Castillo to acquire highly prospective project
21/10/2024 07:00
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RNS Number : 8869I Castillo Copper Limited 21 October 2024
21 October 2024
CASTILLO COPPER LIMITED
("Castillo" or the "Company")
Castillo to acquire highly prospective Niobium, Uranium & Heavy Rare
Earths project
Castillo Copper Limited (LSE and ASX: CCZ), a base metal explorer primarily
focused on copper across Australia and Zambia, is delighted to announce it has
entered into a binding agreement with Audax Holdings Pty Ltd (ACN: 678 403
864) to acquire 85% of the highly prospective Harts Range Niobium, Uranium and
Heavy Rare Earths Project via an earn-in arrangement (refer Deal Terms below).
Highlights:
· Signed a binding term sheet to acquire 85% of the highly prospective
Harts Range Niobium, Uranium and Heavy Rare Earths Project (via a two step
earn in process - refer Deal Terms), circa 120km north-east from Alice Springs
in the Northern Territory (NT)
· Comprising two granted tenements (110km(2)), historical assays from
28 rock chip samples from outcropping pegmatites across five prospects
reported grades up to 23.2% Nb, 12.7% U and 12.7% TREE (including 2.85% Dy,
0.32% Tb, 14.9% Ta)(1):
o Notably, the results from the Cusp Prospect, show consistently high
Niobium, Heavy Rare Earths and Uranium grades (Figure 1)
FIGURE 1: HISTORICAL ROCK CHIP RESULTS - CUSP PROSPECT (PCT)
Sample ID HR419 HR420 HR421 HR480 HR481 HR482 HR483 HR484 HR485 HR486 HR487 HR488 HR490
Niobium (%) 17.5 1.1 22.7 21.0 16.3 23.2 23.0 1.0 24.0 20.6 20.0 19.4 18.0
Uranium (%) 10.1 2.0 11.0 11.4 10.4 12.1 12.2 0.0 11.6 11.2 11.2 11.3 11.3
Yttrium (%) 5.6 16.0 6.9 8.0 3.3 8.6 8.1 0.0 7.9 7.4 8.3 7.8 7.3
Tantalum (%) 9.3 0.9 5.5 7.0 11.0 5.9 6.6 0.1 5.9 4.1 5.2 4.7 6.3
Dysprosium (%) 1.1 0.0 1.6 1.7 0.7 1.9 1.7 0.0 1.8 1.6 1.8 1.7 1.5
Terbium (%) 0.18 0.05 0.24 0.27 0.10 0.29 0.27 <0.01 0.27 0.25 0.27 0.26 0.24
Note: Niobium is typically coincident with Heavy Rare Earths mineralisation,
Tantalum and Uranium
Source: Barfuss Corporation (Reference 1)
· With global geopolitics and the energy transition Niobium, Uranium
and Heavy Rare Earths are crucial commodities with strong long-term demand
drivers for a decarbonised future:
o The compelling mix of coincident critical minerals(1) identified at
surface underscores the Harts Range Project's exploration potential
· Castillo's geology team just completed an inaugural field trip to the
Harts Range Project as part of preliminary due diligence, noting the
following:
o Multiple outcropping pegmatites and field observations which appear to
validate previous surface sampling work for critical minerals(1);
o There is an interpreted 12km corridor, which incorporates the five
historical prospects, that is the primary exploration focus area;
o The main objective of historical exploration was gemstones and
vermiculite, which included only shallow (<60m) drilling(1) - no drilling
has been undertaken to test for Niobium, Uranium or Heavy Rare Earths;
o The NT's Department of Minerals and Mining has confirmed there are no
native title issues, but CCZ must continuously comply with the Code of Conduct
for Mineral Explorers; and
o Readily accessible most of the year via sealed roads then well-maintained
tracks, with strong supportive mining infrastructure across the region
· A systematic and rigorous exploration strategy is set to be devised
for the Harts Range Project that should generate priority targets to
test-drill
o Notably, this will include comprehensive surface sampling, geophysical
surveys and collecting bulk samples for metallurgical testing
· The Board will continue with previously announced plans to advance
the NWQ Copper Project, possibly with a development partner, and sell the two
remaining copper assets - BHA West Project (NSW) and Mkushi Project (Zambia)
Ged Hall, Chairman, commented: "The Board is pleased to announce that our
search for a transformational asset has been successfully fulfilled with the
acquisition of the Harts Range Niobium and Uranium-Heavy Rare Earth Project.
The compelling mix of coincident critical minerals identified at surface
underscores the Harts Range Project's exploration potential, which could
substantially enhance shareholder value as we progress with development
initiatives. This optimism is further bolstered by favourable global dynamics,
which have allowed other ASX explorers in the niobium and uranium sectors to
achieve noteworthy successes."
HARTS RANGE NIOBIUM, URANIUM & HEAVY RARE EARTHS PROJECT
FIGURE 2A: MINERALISED ROCK FIGURE 2B: PEGMATITE OUTCROP
Location: Cusp Prospect 507859E 7447753N (Figure 3) Location: Bobs Prospect 506161E 7447407N (Figure 3)
Source: Castillo geology team (October 2024 field trip) Source: Castillo geology team (October 2024 field trip)
Across a 12km corridor, which includes five prospects - Cusp, Bobs, Bobs West,
Thorium Anomaly and Niobium Anomaly - circa 28 assayed historical rock chips
from outcropping pegmatites produced stellar grades up to grades up to 23.2%
Nb, 12.7% U and 12.7% TREE including 2.85% Dy, 0.32% Tb, 14.9% Ta(1) (Figure
3).
At the macro level, geopolitics and the energy transition are long term demand
drivers for Niobium, Uranium and Heavy Rare Earths which provides a compelling
backdrop. As the tenure could host these critical minerals in economic
quantities, the geology team will devise a comprehensive development campaign
to fully assess the exploration potential.
FIGURE 3: HARTS RANGE PROJECT - PROSPECTS, EXPLORATION CORRIDOR
Source: Barfuss Corporation (Reference 1)
Comprising two granted tenements (110km(2)), circa 120km north-east from Alice
Springs, the project area is accessible for most of the year via a sealed
highway and well-maintained tracks (Figure 3). Moreover, with the likes of
ASX-listed Independence Group (ASX: IGO) having a substantial footprint in the
region that flanks the Harts Range Project north, south and west(2), the
mining infrastructure and access to a talented labour pool is first rate
(Figure 4).
FIGURE 4: HARTS RANGE PROJECT RELAVITE TO MINING INFRASTRUCTURE
Source: Barfuss Corporation (Reference 1)
FIVE PRIORITY PROSPECTS TO EXPLORE
An overview of the five priority prospects, highlighting key attributes,
within the 12km exploration focus corridor follows:
Cusp Prospect
As highlighted in Figure 1 above, the Cusp Prospect produced numerous high
grade historical rock chips with the best results returning grades up to 23.2%
Nb, 12.7% U and 14.6% TREE, including 1.88% Dy and 5.89% Ta(1).
