Allkem - Mt Cattlin Resource Drilling Update

Allkem Limited
Allkem Limited

Figure 1

Intercepts to the north of the US$1,100 whittle shell show potential for mineral resource expansion.
Intercepts to the north of the US$1,100 whittle shell show potential for mineral resource expansion.

Figure 2

Drilling progress as of 14 September 2022 and location relative to USD 1,100 pit shell and current NW pit design and cut-back.
Drilling progress as of 14 September 2022 and location relative to USD 1,100 pit shell and current NW pit design and cut-back.

BRISBANE, Australia, Oct. 05, 2022 (GLOBE NEWSWIRE) -- Allkem Limited (ASX|TSX: AKE, the Company) is pleased to provide an update on the resource extension drilling program currently underway at its Mt Cattlin spodumene operation in Western Australia.

The drilling program consists of three phases as described below:

Phase 1 – drilling within the US$900 2NW pit shell converting resource to reserve (planned 49 holes, 11,120 metres). Underway – ~77% complete.

Phase 2 – drilling to the north and down dip of the US$900 2NW pit shell to test resource extensions outside of the US$900 2NW pit (planned 80 holes, 19,125 metres) and within the US$1,100 pit shell. Underway – ~55% complete.

Phase 3 – drilling in the SW of the mine tenements to test additional targets and prospects (18 holes, 2,440 metres). To be undertaken in late 2022/early 2023.

HIGHLIGHTS

  • Phase 1 drilling is targeting to convert 3.2Mt of Resource to Reserves. Intercepts within this pit include high grade zones with large thicknesses such as 12m at 2.46% Li2O and 15m at 1.91% Li2O

  • Phase 2 drilling and assay results demonstrate resource extension potential to the north of the current pit with high grade intercepts in the lower pegmatite, including 9m at 2.98% Li2O and 7m at 1.86% Li2O

  • Phase 1 and 2 drilling at 2NW pit is on target for completion by end of October and a consultant has been engaged to immediately commence a study to convert mineral resources to Ore Reserves for scheduling, mine planning and detailed pit design

  • Mt Cattlin’s Mineral Resource tonnage recently increased 21% to 13.3Mt @ 1.2% Li2O and 131 ppm Ta2O5

INTERIM DRILLING RESULTS

Allkem commenced a three-phase resource extension program in mid-April that targets 147 holes for approximately 32,685 metres of reverse circulation (“RC”) drilling.

As of 14 September, 81 holes drilled for a total of 19,177 metres were complete and assay results for 47 drillholes were available.

Highlights from the assays of the upper pegmatite include:

Drillhole

From(m)

To(m)

Thickness(m)

Li2O%

Ta2O5ppm

NWRC186

81

89

8

1.41

105

NWRC204

87

95

8

1.59

128

NWRC211

79

91

12

2.46

53

NWRC212

86

101

15

1.91

72

NWRC238

89

105

16

1.73

92

NWRC241

99

112

13

1.51

115

All significant assays are tabulated in the appendix.

Image 1
Image 1

Figure 1: Intercepts to the north of the US$1,100 whittle shell show potential for mineral resource expansion.

Highlights from the lower pegmatite include:

Drillhole

   From(m)

   To(m)

   Thickness(m)

   Li20%

   Ta2O5ppm

NWRC128

215

227

12

1.91

218

NWRC129

213

222

9

1.43

177

NWRC131

237

245

8

1.85

176

NWRC137

203

212

9

1.59

286

NWRC138A

239

249

10

1.69

247

NWRC147

191

201

10

1.16

128

NWRC154

189

199

10

1.01

124

NWRC156

202

211

9

1.39

434

NWRC158

220

229

9

0.98

73

NWRC164

192

201

9

0.76

36

NWRC175

228

239

11

2.15

126

NWRC176

232

243

11

0.97

175

NWRC179

179

191

12

1.66

608

NWRC186

181

193

12

1.35

93

NWRC188

209

221

12

1.34

99

NWRC190

216

228

12

1.66

261

NWRC191

216

226

10

1.94

171

NWRC192

229

239

10

2.08

378

NWRC197

204

216

12

1.32

79

NWRC200

232

241

9

2.98

414

NWRC202

246

257

11

1.01

483

NWRC203

166

177

11

1.92

164

NWRC242

221

231

10

1.76

281

Pegmatite mineralisation to this point generally aligns with the existing geological model and of those assays returned to date and lithia (Li2O) content is consistent with historic (pre-2022) assays in the North West pit area of Mt Cattlin. Given the tendency for “pinch and swell” in pegmatite mineralisation, definitive conclusions are not possible at this stage, however geological logging and assay results to date are highly encouraging.

A typical cross section at northing 224160E (MGA 94) in Figure 1 shows ongoing thick pegmatite development down dip from the US$650 (Ore Reserve) pit shell and the USD 1,100 Whittle shell.

All drill hole collars for assay results are presented in Figure 2 and Appendix: Table 1.

Given the executed orientation of the drilling, assay intercepts reported are broadly true width.

Image 2
Image 2



Figure 2: Drilling progress as of 14 September 2022 and location relative to USD 1,100 pit shell and current NW pit design and cut-back.

