Wrap Text
Lithium Project Acquired
Tawana Resources NL
(Incorporated in Australia)
(Registration number ACN 085 166 721)
Share code on the JSE Limited: TAW
JSE ISIN: AU0000TAWDA9
Share code on the Australian Securities Exchange Limited: TAW
ASX ISIN: AU000000TAW7
(“the Company” or “Tawana”)
LITHIUM PROJECTS ACQUIRED
PLEASE NOTE: ALL GRAPHICS HAVE BEEN REMOVED FOR SENS PURPOSES. PLEASE REFER TO TAWANA WEBSITE FOR
THE COMPLETE ANNOUNCEMENT.
Tawana Resources NL (“Tawana” or the “Company”) is pleased to announce the acquisition of Mount
Belches Pty Ltd (“Mt Belches”), which has one tenement application and rights (via an option agreement) to
acquire 100% of three exploration licences and one exploration licence application, all of which are highly
prospective for lithium and located in the Goldfields region of Western Australia.
The five tenements (Tenements) are located in two project areas:
- Cowan - comprising three granted exploration licences totalling 159 square km and located
approximately 55km south-east of Kambalda; and
- Yallari - comprising two exploration licence applications totalling 100 square km and located
approximately 25km south-east of Coolgardie, adjacent to the Coolgardie-Esperance Hwy.
Highlights
- The Cowan Project covers approximately 26km strike of two belts containing a large number of
rare element pegmatites.
- Prior shallow exploration and previous small scale mining focused on tantalum and tin only.
- Anomalous lithium assayed in wide spaced geochemistry and rock chip sampling.
- A number of spodumene-rich pegmatites mapped and a large number of drill-ready lithium geo-
chemical anomalies identified in previous exploration data.
- Recent rock-chip sampling returned grades of up to 1.85% Li (3.99% Li2O) from spodumene-rich
pegmatite.
- Drilling to test the known spodumene pegmatites and lithium geochemical anomalies is planned
for September 2016.
- Mark Calderwood appointed as Chief Executive Officer who has significant corporate credentials
and relevant exploration experience.
- Tawana has received commitments for a $1,750,000 Placement.
- Purchase consideration for Mt Belches will be the issue of 40,000,000 Tawana shares to
shareholders of Mt Belches, none of whom are related parties of the Company.
Chairman Mike Bohm stated, “We are very pleased that Tawana has been successful in acquiring both an
option over 100% of a well located project with demonstrated exploration potential for spodumene-type
lithium and an experienced Chief Executive in Mark Calderwood who has significant corporate experience in
the international resources arena and the technical experience to oversee and advance this highly prospective
project.
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It is also worth highlighting that the project area covers the bulk of a large Lithium-Caesium-Tantalum (LCT)
pegmatite field, and that there are a significant number of drill-ready lithium targets available - including
undrilled pegmatites rich in spodumene.”
Appointment of Chief Executive Officer
The sole director of Mount Belches Pty Ltd, Mark Calderwood, has been appointed Chief Executive Officer
(“CEO”) of the Company effective 11 July 2016. He has extensive experience in mineral exploration and
production management, he is an authority on pegmatites and was a co-author of the ‘Pegmatites of
Western Australia”. Mr Calderwood was CEO of Perseus Mining Limited for 9 years and is currently non-
executive director of three junior gold explorers. Mr Calderwood has the requisite 5 years’ experience for
reporting on the results of rare metal pegmatite exploration.
Capital Raising
In order to fund planned exploration programs, the Company has received commitments to raise $1,750,000
by issue of shares at a price of $0.025 per share. The Company will issue 19,600,000 shares under its 15%
placement capacity in the coming days and will issue a further 50,400,000 shares following shareholder
approval.
In support of the acquisition, all of the Directors have proposed to participate in the Placement which will
also require shareholder approval.
Shareholder approval will also be sought for the purchase of Mt Belches, completion of which is required
by 31 August 2016. A notice of meeting will be circulated shortly.
Geology
The Project area comprises Archaean quartz-biotite metasediments and amphibolites of the Eastern
Goldfields Terrane of the Yilgarn Craton. These metasediments trend north-south and have been intruded
by large numbers of pegmatites.