Notably, historical reports indicate that Niobium-Tantalum and Heavy Rare
Earths were identified in pegmatites running circa east-west, up to 10m thick
and over 70m long(1). During the recent field trip (October 2024), Castillo's
geology team (including Non-executive Director Joel Logan) spent considerable
time at the Cusp Project and were able to validate the historically reported
pegmatite observation (Figures 5 & 6).
FIGURE 5: CASTILLO'S JOEL LOGAN AT CUSP PEGMATITE
Location: 507859E 7447753N Cusp Prospect
Source: Castillo geology team (October 2024 field trip)
As no systematic follow up exploration has been undertaken, this will be a
primary focus area to garner a greater understanding of the underlying geology
for Niobium, Uranium and Heavy Rare Earths mineralisation.
FIGURE 6: CUSP PROSPECT - PEGMATITE ROCK CHIP SAMPLING
Source: Barfuss Corporation (Reference 1)
Bobs and Bobs West Prospect
The Bobs and Bobs West Prospects are located circa 1.5-2km along the same
strike and to the west of the Cusp Prospect, exhibiting similar underlying
mineralisation traits and geological settings(1) (Figure 7).
FIGURE 6: BOBS PROSPECT - CASTILLO FIELD TRIP PICTURE
Location: Bobs Prospect 506161E 7447407N
Source: Castillo geology team (October 2024 field trip)
Like the Cusp Prospect, the Bobs and Bobs West Prospects delivered multiple
high grade historical rock chips, with the best results returning grades up to
3.4% Nb, 16.3% TREE, including up to 1.54% Dy and 14.9% Ta(1) (Figure 8).
FIGURE 8: HISTORICAL ROCK CHIP RESULTS - BOBS & BOBS WEST PROSPECTS (PCT)
Sample ID HR499 HR500 HR501 HR502 HR503 HR504 HR505 HR506 HR507 HR508 HR509 HR510
Niobium (%) 3.0 3.2 3.1 3.1 3.3 3.2 3.4 3.2 3.3 3.4 3.1 2.9
Uranium (%) 11.5 9.2 10.6 10.0 11.2 10.5 11.1 11.7 11.9 11.3 12.7 12.6
Yttrium (%) 10.0 8.8 9.2 9.2 11.1 9.9 10.9 11.1 10.2 11.4 10.5 10.0
Tantalum (%) 13.4 13.9 14.7 13.5 14.7 14.0 14.3 14.2 14.0 14.9 14.5 12.3
Dysprosium (%) 1.4 1.2 1.2 1.2 1.5 1.3 1.5 1.5 0.1 1.5 1.5 1.5
Terbium (%) 0.19 0.16 0.17 0.17 0.21 0.19 0.22 0.18 0.18 0.21 0.19 0.19
Source: Barfuss Corporation (Reference 1)
As shown in Figure 9, the mineralisation in the pegmatites trends east-west,
is several metres thick and over 30m long(1).
FIGURE 9: BOBS / BOBS WEST PROSPECTS - PEGMATITE ROCK CHIP SAMPLING
Source: Barfuss Corpopration (Reference 1)
The Bobs West Prospect (200m west of Bobs Prospect) comprises an outcropping
pegmatite along the same orientation, hosted exclusively within felsic gneiss
of the Irindina Gneiss. Significantly, the pegmatite is semi-continuous for
circa 300m, with similar geology to Bobs(1).
Further work needs to be undertaken on the Bobs and Bobs West Prospects to
follow up on the encouraging historical results, especially for Niobium and
Uranium.
Niobium Anomaly Prospect
At the Niobium Anomaly Prospect there is a differing geological variant with,
high historical Niobium rock chip assay results up to 13,000ppm (1.3%) Nb, but
low Uranium and Heavy Rare Earths readings(1) (Figure 10).
FIGURE 10: HISTORICAL ROCK CHIP RESULTS - NIOBIUM ANOMALY PROSPECT (PPM)
Sample ID E N AHD Niobium (ppm) Uranium (ppm) Yttrium (ppm) Tantalum (ppm) Dysprosium (ppm) Terbium (ppm)
HR423 510122 7450655 592 13,000 180 290 - 44 6
HR424 510105 7450423 608 13,000 70 150 80 27 4
HR425 510105 7450423 608 3,000 30 60 10 11 2
Location: Samples HR423, HR424, HR425 in corner east area.
Source: Barfuss Corporation (Reference 1)
Historically, the prospect was identified by elevated radiometric anomalies.
The radiometric anomalies appear to correlate with intrusions of porphyritic
granitoid and granitic gneiss(1), which are geologically consistent with the
pegmatites at Cusp, Bobs & Bobs West Prospects, warranting further
investigation.
Thorium Anomaly Prospect
The Thorium Anomaly Prospect was previously located via airborne radiometric
surveys which are low order (10-20x background) compared to the spot anomalies
at Cusp, Bobs & Bobs West Prospects (50-200x background)(1).
The anomalies appear to correlate with intrusions of porphyritic granitoid and
granitic gneiss, which are presumed to be geological features comparable to
the pegmatites at Cusp, Bobs & Bobs West Prospects(1); further
investigative work is required.
FAVOURABLE UNDERLYING GEOLOGICAL STRUCTURAL SETTING
The Harts Range Niobium, Uranium-Heavy Rare Earth Project lies north-west of
the Entia Dome (Figure 11) and is underlain by the Harts Range Group (Harts
Range Meta-igneous Complex), which predominantly consists of
feldspar-biotite-amphibole-garnet gneisses(3).
The Harts Range region has undergone repeated and substantial crustal
re-working between Proterozoic and Palaeozoic times. As a result, it is now
believed to represent an ancient and strongly altered/metamorphosed version of
a continental collision zone(3).
Magnetotelluric data interpreted by a team consisting of Adelaide University
and NTGS geologists (Selway et al, 2006)(4) suggests the Entia Dome system is
a deep-crustal feature that can be shown extending to the mantle.
FIGURE 11: HARTS RANGE PROJECT RELATIVE TO THE ENTIA DOME
Source: Scrimgeour 2013 (Reference 3)
PRELIMINARY DUE DILIGENCE FIELD TRIP
As part of preliminary due diligence, Castillo's geology team just completed
an inaugural field trip (October 2024) to the Harts Range Niobium, Uranium and
Heavy Rare Earths Project where they noted multiple outcropping pegmatites and
field observations which appears to validate historical work.
NEXT STEPS
To fully unpack the potential of the Harts Range Niobium, Uranium and Heavy
Rare Earth Project, the geology team intends to undertake a systematic and
rigorous exploration strategy that will encompass the following steps in
subsequent visits:
· Full historic and spatial database compilation:
· Reconnaissance programs;
· Close spaced geophysical survey;
· Detailed mapping and rock chip sampling across prospects;
· Regional soil sampling campaigns as required;
· Mineral characterisation studies and petrological analysis;
· Trenching and bulk sample test work;
· Target generation and prioritisation; and
· Drill-testing.
