tenement. Granite veined by 6.9
quartz
QVRK037 302125 6535155 445 ROCK 20/10/2023 rock chips at base of digging possibly granite orange-brown Moderately Hard 38.3
Mix
QVRK048 301895 6530173 487 ROCK 21/10/2023 10x4m felsic outcrop Cream/brown Very Hard In-Situ 5.2
QVRK049 301895 6530173 487 ROCK 21/10/2023 10x4m felsic outcrop Cream/brown Very Hard In-Situ 8.8
QVRK056 300795 6532743 462 ROCK 21/10/2023 Felsic outcrop. Coarse quartz and plagioclase Cream/brown Very Hard In-Situ 22.2
QVRK057 300497 6532418 474 ROCK 21/10/2023 Felsic outcrop. Coarse grained 3mm quartz Cream/brown Very Hard In-Situ 5.8
QVRK058 300475 6532449 472 ROCK 21/10/2023 Felsic/ultramafic contact. Abundant quartz possible pegmatite Cream/brown Very 11.4
Hard In-Situ
QVRK059 300406 6536544 459 ROCK 22/10/2023 Granite outcrop Cream/brown Very Hard In-Situ 15.9
QVRK060 299463 6535658 471 ROCK 22/10/2023 Felsic outcrop. Coarse feldspars. Biotite Cream/brown Very Hard In-Situ 11.8
QVRK061 299403 6535618 469 ROCK 22/10/2023 Felsic outcrop. Fine-very coarse-grained Cream/brown Very Hard In-Situ 10.5
QVRK062 299125 6535328 483 ROCK 22/10/2023 Felsic outcrop. Medium grained-coarse. Biotite rich Cream/brown Very Hard 37.9
In-Situ
QVRK063 298805 6535016 494 ROCK 22/10/2023 Fe-rich unit brown/grey Very Hard In-Situ 4.3
QVRK064 298805 6535016 494 ROCK 22/10/2023 Felsic outcrop. Coarse quartz Cream/brown Very Hard In-Situ 16.6
QVRK065 298566 6534844 495 ROCK 22/10/2023 Felsic outcrop. Multiple pods. 0.4x3m. 105-degree contact trend Cream/brown 8.8
Very Hard In-Situ
QVRK066 298566 6534844 495 ROCK 22/10/2023 Felsic outcrop. Coarse quartz Cream/brown Very Hard In-Situ 11.4
QVRK067 298518 6534838 497 ROCK 22/10/2023 Felsic outcrop. 15x5m Cream/brown Very Hard In-Situ 10.3
QVRK068 300884 6532269 467 ROCK 8/11/2023 veined mg granite coarse feldspar 8.0
QVRK069 298098 6534626 501 ROCK 22/10/2023 Felsic outcrop. Fine grained. 10x5m Cream/brown Very Hard In-Situ 12.3
QVRK070 297945 6534567 504 ROCK 22/10/2023 Quartz vein Cream/brown Very Hard In-Situ 11.8
QVRK071 298631 6532897 490 ROCK 23/10/2023 2x10m outcrop. Little biotite. Medium grained 26.9
QVRK072 299145 6533949 487 ROCK 23/10/2023 30x15m. Medium-coarse grained. Highly altered/weathered (Feldspars to clays). 7.7
Very coarse quartz Cream/brown Very Hard In-Situ
QVRK074 300841 6532272 468 ROCK 8/11/2023 limonite-stained mg peg abundant cg biotite 9.0
QVRK075 300694 6532386 474 ROCK 8/11/2023 bucky white qtz fe and chl staining 7.5
QVRK076 300595 6532296 473 ROCK 8/11/2023 cg granitic feld/qtz graphic txt with bucky white qtz 11.0
QVRK077 300798 6532398 471 ROCK 8/11/2023 granitic 10.3
QVRK078 300891 6532420 466 ROCK 8/11/2023 cg pg 9.9
QVRK079 301022 6532114 459 ROCK 8/11/2023 cg peg 11.4
QVRK080 300779 6531811 464 ROCK 8/11/2023 cg feld rich peg 6.0
QVRK085 300892 6532836 461 ROCK 8/11/2023 cg peg on side of track 14.9
QVRK092 300417 6531251 476 ROCK 9/11/2023 hand spec pushed up with blade kaolin dom trace muscovite and qtz trc graphic 15.3
texture
QVRK094 300342 6533641 474 ROCK 9/11/2023 f-mg peg / mafic oc foln nw 19.6
QVRK095 300250 6533577 477 ROCK 9/11/2023 f-mg peg oc at contact with siltstone/bif 14.0