Next steps

The Phase 1 resource infill program at 2NW pit is on target for completion by the end of October and Perth based consultants Entech have been appointed to project manage an open pit, cut-back feasibility level study and execution.

Planning is underway for follow-up reverse circulation and diamond drilling, for the purposes of extension, geotechnical and metallurgical studies.

The study is anticipated to commence in October and aims to convert in-situ mineral resources (as announced on 25 August 2022) to Ore Reserves for scheduling, mine planning and detailed pit design in a NW pit.

Additionally, a scoping study continues to evaluate the potential for either opencut or underground development of further resource extensions from Phase 2 drilling.

On completion of the drilling at the NW pit, the focus will shift to Phase 3 and further definition in the SW part of the reasonable prospects of eventual economic extraction (RPEEE) footprint and lead to programs that test pegmatite continuity in areas previously not included in resource and mineral resource modelling. These programs will continue towards the end of the year and extend onto exploration leases as conditions and permitting allows.

This release was authorised by Mr Martin Perez de Solay, CEO and Managing Director of Allkem Limited.

 


Allkem Limited

ABN 31 112 589 910

Level 35, 71 Eagle St
Brisbane, QLD 4000

Investor Relations & Media Enquiries

Andrew Barber
M: +61 418 783 701 E: Andrew.Barber@allkem.co

Phoebe Lee
P: +61 7 3064 3600 E: Phoebe.Lee@allkem.co

Connect

info@allkem.co
+61 7 3064 3600
www.allkem.co

 

 

 

       

IMPORTANT NOTICES

This investor ASX/TSX release (Release) has been prepared by Allkem Limited (ACN 112 589 910) (the Company or Allkem). It contains general information about the Company as at the date of this Release. The information in this Release should not be considered to be comprehensive or to comprise all of the material which a shareholder or potential investor in the Company may require in order to determine whether to deal in Shares of Allkem. The information in this Release is of a general nature only and does not purport to be complete. It should be read in conjunction with the Company’s periodic and continuous disclosure announcements which are available at allkem.co and with the Australian Securities Exchange (ASX) announcements, which are available at www.asx.com.au.

This Release does not take into account the financial situation, investment objectives, tax situation or particular needs of any person and nothing contained in this Release constitutes investment, legal, tax, accounting or other advice, nor does it contain all the information which would be required in a disclosure document or prospectus prepared in accordance with the requirements of the Corporations Act 2001 (Cth) (Corporations Act). Readers or recipients of this Release should, before making any decisions in relation to their investment or potential investment in the Company, consider the appropriateness of the information having regard to their own individual investment objectives and financial situation and seek their own professional investment, legal, taxation and accounting advice appropriate to their particular circumstances.

This Release does not constitute or form part of any offer, invitation, solicitation or recommendation to acquire, purchase, subscribe for, sell or otherwise dispose of, or issue, any Shares or any other financial product. Further, this Release does not constitute financial product, investment advice (nor tax, accounting or legal advice) or recommendation, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision.

The distribution of this Release in other jurisdictions outside Australia may also be restricted by law and any restrictions should be observed. Any failure to comply with such restrictions may constitute a violation of applicable securities laws.

Past performance information given in this Release is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance.

Forward Looking Statements

Forward-looking statements are based on current expectations and beliefs and, by their nature, are subject to a number of known and unknown risks and uncertainties that could cause the actual results, performances and achievements to differ materially from any expected future results, performances or achievements expressed or implied by such forward-looking statements, including but not limited to, the risk of further changes in government regulations, policies or legislation; the risks associated with the continued implementation of the merger between the Company and Galaxy Resources Ltd, risks that further funding may be required, but unavailable, for the ongoing development of the Company’s projects; fluctuations or decreases in commodity prices; uncertainty in the estimation, economic viability, recoverability and processing of mineral resources; risks associated with development of the Company Projects; unexpected capital or operating cost increases; uncertainty of meeting anticipated program milestones at the Company’s Projects; risks associated with investment in publicly listed companies, such as the Company; and risks associated with general economic conditions.

Subject to any continuing obligation under applicable law or relevant listing rules of the ASX, the Company disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements in this Release to reflect any change in expectations in relation to any forward-looking statements or any change in events, conditions or circumstances on which any such statements are based. Nothing in this Release shall under any circumstances (including by reason of this Release remaining available and not being superseded or replaced by any other Release or publication with respect to the subject matter of this Release), create an implication that there has been no change in the affairs of the Company since the date of this Release.

Competent Person Statement

The information in this announcement that relates to Exploration Results and Mineral Resources is based on information compiled by Albert Thamm, B.Sc. (Hons)., M.Sc. F.Aus.IMM, a Competent Person who is a Fellow of The Australasian Institute of Mining and Metallurgy. Albert Thamm is a full-time employee of Galaxy Resources Pty. Limited. Albert Thamm has sufficient experience that is relevant to the style of mineralization 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’. Albert Thamm consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

Any information in this announcement that relates to Mt Cattlin’s Mineral Resources and Reserves is extracted from the report entitled “Mt Cattlin Resource, Reserve and Operations Update” released on 25 August 2022 which is available to view on www.allkem.co and www.asx.com.au. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and that all material assumptions and technical parameters underpinning the Mineral Resources estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

Not for release or distribution in the United States

This announcement has been prepared for publication in Australia and may not be released to U.S. wire services or distributed in the United States. This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or any other jurisdiction, and neither this announcement or anything attached to this announcement shall form the basis of any contract or commitment. Any securities described in this announcement have not been, and will not be, registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States except in transactions registered under the U.S. Securities Act of 1933 or exempt from, or not subject to, the registration of the U.S. Securities Act of 1933 and applicable U.S. state securities laws.


