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Capital Metals PLC Drill Results (6052P)

21/06/2022 7:00am

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TIDMCMET

RNS Number : 6052P

Capital Metals PLC

21 June 2022

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF ENGLISH LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMED. ON PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

21 June 2022

Capital Metals plc

("CMET" or the "Company")

Remaining Drill Results Confirm Further Exceptional Higher Grades

Capital Metals plc (AIM: CMET), a mineral sands company that is now approaching mine development at the Eastern Minerals heavy mineral sands project in Sri Lanka (the "Project"), one of the highest-grade mineral sands projects globally, is pleased to announce the second half of results from the late-2021 auger drilling programme.

Highlights

   --    Drill results from Komari and Urani North, situated in the south of the Project 
   --    Exceptional high-grade results of up to 86.1% Total Heavy Minerals ("THM"), including: 
 
 
        *    1.5m @ 51.9% THM from 1.5m 
 *    1.1m @ 41.8% THM from 0m 
 
 *    2.5m @ 38.4% THM from 0m 
 
 *    2m @ 36.2% THM from 1.5m 
 
 
        *    2.5m @ 35.2% THM from 0.5m 
 

-- Average grade of results from the full 560-hole 2021 drilling programme is 19.37% THM, compared to the existing JORC resource grade of 17.6%, indicating the potential for both volume and grade increases

-- All results from surface to a maximum of only 3.5m depth (average depth 1.5m from surface) ended in mineralisation providing scope for resource extension at depth

Michael Frayne, Chief Executive Officer, commented:

"Results from the second half of our auger drilling campaign continued a similarly encouraging pattern to all recent drilling campaigns and underlines that our Project is amongst the highest-grade mineral sands deposits in the world. These and future results are anticipated to continue to uplift the average grade of our current global resource, which at 17.6% THM is already in the highest quartile globally. This is expected to both expand the existing resource and also further improve the project economics.

Based on this high grade and the recently released exceptional project economics (see RNS 12 May 2022), we look forward to progressing the Project into the mine development phase, underpinned by significant demand for mineral sands and high prices."

Drilling Results from Komari and Urani North

The drill results are from the Komari and Urani North areas, located in the southern portion of the Project (see link to map below). Extremely high-grade zones of +30% THM were identified throughout the drilling, with 102 of the 560 drill results recording over 30% THM. As set out in the RNS on 22 May 2002, the highest drill result returned 1m at 86.1% THM.

All drill results are from surface to a maximum of only 3.5m depth due to limitations of augur drilling, with an average depth of 1.5m. Sonic drilling at Komari in 2018 demonstrated the continuity of mineralisation to depth, with results of 14m at 26.3% THM and 8m at 26.6% THM returned.

The average grade result from the 2021 drilling programme is 19.37% THM. This result compares favourably with our current global resource grade of 17.6% THM and indicates a potential grade and volume increase when incorporated into an updated mineral resource estimate (MRE).

The verified assay results underwent extensive QA/QC review with assessment of sample duplicates and heavy mineral standard samples included in the assay process. A Competent Person ("CP") audit of the laboratory in March 2022 confirmed the high level of accuracy and precision returned from quality assurance samples.

High-grade and contiguous mineralisation intersected by this and previous drill programmes warrant further exploration and resource development in the south of Komari as part of the Company's planned drilling programme for later this year. Material resource extensions are also anticipated where dune mineralisation has been identified west of the current delineated resource.

Section 1 (Sampling Techniques and Data) and Section 2 (Reporting of Exploration Results) of the JORC Code, 2012 Edition are presented in Appendix 1.

A summary of significant intercepts is presented in Appendix 2.

A supplementary version of the announcement with the drilling and resource plan from the whole 2021 drilling programme is accessible via the link below:

http://www.rns-pdf.londonstockexchange.com/rns/6052P_1-2022-6-21.pdf

For further information, please visit www.capitalmetals.com or contact:

 
 Capital Metals plc                                 Via Vigo Consulting 
  Michael Frayne (CEO) 
  James Mahony (CFO) 
 Vigo Consulting (Investor Relations)               +44 (0)20 7390 0234 
  Ben Simons / Oliver Clark                          capitalmetals@vigoconsulting.com 
 SPARK Advisory Partners (Nominated 
  Adviser) 
  Neil Baldwin / James Keeshan                      +44 (0)20 3368 3554 
 WH Ireland Limited (Joint Broker) 
  Harry Ansell / Katy Mitchell                      +44 (0)20 7220 1666 
 Tavira Securities Limited (Joint 
  Broker) 
  Jonathan Evans / Oliver Stansfield                +44 (0)20 7100 5100 
 

About Capital Metals plc

Capital Metals is developing the Eastern Minerals Project in the Eastern Province of Sri Lanka, approximately 220km east of Colombo. The Eastern Minerals Project is one of the highest-grade mineral sands projects globally, with a current JORC Resource of 17.2Mt with an average grade of 17.6% Total Heavy Minerals, and potential for resource extension. In May 2022 a third-party Preliminary Economic Assessment ("PEA") provided an NPV for the Project of US$155-235M based on existing resources and without full optimisation. The PEA outlined an attractive low-CAPEX requirement of US$37.3M, with further expansion funded through cashflows from the Project, expected to deliver US$645M of revenue for operating cashflows of US$391M.