QVRK097 300447 6533076 466 ROCK 9/11/2023 costean crystaline qtz v wk musc in parts 9.0
QVRK098 298238 6533433 498 ROCK 10/11/2023 coarse sandstone band nne strike 19.6
QVRK100 299406 6533667 481 ROCK 10/11/2023 qv float 3.4
QVRK104 299943 6533619 473 ROCK 10/11/2023 lateritic cg qtz clastic 4.5
QVRK105 302722 6529965 488 ROCK 10/11/2023 mg weather granitic crystalline qtz tr vfg musc 40.7
QVRK106 302666 6530030 489 ROCK 10/11/2023 angular fg qtz fragments in pale grey siliceous ground mass similar to that in 15.7
other granite contact zones
QVRK107 302647 6530036 489 ROCK 10/11/2023 foliated sil sed some coarser mineralogical banding 15.1
QVRK108 300892 6532836 461 ROCK 8/11/2023 cg peg on side of track 17.7
Appendix 4 Soil Sample Details
Soil Sample ID Easting Northing RL Sample Type Sample Date Comments Li2O (ppm)
QVRK033 301715 6535180 445 SOIL 20/10/2023 sandy gravel orange Moderately Hard Loose 23.9
QVRK034 301560 6534870 449 SOIL 20/10/2023 clay red brown Moderately Hard Loose 31.0
QVRK035 301495 6534584 445 SOIL 20/10/2023 sand orange Soil Loose 27.8
QVRK036 301937 6534740 444 SOIL 20/10/2023 sandy clay red brown Moderately Hard Loose 30.8
QVRK038 302405 6534930 442 SOIL 20/10/2023 sandy gravel orange Moderately Hard Loose 55.5
QVRK039 302840 6535185 442 SOIL 20/10/2023 clay red brown Moderately Hard Loose 32.1
QVRK040 303780 6535120 434 SOIL 21/10/2023 clay Red Brown Moderately Hard Loose 36.2
QVRK041 303580 6534891 435 SOIL 21/10/2023 clay red brown Moderately Hard Loose 32.5
QVRK042 303294 6534556 438 SOIL 21/10/2023 sandy clay red brown Moderately Hard Loose 30.6
QVRK043 303187 6534260 437 SOIL 21/10/2023 clay red brown Moderately Hard Loose 47.8
QVRK044 302723 6533787 445 SOIL 21/10/2023 clay red brown Moderately Hard Loose 98.4
QVRK045 302200 6534380 443 SOIL 20/10/2023 sandy clay red brown Moderately Hard Loose 56.0
QVRK046 301872 6534080 446 SOIL 20/10/2023 sandy clay orange Moderately Hard Loose 41.8
QVRK047 301590 6533740 453 SOIL 20/10/2023 sandy clay red brown Moderately Hard Loose 28.2
Appendix 5 - Table 1 information in accordance with JORC 2012: Spargos Lithium
Exploration
JORC Code Table 1, Section 1, Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections).
Sampling techniques · Nature and quality of sampling (e.g. cut channels, random chips, or NMT
specific specialised industry standard measurement tools appropriate to the
minerals under investigation, such as down hole gamma sondes, or handheld XRF Sampling activities include 118 surface samples being taken over 3 field trips
instruments, etc). These examples should not be taken as limiting the broad between August 2021 and November 2023. Samples consisted of 2-3kg's of
meaning of sampling. out-crop being sampled using handheld geo pick hammer. Samples were collected
in numbered calico bags and dispatched to the Intertek Genalysis for four acid
· Include reference to measures taken to ensure sample representivity and digestion and with ICP-MS finish (4A/MS). 50g fire assays (FA50/MS) were also
the appropriate calibration of any measurement tools or systems used. completed on the samples for gold for E 15/1416-I.