APPENDIX 1 – DRILL HOLE INFORMATION AND ASSAY RESULTS

Table 1: Drill hole collar and orientation as surveyed

Hole ID

TYPE

MGA94 Z51
East

MGA94 Z51
North

RL

Depth

Dip

MGA94 Z51
Azimuth

NWRC116

RC

223758

6282275

269

255

-70

180

NWRC117

RC

223761

6282420

270

300

-56

180

NWRC118

RC

223759

6282450

270

285

-69

181

NWRC120

RC

223796

6282216

269

209

-70

180

NWRC121

RC

223799

6282279

269

250

-71

180

NWRC122

RC

223800

6282430

270

270

-63

180

NWRC123

RC

223796

6282471

270

270

-73

180

NWRC125

RC

223832

6282239

268

236

-70

180

NWRC126

RC

223835

6282278

268

235

-70

180

NWRC128

RC

223850

6282375

271

250

-70

180

NWRC129

RC

223839

6282415

270

260

-67

180

NWRC130

RC

223840

6282440

270

260

-70

180

NWRC131

RC

223840

6282471

270

260

-72

180

NWRC132

RC

223841

6282520

270

260

-88

182

NWRC134

RC

223828

6282657

269

290

-76

175

NWRC137

RC

223881

6282375

270

252

-87

180

NWRC138A

RC

223884

6282478

270

260

-71

184

NWRC142

RC

223878

6282650

267

285

-76

181

NWRC147

RC

223920

6282378

269

228

-77

180

NWRC148

RC

223919

6282441

270

180

-80

180

NWRC149

RC

223915

6282485

270

218

-70

180

NWRC151

RC

223916

6282639

268

270

-71

180

NWRC153

RC

223979

6282241

266

205

-70

180

NWRC154

RC

223972

6282320

268

205

-70

191

NWRC155

RC

223969

6282360

269

215

-70

188

NWRC156

RC

223968

6282400

269

225

-70

188

NWRC157

RC

223964

6282440

270

240

-69

184

NWRC158

RC

223964

6282480

270

240

-70

184

NWRC162

RC

223956

6282676

266

265

-70

180

NWRC164

RC

224006

6282400

270

350

-70

183

NWRC165

RC

224005

6282440

270

234

-70

184

NWRC166

RC

224005

6282480

270

168

-70

184

NWRC167

RC

224018

6282548

270

228

-72

195

NWRC168

RC

224022

6282587

269

255

-73

197

NWRC170

RC

223997

6282678

267

228

-70

180

NWRC171

RC

223998

6282718

264

275

-70

180

NWRC172

RC

224060

6282362

255

195

-80

218

NWRC174

RC

224040

6282561

269

246

-71

180

NWRC175

RC

224038

6282602

269

250

-70

180

NWRC176

RC

224035

6282638

268

255

-69

180

NWRC179

RC

224080

6282435

255

210

-71

180

NWRC181

RC

224076

6282559

269

235

-70

180

NWRC182

RC

224078

6282603

268

210

-70

180

NWRC186

RC

224120

6282436

255

210

-70

180

NWRC188

RC

224119

6282520

269

225

-71

180

NWRC189

RC

224114

6282599

268

234

-71

174

NWRC190

RC

224111

6282633

268

240

-72

171

NWRC191

RC

224137

6282669

265

250

-70

180

NWRC192

RC

224121

6282719

264

255

-70

180

NWRC195

RC

224142

6282517

262

230

-71

168

NWRC196

RC

224159

6282562

262

235

-70

180

NWRC197

RC

224160

6282602

267

234

-70

180

NWRC198

RC

224160

6282640

265

246

-82

180

NWRC199

RC

224160

6282662

265

71

-70

180

NWRC200

RC

224159

6282758

264

270

-70

180

NWRC201

RC

224159

6282798

264

275

-70

180

NWRC202

RC

224167

6282838

264

285

-70

187

NWRC203

RC

224201

6282395

255

186

-70

180

NWRC204

RC

224200

6282434

255

192

-70

180

NWRC205

RC

224195

6282477

262

215

-70

180

NWRC207

RC

224196

6282650

266

246

-63

181

NWRC208

RC

224200

6282717

262

245

-70

180

NWRC209

RC

224193

6282773

264

264

-67

176

NWRC210

RC

224198

6282798

264

264

-70

180

NWRC211

RC

224240

6282394

255

186

-70

180

NWRC212

RC

224241

6282435

255

186

-70

180

NWRC213

RC

224234

6282477

262

220

-71

180

NWRC214

RC

224237

6282519

262

153

-70

180

NWRC215

RC

224241

6282557

262

230

-69

180

NWRC216

RC

224240

6282599

264

224

-70

180

NWRC219

RC

224231

6282743

260

260

-70

180

NWRC220

RC

224239

6282757

259

250

-70

180

NWRC224

RC

224304

6282656

246

225

-61

194

NWRC225

RC

224305

6282672

247

235

-70

204

NWRC227

RC

224282

6282794

255

260

-61

180

NWRC233