Our goal is to become a high margin producer of mineral sands for the international market, with a commitment to applying best-in-class mining practices and bringing significant positive benefits to Sri Lanka and the local community with over 300 direct new jobs to be created and over US$100m in direct government royalties and taxes.

Competent Person

Information in this report relating to Exploration Results is based on data reviewed by Mr Richard Stockwell, a principal of Placer Consulting Pty Ltd and Technical Manager of the Company. Mr Stockwell is a Fellow of the Australian Institute of Geoscientists and has in excess of 20 years' experience, which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity he is undertaking, to qualify as a Competent Person as defined in the 2021 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral resources and Ore Reserves". Mr Stockwell consents to the inclusion of the information in the form and context in which it appears.

APPIX 1 - JORC Table 1

 
 Criteria              Explanation                               Comment 
 Sampling              Nature and quality of sampling             Hand auger drilling is executed by 
  techniques            (e.g. cut channels, random                 the GSMB field team using a manually 
                        chips, or specific specialised             operated enclosed-flight Spiral Auger 
                        industry standard measurement              (SP / SOS) system from Dormer Engineering 
                        tools appropriate to the minerals          in Queensland, Australia. Drilling 
                        under investigation, such as               proceeds to the water table, which 
                        down hole gamma sondes, or                 is intersected at an average depth, 
                        handheld XRF instruments, etc.).           for this dataset, of 1.5m from surface. 
                        These examples should not be               The first 0.5m advance is withdrawn 
                        taken as limiting the broad                and the contents of the auger removed 
                        meaning of sampling.                       onto a sheet and set aside for bagging. 
                                                                   The subsequent samples are taken in 
                                                                   the same manner at 1m intervals or 
                                                                   until the hole is abandoned at the 
                                                                   water table. 
                                                                   The whole sample is retained. 
                      ----------------------------------------  --------------------------------------------------- 
                       Include reference to measures             All drilling is completed above the 
                        taken to ensure sample representivity     water table. 
                        and the appropriate calibration           Drilling and sampling activities are 
                        of any measurement tools or               supervised by a suitably qualified 
                        systems used.                             GSMB geologist who is present at all 
                                                                  times. All drill samples are geologically 
                                                                  logged by the geologist at the drill 
                                                                  site. 
                                                                  Each sample is bagged at site and transferred 
                                                                  to the GSMB laboratory. Samples are 
                                                                  dried and weighed prior to analysis. 
--------------------  ----------------------------------------  --------------------------------------------------- 
                       Aspects of the determination              All samples are dried and weighed. 
                        of mineralisation that are                A riffle-split sub sample is then wet 
                        Material to the Public Report.            screened to determine slimes (-63 um) 
                        In cases where 'industry standard'        and oversize material (+1mm) . Approximately 
                        work has been done this would             100g of the resultant sand sample is 
                        be relatively simple (e.g.                then oven-dried and passed over a Franz 
                        'reverse circulation drilling             Isodynamic Magnetic Separator to produce 
                        was used to obtain 1 m samples            magnetic (M) and non-magnetic (NM) 
                        from which 3 kg was pulverised            fractions. The NM fraction is then 
                        to produce a 30 g charge for              subjected to heavy liquid separation 
                        fire assay'). In other cases,             (HLS) using Lithium heteropolytungstate 
                        more explanation may be required,         (LST) with a density of 2.82g/ml. 
                        such as where there is coarse             All fractions are weighed and reported 
                        gold that has inherent sampling           as a percentage of the in-ground total 
                        problems. Unusual commodities             sample weight. 
                        or mineralisation types (e.g.             Grain counting of heavy minerals is 
                        submarine nodules) may warrant            completed by mineralogist and mineral 
                        disclosure of detailed information.       assemblage data is then reported as 
                                                                  a percentage of the HM fraction. 
                      ----------------------------------------  --------------------------------------------------- 
 Drilling              Drill type (e.g. core, reverse            All samples are generated by hand auger 
  techniques            circulation, open-hole hammer,            drilling utilising 75 mm diameter enclosed-flight 
                        rotary air blast, auger, Bangka,          spiral auger. Drill holes are oriented 
                        sonic, etc.) and details (e.g.            vertically by eye. 
                        core diameter, triple or standard 
                        tube, depth of diamond tails, 
                        face-sampling bit or other 
                        type, whether core is oriented 
                        and if so, by what method, 
                        etc.). 
                      ----------------------------------------  --------------------------------------------------- 
 Drill sample          Method of recording and assessing         Samples are assessed visually for recoveries. 
  recovery              core and chip sample recoveries           Samples are retrieved moist from the 
                        and results assessed.                     ground. The configuration of drilling 
                                                                  and nature of materials encountered 
                                                                  results in negligible sample loss. 
                                                                  Hand-auger drilling is ceased when 
                                                                  recoveries become poor once the water 
                                                                  table has been reached. Water table 
                                                                  and recovery information is included 
                                                                  in lithological logs. 
--------------------  ----------------------------------------  --------------------------------------------------- 
Drill sample           Measures taken to maximise                The GSMB's trained geologists supervise 
 recovery,              sample recovery and ensure                drilling on a 1 team 1 geologist basis 
 cont'd.                representative nature of the              and are responsible for monitoring 
                        samples.                                  all aspects of the drilling and sampling 
                                                                  process. 
--------------------  ----------------------------------------  --------------------------------------------------- 
                       Whether a relationship exists             No relationship is believed to exist 
                        between sample recovery and               between grade and sample recovery. 
                        grade and whether sample bias             The moisture content and absence of 
                        may have occurred due to preferential     hydraulic inflow above the water table 
                        loss/gain of fine/coarse material.        results in a sample size that is well 
                                                                  within the expected size range. 
                      ----------------------------------------  --------------------------------------------------- 
 Logging               Whether core and chip samples             Qualitative logs of geological characteristics 
                        have been geologically and                are collected in the field to allo 
                        geotechnically logged to a                w a comprehensive geological interpretation 
                        level of detail to support                to be carried out. Drill holes are 
                        appropriate Mineral Resources             characterised by their location within 
                        estimation, mining studies                the beach-barrier sequence to assist 
                        and metallurgical studies.                with domaining each sequence unit in 
                                                                  subsequent resource estimations. 