· Aspects of the determination of mineralisation that are Material to the Core sampling of eleven historical HQ and NQ drillholes was carried out in the
Public Report. months of November and December 2023, the samples were selected targeting
identified pegmatite and felsic intrusions to lithological contacts with
· In cases where 'industry standard' work has been done this would be lengths between 0.3m and 1.1m. The intervals were half cut, put in numbered
relatively simple (e.g. 'reverse circulation drilling was used to obtain 1 m calico bags and dispatched to the lab for assay.
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 Historical data (drill data prior to NMT)
is coarse gold that has inherent sampling problems. Unusual commodities or
mineralisation types (e.g. submarine nodules) may warrant disclosure of Limited historical data has been supplied. Historical sampling referenced has
detailed information. been carried out by Spargos Exploration, Maritania Gold, Placer, SIFAM,
Triton, Newexco, Nickel Australia, Independence Group, Vale and Hannan' and
has included soil sampling, RC, DD, rotary air blast (RAB) and aircore
drilling.
RAB and aircore sampling methodology is unknown.
RC sampling was carried out via a riffle splitter for 1m samples, and scoop or
spear sampling for composites.
DD core has been cut and sampled to geological intervals.
These methods of sampling are considered to be appropriate for this style of
exploration at the time.
Drilling techniques · Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air NMT
blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or
standard tube, depth of diamond tails, face-sampling bit, or other type, No drilling has been completed to date by NMT on E 15/1416-I.
whether core is oriented and if so, by what method, etc).
Historical data (drill data prior to NMT)
Information on the drilling companies utilised prior to NMT is limited,
Westralian Diamond Drillers were utilised for the 2017 diamond drilling. It is
assumed that industry standard drilling methods and equipment were utilised
for all historical drilling.
Historical DD drilling completed by Hannans Ltd 2017 indicates a combination
of both HQ and NQ2 sized core being drilled, placed in labelled plastic core
trays, and transported off tenement to Perth for processing.
Drill sample recovery · Method of recording and assessing core and chip sample recoveries and NMT
results assessed.
Recovery of the historic diamond core samples taken were recorded by measuring
· Measures taken to maximise sample recovery and ensure representative the core metre by metre. The original core blocks were in place and legible.
nature of the samples. There was no core loss in the zones that were sampled. The core was
photographed dry prior to cutting.
· Whether a relationship exists between sample recovery and grade and
whether sample bias may have occurred due to preferential loss/gain of Historical data (drill data prior to NMT)
fine/coarse material.
Limited sample recovery and condition information has been supplied or found
to date.
Diamond holes were either:
· Cored from surface employing triple tubing techniques to assist core
recovery in broken ground and to ensure hole stayed on track and within
parameters to hit drill target, (Hannans Ltd 's 4(th) Quarter Activities
Report 2016/2017).
· Drilled with a Reverse circulation ("RC") hammer to a nominal depth
where the hole transitioned to competent ground conditions suitable for
diamond core drilling.
· Roller-cone or drag bit drilled from surface, with all muds and
weathered rock material being lost to standard drill sumps. After refusal, the
drill crew from Westralian Diamond Drillers started coring with HQ bits,
(Queen Victoria Rock Project - Nickel Targets 31/03/2017).
Holes were drilled HQ until to a set depth and then NQ2 to end of hole.
Recoveries were excellent and all drill run depths were recorded.
Overall core recovery of weathered material was very good and fresh rock
recovery was excellent.
Logging · Whether core and chip samples have been geologically and geotechnically NMT
logged to a level of detail to support appropriate Mineral Resource
estimation, mining studies and metallurgical studies. Rock chip samples collected were described based on their lithology,
mineralogy, alteration, veining, and weathering.
· Whether logging is qualitative or quantitative in nature. Core (or
costean, channel, etc) photography. No recent drilling has been completed to date on E 15/1416-I by NMT.
· The total length and percentage of the relevant intersections logged. Relogging of historical core and RC chips has yet to commence.