DEAL TERMS
Under the terms of the Binding Agreement, Castillo has agreed to acquire 100%
of the ordinary shares in Audax Holdings Pty Ltd (ACN: 678 403 864) ("Audax")
from the shareholders of Audax (Audax Vendors) on the following terms:
Consideration
· Exclusivity fee: the Company has paid a cash payment of $35,000 + GST
to Audax for an exclusive right to undertake its due diligence on Audax and
the Project until 20 November 2024 (Exclusivity Period);
· Castillo issuing the Audax Vendors an aggregate of 145,500,000 fully
paid ordinary shares (Consideration Shares) at a deemed issue price of $0.005
per Share; and
· The Consideration Shares will be subject to a 6-month voluntary
escrow period.
Note, the Consideration Shares will be issued using CCZ's existing ASX LR 7.1
15% capacity.
Conditions Precedent
Completion is conditional upon the satisfaction (or waiver) of the following
conditions precedent on or before 5.00pm (WST), 20 November 2024:
· Due diligence: completion of financial, legal and technical due
diligence by the Castillo on Audax and Barfuss and the assets including a site
visit to the Project, to the absolute satisfaction of the Castillo by the end
of the Exclusivity Period;
· Audax approvals: Audax obtaining any approvals it requires or
considers in its sole discretion necessary, beneficial or incidental to the
sale and purchase of the Audax Shares;
· Third party approvals: the Parties obtaining all third-party
approvals and consents necessary to lawfully complete the matters set out in
the Agreement;
· Material adverse change: there being no material adverse change
between the date of this Agreement and Completion;
· Joint Venture Agreement: Audax entering into a joint venture
agreement with Barfuss Corporation Pty Ltd (ACN 006 917 666) ("Barfuss
Corporation") in relation to the Tenements on terms acceptable to Castillo
(acting reasonably);
· Consulting Agreement: Castillo entering into a consulting agreement
with Kevin Das or his nominee for a minimum of 12 months consulting services
at $5,000 per month to assist with Castillo's development of the Project, and
otherwise on terms acceptable to Castillo, acting reasonably; and
· Voluntary Escrow Agreement: the Audax Vendors each entering into a
Voluntary Escrow Agreement in respect to the Consideration Shares.
Audax has an exclusive Option Agreement with Barfuss Corporation to enter into
a Joint Venture Agreement to earn up to 85% of the Harts Range Niobium,
Uranium and Heavy Rare Earths Project on the following terms set out below. On
and from Completion under the Agreement between the CCZ and Audax, CCZ will
assume the inherent responsibilities and obligations under the Option
Agreement.
Conditions precedent
· Completion in relation to either of the Tenements is subject to and
conditional upon Audax, or its nominee, obtaining all necessary shareholder
and regulatory approvals as may be required.
· Completion in relation to EL32046 is subject to and conditional on
the removal of two registered caveats and a registered mortgage.
Earn-in terms:
· 85% interest in the Harts Range Tenements (Tenements) including the
rights to all minerals except for rubies, gemstones, vermiculite, garnet in
host rock and garnet sands (including associated titanium and tungsten sands);
· earn-in through the expenditure of AUD$375,000 on EL32513 over three
years and a further $375,000 on EL32046 at the time in which it is included in
the Joint Venture Agreement;
· Barfuss Corporation is 15% free carried until any decision to mine
(with loan carried into production);
· upon any decision to mine, Barfuss Corporation has the right to elect
to contribute;
· the Audax or the Audax's nominee, has the first right of refusal to
acquire Barfuss Corporation's 15% interest in the Tenements.
Upon signing and commencement of the Earn-in:
· within five business days of execution of the Joint Venture Agreement
CCZ will pay the amount of up to AUD$60,000 in relation to EL32513, and a
further $20,000 at the time in which EL32046 is included in the Joint Venture
Agreement to Barfuss Corporation, as reimbursement of the monies incurred on
expenditure on one or both of the Tenements; and
· upon the commencement of the joint venture in relation to EL32513,
Barfuss Corporation shall provide mining and consulting services to the joint
venture, as required, and issue invoices to CCZ for payment of such services
in the amount of AUD$30,000.
Other payments and provisions to Barfuss Corporation;
· Castillo shall reimburse the Barfuss Corporation for any
administration costs incurred by the Barfuss Corporation to establish the
joint venture up to an amount of AUD$20,000 upon the production of tax
invoices by Barfuss Corporation;
· upon reaching a JORC compliant resource Barfuss Corporation will be
paid a AUD$0.25 million milestone payment if EL32046 is included in the Joint
Venture Agreement and a further $0.25m if EL32046 and EL32513 are included in
the Joint Venture Agreement. CCZ can elect to pay 50% of the milestone payment
by way of shares in CCZ;
· upon reaching a positive feasibility study Barfuss Corporation will
be paid AUD$1.5 million milestone payment. Castillo can elect to pay 50% of
the milestone payment by way of shares in Castillo;
· upon commencement of production, Barfuss Corporation is entitled to a
2% net smelter royalty;
· in the event that diamond drilling is required for all exploration
and project development purposes, Barfuss Corporation will have the first
option to provide those services at prevailing commercial rates;
· (sunset clause) in the event that Castillo does not meet the
expenditure of AUD$750,000 on the Tenements within 3 years of commencement of
the joint venture, the Tenements (including any mining information) will be
returned to Barfuss Corporation within 14 days at a cost of AUD$5,000;
· on completion of Castillo meeting the expenditure of AUD$750,000 on
the Tenements within 3 years, a final completion payment of AUD$0.5 million
will be paid to Barfuss Corporation. Barfuss Corporation can elect to be paid
50% of the completion payment by way of shares in Castillo; and
· Barfuss Corporation has the right to register a mining lease over
areas that they have mineral rights, which include rubies, gemstones,
vermiculite, garnet in host rock and garnet sands (including associated
titanium and tungsten sands).
Corporate advisory fee
· CCZ will issue 4,365,000 ordinary shares to Red Marlin Pty Ltd, and
4,365,000 ordinary shares to Taka Custodians Pty Ltd (or their nominees),
parties which are not related to CCZ, for corporate advisory services in
relation to the Harts Range acquisition.
For further information, please contact:
Castillo Copper Limited +61 8 6558 0886
Gerrard Hall (UK), Chairman
SI Capital Limited (Financial Adviser and Corporate Broker) +44 (0)1483 413500
Nick Emerson
Gracechurch Group (Financial PR) +44 (0)20 4582 3500
Harry Chathli, Alexis Gore, Henry Gamble
References
1) Barfuss, R. (Barfuss Corporation Pty Ltd) 19 November 2007: "A
Brief report on Samarskite Mineralisation in the Harts Range Project"
(unpublished report) and Barfuss, R. (Barfuss Corporation) 2014: The Harts
Range Project Exploration Licence (EL 24552) - inclusive of the following
references:
a. Caughey, A.R. (Flagstaff Geo Consultants Pty Ltd.), November 2007:
Annual Report for Exploration Licence EL24552 for the period ending 25(th)
August 2007 (for Barfuss Corporation Pty. Ltd.)
b. Caughey, R. (Flagstaff Geo Consultants Pty Ltd.) 2002 to 2006:
various unpublished reports for Barfuss Corporation Pty. Ltd.
c. PNC Exploration (Australia): various open-file tenement annual,
final and partial relinquishment reports,1994 to 1997; Report Numbers
CR1994-0325, CR995-0298, CR1995-0525, CR1995-0697, CR-1996-0285, CR1996-0286,
CR-1997-0611. *
d. Rutter, H. (Flagstaff Geo Consultants Pty Ltd.) 2006. 'An analysis
of airborne radiometric data from the Harts Range, N.T.' (unpublished report)
e. Shaw, R.D., Senior, B.R., Offe, L.A., Stirzaker, J.F., Walton,
D.G., Apps, H.E., Freeman, M.J.1:250,000 Geological Map Series Explanatory
Notes Illogwa Creek SF53-15. Bureau of Mineral Resources Australia &
Northern Territory Geological Survey,1985.