                      ----------------------------------------  --------------------------------------------------- 
                       Whether logging is qualitative            Logging of sand samples in the field 
                        or quantitative in nature.                is qualitative and includes description 
                        Core (or costean, channel,                of sand colour, sorting and angularity. 
                        etc.) photography.                        Estimates of black HM and garnet are 
                                                                  recorded. A comments field is employed 
                                                                  to allow further description of the 
                                                                  location or sand sample. 
                      ----------------------------------------  --------------------------------------------------- 
                       The total length and percentage           All drill holes are logged in full 
                        of the relevant intersections             and all samples are assayed. 
                        logged. 
                      ----------------------------------------  --------------------------------------------------- 
 Sub-sampling          If core, whether cut or sawn              All samples comprise unconsolidated 
  techniques            and whether quarter, half or              sand. 
  and sample            all core taken. 
  preparation 
--------------------  ----------------------------------------  --------------------------------------------------- 
                       If non-core, whether riffled,              Samples are taken in their entirety. 
                        tube sampled, rotary split,                Drill samples are oven-dried and split 
                        etc. and whether sampled wet               for analysis. 
                        or dry. 
                      ----------------------------------------  --------------------------------------------------- 
                       For all sample types, the                 Sample preparation is recorded on a 
                        nature, quality and appropriateness       standard flow sheet and detailed QA/QC 
                        of the sample preparation technique.      is undertaken on all samples. Sample 
                                                                  preparation techniques and QA/QC protocols 
                                                                  are appropriate for the magnetic separation 
                                                                  and heavy mineral determinations. 
--------------------  ----------------------------------------  --------------------------------------------------- 
Sub-sampling           Quality control procedures                Quality assurance protocols include 
 techniques             adopted for all sub- sampling             the application of trained geological 
 and sample             stages to maximise representivity         staff and experienced samplers. Use 
 preparation,           of samples.                               of plastic sheets and sample bags to 
 cont'd.                                                          remove the potential of sample loss 
                                                                  and cleaning of sample equipment between 
                                                                  samples. 
                                                                  Competent person (CP) review of laboratory 
                                                                  techniques and flowsheet is applied 
                                                                  to ensure representative sample splitting. 
                                                                  Inspection of laboratory procedure 
                                                                  and equipment is completed to ensure 
                                                                  appropriate technique, good housekeeping 
                                                                  and application of accurate sample 
                                                                  handling and sample management procedures. 
                                                                  Laboratory duplicate and standard sample 
                                                                  geostatistical analysis is employed 
                                                                  to manage sample precision and analysis 
                                                                  accuracy. Twin drilling is applied 
                                                                  to determine short range variability 
                                                                  in grade and lithological character. 
--------------------  ----------------------------------------  --------------------------------------------------- 
                       Measures taken to ensure that             Samples are taken in their entirety. 
                        the sampling is representative            Laboratory duplicates are generated 
                        of the in-situ material collected,        for precision analysis at the sample 
                        including for instance results            splitting stage. Results indicate a 
                        for field duplicate/second-half           high level of precision is achieved. 
                        sampling. 
                      ----------------------------------------  --------------------------------------------------- 
                       Whether sample sizes are appropriate      The sample size is considered adequate 
                        to the grain size of the material         for a medium-grained sand. 
                        being sampled. 
                      ----------------------------------------  --------------------------------------------------- 
  Quality              The nature, quality and appropriateness   Sample preparation and analysis of 
   of assay             of the assaying and laboratory            drill samples is completed by the GSMB 
   data and             procedures used and whether               research laboratory in Colombo. Analysis 
   laboratory           the technique is considered               is conducted on a split fraction of 
   tests.               partial or total.                         the total sample and the retains are 
                                                                  labelled and stored. 
                                                                  Techniques employed conform to contemporary 
                                                                  analysis methodology in the treatment 
                                                                  of minerals separable by their physical 
                                                                  properties. A CP audit of the facility 
                                                                  was completed with no recommended improvements 
                                                                  noted. 
  ------------------  ----------------------------------------  --------------------------------------------------- 
                       For geophysical tools, spectrometers,     None used. 
                        handheld XRF instruments, etc., 
                        the parameters used in determining 
                        the analysis including instrument 
                        make and model, reading times, 
                        calibrations factors applied 
                        and their derivation, etc. 
                      ----------------------------------------  --------------------------------------------------- 
  Quality              Nature of quality control                 Quality assurance is maintained by 
   of assay             procedures adopted (e.g. standards,       laboratory duplicate and standard sample 
   data and             blanks, duplicates, external              assaying procedure. Standard samples 
   laboratory           laboratory checks) and whether            are provided by Placer Consulting Pty 
   tests, cont'd.       acceptable levels of accuracy             Ltd and are submitted blind to the 
                        (i.e. lack of bias) and precision         laboratory. As a total sample is generated 
                        have been established.                    by the drilling, a field duplicate 
                                                                  is not generated. A laboratory duplicate 
                                                                  is created at the sample splitting 
                                                                  stage. 
                                                                  Standards and duplicates are submitted 
                                                                  at a frequency of 1:20 samples. They 
                                                                  are subjected to the complete sample 
                                                                  preparation and assaying process. 
                                                                  Analysis of sample duplicates is undertaken 
                                                                  by standard geostatistical methodologies 
                                                                  (Scatter, Pair Difference and QQ Plots) 
                                                                  to test for bias and to ensure that 
                                                                  sample splitting is representative. 
                                                                  Standards determine assay accuracy 
                                                                  performance, monitored on control charts, 