Historical data (drill data prior to NMT)
A quantitative and qualitative logging suite was supplied to NMT at the
acquisition of the tenement in 2021. The historical database contains
lithology, alteration, mineralogy, veining, and weathering for the historical
holes.
It is unknown if all historical core was oriented.
No geotechnical logging has been supplied.
No historical core or chip photography has been supplied.
Hannans report in 2017 that all drill core was logged by Gordon Kelly up to
the standard established by Kambalda Nickel Operations and subsequent academic
breakthroughs in the understanding of komatiite volcanism and its alteration.
The entire recovered core was geologically logged and selected zones marked-up
for quarter-core cutting at Intertek laboratories.
A detailed review of the database has not been undertaken at this stage for
its suitability for use in a mineral resource estimate.
Sub-sampling techniques and sample preparation · If core, whether cut or sawn and whether quarter, half or all core taken. NMT
· If non-core, whether riffled, tube sampled, rotary split, etc and whether Historical diamond core was sampled based on lithological domains to a maximum
sampled wet or dry. of 1.1m and a minimum of 0.3m. Core was submitted to the Intertek Genalysis as
half core which was cut by Company personnel with a diamond blade core-saw.
· For all sample types, the nature, quality, and appropriateness of the
sample preparation technique. Core samples undergo 2mm crush and then pulverise to least 85% passing 75μm.
Samples were assayed using a Sodium Peroxide Fusion in Nickel Crucibles
· Quality control procedures adopted for all sub-sampling stages to (FP6/OM). Fusion methods digest all major rock forming minerals, including
maximise representivity of samples. many that resist acid digestion. Once dissolved, the fusion product can be
analysed by either ICP-OES or ICP-MS. Samples were also assayed for gold using
· Measures taken to ensure that the sampling is representative of the 10g Aqua regia digest (AR10/hMS).
in-situ material collected, including for instance results for field
duplicate/second-half sampling. Sample size & preparation are considered appropriate for grain size of
samples material. Sample preparation techniques are considered appropriate for
· Whether sample sizes are appropriate to the grain size of the material the style of mineralisation being tested.
being sampled.
Historical data (drill data prior to NMT)
Historical chip sampling methods include single metre riffle split and 4m
composites that were either scoop or spear sampled.
Hannan's report in 2017 that historical core was cut off-site, and both half
and quarter core sampled at various stages. Sample lengths rarely exceed 100cm
and are usually less than 100cm where mineralisation was tested. Rare cutting
lengths more than 100cm due to preservation of the core,
Historical samples were analysed at Intertek, Genalysis and other unspecified
laboratories.
Historical multielement analysis was carried with mixed acid digest and ICP-MS
determination.
Total sample weight varies from 50g to 3000g.
Sample preparation would consist of diamond saw quarter core cutting, then
crushing and total pulverisation by LM5 disk mill prior to subsampling for
fire assay and wet chemistry techniques. All procedures demanded manual
control and no robotic processing was permitted.
Sample processing specifics are defined by Intertek Laboratories protocols for
fresh rock material total analyses by fire assay and 4-acid digest routes,
which are accepted industry-wide as being best possible, with adequate QA/QC
controls inserted.
Intertek laboratories specify random duplicate selection of samples taken from
the pulp stage. There was no replicate sampling of the core, for example,
another quarter core taken form the trays.
The sample size of the quarter core, the weight and the very fine grain size
of serpentinites ensure that the analyses will be at a standard appropriate to
all possible ore reserve calculations.
Grain size of the rare pyritic sulphides intersected in the footwall mafic
stratigraphy was coarse, but pulverisation removed that possible bias by
taking the whole mineralised length as one sample.
Quality of assay data and laboratory tests · The nature, quality and appropriateness of the assaying and laboratory NMT
procedures used and whether the technique is considered partial or total.
Quality assurance - to assure sample quality met the standards required by the
· For geophysical tools, spectrometers, handheld XRF instruments, etc, the Company and the mineralisation being sampled, the drill company's and
parameters used in determining the analysis including instrument make and commercial labs procedures and equipment were inspected and assessed for
model, reading times, calibrations factors applied and their derivation, etc. (among other things) maintenance, cleanliness, and appropriateness for the
task. Company history and personnel experience were also assessed.