Note: * Open file company reports sourced from the Northern Territory Mineral
Industry Reports Management System (IRMS). Available at:
https://geoscience.nt.gov.au/gemis/ntgsjspui/handle/1/3
2) IGO Exploration Activities in Northern Territory. 2024 Annual
Report (p.6) IGO ASX Release - 29 August 2024. Available at:
https://www.igo.com.au/site/investor-center/annual-reports
3) Scrimgeour IR, 2013. Chapter 29: Irindina Province: in Ahmad M and
Munson TJ (compilers). 'Geology and mineral resources of the Northern
Territory'. Northern Territory Geological Survey, Special Publication5.
4) Selway K, Heinson G and Hand M, 2006: Electrical evidence of
continental accretion: Steeply dipping crustal-scale conductivity contrast.
Geophysical Research Letters 33, L06305, doi:10.1029/2005GL025328.
About Castillo Copper
Castillo Copper Limited is an Australian-based, Australian-focussed copper
exploration Company with a strategy to develop multi-commodity assets that
demonstrate future potential as an economic mining operation.
Through the application of disciplined and structured exploration and
analysis, Castillo Copper has identified assets deemed core to the Company's
sustained growth and is actively progressing these interests up the value
curve.
Current focus will be on advancing exploration activity at the Company's
wholly owned NWQ Project, situated in the copper-belt district approximately
150km north of Mt Isa in north-west Queensland.
Other interests include the Broken Hill Project in western New South Wales and
the Cangai Copper Mine in north-east New South Wales, as well as exploration
targets in Zambia.
Castillo Copper is listed on the LSE and ASX under the ticker "CCZ".
Competent Person's Statement
I, Mark Biggs, confirm that I am the Competent Person for the Competent Person
Report from which the information to be publicly released has been obtained
and confirm that:
· I have read and understood the requirements of the 2012 Edition
of the Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves (JORC Code, 2012 Edition) and the relevant sections
of Chapter 5 and Guidance Note 31 from the ASX Listing Rules.
· I am a Competent Person as defined by the JORC Code 2012 Edition,
having 25 years of experience that is relevant to the REE and industrial
mineral mineralisation types, quality and potential mining method(s) of the
deposit(s) described in the Report. In addition, I have 21 years of
experience in the estimation, assessment and evaluation of Exploration Results
and Mineral Resource Estimates, the activity for which I am accepting
responsibility.
• I am a Member of The Australasian Institute of Mining and
Metallurgy (Member # 107188).
· I have reviewed the Report or Excerpt from the Report to which
this Consent Statement applies.
· I am a consultant working for ROM Resources and have been engaged
by Castillo Copper Limited to prepare the documentation for various prospects
within the Harts Range Deposit on which the Report is based.
In addition:
· I have disclosed to Castillo Copper Limited the full nature of
the relationship between myself and the Company, including any issues that
could be perceived by investors as a conflict of interest. I am a director
of ROM Resources, a company which is a shareholder of Castillo Copper Limited.
ROM Resources provides ad-hoc geological consultancy services to Castillo
Copper Limited.
· I verify that the Report is based on and fairly and accurately
reflects in the form and context in which it appears, the information in my
supporting documentation relating to exploration results and any Mineral
Resource Estimates.
· I consent to the release of the Report and this Consent Statement by
the Directors of Castillo Copper Limited.
APPENDIX A: JORC CODE, 2012 EDITION - TABLE 1
The following JORC Code (2012 Edition) Table 1 is primarily supplied to
provide background for historical geological mapping, and rock chip sampling
programs, mostly conducted by the Barfuss Corporation, from several prospects
within the Harts Range Project over the last 15 years.
No previous ASX releases have been made about the Harts Range Nb-U-REE Mineral
Project.
Section 1 Sampling Techniques and Data
Criteria JORC Code explanation Commentary
Sampling techniques • Nature and quality of sampling (e.g. cut channels, random chips, or · Surface samples were collected from approximately a 3m radius
specific specialised industry standard measurement tools appropriate to the around the recorded coordinate location. The rock chip fragments that were
minerals under investigation, such as down hole gamma sondes, or handheld XRF collected to make up the sample included fragments that approximately ranged
instruments, etc). These examples should not be taken as limiting the broad from 2-5cm and 0.2 - 3kg in weight. A total of twenty-eight (28) rock chip
meaning of sampling. samples were collected in calico bags and were progressed for laboratory
analysis (sample numbers range from HR419 to 510). Samples were collected from
• Include reference to measures taken to ensure sample representivity rock outcrops, soils, and occasionally mullock heaps in the vicinity of west
and the appropriate calibration of any measurement tools or systems used. to east trending pegmatite dykes. Many of the surface samples contained the
U-bearing mineral samarskite.
• 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 (e.g. '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 (e.g. submarine nodules) may warrant disclosure of
detailed information.
Drilling techniques • • Drill type (e.g. core, reverse circulation, open-hole hammer, · Not Applicable - no exploration drilling results as none were
rotary air blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, drilled.
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).
Drill sample recovery • Method of recording and assessing core and chip sample recoveries · Not Applicable - no exploration drilling results as none were
and results assessed. drilled.
• 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.
Logging • Whether core and chip samples have been geologically and · Descriptions of the rock chip and soil samples are given in a table
geotechnically logged to a level of detail to support appropriate Mineral contained in Figure A1-1 of this CCZ's ASX Announcement dated the 14(TH) of
Resource estimation, mining studies and metallurgical studies. October 2024.
• Whether logging is qualitative or quantitative in nature. Core (or · Where appropriate strike and dip measurements were taken at several
costean, channel, etc) photography. sites, additional to the twenty (28) rock chip sample sites. Measuring
bedding is difficult because of the high metamorphically - disturbed rock
• The total length and percentage of the relevant intersections types.
logged.
Subsampling techniques and sample preparation • If core, whether cut or sawn and whether quarter, half or all core · Of the sample collected about 0.3-2kg of rock chip were presented
taken. for analyses.
• If non-core, whether riffled, tube sampled, rotary split, etc and · Assays were done by independent laboratory Ultra Trace Pty Ltd at
whether sampled wet or dry. Canning Vale Perth WA (now Amdel Limited) throughout 2007 and 2008. The
samples were sorted and dried. Primary preparation was then by crushing the
• For all sample types, the nature, quality, and appropriateness of whole sample. The whole sample was pulverised in a vibrating disc pulveriser.
the sample preparation technique.