                                                                  where failure (beyond 3SD from the 
                                                                  mean) triggers re-assay of the affected 
                                                                  batch. 
                                                                  A high level of accuracy and precision 
                                                                  are displayed in geostatistical analyses 
                                                                  to date. 
                      ----------------------------------------  --------------------------------------------------- 
 Verification          The verification of significant           Significant intersections are customary 
  of sampling           intersections by either independent       from hand auger and sonic core drilling 
  and assaying          or alternative company personnel.         at the Eastern Minerals Project. Results 
                                                                  in excess of 20% THM are common and 
                                                                  in some cases, substantially higher 
                                                                  concentrations are intersected. Placer 
                                                                  Consulting considers this to be reasonable 
                                                                  and consistent with beach, berm and 
                                                                  foredune accumulations in a highly-mineralised 
                                                                  region. No audit analyses have been 
                                                                  completed on these exploration results. 
--------------------  ----------------------------------------  --------------------------------------------------- 
                       The use of twinned holes.                 Twinned holes are drilled across a 
                                                                  geographically-dispersed area to determine 
                                                                  short-range geological and assay field 
                                                                  variability. Twin drilling is applied 
                                                                  at a frequency of 1:25 drill holes. 
                                                                  Geostatistical analysis of twin drilling 
                                                                  data awaits the return of all assay 
                                                                  results. 
                      ----------------------------------------  --------------------------------------------------- 
                       Documentation of primary data,            Field logging data, photo's and maps 
                        data entry procedures, data               are generated in the field by the GSMB 
                        verification, data storage                geologist and provided to CMET staff 
                        (physical and electronic) protocols.      in excel spreadsheet, pdf document 
                                                                  and jpeg files. These data are stored 
                                                                  in the master database at the Colombo 
                                                                  office and on a secured cloud-storage 
                                                                  facility that is accessible by invitation. 
                      ----------------------------------------  --------------------------------------------------- 
                       Discuss any adjustment to                 Assay data adjustments are made to 
                        assay data.                               convert laboratory collected weights 
                                                                  to assay field percentages and to account 
                                                                  for moisture. 
                      ----------------------------------------  --------------------------------------------------- 
 Location              Accuracy and quality of surveys           These exploration results are located 
  of data points        used to locate drill holes                by GSMB staff using hand-held GPS. 
                        (collar and down-hole surveys),           Mineral resources are not considered 
                        trenches, mine workings and               in this report. 
                        other locations used in Mineral 
                        Resources estimation. 
--------------------  ----------------------------------------  --------------------------------------------------- 
                       Specification of the grid                 The Kandawala Sri Lanka Grid is used 
                        system used.                              to locate the drill collars. 
                      ----------------------------------------  --------------------------------------------------- 
  Location             Quality and adequacy of topographic       Elevations are not recorded for these 
   of data points,      control.                                  exploration results. 
   cont'd. 
                      ----------------------------------------  --------------------------------------------------- 
 Data spacing          Data spacing for reporting                Drill spacing relates to the sequence 
  and distribution      of Exploration Results.                   stratigraphic unit and their extent. 
                                                                  Drill holes are generally spaced at 
                                                                  5m-east intervals in the beach and 
                                                                  tidal zones. The Berm zone is drilled 
                                                                  at 15 - 50m east spacings dependent 
                                                                  on their lateral extent. 
--------------------  ----------------------------------------  --------------------------------------------------- 
                       Whether the data spacing and              No mineral resource or ore reserve 
                        distribution is sufficient                is considered in this report. 
                        to establish the degree of 
                        geological and grade continuity 
                        appropriate for the Mineral 
                        Resources and Ore Reserves 
                        estimation procedure(s) and 
                        classifications applied. 
                      ----------------------------------------  --------------------------------------------------- 
                       Whether sample compositing                Samples are not composited. 
                        has been applied. 
                      ----------------------------------------  --------------------------------------------------- 
 Orientation           Whether the orientation of                Sample orientation is vertical and 
  of data in            sampling achieves unbiased                approximately perpendicular to the 
  relation              sampling of possible structures           dip and strike of the mineralization, 
  to geological         and the extent to which this              which results in true thickness estimates. 
  structure             is known, considering the deposit         Drilling and sampling is consistent 
                        type.                                     with the anisotropy of the mineralisation. 
--------------------  ----------------------------------------  --------------------------------------------------- 
                       If the relationship between               There is no apparent bias arising from 
                        the drilling orientation and              the orientation of the drill holes 
                        the orientation of key mineralised        with respect to the strike and dip 
                        structures is considered to               of the deposit. 
                        have introduced a sampling 
                        bias, this should be assessed 
                        and reported if material. 
                      ----------------------------------------  --------------------------------------------------- 
 Sample security       The measures taken to ensure              All samples are numbered, with sample 
                        sample security.                          splits, residues and HM sinks stored 
                                                                  securely at the GSMB pending completion 
                                                                  of the programme. Samples will be transferred 
                                                                  for secured storage at CMET property 
                                                                  upon completion. 
                      ----------------------------------------  --------------------------------------------------- 
 Audits or             The results of any audits                 The Competent Person completed an audit 
  reviews               or reviews of sampling techniques         of the GSMB laboratory. Personnel, 
                        and data.                                 equipment and procedures represent 
                                                                  best practice and no recommended improvements 
                                                                  were forwarded. Data are monitored 
                                                                  by CMET staff and reviewed by the CP 
                                                                  as they are returned. 
                      ----------------------------------------  --------------------------------------------------- 
 