· Nature of quality control procedures adopted (eg standards, blanks,
duplicates, external laboratory checks) and whether acceptable levels of The company inserted a regime of Certified Reference Material into each sample
accuracy (i.e. lack of bias) and precision have been established. submission with results reviewed in real-time to ensure issues were detected
early and meaningful corrective actions implemented.
No QAQC samples were submitted with rock chip analysis.
Historical data (drill data prior to NMT)
All historical samples are assumed to have been prepared and assayed by
industry standard techniques and methods.
Limited historical QAQC data has been supplied, industry standard best
practice is assumed.
Verification of sampling and assaying · The verification of significant intersections by either independent or NMT
alternative company personnel.
Geological data files were checked by the supervising geologist to ensure
· The use of twinned holes. integrity of logs and meta data prior to submission to the database manager.
Assay files were received from the lab by the data base administrator and
· Documentation of primary data, data entry procedures, data verification, merged with geological data. All data underwent a final check by the Senior
data storage (physical and electronic) protocols. Geologist and database manager.
· Discuss any adjustment to assay data. There has been no validation and cross checking of laboratory performance at
this stage.
Historical data (drill data prior to NMT)
Data entry, verification and storage protocols remain unknown for historical
operators.
Location of data points · Accuracy and quality of surveys used to locate drill holes (collar and NMT
down-hole surveys), trenches, mine workings and other locations used in
Mineral Resource estimation. A handheld GPS (Garmin GPSmap76 model) was used to determine the rock chip
locations during the sampling programs with a ±5 metres coordinate accuracy.
· Specification of the grid system used.
MGA94_51 is the grid system used in this program.
· Quality and adequacy of topographic control.
Historical data (drill data prior to NMT)
Historical collars are recorded as being picked up by DGPS, GPS or unknown
methods and utilised the MGA94 zone 51 coordinate system. Historic reports
indicate the Spectrum Surveys Pty Ltd in Kalgoorlie were utilised during the
project history.
Historical downhole surveys were completed by north seeking gyro, Eastman
single shot and multi shot downhole camera.
Data spacing and distribution · Data spacing for reporting of Exploration Results. Drillhole spacing is variable throughout the Project area. Spacing is
considered appropriate for this style and stage of exploration drilling and is
· Whether the data spacing and distribution is sufficient to establish the sufficient to establish the degree of geological and grade continuity
degree of geological and grade continuity appropriate for the Mineral Resource appropriate for future estimation procedures and classification applied.
and Ore Reserve estimation procedure(s) and classifications applied. Sample composting has not been applied.
· Whether sample compositing has been applied. Depth penetration and sampling interval specifics are considered appropriate
for the nature of these DHEM targets and surveys.
Orientation of data in relation to geological structure · Whether the orientation of sampling achieves unbiased sampling of The drilling was targeted on geophysical and geological anomalies and concepts
possible structures and the extent to which this is known, considering the at Spargos.
deposit type.
In the Kambalda region, nickel mineralisation is typically located on the
· If the relationship between the drilling orientation and the orientation favourable geological contact zones between ultramafic rock units and
of key mineralised structures is considered to have introduced a sampling metabasalt rock units. All drill holes were planned at - 60(o) dip angles,
bias, this should be assessed and reported if material. with varying azimuth angles used in order to orthogonally intercept the
interpreted favourable geological contact zones.
Drillhole orientation is not considered to have introduced any bias to
sampling techniques utilised.
Sample security · The measures taken to ensure sample security. NMT
Chain-of-custody protocols included supervision by Company employees of the
samples while on site and transportation of samples to the lab.
Historical data (drill data prior to NMT)
Sample security measures are unknown.
Audits or reviews · The results of any Audits or reviews of sampling techniques and data. No independent audits or reviews of sampling techniques and data were
conducted.
JORC Code Table 1, Section 2, Reporting of Exploration Results
(Criteria listed in section 1, and where relevant, in sections 3 and 4, also
apply to this section).