RC

224313

6282674

247

225

-68

173

NWRC234

RC

224321

6282714

249

220

-83

180

NWRC238

RC

224360

6282547

235

300

-73

180

NWRC240

RC

224360

6282753

249

220

-62

180

NWRC241

RC

224400

6282628

235

144

-86

180

NWRC242

RC

224159

6282702

264

250

-75

180

All significant intercepts with a minimum cut-off 0.4% Li2O%; minimum 4m interval; maximum 2m of internal waste are presented separately in Tables 2 and 3 below.


Table 2: Significant intercepts - upper pegmatite body (61)

Drillhole

From (m)

To (m)

Metres

Li2O%

Ta2O5ppm

Pegmatite Body

NWRC128

157

161

4

1.27

78

61

NWRC131

183

188

5

0.96

100

61

NWRC147

130

136

6

0.82

85

61

NWRC154

115

120

5

1.28

146

61

NWRC155

121

125

4

1.59

57

61

NWRC156

138

142

4

1.14

107

61

NWRC157

146

150

4

0.9

158

61

NWRC164

118

122

4

1.3

83

61

NWRC172

75

82

7

1.54

93

61

NWRC174

150

155

5

0.93

38

61

NWRC175

162

166

4

0.86

77

61

NWRC179

83

88

5

1.74

182

61

NWRC186

81

89

8

1.41

105

61

NWRC188

122

126

4

1.5

73

61

NWRC190

138

142

4

0.97

110

61

NWRC200

185

192

7

1.12

31

61

NWRC201

194

200

6

1.39

352

61

NWRC203

77

82

5

1.11

94

61

NWRC204

87

95

8

1.59

128

61

NWRC211

79

91

12

2.46

53

61

NWRC212

86

101

15

1.91

72

61

NWRC216

129

133

4

0.47

113

61

NWRC238

89

105

16

1.73

92

61

NWRC241

99

112

13

1.51

115

61

                                                

Table 3: Significant intercepts - lower pegmatite body (62). Minimum cut-off 0.4% Li2O%; minimum 4m interval; maximum 2m of internal waste

Drillhole

From (m)

To (m)

Metres

Li2O%

Ta2O5ppm

Pegmatite Body

NWRC122

236

240

4

0.95

77

62

NWRC123

249

253

4

1.33

77

62

NWRC128

215

227

12

1.91

218

62

NWRC129

213

222

9

1.43

177

62

NWRC131

237

245

8

1.85

176

62

NWRC137

203

212

9

1.59

286

62

NWRC138A

239

249

10

1.69

247

62

NWRC147

191

201

10

1.16

128

62

NWRC153

161

166

5

0.81

148

62

NWRC154

189

199

10

1.01

124

62

NWRC155

191

197

6

0.45

126

62

NWRC156

202

211

9

1.39

434

62

NWRC158

220

229

9

0.98

73

62

NWRC164

192

201

9

0.76

36

62

NWRC172

168

174

6

0.88

143

62

NWRC175

228

239

11

2.15

126

62

NWRC176

232

243

11

0.97

175

62

NWRC179

179

191

12

1.66

608

62

NWRC186

181

193

12

1.35

93

62

NWRC188

209

221

12

1.34

99

62

NWRC189

214

218

4

1.55

80

62

NWRC190

216

228

12

1.66

261

62

NWRC191

216

226

10

1.94

171

62

NWRC192

229

239

10

2.08

378

62

NWRC197

204

216

12

1.32

79

62

NWRC200

232

241

9

2.98

414

62

NWRC201

243

250

7

1.86

457

62

NWRC202

246

257

11

1.01

483

62

NWRC203

166

177

11

1.92

164

62

NWRC209

241

245

4

0.93

133

62

NWRC211

173

177

4

0.61

103

62

NWRC216

214

218

4

0.47

85

62

NWRC242

221

231

10

1.76

281

62


APPENDIX 2 – RESOURCE AND RESERVE TABLES

Mt Cattlin Mineral Resource at 30 June 2022

Category

Tonnage

Grade

Grade

Contained metal

Contained metal

Net Variance to
2021 Statement

Mt

% Li2O

ppm Ta2O5

(‘000) t Li2O

lbs Ta2O5

%

Measured

In-situ

-

-

-

-

-

-100

%

Indicated

In-situ

4.5

1.3

135

59

1,339,000

-6

%

 

Stockpiles

2.4

0.8

122

19

646,000

-20

%

Inferred

In-situ

6.4

1.3

131

83

1,850,000

121

%

Total

13.3

1.2

131

161

3,835,000

21

%

Notes: Reported at cut-off grade of 0.4% Li2O contained within a pit shell generated at a spodumene price of USD1,100 at 6% Li20. The preceding statements of Mineral Resources conforms to the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) 2012 edition. All tonnages reported are dry metric tonnes. Excludes mineralisation classified as oxide and transitional. Minor discrepancies may occur due to rounding to appropriate significant figures. RPEEE is defined as reasonable prospects for eventual economic evaluation.