Two main belts of rare element Lithium-Caesium-Tantalum type (“LCT”) pegmatites are known in the
Project area. LCT type pegmatites are derived from highly siliceous, peraluminous (S-Type, ‘fertile’
granites) as highly fractionated granitic melts. These fractionated melts contain the rare elements (Be,
Rb, Cs, Sn, Nb, Ta etc) and a high volatile content (H2O, F, B, P and Li). Petr ?erný's pegmatite
classification (?erný 1991) is the accepted standard. Under this pegmatite classification scheme the
Project area is prospective for:
i) LCT Albite-spodumene: These are typically unzoned, homogeneous pegmatites with subhedral
spodumene in a quartz-albite matrix. The Mt Marion pegmatites (located 75km to the northwest) are
examples of this subclass.
ii) LCT Albite: Zoned albite pegmatites have a fine grained albite and quartz border zone with albite,
often of the cleavelandite variety, as the central pegmatite zone. Small quartz lenses and scattered pods
of coarsely crystallized quartz, microcline with accessory minerals of beryl and phosphates with mica are
found irregularly within the albite central zones. Tantalum minerals are found disseminated within the
albite.
iii) LCT Complex: There are considered to be four subclasses depending upon which Li-bearing mineral
is dominant in the pegmatite.
a) Spodumene: spodumene-dominant lithium-bearing pegmatites that are zoned and
mineralogically complex (e.g. the Greenbushes and Mt Cattlin pegmatite deposits).
b) Petalite: Zoned pegmatites dominated by petalite and/or its alteration products (e.g. the
Londonderry pegmatites, located 105km to the west-northwest).
c) Lepidolite: Pegmatites simple or zoned with are rich in lepidolite (e.g. the Mt Deans
pegmatites located 105km to the southwest).
d) Amblygonite: Amblygonite-rich pegmatites (Ubini pegmatite, located 130km to the west-
northwest). Page 2
The two large LCT pegmatite belts defined within the Project area are:
1) Mt Belches – Bald Hill (“MBBH Belt”)
This pegmatite belt striking north to northwest extends for at least 15km, however the pegmatite
belt likely extends for at least 25km under transported cover. A large number of albite rich and LCT
type Albite-Spodumene pegmatites occur over a width of about 4km. Previous exploration and
exploitation has been focused on tantalum and tin. About 10km strike of the pegmatite belt is located
on the Mount Belches tenements.
2) Claypan Dam- Madoonia (“CDM Belt”)
This less explored northeast-southwest oriented LCT pegmatite belt has a strike of at least 22km and
width of at least 7km. The belt is known to contain LCT Albite pegmatites with tantalite and tin and
potentially hosts LCT Albite-Spodumene pegmatites. A significant portion of the belt is covered by
the Mount Belches tenements.
The pegmatites occur as gently dipping sheets and as steeply dipping veins which are all elongate in a northerly
direction, parallel to the regional foliation. They range in thickness from a few metres to as much as 30 metres
and in some instances occur as multiple, parallel dykes or swarms separated by a few metres of sheared
metasediments (Jacobson et al 2007).
The unweathered pegmatites as exposed in the Bald Hill South pit (south of the Project area) are composed of
two zones, a quartz-spodumene-albite zone and a quartz-microcline-muscovite-albite zone. From inspection,
cassiterite, columbite-tantalite are present as accessory minerals in the quartz-spodumene-albite zone. The
zoning is so poorly defined that these pegmatites can be classified as unzoned albite-spodumene pegmatites
(Jacobson et al 2007).
Outcrops of exposed schist and pegmatites are restricted to limited areas; most of the tenement area is
concealed by bluebush floodplain and sandplain and wash zones. Remnants of Eocene sediments also mask
bedrock.
Previous Work
Prior exploration by tantalum explorers on the tenements has essentially been limited to:
A) Wide spaced (~200m x 400m) shallow RAB (and minor RC) drilling for bottom of hole
geochemistry including lithium assays. Within the project area 419 holes averaging 12.9m were
drilled and sampled within part of the MBBH Belt and 257 holes averaging 16.1m were drilled
and sampled within part of the CDM Belt. The resulting lithium geochemical database has
resulted in the identification of a significant number of anomalies worthy of follow-up drilling.
Based on the entire regional database lithium assays of schist with 40ppm (85ppm Li 2O) are
considered anomalous, 80ppm (170ppm Li2O) strongly anomalous and 120ppm (260ppm Li2O)
highly anomalous. Background lithium levels within the schist hosting the two pegmatite belts
is about 3ppm. A summary of drill hole geochemical results are provided in Table 1 and shown
on Figures 3 to 6. Selected individual drill hole geochemical results are provided in Table 4. A
summary of anomalous rock chip results from previous exploration are provided in Table 2.
