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REG - Sovereign Metals Ltd - Downstream Testwork Shows High Quality Graphite

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RNS Number : 4739O  Sovereign Metals Limited  15 May 2024

NEWS RELEASE I 15 MAY 2024

DOWNSTREAM TESTWORK DEMONSTRATES HIGH QUALITY GRAPHITE FOR LITHIUM-ION
BATTERIES

·       Spherical Purified Graphite (SPG) with world-leading
specifications successfully produced from Kasiya

·    Kasiya's spherical graphite purification demonstrated exceptionally
low levels of residual impurities achieving a 99.99% loss-on-ignition (LOI)

·     Kasiya SPG demonstrated all required parameters within industry
standards with spheronisation yields of up to 68% with further scope to
optimise in future testwork

·     Testwork was undertaken as part of the Company's graphite strategy to
qualify and commercialise graphite concentrate for use in the lithium-ion
battery sector

 

Sovereign Metals Limited (ASX:SVM; AIM:SVML) (the Company or Sovereign) is
pleased to announce the results of downstream testwork conducted at leading,
independent consultancy ProGraphite GmbH (ProGraphite) in Germany.

Sovereign provided Kasiya graphite concentrate to ProGraphite to produce and
characterise coated spherical purified graphite (CSPG) active anode material
for lithium-ion batteries. The overall program includes shaping and
purification to produce SPG, coating of the material to produce CSPG and
evaluation of the electrochemical performance of Kasiya CSPG in a battery. The
initial steps of shaping and purification to produce SPG have now been
completed with the results showing Kasiya SPG has world-leading
specifications.

This SPG material is now undergoing coating and electrochemical testing to
characterise CSPG active anode material for lithium-ion batteries.

 Table 1: Spherical Graphite Purification Results
                    SVM Spherical graphite    SVM Spherical graphite    Chinese

 Standard (1)
                    <180 µm concentrate       >180 µm concentrate
 LOI Purity (%)     99.99%                    99.99%                    >99.95%
 Fe                 4.4 ppm                   3.3 ppm                   <30 ppm
 Na                 <1.0 ppm                  <1.1 ppm                  <10 ppm
 Cr                 1.1 ppm                   0.4 ppm                   <10 ppm
 Cu                 0.7 ppm                   0.2 ppm                   <10 ppm
 Ni                 <0.3 ppm                  <0.4 ppm                  <10 ppm
 Al                 6.6 ppm                   8.8 ppm                   <10 ppm
 Mo                 <0.3 ppm                  <0.3 ppm                  <10 ppm
 Si                 7 ppm                     10 ppm                    <30 ppm
 Ca                 4.3 ppm                   8.4 ppm                   <10 ppm

1.     National Standard of China - Spherical Graphite (GB/T 38887-2020)

 

The micronisation and spheronisation of Kasiya graphite concentrates achieved
excellent yields to spherical graphite for the coarse concentrate and typical
yields to spherical graphite for the fines concentrate, with room for further
optimisation. The spherical graphite from the fine graphite concentrate in
particular exhibited a narrow particle size distribution (D90/D10) ratio and
both spherical graphite have reasonable Tap Density and typical BET for
uncoated graphite. Coating of the graphite is expected to improve (increase)
the tap density and improve (lower) the BET specific surface area.

 Table 2: Concentrate Shaping into Spherical Graphite Results
                                     Kasiya Concentrate  Kasiya Concentrate

(<180 µm)
(>180 µm)
 D50 (microns)                       16.53               17.74
 D90/D10 Ratio                       2.29                2.96
 Yield to Spherical Graphite         40%                 68%
 Tap Density (g/cm(3))               0.93                0.93
 BET Specific Surface Area (m(2)/g)  7.73                6.72

The spherical graphite products were purified with commercially proven acids
purification and achieved excellent results with an exceptionally high LOI
purity of 99.99%. Assays on key trace elements (Fe, Na, Cr, Cu, Al, Mo) show
very low levels.