Mt Cattlin Ore Reserve at 30 June 2022

Category

Tonnage
Mt

Grade
% Li2O

Grade
ppm Ta2O5

Contained metal
(‘000) t Li2O

Contained metal
lbs Ta2O5

Variance to 2021
%

Proven

-

-

-

-

-

%

-100

%

Probable

2NW only

3.3

1.12

105

37.0

764,000

-30

%

 

Stockpiles

2.4

0.80

122

19.0

646,000

-20

%

Total

5.8

0.98

113

56.0

1,410,000

-28

%

Notes: Reported at cut-off grade of 0.4% Li2O within current mine design. The preceding statements of Ore Reserves conforms to the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) 2012 edition. All tonnages reported are dry metric tonnes. Reported with 17% dilution and 93% mining recovery. Revenue factor US$650/tonne applied. Minor discrepancies may occur due to rounding to appropriate significant figures.


APPENDIX 3 – JORC 2012 TABLE 1 DISCLOSURE

Section 1: Sampling Techniques and Data

MT CATTLIN LITHIUM PROJECT SAMPLING AND DATA

Sampling techniques

Nature and quality of sampling (e.g. cut channels, random chips, or specific specialized industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling.
Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.
Aspects of the determination of mineralization that are Material to the Public Report.
In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverized to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralization types (e.g. submarine nodules) may warrant disclosure of detailed information.

Pre-2017
Mt Catlin mineralization was sampled using a mixture of Diamond (DD) Reverse Circulation drill holes (RC), rotary Air Blast (RAB) and Open Hole (OH). In the north zone drilling is a 40mE x 40mN spacing and infilled to 20mE to 25mE x 20mN to 20mN in the central zone. In the south the drilling is on a 40mE x 80mN pattern. Drill holes were drilled vertical to intersect true thickness of the spodumene mineralization.

A total of 39 DD holes for 1,528.56m, 986 RC holes for 48,763m, 59 OH holes for 1,999m and 23 RAB for 402m had been completed before 2017.

The drill-hole collars were surveyed by professional survey contractors. A total of 71 drill holes were surveyed by Surtron Technologies Australia of Welshpool in 2010. Sampling was carried out under Galaxy Resources QAQC protocols and as per industry best practice.

RC sample returns were closely monitored, managed and recorded. Drill samples were logged for lithology and SG measurements. Diamond HQ and PQ core was quarter-cored to sample lengths relating to the geological boundaries, but not exceeding 1m on average. RC samples were composited from 1m drill samples split using a two-stage riffle splitter 25/75 to obtain 2kg to 4kg of sample for sample preparation. All samples were dried, crushed, pulverized and split to produce a 3.5kg and then 200g sub-sample for analysis For Li (method AAS40Q), for Ta, Nb and Sn (method XRF78O) and in some cases for SiO2, Al2O3, CaO, Cr2O3, Fe2O3, K2O3, MgO, MnO, P2O5, SO3, TiO2 and V2O5 were analysed by XRF78O. Entire drill-hole lengths were submitted for assay.

Drilling 2017-8
From 1m of drilling and sampling, two 12.5% splits are taken by a static cone splitter in calico drawstring bags. This obtains two 2kg to 4kg samples with one being retained as an archive sample and the other submitted for assay, where required an archive bag is used as the duplicate sample.

A 4.5-inch diameter rod string is used and the cyclone is cleaned at the end of every 6m rod as caking occurs from the mandatory use of dust suppression equipment.

Drilling November 2018 – 2021
Subsequent to 2018 update, 5,912m (41 holes)m of new reverse circulation (RC) and 273.65 of diamond tails (2 holes) has been completed (excluding metallurgical and geotechnical) has taken place.

From 1m of drilling and sampling, two 12.5% splits are taken by a static cone splitter in calico drawstring bags. This obtains two 2kg to 4kg samples with one being retained as an archive sample and the other submitted for assay, where required an archive bag is used as the duplicate sample.

A 4.5-inch diameter rod string is used and the cyclone is cleaned at the end of every 6m rod as caking occurs from the mandatory use of dust suppression equipment.

Drilling April 2022 onwards

A total of 81 holes drilled for a total of 19,177 metres and 47 holes remaining planned for a total remaining of 11,155 metres as of 14 September, 2022.

Drilling techniques

Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. 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.).

RC drilling hammer diameter was generally 4 & 5/8 inches in early exploration, from 2009 and 2010 the bit diameter was 5 ¼ inches.

RC 2017 - 2020
5.25-inch face sampling hammer, reverse circulation, truck mounted or tracked drilling rigs, Three Rivers Drilling, Castle Drilling.

Diamond core is generally RC from surface, and either PQ size tails in weathered rock and narrowed to HQ in fresh rock (standard tubing). Core was not oriented as the disseminated and weathered nature of the mineralization does not warrant or allow it. Diamond core is typically for metallurgical test-work. Precollars drilled short of mineralisation.