These rock chip results are shown on Figures 3 to 6 as pegmatite locations.
B) Table 1 | Summary of Bottom of HoleRAB and RC Geochemical Sampling
Pegmatite Belt Holes Holes +/= Holes +/= Holes +/=
Sampled 40ppm Li 80ppm Li 120ppm Li
MBBH 419 206 (49%) 81 (19%) 39 (9%)
CDM 257 77 (30%) 11 (4%) 4 (2%)
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C) Rock chip sampling, prior explorers collected more than 226 pegmatite samples from within the
Project area of which 219 were assayed for Li. A total of 95 (42%) of the rock chip samples
contained anomalous levels of one or more of Li, Cs, Ta or Sn. Table 2 | Summary of Anomalous Previous Rock
Chip Geochemical Sampling
Pegmatite Li2O Cs2O Ta2O5 SnO2 Na2O
+100ppm +100ppm +50ppm +50ppm >4%
# of samples 41 37 47 37 129
% of total 19% 17% 21% 16% 65%
Average grade (ppm) 1,041 189 192 118 5.4%
A) The extensive shallow auger and soil sampling is considered to be of limited value due to the
unknown regolith profile and extensive transported Archaean derived regolith or in-situ Eocene
sediments and the likely leaching of lithium from the weathered sampling medium.
B) RC drilling of 24 pegmatites (or pegmatite clusters) was undertaken however lithium was not
analysed in pegmatite samples. A total of 70 RC and RAB holes intercepted pegmatites within the
Cowan Project area. RC drill hole BHC1013 intercepted 14.5m of pegmatite with spodumene logged
throughout. RC drill hole BHR882 contained a 4m intersection of pegmatite which was logged as
containing spodumene and a bottom of hole (BOH) schist sample contains 2,019ppm Li2O.
Prior production within the Project Area is limited to a small amount of tin and/or tantalum from eluvials at
the Mount Belches workings. Soft and hard rock mining for tantalum with associated accessory tin has been
undertaken at the Bald Hill and the Dawn View mines on adjoining tenements and at Saint John workings on
excised licences.
Recent Work
Recent mapping and rock chip sampling of outcropping spodumene bearing pegmatites located within E15/1446
in the Mount Belches area, has returned lithium values from 15 samples of pegmatite. Lithium values range
from 3,762 ppm (0.81% Li2O) in pegmatite containing moderate spodumene content up to 18,545 ppm (3.99%
Li2O) in pegmatites with high spodumene content. Results of the 15l samples are contained in Table 5, sample
locations and details of sampling are contained in Appendix 1 Section 2 and the Li2O results are shown on Figure
4.
Initial Exploration Planned by Tawana
The Company plans to undertake initial RC drilling of existing drill targets. Concurrently with drilling the
Company will undertake further mapping and sampling within the pegmatite belts not previously explored.
Mineralogy will be undertaken on pegmatites to better define their LCT type pegmatite classification.
Yallari Project
The Yallari Project is located 25km southeast of Coolgardie and about 10km west of Mt Marion. The project
areas cover portions of the greenstone sequence that hosts the Mt Marion and Londonderry pegmatite fields.
Numerous pegmatites have been mapped by nickel and base metal explorers however there are no records on
the rare element content of the pegmatites. These pegmatites based on their mineralogy are probably derived
from a peraluminous and possible ‘fertile’ granite. The geological setting of the pegmatites and the proximity
to the Mt Marion and Londonderry lithium bearing pegmatite fields is encouraging.
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Sampling is required to define the pegmatite type(s) and their potential for mineralisation. Based on the
currently known pegmatite mineralogy the most prospective area for lithium enriched pegmatites will be
further from the source granite (Figure 8). Three recent samples of pegmatite scree from near access tracks
returned anomalous lithium result from one sample (Refer Table 6).