Further, the low Si and Ca results highlight that high quality Kasiya graphite
is well-suited to single stage acids purification. Aggressive dosing in acids
purification can result in elevated Ca levels due to precipitation of CaF(2),
necessitating multiple stages of purification to reduce both Si and Ca
impurities. These initial purification results indicate that a single
purification stage is sufficient for Kasiya graphite concentrate.

The SPG samples will undergo coating and electrochemical tests to provide
baseline data for offtake discussions. The results of these tests are expected
in the coming weeks.

Managing Director Frank Eagar commented: "These results clearly demonstrate
that Kasiya has the potential to disrupt the China dominated graphite supply
chain as a long term, secure source of high quality graphite ex-China. We
believe Kasiya graphite will have industry low operating costs and is also one
of the largest graphite resources globally holding a significant advantage
over its graphite peers. We are very pleased to achieve these outstanding
results at this stage of the program and will continue fast tracking our
graphite product development and qualification campaign."

 

Classification 2.2: This announcement includes Inside Information

ENQUIRIES

 Frank Eagar (South Africa/Malawi)  Sam Cordin (Perth)  Sapan Ghai (London)

Managing Director
+61(8) 9322 6322
+44 207 478 3900

 +61(8) 9322 6322

 

 Nominated Adviser on AIM and Joint Broker
 SP Angel Corporate Finance LLP             +44 20 3470 0470
 Ewan Leggat

 Charlie Bouverat

 Joint Brokers
 Stifel                                     +44 20 7710 7600
 Varun Talwar
 Ashton Clanfield

 Berenberg                                  +44 20 3207 7800
 Matthew Armitt
 Jennifer Lee

 Buchanan                                   + 44 20 7466 5000

 

Competent Person Statement

The information in this report that relates to Metallurgical Testwork is based
on information compiled by Dr Surinder Ghag, PhD., B. Eng, MBA, M.Sc., who is
a Member of the Australasian Institute of Mining and Metallurgy (MAusIMM). Dr
Ghag is engaged as a consultant by Sovereign Metals Limited. Dr Ghag has
sufficient experience, which is relevant to the style of mineralisation and
type of deposit under consideration and to the activity which he is
undertaking, to qualify as a Competent Person as defined in the 2012 Edition
of the 'Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves'. Dr Ghag consents to the inclusion in the report
of the matters based on his information in the form and context in which it
appears.

The information in this report that relates to Exploration Results is based on
information compiled by Mr Samuel Moyle, a Competent Person who is a member of
The Australasian Institute of Mining and Metallurgy (AusIMM). Mr Moyle is the
Exploration Manager of Sovereign Metals Limited and a holder of ordinary
shares and unlisted performance rights in Sovereign Metals Limited. Mr Moyle
has sufficient experience that is relevant to the style of mineralisation and
type of deposit under consideration and to the activity being undertaken, to
qualify as a Competent Person as defined in the 2012 Edition of the
'Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves'. Mr Moyle consents to the inclusion in the report of the matters
based on his information in the form and context in which it appears.

 

Forward Looking Statement

This release may include forward-looking statements, which may be identified
by words such as "expects", "anticipates", "believes", "projects", "plans",
and similar expressions. These forward-looking statements are based on
Sovereign's expectations and beliefs concerning future events. Forward looking
statements are necessarily subject to risks, uncertainties and other factors,
many of which are outside the control of Sovereign, which could cause actual
results to differ materially from such statements. There can be no assurance
that forward-looking statements will prove to be correct. Sovereign makes no
undertaking to subsequently update or revise the forward-looking statements
made in this release, to reflect the circumstances or events after the date of
that release.

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 as it forms part of UK domestic law by virtue of the
European Union (Withdrawal) Act 2018 ('MAR'). Upon the publication of this
announcement via Regulatory Information Service ('RIS'), this inside
information is now considered to be in the public domain.