RC 2021
A 5.25-inch face sampling hammer, used in reverse circulation. ASX (Australian Surface Exploration) drillers used for RC (including pre-collars).

Diamond 2021:
Wizard Drilling utilised for diamond drilling from surface. HQ size Metallurgical and geotechnical diamond drilling (standard tubing). Two Metallurgical holes were diamond tails from approximately 70m to 80m. Four Geotechnical holes were diamond from surface and two tails from 50-60m depth.

RC 2022

PXD, RC drilling, 5 1/3 inch, face sampling hammer.

Logging

Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.
Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography.
The total length and percentage of the relevant intersections logged.

All DD, RC and OH (PC) and RAB intervals were geologically logged (where applicable); RQD (DD only), interval weights, recovery, lithology, mineralogy and weathering were recorded in the database.

The DD core was oriented using the Ezy-Mark tool and after 2019 using the Reflex ACT electronic orientation tool.
Geological logging was qualitative.

Recording of interval weights, recovery and RQD was quantitative.
All DD core was photographed and representative 1m samples of RC and OH (PC) chips were collected in chip trays for future reference and photographed.
All drill holes were logged in full.

2017-2022 logging
All drill holes are logged and validated via LogChief/DataShed systems. Stored in MS SQL server database.
Assays, standards and control limits are monitored after loading of each batch and reports supplied on demand. All drill holes are logged in full.

Different Lithium bearing mineral species and crystal sizes are logged in detail.

Sub-sampling techniques and sample preparation

If core, whether cut or sawn and whether quarter, half or all core taken.
If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry.
For all sample types, the nature, quality and appropriateness of the sample preparation technique.
Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.
Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.
Whether sample sizes are appropriate to the grain size of the material being sampled.

Pre-2016 sampling
All fresh rock DD core was quarter-cored using a stand mounted brick saw. Soft, weathered DD core was also sampled quarter-core, using a knife and scoop where applicable and practical.

RC samples were collected using a two stage riffle splitter. All samples were dry or dried prior to riffle-splitting.

All 2kg 1m drill samples were sent to SGS, dried, crushed, pulverized and split to approximately -75µ to produce a sample less than 3.5kg sub-sample for analysis.

Sampling was carried out under Galaxy Resources QAQC protocols and as per industry best practice.

Duplicate, blank and standard reference samples were inserted into the sample stream at random, but averaging no less than 1 blank and standard in every 25 samples.

Samples were selected periodically and screened to ensure pulps are pulverized to the required specifications.

Duplicate quarter-core samples were taken from DD core at random for testing averaging one in every 25 samples.

Duplicate riffle-split RC samples were taken at random, but averaging one every approximately 25 samples.

The sample sizes are appropriate to the style, thickness and consistency of the mineralization at Mt Catlin.

Drilling 2016 (SGS)
Core was halved by saw and sample lengths typically 0.5m in length. Sample preparation involved crushing followed by splitting of sample if sample greater than 3 kg using a riffle splitter (SPL26), Dry sample, crush to 6mm, pulverise to 75µm (PRP88) in a LM5 Mill.

Drilling 2017-2021
Diamond drilling was typically sawn half core with whole core used for metallurgical test work.

Intertek (2017-8)
Samples are sorted and weighed. Samples >3kg are riffle split and milled in LM5 to obtain 85% passing 75 Microns. A 400g pulp is taken and a nominal 0.25g sub-sample is fused with sodium peroxide.

Nagrom: 2018-2021
RC chips are dried to 105C°, crushed to nominal top-size of 2 mm in a Terminator Jaw crusher using method CRU01. Pulverised up to 3 kg in a LM5 pulveriser mill at 80% or better passing 75µm, using method PUL01. If the sample is greater than 3 kg, the sample is dried, and split with rotary splitter before analysis, Diamond core is dried, crushed in a Terminator Jaw crusher to top size 6.3 mm, and pulverised in a LM5 mill up to 2.5 kg using method CRU01. If the sample is greater than 2.5 kg, the sample is riffle split after drying to reduce the sample size.

Quality of assay data and laboratory tests

The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.
For geophysical tools, spectrometers, 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.
Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.

Pre-2016 QAQC

All samples were dried, crushed, pulverized and split to produce a 3.5kg and then 200g sub-sample for analysis For Li (method AAS40Q), for Ta, Nb and Sn (method XRF78O) and in some cases for SiO2, Al2O3, CaO, Cr2O3, Fe2O3, K2O3, MgO, MnO, P2O5,
SO3, TiO2 and V2O5 were analysed by XRF78O. This process involves fusing the sample in a platinum crucible using lithium metaborate/tetraborate flux. For Cs, Rb, Ga, Be and Nb from time to time analysis was by IMS40Q – DIG40Q to ICPMS end.

Duplicate, blank and certified reference samples were inserted into the sample stream at random, but averaging one every ~25 samples.Galaxy Resources utilized certified Lithium standards produced in China and one from SGS in Australia, STD-TAN1.

Inter-laboratory checking of analytical outcomes was routinely undertaken to ensure continued accuracy and precision by the preferred laboratory.
Samples were selected periodically and screened by the laboratory to ensure pulps are pulverized to the required specifications. All QAQC data is stored in the Mt Catlin database and regular studies were undertaken to ensure sample analysis was kept within acceptable levels of accuracy; the studies confirmed that accuracy and precision are within industry standard accepted limits.
Umpire analysis performed on pulps at Genalysis and Ultratrace Perth.