Table 3 | Tenement Summary
Cowan Project
Tenement number Km2 Grant Date
E15/1205 5.9 10-03-2011
E15/1377 95.7 12-11-2014
E15/1446 57.6 18-08-2014
Yallari Project
Tenement number Km2 Grant Date
E15/1401 41.2 Pending
E15/1525 58.8 Pending
Table 4 | Cowan Project, Selected Significant BOH (1m) Assays MBBH Pegmatite Belt
From To Cs Li Rb Li2O
HOLE ID EAST NORTH
(m) (m) ppm ppm ppm ppm
BHR0878 421,087 6,515,272 21 22 26 491 171 1,057
BHR0880 421,187 6,515,309 24 25 2,366 938 6,973 2,019
BHR1941 417,687 6,518,557 16 17 84 241 170 519
BHR1971 419,637 6,517,457 2 3 36 311 84 670
BHR2050 416,237 6,522,957 1 2 57 471 78 1,014
BHR2075 416,637 6,522,557 0 1 121 1,248 193 2,687
BHR2076 416,437 6,522,557 0 1 35 1,656 118 3,565
BHR2100 418,537 6,521,757 0 2 7 382 79 823
BHR2101 418,487 6,521,757 1 2 45 375 56 808
BHR2105 417,637 6,521,732 2 3 21 388 76 835
BHR2134 417,237 6,520,957 21 22 6 245 72 527
BHR2159 417,637 6,519,557 9 10 19 341 134 734
BHR2165 418,637 6,519,357 2 3 8 283 245 609
BHR2184 418,137 6,518,107 20 21 2,505 1,606 1,073 3,457
BHR2186 418,237 6,518,157 18 19 10 366 96 788
BHR2199 418,687 6,517,557 23 24 5 249 63 536
BHR2237 419,337 6,517,532 0 1 6 246 70 530
BHR2244 419,437 6,517,857 1 2 6 260 126 560
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Table 5 | Cowan Project 2016 Pegmatite Rock Chip Sampling (results in ppm unless stated)
Ref Description Cs K Li Li2O % Nb Rb Sn Ta
P10 pegmatite outcrop spodumene rich 59.7 1.11 10,799 2.32 68 487 60 91
P11 pegmatite outcrop spodumene rich 49.2 0.89 8,706 1.87 79 417 70 86
P13 pegmatite outcrop spodumene rich 64.9 1.35 9,264 1.99 54 717 135 43
P16 pegmatite outcrop with spodumene 34.9 0.62 3,762 0.81 94 327 94 97
P17 pegmatite outcrop spodumene poor 96.2 1.25 3,507 0.75 87 622 135 175
P18 pegmatite outcrop visible Ta/Sn? 210.2 2.15 75 0.02 92 2,175 637 283
P22 Cymatolite after spodumene? in 265.7 3.01 146 0.03 17 1,150 274 23
pegmatite from trench dump
P23 pegmatite spodumene rich from 101.6 0.73 18,545 3.99 20 251 213 42
trench
P24 pegmatite spodumene rich from 97.6 1.19 11,913 2.56 61 347 213 60
trench
P33 pegmatite outcrop spodumene rich 25.7 0.64 10,894 2.35 58 214 43 51
P36 pegmatite outcrop spodumene rich 35.3 1.18 9,555 2.06 43 406 48 41
P37 pegmatite outcrop spodumene rich 32.8 0.46 13,136 2.83 63 214 70 42
P42 pegmatite outcrop spodumene rich 79.5 1.21 8,293 1.79 58 612 140 115
P45 pegmatite outcrop spodumene rich 52.1 0.43 10,817 2.33 82 188 98 136
P49 pegmatite outcrop spodumene rich 30.2 0.44 11,366 2.45 79 179 75 73
Table 6 | Yallari Project 2016 Pegmatite Rock Chip Sampling (results in ppm unless stated)
Ref. Location Description Cs K% Li Li2O % Nb Rb Sn Ta
P04 E15/1526 pegmatite scree 59.5 3.66 22 0.00 43 913.6 8 14.4
P06 E15/1401 pegmatite scree 8.7 2.46 37 0.01 58 567.7 10 7.2
P09 E15/1401 pegmatite scree 12.9 2.62 832 0.18 17 515.6 5 6.6
Terms of the Tenement Option Agreement
The terms of the option agreement for Mt Belches to acquire 100% of the Tenements are as follows:
o Option payment of $100,000 which was paid by Tawana on 6 July 2016;
o $2,000,000 in cash or Tawana shares (based on the 30 day VWAP) any time up to 4 March 2017.
The choice of cash or shares or a combination of the two is at the election of the grantor of the
Option; and
o 2% gross revenue royalty on any production.
Consideration for the Purchase of Mt Belches Pty Ltd
The consideration for Mt Belches will be the issue of 40,000,000 Tawana shares to the shareholders of Mt
Belches, none of whom are related parties of the Company.