· All samples were initially crushed to 4 mm then pulverised to 75
• Quality control procedures adopted for all sub-sampling stages to microns, with at least 85% passing through 75 microns. Standard sample
maximise representivity of samples. preparation and analyses procedures were performed on all samples and are
considered appropriate techniques.
• 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.
Quality of assay data and laboratory tests • The nature, quality and appropriateness of the assaying and Analytical Methods are described in detail as follows:
laboratory procedures used and whether the technique is considered partial or
total. Au, Pt, Pd
• For geophysical tools, spectrometers, handheld XRF instruments, etc, · The samples have been analysed by firing a 40g (approx.) portion of
the parameters used in determining the analysis including instrument make and the sample. This is the classical fire assay process and will give total
model, reading times, calibrations factors applied and their derivation, etc. separation of Gold, Platinum, and Palladium in the sample. These have been
determined by Inductively Coupled Plasma (ICP) Mass Spectrometry. The
• Nature of quality control procedures adopted (eg standards, blanks, sample(s) have been digested with a mixture of acids including Hydrofluoric,
duplicates, external laboratory checks) and whether acceptable levels of Nitric, Hydrochloric and Perchloric Acids. This digest approaches a total
accuracy (ie lack of bias) and precision have been established. digest for many elements however some refractory oxides are not completely
attacked.
· The mineral Cassiterite is not efficiently attacked with this digest.
· If Barium occurs as the Sulphate mineral, then at high levels (more
than 4000 ppm) it may re-precipitate after the digest giving seriously low
results. Using this digest, some sulphur losses may occur if the samples
contain high levels of sulphide.
Cu, Zn, Co, Ni, Mn, P, Sc, V, Al, Ca, Na, K, S
have been determined by Inductively Coupled Plasma (ICP) Optical Emission
Spectrometry.
As, Ag, Ba, Be, Bi, Cd, Ga, Li, Mo, Pb, Sb, Sn, Sr, W, Y, La, Ce, Pr, Nd, Sm,
Eu, Gd, Tb, Dy, Ho, Er, Tm, Yb, Lu, Th, U, Se, In, Te, Cs, Re, Tl
· have been determined by Inductively Coupled Plasma (ICP) Mass
Spectrometry. The samples have been fused with Sodium Peroxide and
subsequently the melt has been dissolved in dilute Hydrochloric acid for
analysis. Because of the high furnace temperatures, volatile elements are
lost. This procedure is particularly efficient for determination of Major
element composition (Including Silica) in the samples or for the determination
of refractory mineral species.
B, Cr, Si, Fe, Mg, Ti
· have been determined by Inductively Coupled Plasma (ICP) Optical
Emission Spectrometry.
Ge, Ta, Hf, Zr, Nb, Rb
· have been determined by Inductively Coupled Plasma (ICP) Mass
Spectrometry.
· The assay results were in line with previous rock chip and
drilling results obtained since 2006 at Harts Range.
Verification of sampling and assaying • The verification of significant intersections by either independent · Independent Laboratory assaying by Ultra Trace has confirmed,
or alternative company personnel. within acceptable limits, the occurrences of high-grade Nb, U, and REE from
the initial in field XRF readings. Laboratory standards and duplicates were
• The use of twinned holes. used in accordance with standard procedures for geochemical assaying as noted
below.
• Documentation of primary data, data entry procedures, data
verification, data storage (physical and electronic) protocols. · It has met the recommended insertion rates for the company QAQC
controls (standards, blanks) with an overall insertion rate of 20%. However,
• Discuss any adjustment to assay data. no field duplicates were included in the three (3) batches and is recommended
that 3% be included in future sampling programs. Summary of QAQC insertion
rates.
· Both the company standards and blanks were verified for elements
Nb, U and Dy and returned results within 2 standard deviations (SD). Field
duplicates are not present in the batch therefore were not reviewed.
Location of data points • Accuracy and quality of surveys used to locate drill holes (collar · The spatial location for the rock chips and soils collected during
and down-hole surveys), trenches, mine workings and other locations used in the 2006 and 2007 fieldwork were collected by handheld GPS (-/+ 5m accuracy)
Mineral Resource estimation. [MGA94 Zone53]: The table of reported rock chip locations and descriptions are
given in throughout the ASX release and in Figure A1-1 (at the end of the
• Specification of the grid system used. section).
• Quality and adequacy of topographic control.
Data spacing and distribution • Data spacing for reporting of Exploration Results. · The Harts Range licenses lie north-west of the Entia Dome and are
underlain by the Harts Range Group (Harts Range Meta-igneous Complex), which
• Whether the data spacing, and distribution is sufficient to predominantly consists of feldspar-biotite-amphibole-garnet gneisses. The
establish the degree of geological and grade continuity appropriate for the Harts Range region at has undergone repeated and substantial crustal reworking
Mineral Resource and Ore Reserve estimation procedure(s) and classifications between Proterozoic and Palaeozoic times and is now thought to represent an
applied. ancient and strongly altered/metamorphosed version of a continental collision
zone.
• Whether sample compositing has been applied.
· Most of the observed mineralisation is related to a swarm of west to
east and southeast-trending pegmatite dykes, with an anomalous occurrence of
the U-bearing mineral samarskite.
· At the Cusp Prospect, niobium-HREE-Tantalum identified in pegmatites
running approximately east-west, up to 10 metres thick and over 70 metres
long.
· At Bob's Prospect niobium-HREE-Tantalum mineralisation in pegmatites
trend east-west and is several metres thick and over 30 metres long, with
similar geological setting to the Cusp Prospect.
· 200m west of Bobs (Bobs West), outcropping pegmatite along the same
orientation, hosted exclusively within felsic gneiss of the Irindina Gneiss.
The pegmatite is semi-continuous for ~300m with a similar geological setting
and has notably large green muscovite flakes present.
· The Niobium Anomaly Prospect is another variant with high Niobium
results but low in rare earths and uranium. Elevated radiometrics located with
the scintillometer recorded 1,300 cps within a small historic pit at the top
of a knoll. Anomalies appear to correlate with intrusions of porphyritic
"granitoid" and granitic gneiss, which are geologically consistent with the
pegmatites mapped at Bob's and the Cusp Prospects.
· The Thorium Anomaly Prospect was previously located via airborne
radiometric images. The radiometric anomalies are low order (10 to 20x
background) compared to the spot anomalies at Bob's and Cusp (50-200x
background). Anomalies appear to correlate with intrusions of porphyritic
"granitoid" and granitic gneiss, which presumably are geologically features
like the pegmatites at Bob's and the Cusp Prospects.
Orientation of data in relation to geological structure • Whether the orientation of sampling achieves unbiased sampling of · In general, the strata of the area surrounding the pegmatite dykes in
possible structures and the extent to which this is known, considering the the Harts Range Meta-Igneous Complex dip steeply (>45 degrees) to the north
deposit type. and strike between east to southeast.