 
 
 Criteria                   Explanation                                                  Comment 
 Mineral                    Type, reference name/number,                                 The exploration results are 
  tenement                   location and ownership including                            coincident 
  and land                   agreements or material issues                               with the granted Exploration 
  tenure status              with third parties such as                                  Licence 
                             joint ventures, partnerships,                               EL2017/199 wholly owned by 
                             overriding royalties, native                                CMET JV 
                             title interests, historical                                 partner Damsila Exports (Pvt) 
                             sites, wilderness or national                               Ltd. 
                             park and environmental settings.                            A f.o.b. royalty of 7% is 
                                                                                         payable 
                                                                                         to the government. 
-------------------------  -----------------------------------------------------------  ------------------------------ 
                            The security of the tenure                                   There are no known 
                             held at the time of reporting                               impediments to 
                             along with any known impediments                            the security of tenure over 
                             to obtaining a licence to operate                           the area 
                             in the area.                                                containing the reported 
                                                                                         exploration 
                                                                                         results. 
                           -----------------------------------------------------------  ------------------------------ 
 Exploration                Acknowledgment and appraisal                                 CMET and partners have 
  done by other              of exploration by other parties.                            completed the 
  parties                                                                                only systematic exploration 
                                                                                         of this 
                                                                                         region of the Eastern 
                                                                                         Minerals Project. 
                                                                                         The reported results offer 
                                                                                         support 
                                                                                         to previous drilling and in 
                                                                                         some cases, 
                                                                                         higher HM grades and greater 
                                                                                         lateral 
                                                                                         extent. 
                           -----------------------------------------------------------  ------------------------------ 
 Geology                    Deposit type, geological setting                             Exploration results are 
                             and style of mineralisation.                                indicative 
                                                                                         of modern, low slimes tidal, 
                                                                                         beach 
                                                                                         and berm detrital heavy 
                                                                                         mineral sand 
                                                                                         deposits. Holocene dunes are 
                                                                                         truncated 
                                                                                         by the modern marine 
                                                                                         successions and 
                                                                                         are also heavily mineralised. 
                                                                                         Heavy 
                                                                                         minerals are derived 
                                                                                         originally from 
                                                                                         the neighbouring Precambrian 
                                                                                         metamorphic 
                                                                                         terrane and from Pleistocene 
                                                                                         dune 
                                                                                         deposits. Two monsoon seasons 
                                                                                         provide 
                                                                                         ample winnowing action on HM 
                                                                                         deposits 
                                                                                         and generate both northerly 
                                                                                         and southerly 
                                                                                         long-shore drift. 
                           -----------------------------------------------------------  ------------------------------ 
 Drill hole                 A summary of all information                                 An intercept table is listed 
  Information               material to the understanding                                in the 
                            of the exploration results                                   report. 
                            including a tabulation of the                                Results support previous 
                            following information for all                                releases 
                            Material drill holes:                                        on exploration results and 
                             *    easting and northing of the drill hole collar          mineral 
                                                                                         resources. 
 