Appendix 1: JORC Code, 2012 Edition - Table 1

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 specific     Metallurgical Composite Sample:
                                                          specialised industry standard measurement tools appropriate to the minerals

                                                          under investigation, such as down hole gamma sondes, or handheld XRF             The sample was a composite of 24 Hand Auger (HA) and Push Tube (PT) holes
                                                          instruments, etc). These examples should not be taken as limiting the broad      drilled in 2022 in the Kingfisher pit.
                                                          meaning of sampling.

                                                                                All drilling samples within the pit shell were added to the composite
                                                                                                                                           resulting in a sample of 2,498kg.

                                                                                                                                           Specifically, the composite sample consisted of selected rutile mineralised
                                                                                                                                           zones from holes, NSHA0009, 0010, 0056, 0060, 0061, 0074, 0119, 0311, 0343,
                                                                                                                                           0344, 0345, 0350 and NSPT 0011, 0013, 0014, 0015, 0017, 0020, 0021, 0023,
                                                                                                                                           0024, 0025, 0026, 0027.

                                                                                                                                           The following workflow was used to generate a pre-concentrate graphite feed at
                                                                                                                                           AML:

                                                                                                                                           ·       Wet screen at 2mm to remove oversize

                                                                                                                                           ·       Two stage cyclone separation at a cut size of 45µm to remove
                                                                                                                                           -45µm material

                                                                                                                                           ·       Pass +45µm -2mm (sand) fraction through Up Current Classifier
                                                                                                                                           (UCC)

                                                                                                                                           ·       Pass UCC O/F through cyclone at cut point of 45µm

                                                                                                                                           ·       Pass UCC O/F cyclone U/F (fine) over MG12 Mineral Technologies
                                                                                                                                           Spiral

                                                                                                                                           ·       Pass UCC U/F (coarse) over MG12 Mineral Technologies Spiral

                                                                                                                                           ·       Spiral cons are combined for further processing.

                                                                                                                                           Fine and coarse gravity tailing samples contain approximately 75%-80% of the
                                                                                                                                           graphite present in the feed sample. The majority of the graphite lost is
                                                                                                                                           contained in the -45µm fines.
                                                          Include reference to measures taken to ensure sample representivity and the      Placer Consulting (Placer) Resource Geologists have reviewed Standard
                                                          appropriate calibration of any measurement tools or systems used.                Operating Procedures (SOPs) for the collection of HA and PT drill samples and

                                                                                found them to be fit for purpose.

                                                                                                                                           Drilling and sampling activities are supervised by a suitably qualified
                                                                                                                                           Company geologist who is present at all times. All bulk 1-metre drill samples
                                                                                                                                           are geologically logged by the geologist at the drill site.

                                                                                                                                           The primary metallurgical composite sample is considered representative for
                                                                                                                                           this style of mineralisation.
                                                          Aspects of the determination of mineralisation that are Material to the Public   HA drilling was used to obtain 1-metre samples. The bulk metallurgical sample
                                                          Report. In cases where 'industry standard' work has been done this would be      was a composite of selected samples from routine resource drilling.
                                                          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         Existing rutile and graphite exploration results were used to determine the
                                                          assay'). In other cases more explanation may be required, such as where there    1-metre intervals suitable to contribute to the two bulk sample composites.
                                                          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, rotary air         Hand-auger drilling is completed with 75mm diameter enclosed spiral bits with
                                                          blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or     1-metrelong steel rods.  Each 1m of drill sample is collected into separate
                                                          standard tube, depth of diamond tails, face‐sampling bit or other type,          sample bags and set aside.  The auger bits and flights are cleaned between
                                                          whether core is oriented and if so, by what method, etc).                        each metre of sampling to avoid contamination.

                                                                                                                                           Placer has reviewed SOPs for hand-auger drilling and found them to be fit for
                                                                                                                                           purpose and support the resource classifications as applied to the MRE.
 Drill Sample Recovery                                    Method of recording and assessing core and chip sample recoveries and results    The configuration of drilling and nature of materials encountered results in
                                                          assessed.                                                                        negligible sample loss or contamination.