• If the relationship between the drilling orientation and the · Rock chip samples were taken at areas of interest from observed
orientation of key mineralised structures is considered to have introduced a mineralisation along and across strike of the line of lode of the mineralised
sampling bias, this should be assessed and reported if material. pegmatite dyke (very generally east west tends, secondary structures,
surrounding spoil heaps, and across the four (4) anomalous areas originally
identified in the planning stage.
· However, no modern systematic exploration has been conducted, nor any
of the mineralised prospects have ever been drilled.
Sample security • The measures taken to ensure sample security. · The rock chip samples taken during the historical fieldwork were
securely locked within the vehicle on site until delivered to Alice Springs by
the field personnel for despatch to the laboratory (Ultra Trace in WA) by
courier.
Audits or reviews • The results of any audits or reviews of sampling techniques and · The sampling techniques and the data generated from the laboratory
data. assay results have been peer reviewed by consultant geologists independent of
Castillo Copper Limited (Audax Resources and ROM Resources) familiar with the
overall Harts Range Project and deemed to be acceptable.
· No other external audits sampling techniques and data have yet been
planned or undertaken.
FIGURE A1-1: HARTS RANGE PROJECT - VARIOUS SURFACE SAMPLES LOCATIONS AND
DESCRIPTIONS
Sample ID Prospect Name Easting Northing AHD Type Rock Type Lab Job# Niobium (Nb) Uranium (U) Yttrium (Y) Tantalum (Ta) Dyprosium (Dy) Terbium (Tb) Full Description
% % % % % %
HR419 Cusp Prospect 507843.0 7447754.0 622.0 Grab sub-crop composite PEG U109728 17.5 10.1 5.6 9.3 1.1 0.18 SAMARSKITE (or similar): dense brittle blackish lustrous radioactive mineral;
weathered broken mass (ca. 10 fragments up to several cm diam.); in weathered
extremely coarse mica zone on N side of quartz vein in core of E-W pegmatite
HR420 Cusp Prospect 507859.3 7447754.0 625.0 Sub-crop composite PEG U109728 1.1 0.2 16.0 0.9 0.0 0.05 MICA (weathered muscovite); weathered extremely coarse mica; on S side of
quartz vein in core of pegmatite; same site as (radioactive) HR421
HR421 Cusp Prospect 507859.3 7447754.0 625.0 Sub-crop & float (near in situ) composite PEG U109728 22.7 11.0 6.9 5.5 1.6 0.24 SAMARSKITE (&/or similar): dense brittle blackish radioactive mineral,
some platy; float on & sub-crop in weathered extremely coarse mica zone on
S side of quartz vein in core of E-W pegmatite; some attached to quartz; same
site as HR420
HR423 NB Anomaly 510122.0 7450655.0 592.0 Outcrop composite PEG U109728 1.3 0.018 0.029 n/a 0.004 <0.001 GRANITIC (-pegmatitic) DYKE: pink-grey m-coarse grained feldspar-quartz; ca.
0.5-1m band in gneiss.
HR424 NB Anomaly 510105.0 7450423.0 608.0 Channel (~2.5m) (rough) (selective) AMP U109728 1.3 0.007 0.015 0.008 0.003 <0.001 CHLORITE: ca. 2.5m-thick zone of extremely coarse pale greenish chlorite; inc.
thin bands hornblende-actinolite rock & leucocratic gneiss/amphibolite
(not sampled) (= attenuated equivalent of amphibolite-anorthosite +
meta-ultramafic unit to NE, where it passes (here) through a thick
epidote-rock zone)
HR425 NB Anomaly 510105.0 7450423.0 608.0 Channel (~2.5m) (rough) (selective) AMP U109728 1.3 0.003 0.006 0.001 0.001 <0.001 AMPHIBOLITE (& anorthosite): composite of thin bands of
hornblende-actinolite rock & leucocratic gneiss/amphibolite, occurring in
ca. 2.5m-thick zone of extremely coarse pale greenish chlorite (sample HR425)
(= attenuated equivalent of amphibolite-anorthosite + meta-ultramafic unit to
NE, where it passes (here) through a thick epidote-rock zone)
HR480 Cusp Prospect 507834.3 7447748.5 620.0 Float (near in situ) PEG U109905 21.0 11.4 8.0 7.0 1.7 0.27 SAMARSKITE (or similar): dense brittle blackish lustrous radioactive mineral;
two fragments (larger up to 2-4cm) on soil cover along S side of quartz vein
in pegmatite core
HR481 Cusp Prospect 507843.5 7447749.8 626.0 Scree/float composite (near in situ) PEG U109905 16.3 10.4 3.3 11.0 0.7 0.1 SAMARSKITE (or similar): dense brittle blackish lustrous radioactive mineral;
five fragments (ca. 1 cm) in soil cover along S side of quartz vein in
pegmatite core
HR482 Cusp Prospect 507847.7 7447751.5 623.0 Grab (sub-crop) PEG U109905 23.2 12.1 8.6 5.9 1.9 0.29 SAMARSKITE (or similar): dense brittle blackish lustrous radioactive mineral;
one fragment (ca. 1-2 cm) in/on weathered coarse mica beneath soil cover along
S side of quartz vein in pegmatite core
HR483 Cusp Prospect 507848.8 7447751.8 623.0 Grab outcrop composite PEG U109905 23.0 12.2 8.1 6.6 1.7 0.27 SAMARSKITE (or similar): dense brittle blackish lustrous radioactive mineral;
cluster of 14+ fragments (or broken weathered larger piece - ca. 10 cm) in
weathered coarse mica beneath soil cover along S side of quartz vein in
pegmatite core (trace reddish resinous betafite also at site - excluded from
sample)
HR484 Cusp Prospect 507848.8 7447751.8 623.0 Grab outcrop composite QUARTZ U109905 1.0 0.0 0.0 0.1 0.0 <0.01 QUARTZ: smoky grey quartz from pegmatite (or quartz vein) beside radioactive
sample HR483 site
HR485 Cusp Prospect 507836.3 7447748.5 621.0 Float/sub-crop (in situ) PEG U109905 24.0 11.6 7.9 5.9 1.8 0.27 SAMARSKITE (or similar): dense brittle blackish lustrous radioactive mineral;
one fragment (ca. 1-2 cm) at base of soil, on weathered coarse mica along S
side of quartz vein in pegmatite core
HR486 Cusp Prospect 507849.8 7447752.0 623.0 Float composite (near in situ) PEG U109905 0.206 0.112 0.074 0.041 0.016 0.0025 SAMARSKITE (or similar): dense brittle blackish lustrous radioactive mineral;
three fragments (ca. 1-3 cm) in soil cover along S side of quartz vein in
pegmatite core
HR487 Cusp Prospect 507852.5 7447752.0 624.0 Grab (sub-crop) PEG U109905 20.0 11.2 8.3 5.2 1.8 0.27 SAMARSKITE (or similar): dense brittle blackish lustrous radioactive mineral;
two fragments (ca. 1-2 cm) in weathered coarse mica beneath soil cover along S
side of quartz vein in pegmatite core
HR488 Cusp Prospect 507854.5 7447752.5 629.0 Grab outcrop composite QUARTZ U109905 19.4 11.3 7.8 4.7 1.7 0.26 SAMARSKITE (or similar): dense brittle blackish lustrous radioactive mineral;
cluster of 10+ fragments, most over 1cm (or broken weathered larger piece -