Competent Persons Statement
The information in this news release that relates to Exploration Results is based on and fairly represents information and supporting
documentation compiled by Mr Mark Calderwood, the sole director of Mount Belches Pty Ltd and reviewed by Mr Ralph Porter, a
full time employee of CSA Global Pty Ltd. Mr Calderwood is a member of The Australasian Institute of Mining and Metallurgy. Mr
Page 6
Porter is a Member of the Australian Institute of Geoscientists. Mr Calderwood and Mr Porter both have sufficient experience
relevant to the style of mineralisation under consideration and to the activity which they are undertaking to qualify as a Competent
Person as defined in the 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves”. Mr Porter and Mr Calderwood both consent to the inclusion in this report of the matters based on their information in
the form and context in which it appears.
Forward Looking Statement
This report may contain certain forward looking statements and projections regarding estimated, resources and reserves; planned
production and operating costs profiles; planned capital requirements; and planned strategies and corporate objectives. Such
forward looking statements/projections are estimates for discussion purposes only and should not be relied upon. They are not
guarantees of future performance and involve known and unknown risks, uncertainties and other factors many of which are beyond
the control of Tawana Resources NL. The forward looking statements/projections are inherently uncertain and may therefore
differ materially from results ultimately achieved.
Tawana Resources NL does not make any representations and provides no warranties concerning the accuracy of the projections,
and disclaims any obligation to update or revise any forward looking statements/projects based on new information, future events
or otherwise except to the extent required by applicable laws. While the information contained in this report has been prepared
in good faith, neither TAW or any of its directors, officers, agents, employees or advisors give any representation or warranty,
express or implied, as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions
contained in this presentation. Accordingly, to the maximum extent permitted by law, none of TAW, its directors, employees or
agents, advisers, nor any other person accepts any liability whether direct or indirect, express or limited, contractual, tortuous,
statutory or otherwise, in respect of, the accuracy or completeness of the information or for any of the opinions contained in this
presentation or for any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this presentation.
Appendix 1
Section 1 Sampling Techniques and Data
Criteria JORC Code Explanation Commentary
Sampling Nature and quality of sampling (e.g. cut Drilling was the principal form of sampling within
techniques channels, random chips, or specific specialised the Cowan project area, and included the use of
industry standard measurement tools RAB (10,106m) and RC (1,965m) drilling
appropriate to the minerals under investigation, techniques.
such as down hole gamma sondes, or handheld
XRF instruments, etc.). These examples
should not be taken as limiting the broad
Rock chip sampling of pegmatites was also
meaning of sampling.
undertaken as a reconnaissance exploration method
915 shallow auger and vacuum holes were drilled,
however this data is of limited value due to the
unknown sample medium.
Relevant sampling with the Yallari Project area is
limited to three rock chip samples.
Include reference to measures taken to ensure Based on available data, there is nothing to indicate
sample representivity and the appropriate that drilling practices were not to normal industry
calibration of any measurement tools or systems standards at the time.
used.
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Criteria JORC Code Explanation Commentary
Aspects of the determination of mineralisation Given the purpose of first pass exploration work,
that are Material to the Public Report. In sampling practices were normal industry standard
cases where ‘industry standard’ work has been and appropriate.
done this would be relatively simple (e.g.
‘reverse circulation drilling was used to obtain 1
m samples from which 3 kg was pulverised to
None of the drilling or rock chip sampling is
produce a 30 g charge for fire assay’). In other
appropriate or was or is intended to be used for
cases more explanation may be required, such
Resource estimates.
as where there is coarse gold that has inherent
sampling problems. Unusual commodities or
mineralisation types (e.g. submarine nodules)
may warrant disclosure of detailed information.
Drilling techniques Drill type (e.g. core, reverse circulation, open- Previous drilling completed on the Cowan Project
hole hammer, rotary air blast, auger, Bangka, comprised 707 RAB holes for 10,106m and 75 RC
sonic, etc.) and details (e.g. core diameter, triple holes for 1,965m. There were no details recorded
or standard tube, depth of diamond tails, face- on hole diameters from the various types of
sampling bit or other type, whether core is previous drilling.
oriented and if so, by what method, etc.).
No drill holes appear to have been surveyed.
Drill sample Method of recording and assessing core and chip There are no records of sample recovery for the
recovery sample recoveries and results assessed. various types of previous drilling.