                                                                                                                                           Samples are assessed visually for recoveries. Overall, recovery is good.
                                                                                                                                           Drilling is ceased when recoveries become poor generally once the water table
                                                                                                                                           has been encountered.

                                                                                                                                           Auger drilling samples are actively assessed by the geologist onsite for
                                                                                                                                           recoveries and contamination.
                                                          Measures taken to maximise sample recovery and ensure representative nature of   The Company's trained geologists supervise auger drilling on a 1 team 1
                                                          the samples.                                                                     geologist basis and are responsible for monitoring all aspects of the drilling

                                                                                and sampling process.

                                                          Whether a relationship exists between sample recovery and grade and whether      No bias related to preferential loss or gain of different materials has
                                                          sample bias may have occurred due to preferential loss/gain of fine/coarse       occurred.
                                                          material.

 Logging                                                  Whether core and chip samples have been geologically and geotechnically logged   All individual 1-metre auger intervals are geologically logged, recording
                                                          to a level of detail to support appropriate Mineral Resource estimation mining   relevant
                                                          studies and metallurgical studies.

                                                                                data to a set template using company codes.

                                                          Whether logging is qualitative or quantitative in nature. Core (or costean,      All logging includes lithological features and estimates of basic mineralogy.
                                                          channel, etc.) photography.                                                      Logging is generally qualitative.

                                                          The total length and percentage of the relevant intersection logged              100% of samples are geologically logged.

 Sub-sampling techniques and sample preparation           If core, whether cut or sawn and whether quarter, half or all core taken.        Not applicable - no core drilling conducted.

                                                          If non-core, whether riffled, tube sampled, rotary split, etc. and whether       Primary individual 1-metre samples from all HA and PT holes drilled are sun
                                                          sampled wet or dry.                                                              dried, homogenised and riffle split.

                                                          For all sample types, the nature, quality and appropriateness of the sample      Metallurgical Composite Sample:
                                                          preparation technique.

                                                                                1-metre intervals selected for the 2,498kg metallurgical sample were divided
                                                                                                                                           into weathering units.

                                                                                                                                           MOTT and PSAP material were combined and homogenised in preparation for
                                                                                                                                           dispatch to Australian laboratory Intertek for TGC assay.

                                                                                                                                           Per Australian import quarantine requirements the contributing SOIL/FERP
                                                                                                                                           material from within 2m of surface was kept separate to undergo quarantine
                                                                                                                                           heat treatment at Intertek Laboratory on arrival into Australia.

                                                                                                                                           The two sub samples (SOIL/FERP and MOTT/PSAP) were then dispatched from
                                                                                                                                           Intertek to AML Laboratory (AML). AML sub-sampled and assayed the individual
                                                                                                                                           lithologies prior to combining and homogenising the sample in preparation for
                                                                                                                                           test-work.
                                                          Quality control procedures adopted for all sub-sampling stages to maximise       The sample preparation techniques and QA/QC protocols are considered
                                                          representivity of samples.                                                       appropriate for the nature of this test-work.

                                                          Measures taken to ensure that the sampling is representative of the in situ      The sampling best represents the material 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     The sample size is considered appropriate for the nature of the test-work.
                                                          sampled.

 Quality of assay data and laboratory tests               The nature, quality and appropriateness of the assaying and laboratory           Metallurgical Composite Sample:
                                                          procedures used and whether the technique is considered partial or total.

                                                                                                                                           The following workflow was used to generate a graphite product;

                                                                                                                                           o    Coarse and fine rougher graphite flotation

                                                                                                                                           o    Polishing grind of coarse and fine rougher graphite concentrate

                                                                                                                                           o    Cleaner flotation of coarse and fine graphite

                                                                                                                                           o    Cleaner concentrate sizing at 180µm

                                                                                                                                           o    Regrind of separate +180µm/-180µm fractions

                                                                                                                                           o    Three stage recleaner flotation of +180µm/-180µm fractions

                                                          For geophysical tools, spectrometers, handheld XRF instruments, etc., the        Acceptable levels of accuracy and precision have been established. No handheld
                                                          parameters used in determining the analysis including instrument make and        methods are used for quantitative determination.
                                                          model, reading times, calibrations factors applied and their derivation, etc.