                             *    elevation or RL (Reduced Level - elevation above sea 
                                  level in metres) of the drill hole collar 
 
 
                             *    dip and azimuth of the hole 
 
 
                             *    down hole length and interception depth 
 
 
                             *    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           In reporting Exploration Results,                            Mineral intersections are 
  methods                    weighting averaging techniques,                             reported 
                             maximum and/or minimum grade                                at a 5% HM bottom cut, as is 
                             truncations (e.g. cutting of                                customary 
                             high grades) and cut-off grades                             for the Eastern Minerals 
                             are usually Material and should                             Project resources. 
                             be stated.                                                  No top cut is applied. 
-------------------------  -----------------------------------------------------------  ------------------------------ 
                            Where aggregate intercepts                                   No data aggregation is 
                             incorporate short lengths of                                required. 
                             high grade results and longer 
                             lengths of low grade results, 
                             the procedure used for such 
                             aggregation should be stated 
                             and some typical examples of 
                             such aggregations should be 
                             shown in detail. 
-------------------------  -----------------------------------------------------------  ------------------------------ 
  Data aggregation          The assumptions used for any                                 No metal equivalents are used 
   methods,                  reporting of metal equivalent                               for 
   cont'd.                   values should be clearly stated.                            reporting of exploration 
                                                                                         results. 
                           -----------------------------------------------------------  ------------------------------ 
  Relationship              These relationships are particularly                         All drill holes are vertical 
   between mineralisation    important in the reporting                                  and perpendicular 
   widths and                of Exploration Results.                                     to the dip and strike of 
   intercept                                                                             mineralisation. 
   lengths 
                           -----------------------------------------------------------  ------------------------------ 
                            If the geometry of the mineralisation                        Mineral deposits typically 
                             with respect to the drill hole                              approximate 
                             angle is known, its nature                                  a horizontal to shoreward 
                             should be reported.                                         dipping 
                                                                                         accumulation. intercepts are 
                                                                                         approximately 
                                                                                         true thickness 
                            If it is not known and only 
                             the down hole lengths are reported, 
                             there should be a clear statement 
                             to this effect (e.g. 'down 
                             hole length, true width not 
                             known'). 
                           -----------------------------------------------------------  ------------------------------ 
 Diagrams                   Appropriate maps and sections                                Refer to main body of the 
                             (with scales) and tabulations                               report. 
                             of intercepts should be included 
                             for any significant discovery 
                             being reported These should 
                             include, but not be limited 
                             to a plan view of drill hole 
                             collar locations and appropriate 
                             sectional views. 
                           -----------------------------------------------------------  ------------------------------ 
 Balanced                   Where comprehensive reporting                                Reporting of results is 
  reporting                  of all Exploration Results                                  restricted 
                             is not practicable, representative                          to results returned 
                             reporting of both low and high                              subsequent to 
                             grades and/or widths should                                 the 4(th) April 2022 from the 
                             be practiced to avoid misleading                            2021 
                             reporting of Exploration Results.                           GSMB drilling in the Komari 
                                                                                         Region 
                                                                                         of the Eastern Minerals 
                                                                                         Project. Intercepts 
                                                                                         are disclosed in an 
                                                                                         unambiguous way 
                                                                                         at >5% THM. 
                           -----------------------------------------------------------  ------------------------------ 
 Other substantive          Other exploration data, if                                   No additional, substantive 
  exploration                meaningful and material, should                             information 
  data                       be reported including (but                                  has returned from the drill 
                             not limited to): geological                                 sample 
                             observations; geophysical survey                            analyses included in this 
                             results; geochemical survey                                 report. 
                             results; bulk samples - size 
                             and method of treatment; metallurgical 
                             test results; bulk density, 
                             groundwater, geotechnical and 
                             rock characteristics; potential 
                             deleterious or contaminating 
                             substances. 
                           -----------------------------------------------------------  ------------------------------ 
 Further                    The nature and scale of planned                              Mineralogical results are 
  work                       further work (e.g. tests for                                anticipated 
                             lateral extensions or depth                                 from the total sample set. 
                             extensions or large-scale step-out 
                             drilling). 
                           -----------------------------------------------------------  ------------------------------ 
                            Diagrams clearly highlighting                                Refer to main body of report. 
                             the areas of possible extensions, 
                             including the main geological 
                             interpretations and future 
                             drilling areas, provided this 
                             information is not commercially 
                             sensitive. 
                           -----------------------------------------------------------  ------------------------------ 
 