2016-QAQC
In 2016 Perth SGS were used for a small 6 hole diamond program by General Mining. Samples were digested using a sodium peroxide fusion digest, method DIG90Q and the resultant solution from the digest was then presented to an ICP-MS for the quantification of Li2O, using method IMS40Q. The majority of standards submitted performed within expected ranges with a positive bias observed for two standards.

2017 - 2021 QAQC

Samples (including QA/QC samples) were processed by Intertek PLC, Perth laboratory in 2017 and 2018, by utilised method FP1 digest (Peroxide Fusion – complete), MS analytical finish, 22 elements, Li2O detection limit 0.03% Ta2O5 detection limit, 0.2 ppm. Monthly review of QA/QC, which includes blanks, field duplicates, high grade standards and CRM (certified reference materials) and SRM (standard reference materials). FS_ICPMS is a Laboratory Method FP1/MS (mass spectrometry) used to analyze for Cs, Nb, Rb, Ta,Th, and U . FS/ICPES (inductively coupled plasma emission spectroscopy) is Laboratory method FP1/OE used to analyze Al, Fe, K, Li, and Si. Reports include calculated values of oxides for all elements.

RC samples and diamond (including QA/QC samples) have been processed by Nagrom Perth, Perth Western Australia. Methods utilised from Lithium and Tantalum are ICP004 and ICP005 (Peroxide Fusion – complete). ICP005 utilises tungsten carbide bowl to reduce iron contamination at exploration and resource development stages (detection limit of 10ppm and 1ppm for Li2O and Ta respectively) Monthly review of QA/QC, which includes blanks, field duplicates, high grade standards and CRM (certified reference materials) ) and SRM (standard reference materials).. All sampling has rigorous QAQC in terms of reference sampling as well as blank and standards introduced into the sample steam.

Duplicate field samples show some evidence of high nugget effect. Typically, duplicate pairs plot within acceptable limits. Field duplicates have been submitted at a rate of 1 per 20.5 samples.

Standards ASM0343, ASM0340 AMIS0339, OREAS147, OREAS148 and OREAS149.

Standards reported only one result outside three standard deviations from 533 assays for Lithium. The vast majority of Tantalum standards reported within three standard deviations.
Corse blanks have shown no evidence of systematic contamination from 2016-2021 with results consistently low.

2022 Drilling: Lithium by Peroxide Fusion in Ni crucible with OES at both Intertek and Nagrom. Tantalum by Peroxide Fusion in Ni crucible with MS at Nagrom and Intertek or by XRF at Nagrom.

Review of QA/QC, which includes blanks, field duplicates, high grade standards and CRM (certified reference materials) ) and SRM (standard reference materials) are conducted as assays are returned. All sampling has rigorous QAQC in terms of reference sampling as well as blank and standards introduced into the sample steam.

Duplicate field samples show some evidence of high nugget effect. Typically, duplicate pairs plot within acceptable limits. Field duplicates have been submitted at a rate of 1 per 20.1 samples.

Standards AMIS0339, AMIS0340, OREAS147, OREAS148, OREAS750 and OREAS751. Standards are submitted at a rate of 1 per 25 samples and Blanks after/within high grade zones at a target rate of approximately 1 per 20 samples.

Verification of sampling and assaying

The verification of significant intersections by either independent or alternative company personnel.
The use of twinned holes.
Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.
Discuss any adjustment to assay data.

Pre-2018 Verification

An external geological consultant and GXY staff have visually assessed and verified significant intersections of core and RC and PC chips.
Several core holes were compared to neighboring RC and PC drill holes.
The geological logging of the DD holes supports the interpreted geological and mineralization domains.
Studies on assays results from twinned holes showed a close correlation of geology and assays.
Primary data is recorded by hand in the field and entered Excel spread sheets with in-built validation settings and look-up codes.
Scans of field data sheets and digital data entry spread sheets are handled on site at Galaxy.
Data collection and entry procedures are documented and training given to all staff.
QAQC checks of assays by Galaxy identified several standards out of control, these were subsequently reviewed and results rectified.
No clear and consistent biases were defined by Galaxy during the further investigations into QAQC performances although deviations were noted by Galaxy.

2017-8 Verification
CP independently verified drilling, sampling, assay and results from validated, externally maintained and stored database.
No adjustments to assay data other than conversion from Li to Li20 and Ta to Ta2O5.

2018 - 2021 Verification
The CP independently verified drilling, sampling, assay and results from validated, externally maintained and stored database.
No adjustments to assay data other than conversion from Li to Li20 and Ta to Ta2O5.

Primary data capture by Maxwell LogChief and management by Maxwell DataShed. Assay data loaded directly from Laboratory supplied .csv files as are downhole and collar surveys.

An independent data verification was completed as part of a 2021 Ni-43-101 filing by then then competent person.

The CP has verified the drill collar, assay and assay QAQC data.