                                                          Nature of quality control procedures adopted (e.g. standards, blanks,            Acceptable levels of accuracy and precision have been established in the
                                                          duplicate, external laboratory checks) and whether acceptable levels of          preparation of the bulk sample composites.
                                                          accuracy (i.e. lack of bias) and precision have been established.

 Verification of sampling & assaying                      The verification of significant intersections by either independent or           No drilling intersections are being reported.
                                                          alternative company personnel.

                                                          The use of twinned holes.                                                        No twin holes completed in this program.

                                                          Documentation of primary data, data entry procedures, data verification, data    All data was collected initially on paper logging sheets and codified to the
                                                          storage (physical and electronic) protocols.                                     Company's templates. This data was hand entered to spreadsheets and validated
                                                                                                                                           by Company geologists.

                                                          Discuss any adjustment to assay data.                                            No adjustment to assay data has been made.

 Location of data points                                  Accuracy and quality of surveys used to locate drill holes (collar and           A Trimble R2 Differential GPS is used to pick up the collars. Daily capture at
                                                          down-hole surveys), trenches, mine workings and other locations used in          a registered reference marker ensures equipment remains in calibration.
                                                          Mineral Resource estimation.

                                                                                No downhole surveying is completed. Given the vertical nature and shallow
                                                                                                                                           depths of the holes, drill hole deviation is not considered to significantly
                                                                                                                                           affect the downhole location of samples.
                                                          Specification of the grid system used.                                           WGS84 UTM Zone 36 South.
                                                          Quality and adequacy of topographic control.                                     DGPS pickups are considered to be high quality topographic control measures.
 Data spacing & distribution                              Data spacing for reporting of Exploration Results.                               Metallurgical Composite Sample: The hand-auger holes contributing to this
                                                                                                                                           metallurgical were selected from pit area Kingfisher and broadly represent
                                                                                                                                           early years of mining as contemplated in the PFS (Approximately the first
                                                                                                                                           three years).

                                                                                                                                           It is deemed that these holes should be broadly representative of the

                                                                                                                                           mineralisation style in the general area.

                                                          Whether the data spacing and distribution is sufficient to establish the         Not applicable, no Mineral Resource or Ore Reserve estimations are covered by
                                                          degree of geological and grade continuity appropriate for the Mineral Resource   new data in this report.
                                                          and Ore Reserve estimation procedure(s) and classifications applied.
                                                          Whether sample compositing has been applied.                                     Metallurgical Composite Sample:

                                                                                                                                           The sample was composited as described under Sampling Techniques in this
                                                                                                                                           Table.

 Orientation of data in relation to geological structure  Whether the orientation of sampling achieves unbiased sampling of possible       No bias attributable to orientation of sampling has been identified.
                                                          structures and the extent to which this is known considering the deposit type

                                                          If the relationship between the drilling orientation and the orientation of      All holes were drilled vertically as the nature of the mineralisation is
                                                          key mineralised structures is considered to have introduced a sampling bias,     horizontal. No bias attributable to orientation of drilling has been
                                                          this should be assessed and reported if material.                                identified.

 Sample security                                          The measures taken to ensure sample security                                     Samples are stored in secure storage from the time of drilling, through
                                                                                                                                           gathering, compositing and analysis.  The samples are sealed as soon as site
                                                                                                                                           preparation is complete.

                                                                                                                                           A reputable international transport company with shipment tracking enables a
                                                                                                                                           chain of custody to be maintained while the samples move from Malawi to
                                                                                                                                           Australia or Malawi to Johannesburg. Samples are again securely stored once
                                                                                                                                           they arrive and are processed at Australian laboratories. A reputable domestic
                                                                                                                                           courier company manages the movement of samples within Perth, Australia.