Mineral tenement and land tenure status · Type, reference name/number, location and ownership including agreements Neometals (through its 100% owned subsidiary Ecometals Pty Ltd) hold all
or material issues with third parties such as joint ventures, partnerships, minerals rights for exploration licence E 15/1416-I.
overriding royalties, native title interests, historical sites, wilderness or
national park and environmental settings. There are no Joint Ventures or Partnerships on the tenement.
· The security of the tenure held at the time of reporting along with any No known impediments exist to operate in the area.
known impediments to obtaining a licence to operate in the area.
Exploration done by other parties · Acknowledgment and appraisal of exploration by other parties. Neometals (through its 100% owned subsidiary Ecometals Pty Ltd) have held a
100% interest in E 15/1416-I since March 2021, hence all prior work has been
conducted by other parties.
The ground has a long history of exploration and mining and has been explored
for nickel since the 1970s, initially by Spargos Exploration NL. Numerous
companies have taken varying interests in the project area since this time.
The project was with Hannans Ltd mainly from 2003, with a JV occurring between
Hannans Ltd and Vale in October 2008 for at least 2 years.
From 2005 Newexco carried out modern nickel exploration work, which included
1) Environmental studies by Ecologia Environment that established exploration
access protocols, 2) Moving Loop EM (MLEM) over the komatiite pile, as well as
the footwall and hanging wall stratigraphy; anomalies interpreted included a)
Conductor C1 proximal to the 3m@3.05% Ni "intersection"; b)Conductor C2 to the
north of the central komatiite pile and in hanging wall stratigraphy; c)
Conductor C3 in the footwall and south of the central komatiite pile.
Geology • Deposit type, geological setting and style of mineralisation. Spargos project is located over an Archaean greenstone belt fragment that
strikes NNW and is close proximity to the terrane-bounding Ida Fault. The
greenstone fragment contains SW-facing highly prospective komatiite flows,
contained partially by a structurally-complicated trough-like structure that
has analogies to classic Lunnon - Kambalda environments. The fragment is
fault-bounded to the west by the Woolgangie monzogranite and to the east by
the Burra monzogranite. Most historic work and geological understanding have
focused on the Spargo's trough-structure.
Drill hole Information · A summary of all information material to the understanding of the A list of the drill hole coordinates, orientations and metrics are provided in
exploration results including a tabulation of the following information for the body of the announcement above.
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 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.
Data aggregation methods · In reporting Exploration Results, weighting averaging techniques, maximum No weighting averaging techniques or minimum/maximum grade truncations (cut
and/or minimum grade truncations (eg cutting of high grades) and cut-off off/top cut) were applied.
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.
Relationship between mineralisation widths and intercept lengths · These relationships are particularly important in the reporting of No Significant results have been returned in this announcement.
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 (e.g. 'down hole length, true width
not known').
Diagrams · Appropriate maps and sections (with scales) and tabulations of intercepts Representative geological and drill location plans and cross sections are
should be included for any significant discovery being reported These should included in the above announcement to which this Table is attached.
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 All relevant information has been included.
practicable, representative reporting of both low and high grades and/or
widths should be practiced to avoid misleading reporting of Exploration
Results.
Other substantive exploration data · Other exploration data, if meaningful and material, should be reported No further exploration data has been collected at this stage.
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.
Further work · The nature and scale of planned further work (e.g. tests for lateral Continue with data compilation & review of historic datasets for
extensions or depth extensions or large-scale step-out drilling). incorporation into a robust geological database.
· Diagrams clearly highlighting the areas of possible extensions, including Field mapping to investigate two discrete Potassium (K) anomalies identified
the main geological interpretations and future drilling areas, provided this in reprocessed high-resolution radiometrics.
information is not commercially sensitive.
Ground truthing of potential new western greenstone belt.
Consider ground gravity survey to confirm the presence and delineate the
interpreted western greenstone belt.
Further engagement with the Marlinyu Ghoorlie Group to facilitate planned
heritage surveys for future exploration.
Progress approvals for surface geochemical sampling and further exploration.
1 (#_ftnref1) For full details refer to Neometals ASX announcements
headlined "Neometals Discovers Spodumene-bearing Pegmatite at Spargos Project"
and "ASX Retraction and Clarification" released on 13(th) of November 2023
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