Section 2: Reporting of Exploration Results

Criteria

JORC Code explanation

Commentary

Mineral tenement and land tenure status

  • Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

  • The security of the tenure held at the time of reporting along with any known impediments to obtaining a license to operate in the area.

Mining Lease M74/244 was amalgamated and awarded on 04/08/2009 and is valid until 23/12/2030 and covers 1830 Ha.

The project is subject to normal projects approvals processes as regulated by the WA Department of Mines, Industry and Regulation.

The tenement is subject to the Standard Noongar Heritage agreement as executed 7 February 2018.

The underlying land is a mixture of freehold property owned by Galaxy and vacant Crown land. The property Freehold title is held by Galaxy Resources or its child subsidiaries.

Exploration done by other parties

  • Acknowledgment and appraisal of exploration by other parties.

During the 1960’s WMC carried out an extensive drilling program to define the extent of t local spodumene bearing pegmatite. The WMC work led onto a further investigation into project feasibility.

In 1989 Pancontinental Mining, Limited drilled 101 RC drill holes. In 1990 Pancontinental drilled a further 21 RC drill holes.

In 1997 Greenstone Resources drilled 3 diamond holes and 38 RC holes, undertook soil sampling and metallurgical test work on bulk samples from the mine area.
Haddington Resources Ltd in 2001 drilled 9 diamond holes for metallurgical test work and undertook further sterilization drilling.

Galaxy acquired the M72/12 mining tenement from Sons of Gwalia administrators in 2006.

Geology

  • Deposit type, geological setting and style of mineralization.

The Mount Catlin Project lies within the Ravensthorpe Suite, with host rocks comprising both the Annabelle Volcanics to the west, and the Manyutup Tonalite to the east. The contact between these rock types extends through the Project area.
The Annabelle Volcanics at Mt Cattlin consist of intermediate to mafic volcanic rocks, comprising both pyroclastic material and lavas.

The pegmatites which comprise the orebodies occurs as a series of sub-horizontal sills, hosted by both volcanic and intrusive rocks, interpreted as a series of westward verging thrusts.

Typical coarse grained spodumene (grey-green colour) from the NW pegmatite shown below.

The NW pit pegmatites extend from near surface sub-crop to vertical depths of 250-300m and further down dip extensions are interpolated form 2D seismic data generated by previous owners.

The pegmatites remain open down dip.

Drill hole Information

  • A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:

  • easting and northing of the drill hole collar

  • elevation or RL (Reduced Level – elevation above sea level in meters) of the drill hole collar

  • dip and azimuth of the hole

  • down hole length and interception depth

  • hole length.


Pre-2017 drilling reported 4 August 2015 by subsidiary GMM (ASX:GMM). Last prior resource and update was August 2022.

2019-2021 drill collars
New resource development collar information is presented in Table 1 above. Holes are generally steeply inclined between -80 to -70 degrees to determine true width or due to infrastructure.

Data aggregation methods

  • In reporting Exploration Results, weighting averaging techniques, maximum 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 longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

  • The assumptions used for any reporting of metal equivalent values should be clearly stated.

Pre-2017 Data
Where higher grade zones internal to broader intervals of lower grade mineralization were reported, these were noted as included intervals and italicized.

2019-2021 Drilling
New results are reported to a 0.4% cut-of grade (below), minimum 4m width, maximum 1m internal dilution. Only drillholes incorporated into the resource model are reported.

2022 Drilling
Minimum cut-off 0.4% Li2O; minimum 4m interval; maximum 2m of internal waste.

No metal equivalent values are used.

Relationship between mineralization widths and intercept lengths

  • These relationships are particularly important in the reporting of Exploration Results.

  • If the geometry of the mineralization with respect to the drill hole angle is known, its nature should be reported.

  • If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’).

All intersection grades have been reported previously as length weighted average grades using a 0.4% Li2O lower grade cut-off except where stated.

Intersections were calculated allowing a maximum of 2m of internal dilution with no top-cut applied. Cutting of high grades is not required due to nature of the mineralization and grade distribution/estimation.

The Mt Cattlin lithium and tantalum mineralization occurs as a thick horizontal to gently dipping pegmatite and generally lies 30 to 200m below the current topographic surface resulting in drill intercepts nearing true widths.

2022 reported intersections are true widths.

Diagrams

  • Appropriate maps and sections (with scales) and tabulations 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.


Diagrams, both plan and section, are included in the text above.

Balanced reporting

  • Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.


2022 - All significant intersections above 0.4% Li2O have are reported.

Other substantive exploration data

  • Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk sample– size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.


Fe2O3 is modelled with Li and Ta to determine the effect of deleterious chemistry and mineralogy at or near pegmatite contacts and rafts of surrounding country rock with pegmatite.

Further work

  • The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).

  • Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.


Development and extraction of the NW Pit Mineral Resource and Reserve.

Ongoing resource development drilling. New geotechnical and metallurgical test work drilling.

Resource extension drilling to the SW.

Resource update is expected in Q1, 2023 with study work to start Q4, 2022.

Graphics accompanying this announcement are available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/e6a4b0dc-668b-4a68-ab2a-16f1900fec8c

https://www.globenewswire.com/NewsRoom/AttachmentNg/b561eb58-bb52-46cc-8e33-be7ad6f9e1ea