                                                                                                                                           At each point of the sample workflow the samples are inspected by a company
                                                                                                                                           representative to monitor sample condition. Each laboratory confirms the
                                                                                                                                           integrity of the samples upon receipt.
 Audits or reviews                                        The results of any audits or reviews of sampling techniques and data             It is considered by the Company that industry best practice methods have been

                                                                                employed at all stages of the exploration.

                                                                                                                                           Malawi Field and Laboratory visits have been completed by Richard Stockwell in
                                                                                                                                           May 2022. A high standard of operation, procedure and personnel was observed
                                                                                                                                           and reported.

 
SECTION 2 - REPORTING OF EXPLORATION RESULTS

 

 Criteria                                                            Explanation                                                                      Commentary
 Mineral tenement & land tenure status                               Type, reference name/number, location and ownership including agreements or      The Company owns 100% of the following Exploration Licences (ELs) under the
                                                                     material issues with third parties such as joint ventures, partnerships,         Mines and Minerals Act 2019 (Malawi), held in the Company's wholly-owned,
                                                                     overriding royalties, native title interests, historical sites, wilderness or    Malawi-registered subsidiaries: EL0609, EL0582, EL0492, EL0528, EL0545,
                                                                     national park and environment settings.                                          EL0561, EL0657 and EL0710.

                                                                                                                                                      A 5% royalty is payable to the government upon mining and a 2% of net profit
                                                                                                                                                      royalty is payable to the original project vendor.

                                                                                                                                                      No significant native vegetation or reserves exist in the area. The region is
                                                                                                                                                      intensively cultivated for agricultural crops.
                                                                     The security of the tenure held at the time of reporting along with any known    The tenements are in good standing and no known impediments to exploration or
                                                                     impediments to obtaining a licence to operate in the area.                       mining exist.
 Exploration done by other parties                                   Acknowledgement and appraisal of exploration by other parties.                   Sovereign Metals Ltd is a first-mover in the discovery and definition of

                                                                                                                                                    residual rutile and graphite deposits in Malawi.

 Geology                                                             Deposit type, geological setting and style of mineralisation                     The rutile deposit type is considered a residual placer formed by the intense
                                                                                                                                                      weathering of rutile-rich basement paragneisses and variable enrichment by
                                                                                                                                                      eluvial processes.

                                                                                                                                                      Rutile occurs in a mostly topographically flat area west of Malawi's capital,
                                                                                                                                                      known as the Lilongwe Plain, where a deep tropical weathering profile is
                                                                                                                                                      preserved. A typical profile from top to base is generally soil ("SOIL" 0-1m)
                                                                                                                                                      ferruginous pedolith ("FERP", 1-4m), mottled zone ("MOTT", 4-7m), pallid
                                                                                                                                                      saprolite ("PSAP", 7-9m), saprolite ("SAPL", 9-25m), saprock ("SAPR", 25-35m)
                                                                                                                                                      and fresh rock ("FRESH" >35m).

                                                                                                                                                      The low-grade graphite mineralisation occurs as multiple bands of graphite
                                                                                                                                                      gneisses, hosted within a broader Proterozoic paragneiss package. In the
                                                                                                                                                      Kasiya areas specifically, the preserved weathering profile hosts significant
                                                                                                                                                      vertical thicknesses from near surface of graphite mineralisation.
 Drill hole information                                              A summary of all information material to the understanding of the exploration    All intercepts relating to the Kasiya Deposit have been included in public
                                                                     results including a tabulation of the following information for all Material     releases during each phase of exploration and in this report. Releases
                                                                     drill holes: easting and northings of the drill hole collar; elevation or RL     included all collar and composite data and these can be viewed on the Company
                                                                     (Reduced Level-elevation above sea level in metres of the drill hole collar);    website.
                                                                     dip and azimuth of the hole; down hole length and interception depth; and hole

                                                                     length                                                                           There are no further drill hole results that are considered material to the
                                                                                                                                                      understanding of the exploration results. Identification of the broad zone of
                                                                                                                                                      mineralisation is made via multiple intersections of drill holes and to list
                                                                                                                                                      them all would not give the reader any further clarification of the
                                                                                                                                                      distribution of mineralisation throughout the deposit.