ca. 5-10 cm) in chalky white feldspar, beside weathered coarse mica beneath
soil cover along S side of quartz vein in pegmatite core
HR490 Cusp Prospect 507850.8 7447755.3 626.0 Float composite (near in situ) PEG U109905 18.0 11.3 7.3 6.3 1.5 0.24 SAMARSKITE (or similar): dense brittle blackish lustrous radioactive mineral;
five fragments (ca. 1-2 cm) beneath soil, in/on contact of coarse mica zone
and feldspar pegmatite rock; along N side of quartz vein in pegmatite core
HR499 Bobs Prospect 506312.0 7447586.0 - Scree composite (2 frags, in soil, near in situ) SMK U115520 3.0 11.5 10.0 13.4 1.4 0.19 SAMARSKITE (or similar): dark grey black to red brown (slightly translucent)
mineral; irregular crystalline fragments; with surface coating (1-3mm) of
light greenish yellow tan oxidation; strongly Radioactive
HR500 Bobs Prospect 506308.0 7447585.0 - Scree composite (14 frags, below soil, in situ) SMK U115520 3.2 9.2 8.8 13.9 1.2 0.16 SAMARSKITE (or similar): dark grey black to red brown (translucent) mineral;
irregular crystalline fragments, mostly < ca. 1cm (not broken); with
surface coating (1-3mm) of light greenish yellow tan oxidation; strongly
Radioactive
HR501 Bobs Prospect 506306.5 7447584.5 - Scree composite (11 frags, in soil, near in situ) SMK U115520 3.1 10.6 9.2 14.7 1.2 0.17 SAMARSKITE (or similar): dark grey black to red-brown mineral; irregular
crystalline fragments, mostly < ca. 1.5cm (not broken); with surface
coating (1-3mm) of light greenish yellow tan oxidation; strongly Radioactive
HR502 Bobs Prospect 506304.0 7447583.5 - Scree composite (12 frags, below soil, in situ) SMK U115520 3.1 10.0 9.2 13.5 1.2 0.17 SAMARSKITE (or similar): dark grey black to red brown (translucent) mineral;
irregular crystalline fragments, mostly < ca. 1cm (not broken); with
surface coating (1-3mm) of light greenish yellow tan oxidation; strongly.
Radioactive
HR503 Bobs Prospect 506296.0 7447580.0 - Float composite (7 frags, in soil, near in situ) SMK U115520 3.3 11.2 11.1 14.7 1.5 0.21 SAMARSKITE (or similar): dark grey black to red brown (translucent) mineral;
irregular crystalline fragments, mostly < ca. 1cm (not broken); with
surface coating (1-3mm) of light greenish yellow tan oxidation; strongly.
radioactive; inc. flattish tabular "lozenge"-shaped crystals; + one fragment
ca. 4cm diam.
HR504 Bobs Prospect 506294.0 7447578.5 - Scree composite (18 frags, below soil, in situ) SMK U115520 3.2 10.5 9.9 14.0 1.3 0.19 SAMARSKITE (or similar): dark grey black to red-brown mineral; irregular
crystalline fragments, mostly < ca. 1.5cm (not broken); with surface
coating (1-3mm) of light greenish yellow tan oxidation; strongly Radioactive
HR505 Bobs Prospect 506292.5 7447578.0 - Float composite (3 frags, in soil, near source) SMK U115520 3.4 11.1 10.9 14.3 1.5 0.22 SAMARSKITE (or similar): dark grey-black mineral; irregular crystalline
fragments, few very small fragments only (< 2-4 mm); with surface coating
of light greenish yellow tan oxidation; strongly. radioactive
HR506 Bobs Prospect 506289.5 7447575.5 - Float composite (3 frags, in soil, near in situ) SMK U115520 3.2 11.7 11.1 14.2 1.5 0.18 SAMARSKITE (or similar): dark grey-black mineral; irregular crystalline
fragments, few very small fragments only (< 2-6 mm); with surface coating
of light greenish yellow tan oxidation; strongly. Radioactive
HR507 Bobs Prospect 506294.0 7447576.0 - Float composite (3 frags, in soil, may be from HR509 site) SMK U115520 3.3 11.9 10.2 14.0 0.1 0.18 SAMARSKITE (or similar): dark grey-black mineral; irregular crystalline
fragments, few very small fragments only (< 2-4 mm); with surface coating
of light greenish yellow tan oxidation; strongly. radioactive (may be lag from
HR509 site)
HR508 Bobs Prospect 506295.0 7447576.0 - Float composite (3 frags, in soil, may be from HR509 site) SMK U115520 3.4 11.3 11.4 14.9 1.5 0.21 SAMARSKITE (or similar): dark grey-black mineral; irregular crystalline
fragments, few small fragments only (< 2-4 mm); with surface coating of
light greenish yellow tan oxidation; strongly. radioactive (may be lag from
HR509 site)
HR509 Bobs Prospect 506295.0 7447577.0 - Scree composite (9 frags, below soil, in situ) SMK U115520 3.1 12.7 10.5 14.5 1.5 0.19 SAMARSKITE (or similar): dark grey black to red-brown mineral; irregular
crystalline fragments, mostly < ca. 1.5cm (not broken); with surface
coating (1-3mm) of light greenish yellow tan oxidation; strongly Radioactive
HR510 Bobs Prospect 506298.5 7447578.0 - From weathered sub-crop, 21 frags; in situ SMK U115520 2.9 12.6 10.0 12.3 1.5 0.19 SAMARSKITE (or similar): dark grey black to red-brown mineral; irregular
crystalline fragments, mostly < ca. 1cm (not broken); in weathered
pegmatite; with surface coating (1-3mm) of light greenish yellow tan
oxidation; strongly .radioactive (fragments embedded in pegmatite also found
here - not included in sample)
Source: Barfuss Corporation (Reference 1)
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 · The Harts Range Project lies in the south-east of the Northern
agreements or material issues with third parties such as joint ventures, Territory, roughly 120 kilometres north-east of Alice Springs. Two granted
partnerships, overriding royalties, native title interests, historical sites, tenements (EL 32046 and 32513) comprising a total 110 km(2) tenement package
wilderness or national park and environmental settings. is located near essential infrastructure and accessible via the Plenty
Highway.
• 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. in the · A check on the tenures status was completed in the NTGS system
area. 'Strike' on the 10 of October 2024, to validate the currentness of the
exploration areas. All are current.
· The region is serviced by excellent roads (Stuart Highway), train
(the famous Ghan rail) and bus links connect the area.
· Domestic and some international flights are available from Alice
Springs (1 hour drive south of Harts Range) while all international flights
are available direct from Darwin.
· As a major regional centre, the town of Alice Springs provides public
and private schools. There are churches, supermarkets, speciality shops,
hotels, motels, cafés & restaurants, medical centres.
· There is a professional police and emergency services presence
throughout the area. Local professional and trade services support the
community and the mining industry. Mobile phone and internet access are good.