APPIX 2 - Intercepts Table

 
 BHID         INTERCEPT 
              1.5m @ 51.9% THM from 
 K44BM1        1.5m 
             ---------------------- 
              0.4m @ 48.4% THM from 
 K43T          0.5m 
             ---------------------- 
              1.1m @ 41.8% THM from 
 K43TE         0m 
             ---------------------- 
              1m @ 41.3% THM from 
 K44TE         0.5m 
             ---------------------- 
              0.5m @ 39.2% THM from 
 K41TE         0m 
             ---------------------- 
              1.5m @ 39.0% THM from 
 K66TE         0m 
             ---------------------- 
              2.5m @ 38.4% THM from 
 K41BE1        0m 
             ---------------------- 
              1.3m @ 37.9% THM from 
 K65TE         0.5m 
             ---------------------- 
              0.3m @ 37.5% THM from 
 K45T          0m 
             ---------------------- 
              1.5m @ 36.7% THM from 
 K45BM1        0m 
             ---------------------- 
              2m @ 36.2% THM from 
 K43BE1        1.5m 
             ---------------------- 
              2.5m @ 35.2% THM from 
 K46BE1        0.5m 
             ---------------------- 
              1.5m @ 35.0% THM from 
 K43BM1        0.5m 
             ---------------------- 
              2.5m @ 35.0% THM from 
 K42BE1        0.5m 
             ---------------------- 
              0.3m @ 34.2% THM from 
 K46T          0.5m 
             ---------------------- 
              2.3m @ 33.4% THM from 
 K48BM1        0.5m 
             ---------------------- 
              2.5m @ 33.3% THM from 
 K47BM1        0m 
             ---------------------- 
              1.5m @ 30.8% THM from 
 K45TE         0m 
             ---------------------- 
              2.5m @ 30.2% THM from 
 K44BE1        0.5m 
             ---------------------- 
              1.3m @ 29.5% THM from 
 K67TE         0m 
             ---------------------- 
              1m @ 29.2% THM from 
 K46TE         0m 
             ---------------------- 
              0.3m @ 27.2% THM from 
 K65T          0m 
             ---------------------- 
              1m @ 27.1% THM from 
 K42TE         0.5m 
             ---------------------- 
              0.7m @ 24.4% THM from 
 K48TE         0m 
             ---------------------- 
              1.5m @ 24.0% THM from 
 K67BE1        0m 
             ---------------------- 
              1.5m @ 23.4% THM from 
 K43BM2        0m 
             ---------------------- 
              1.5m @ 21.9% THM from 
 K41BM2        0m 
             ---------------------- 
              0.8m @ 21.5% THM from 
 K47TE         0.5m 
             ---------------------- 
              1m @ 21.1% THM from 
 K64BE1        0m 
             ---------------------- 
              0.9m @ 20.9% THM from 
 K63BE1        0.5m 
             ---------------------- 
              0.3m @ 20.6% THM from 
 K67T          0m 
             ---------------------- 
              2.2m @ 20.4% THM from 
 K62BM2        0m 
             ---------------------- 
              1.5m @ 20.3% THM from 
 K42BM3        0m 
             ---------------------- 
              1.5m @ 19.7% THM from 
 K44BM2        0.5m 
             ---------------------- 
              1.5m @ 18.4% THM from 
 K41BM1        0m 
             ---------------------- 
              1m @ 18.3% THM from 
 K48BE1        0m 
             ---------------------- 
              1.5m @ 18.2% THM from 
 K46BM1        0m 
             ---------------------- 
              0.3m @ 18.1% THM from 
 K66T          0m 
             ---------------------- 
              1.7m @ 18.0% THM from 
 K61BM2        1.5m 
             ---------------------- 
              1m @ 17.7% THM from 
 K63TE         0m 
             ---------------------- 
              1.5m @ 17.7% THM from 
 K42BM1        0m 
             ---------------------- 
              1.5m @ 16.9% THM from 
 K42BM2        0.5m 
             ---------------------- 
              0.9m @ 16.1% THM from 
 K57TE         0.5m 
             ---------------------- 
              2.5m @ 15.9% THM from 
 K49BM1        0.5m 
             ---------------------- 
              1.1m @ 15.6% THM from 
 K64TE         0m 
             ---------------------- 
              2.5m @ 15.6% THM from 
 K50BM1        0m 
             ---------------------- 
              1.5m @ 15.5% THM from 
 K66BE1        0m 
             ---------------------- 
              1.2m @ 15.3% THM from 
 K49TE         1.5m 
             ---------------------- 
              1.1m @ 15.2% THM from 
 K50TE         0m 
             ---------------------- 
              1.1m @ 15.1% THM from 
 K47BE1        0m 
             ---------------------- 
              1m @ 15.1% THM from 
 K58TE         0m 
             ---------------------- 
              0.3m @ 14.6% THM from 
 K64T          0m 
             ---------------------- 
              1m @ 14.5% THM from 
 K59TE         0m 
             ---------------------- 
              2.2m @ 14.4% THM from 
 K66BM1        0m 
             ---------------------- 
              1.5m @ 13.5% THM from 