                                                                     If the exclusion of this information is justified on the basis that the          No information has been excluded.
                                                                     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 data aggregation was required.
                                                                     and/or minimum grade truncations (e.g. cutting of high-grades) and cut-off
                                                                     grades are usually Material and should be stated.
                                                                     Where aggregate intercepts incorporate short lengths of high-grade results and   No data aggregation was required.
                                                                     longer lengths of low grade results, the procedure used for such aggregation
                                                                     should be stated and some typical examples of such aggregations should be
                                                                     shown in detail.
                                                                     The assumptions used for any reporting of metal equivalent values should be      Not applicable
                                                                     clearly stated.
 Relationship between mineralisation widths & intercept lengths      These relationships are particularly important in the reporting of Exploration   The mineralisation has been released by weathering of the underlying, layered
                                                                     Results.                                                                         gneissic bedrock that broadly trends NE-SW at Kasiya North and N-S at Kasiya
                                                                                                                                                      South. It lies in a laterally extensive superficial blanket with high-grade
                                                                                                                                                      zones reflecting the broad bedrock strike orientation of ~045° in the North
                                                                                                                                                      of Kasiya and 360° in the South of Kasiya.

                                                                                                                                                      No drilling intercepts are being reported.
                                                                     If the geometry of the mineralisation with respect to the drill hole angle is    The mineralisation is laterally extensive where the entire weathering profile
                                                                     known, its nature should be reported.                                            is preserved and not significantly eroded. Minor removal of the mineralised
                                                                                                                                                      profile has occurred where alluvial channels cut the surface of the deposit.
                                                                                                                                                      These areas are adequately defined by the drilling pattern and topographical
                                                                                                                                                      control for the resource estimate.
                                                                     If it is not known and only the down hole lengths are reported, there should     No drilling intercepts are being reported.
                                                                     be a clear statement to this effect (e.g. 'down hole length, true width not
                                                                     known'.
 Diagrams                                                            Appropriate maps and sections (with scales) and tabulations of intercepts        Refer to figures in previous releases. These are accessible on the Company's
                                                                     should be included for any significant discovery being reported. These should    webpage.
                                                                     include, but not be limited to a plan view of the drill collar locations and
                                                                     appropriate sectional views.
 Balanced reporting                                                  Where comprehensive reporting of all Exploration Results is not practicable,     All results are included in this report and in previous releases. These are
                                                                     representative reporting of both low and high-grades and/or widths should be     accessible on the Company's webpage.
                                                                     practiced to avoid misleading reporting of exploration results.
 Other substantive exploration data                                  Other exploration data, if meaningful and material, should be reported           Limited lateritic duricrust has been variably developed at Kasiya, as is
                                                                     including (but not limited to: geological observations; geophysical survey       customary in tropical highland areas subjected to seasonal wet/dry cycles.
                                                                     results; geochemical survey results; bulk samples - size and method of           Lithological logs record drilling refusal in just under 2% of the HA/PT drill
                                                                     treatment; metallurgical test results; bulk density, groundwater, geotechnical   database. No drilling refusal was recorded above the saprock interface by AC
                                                                     and rock characteristics; potential deleterious or contaminating substances.     drilling.

                                                                                                                                                      Sample quality (representivity) is established by geostatistical analysis of
                                                                                                                                                      comparable sample intervals.

 Further work                                                        The nature and scale of planned further work (e.g. test for lateral extensions   The Company is currently in a project optimisation phase with various work
                                                                     or depth extensions or large-scale step-out drilling).                           programs underway.
                                                                     Diagrams clearly highlighting the areas of possible extensions, including the    Refer to diagrams in previous releases. These are accessible on the Company's
                                                                     main geological interpretations and future drilling areas, provided this         webpage.
                                                                     information is not commercially sensitive.

 

 

 

 

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