Exploration done by other parties • Acknowledgment and appraisal of exploration by other parties. · Historical "Strike"-based mineral exploration reports have been
reviewed for historical tenures that cover or partially cover the Project Area
in this announcement. Federal and State Government reports supplement the
historical mineral exploration reporting (QDEX open file exploration records).
· Most explorers were searching for either Cu-Au-U, gemstones, or
industrial minerals in the 1990's, and proving satellite deposit style
extensions to the several small subeconomic uranium or copper deposits.
· The project is flanked by Independence Group (IGO) to the north,
south and west. IGO is exploring for a raft of critical battery minerals.
Geology • Deposit type, geological setting, and style of mineralisation. Regional Geology
· The Harts Range Niobium, Uranium-Heavy Rare Earth Project lies
north-west of the Entia Dome (Figure A2-1) and is underlain by the Harts Range
Group (Harts Range Meta-igneous Complex), which predominantly consists of
feldspar-biotite-amphibole-garnet gneisses.
· The Harts Range region has undergone repeated and substantial crustal
re-working between Proterozoic and Palaeozoic times. As a result, it is now
believed to represent an ancient and strongly altered/metamorphosed version of
a continental collision zone.
· Magnetotellurics data interpreted by a team consisting of Adelaide
University and NTGS geologists (Selway et al, 2006) suggests the Entia Dome
system is a deep-crustal feature that can be shown extending to the mantle.
· The below maps (Figures A2-2 and A2-3) show a traverse through the
Arunta from north to south and skirted around the dome to the east and
highlighting a major subduction zone to the north of the dome. The latter
diagram shows the distribution of regional stratigraphic units.
FIGURES A2-1: REGIONAL STRUCTURE PLAN
FIGURE A2-2: WEST TO EAST REGIONAL CRUSTAL CROSS-SECTION
FIGURE A2-3: REGIONAL GEOLOGY
Local Geology
· The main rock types mapped and sampled at various REE Prospects
include:
o Biotite Schist/Granofels: brown-blackish biotite-rich rock; thin (5-10cm)
poorly exposed zone on N side of ~6m thick unit/zone of similar rock (e.g.
HR398, HR399 sites) (on N side of HR399).
o Pegmatite, apatite-bearing: scree frags near W end of E-W pegmatite, near
intersection with north-south calcite vein; very coarse-grained
feldspar-quartz with common coarse apatite - pale semi-translucent slightly
greenish (rare honey-brown) blocky/tabular/hexagonal, some intergrown with
feldspar/quartz.
o Garnet-Cummingtonite rock: coarse-grained rock; with abundant interstitial
pale greenish malachite-magnesite material; small patch of sub-crop amongst
scree.
o Gneiss: weathered, moderately banded, fine-to-medium grained
quartz-feldspar-hornblende-garnet; some coarser quartz-garnet rock; some brown
haematite on fractures; sample below HR444.
o Ultramafics: slightly weathered medium grained, greenish/brownish
amphibole/olivine-dominated meta-ultramafic.
o Amphibolite: grey fine-grained hornblende -quartz rock; (approx. adjacent
rough channel samples: HR461 (1m) above HR462 (3m) above HR463 (3m) above
HR464 (1m)).
o Samarskite (or similar), being a dense brittle blackish lustrous
radioactive mineral; cluster of 10+ fragments, most over 1cm (or broken
weathered larger piece - ca. 5-10 cm) in chalky white feldspar, beside
weathered coarse mica beneath soil cover along southern side of quartz vein in
a pegmatite core.
Drillhole • A summary of all information material to the understanding of the · Not Applicable - no exploration drilling results presented.
exploration results including a tabulation of the following information for
Information 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.
Data aggregation methods • In reporting Exploration Results, weighting averaging techniques, · Independent Laboratory Assay results for the 28 rock chip samples
maximum and/or minimum grade truncations (e.g. cutting of high grades) and from various Harts Range Prospects were averaged if more than one reading or
cut-off grades are usually Material and should be stated. determination was given. There was no cutting of high-grade REE results as
they are directly relatable to high grade mineralisation styles readily
• Where aggregate intercepts incorporate short lengths of high-grade visible in the relevant samples.
results and longer lengths of low-grade results, the procedure used for such
aggregation should be stated and some typical examples of such aggregations · There were no cut-off grades factored into any reporting of the
should be shown in detail. laboratory assay results.
• 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 · The 2006-7 rock chip and soil samples were taken at areas of interest
Exploration Results. from observed mineralisation along the line of lode of the mineralised
pegmatite dyke, secondary structures, and surrounding spoil heaps.
• If the geometry of the mineralisation with respect to the drill hole Twenty-one (21) rock chip samples collected from rock faces and/or outcrops.
angle is known, its nature should be reported.
· Eight (8) rock chip samples collected from stockpiles, shaft waste
• If it is not known and only the down hole lengths are reported, piles, and/or boulders of rock onsite.
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 · Appropriate diagrams are presented in the body and the Appendices of
intercepts should be included for any significant discovery being reported the current ASX Release. Where scales are absent from the diagram, grids have
These should include, but not be limited to a plan view of drill hole collar been included and clearly labelled to act as a scale for distance.
locations and appropriate sectional views.
· Maps and Plans presented in the current ASX Release are in MGA94 Zone
53, Eastings (mN), and Northing (mN), unless clearly labelled otherwise.
Balanced reporting • Where comprehensive reporting of all Exploration Results is not · Rock chip samples were taken at areas of interest from observed
practicable, representative reporting of both low and high grades and/or mineralisation along the line of lode of the mineralised pegmatite dyke,
widths should be practiced avoiding misleading reporting of Exploration secondary structures, surrounding spoil heaps, and to the north and south of
Results. the line of lode to check the validity of the defined four (4) anomalous map
areas.
Other substantive exploration data • • Other exploration data, if meaningful and material, should be · The area is covered by regional airborne government and private
reported including (but not limited to): geological observations; geophysical radiometric, gravity, magnetic, and hyperspectral surveys. Unfortunately,
survey results; geochemical survey results; bulk samples - size and method of other than the 2006 radiometric ground survey, no other ground surveys have
treatment; metallurgical test results; bulk density, groundwater, geotechnical been undertaken.
and rock characteristics; potential deleterious or contaminating substances.
· Substantial historical and current ground geochemical (stream
sediment, soil, and rock chip samples have been undertaken and two episodes of
shallow drilling, mostly for industrial minerals (gemstones and vermiculite)
by the owners of the leases, since 2006.
Further work • The nature and scale of planned further work (e.g. tests for lateral o A future exploration strategy should encompass the following steps in
extensions or depth extensions or large-scale step-out drilling). subsequent field programs:
• Diagrams clearly highlighting the areas of possible extensions, o Reconnaissance mapping programs.
including the main geological interpretations and future drilling areas,
provided this information is not commercially sensitive. o Close-spaced radiometric geophysical surveys.
o Detailed mapping and rock chip sampling across prospects.
o Regional soil sampling campaigns.
o Mineral characterisation studies and petrological analysis.
o Trenching and bulk sample test work.
o Target generation and prioritisation; and
o Exploratory drill-testing.
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