 K65BE1        0m 
             ---------------------- 
              1.1m @ 13.1% THM from 
 K60TE         0m 
             ---------------------- 
              2.3m @ 12.9% THM from 
 K66BM2        0m 
             ---------------------- 
              1.5m @ 12.8% THM from 
 K56BE1        0.5m 
             ---------------------- 
              0.4m @ 12.8% THM from 
 K49T          0m 
             ---------------------- 
              1.1m @ 12.6% THM from 
 K57BE1        0m 
             ---------------------- 
              2.3m @ 12.5% THM from 
 K61BM3        0m 
             ---------------------- 
              1.8m @ 12.1% THM from 
 K61BM1        0m 
             ---------------------- 
              2.3m @ 12.0% THM from 
 K62BM3        0m 
             ---------------------- 
              0.3m @ 11.8% THM from 
 K68T          0.5m 
             ---------------------- 
              1.3m @ 11.8% THM from 
 K55BE1        0m 
             ---------------------- 
              1.5m @ 11.4% THM from 
 K50BM2        0m 
             ---------------------- 
              1.2m @ 11.4% THM from 
 K58BE1        0.5m 
             ---------------------- 
              2.2m @ 11.0% THM from 
 K62BM1        0m 
             ---------------------- 
              0.3m @ 11.0% THM from 
 K42T          0m 
             ---------------------- 
              1.3m @ 10.8% THM from 
 K60BE1        0m 
             ---------------------- 
              2.5m @ 10.5% THM from 
 K54BM1        0m 
             ---------------------- 
              2.5m @ 10.4% THM from 
 K53BM1        0m 
             ---------------------- 
              0.3m @ 10.1% THM from 
 K48T          0.5m 
             ---------------------- 
              1.5m @ 9.85% THM from 
 K49BM2        0m 
             ---------------------- 
              0.2m @ 9.82% THM from 
 K63T          0m 
             ---------------------- 
              1.2m @ 9.72% THM from 
 K54BE1        0m 
             ---------------------- 
              1m @ 9.44% THM from 
 K62TE         0m 
             ---------------------- 
              1.2m @ 9.05% THM from 
 K59BE1        0m 
             ---------------------- 
              0.4m @ 9.05% THM from 
 K50T          0m 
             ---------------------- 
              2.5m @ 8.46% THM from 
 K60BM1        0m 
             ---------------------- 
              0.9m @ 8.23% THM from 
 K56TE         0m 
             ---------------------- 
              0.3m @ 8.01% THM from 
 K58T          0m 
             ---------------------- 
              0.5m @ 7.89% THM from 
 K61T          0m 
             ---------------------- 
              0.4m @ 7.87% THM from 
 K47T          0.5m 
             ---------------------- 
              1.5m @ 7.24% THM from 
 K52BE1        0m 
             ---------------------- 
              1.5m @ 7.08% THM from 
 K49BE1        0m 
             ---------------------- 
              1.5m @ 7.05% THM from 
 K50BE1        0m 
             ---------------------- 
              1.5m @ 6.98% THM from 
 K51BE1        0m 
             ---------------------- 
              1.3m @ 6.98% THM from 
 K61BE1        0m 
             ---------------------- 
              1.2m @ 6.92% THM from 
 K53BE1        0m 
             ---------------------- 
              0.4m @ 6.43% THM from 
 K57T          0m 
             ---------------------- 
              1.3m @ 6.05% THM from 
 K62BE1        0m 
             ---------------------- 
              0.4m @ 5.43% THM from 
 K62T          0m 
             ---------------------- 
              0.9m @ 5.42% THM from 
 K53TE         0.5m 
             ---------------------- 
              0.4m @ 5.29% THM from 
 K60T          0.5m 
             ---------------------- 
              1m @ 5.25% THM from 
 K61TE         0m 
             ---------------------- 
              1m @ 4.96% THM from 
 K55TE         0m 
             ---------------------- 
              0.7m @ 4.89% THM from 
 K68TE         0.5m 
             ---------------------- 
              1.1m @ 4.82% THM from 
 K54TE         0m 
             ---------------------- 
              0.3m @ 4.60% THM from 
 K53T          0m 
             ---------------------- 
              0.3m @ 4.34% THM from 
 K55T          0.5m 
             ---------------------- 
              0.3m @ 4.17% THM from 
 K54T          1.5m 
             ---------------------- 
              0.3m @ 3.80% THM from 
 K51T          0m 
             ---------------------- 
              0.3m @ 3.70% THM from 
 K59T          0.5m 
             ---------------------- 
              0.3m @ 3.33% THM from 
 K56T          0m 
             ---------------------- 
              1m @ 2.91% THM from 
 K51TE         0m 
             ---------------------- 
              0.3m @ 2.80% THM from 
 K52T          0m 
             ---------------------- 
              1.1m @ 2.34% THM from 
 K52TE         0m 
             ---------------------- 
              1m @ 1.59% THM from 
 K68BE1        0m 
             ---------------------- 
 

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