Measures taken to maximise sample recovery There are no records of drill sample quality or
and ensure representative nature of the samples. potential contamination
Whether a relationship exists between sample There are no records for sample recovery for the
recovery and grade and whether sample bias various types of previous drilling conducted. .
may have occurred due to preferential loss/gain Consequently it is not possible to review grade bias
of fine/coarse material. in relation to sample recovery.
Logging Whether core and chip samples have been All historic drill holes were geologically logged,
geologically and geotechnically logged to a level original log sheets have been viewed and vary in
of detail to support appropriate Mineral quality from simple to moderately detailed logs.
Resource estimation, mining studies and
metallurgical studies.
No resources estimates were calculated
Whether logging is qualitative or quantitative Logging descriptions were qualitative for the
in nature. Core (or costean, channel, etc.) previous drilling.
photography
The total length and percentage of the relevant All the previous drill holes have been geologically
intersections logged. logged and the basic geological data recorded in the
drilling database.
Sub-sampling If core, whether cut or sawn and whether No core drilling has been undertaken.
techniques and quarter, half or all core taken.
sample preparation
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Criteria JORC Code Explanation Commentary
If non-core, whether riffled, tube sampled, RC samples were retrieved via cyclone by taking
rotary split, etc. and whether sampled wet or large 5kg sub-sample produced by riffle splitting
dry. the 1m (or less) samples twice. Only samples of
pegmatites and immediate host rock were collected
for assay.
RAB samples were retrieved via a cyclone with
each metre of sample collected and laid on the
ground. Generally one assay sample was collected
except where pegmatites were intercepted
For all sample types, the nature, quality and RC samples were split into 2 and pulverised and
appropriateness of the sample preparation homogenised prior to splitting out the assay sample.
technique. Two samples were assayed with 10% repeat assays.
An average of the 2 samples is then taken as the
result for the 1m interval.
RAB samples were retrieved via a cyclone
Bottom of hole samples were taken for bedrock
geochemistry. Assay determinations Li, Cs and Rb
was by ICP/Ms
Quality control procedures adopted for all sub- There are no records of the QAQC procedures
sampling stages to maximise representivity of adopted for the various types of historic sampling.
samples.
Measures taken to ensure that the sampling is No records were located on duplicate sampling.
representative of the in situ material collected,
including for
instance results for field duplicate/second-half
sampling.
Whether sample sizes are appropriate to the The sampling method was likely appropriate for the
grain size of material being sampled given the purpose of
sampling.
the material being sampled.
Quality of assay The nature, quality and appropriateness of the Full RC assay samples were split into 2 and
data and assaying pulverised and homogenised prior to splitting out
laboratory tests the assay sample. Two samples were assayed with
and laboratory procedures used and whether the
10% repeat assays. An average of the 2 samples is
technique is
then taken as he result for the 1m interval. Assay
considered partial or total. determinations for pegmatite samples (Ta2O5) was
via XRF using pressed powders
RAB samples retrieved via a cyclone were
collected and laid on the ground. Samples were
taken for bedrock geochemistry. Assay
determinations Li, Cs and Rb was by ICP/Ms
Page 9
Criteria JORC Code Explanation Commentary
Grab samples from the 2016 pegmatite rock chip
sampling were submitted into Intertek Genalysis
Perth for analysis:
(Cs, Li, Nb, Rb, Se, Sn, Ta) FP6/MS: Sodium
peroxide fusion (Nickel crucibles) and
Hydrochloric acid to dissolve the melt. Analysed by
inductively Coupled Plasma Mass Spectrometry
(K) FP6/OE: Sodium peroxide fusion (Nickel
crucibles) and Hydrochloric acid to dissolve the
melt. Analysed by inductively Coupled Plasma
Optical (Atomic) Emission Spectrometry.
For geophysical tools, spectrometers, handheld Not applicable
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 There are no records of the QAQC procedures
(e.g. standards, blanks, duplicates, external adopted for the various types of prior drilling
laboratory checks) and whether acceptable levels conducted.
of accuracy (i.e. lack of bias) and precision have
been established.
Verification of The verification of significant intersections by No verification exploration work has been
sampling and either independent or alternative company undertaken.
assaying personnel.
The use of twinned holes. No twin holes were drilled
Documentation of primary data, data entry The data from the previous drilling are stored in a
procedures, data verification, data storage digital database; original geological drill logs are
(physical and electronic) protocols. available for verification. No information is
available on methods for merging analytical data
into the digital database.
Discuss any adjustment to assay data. No data has been adjusted
Location of data Accuracy and quality of surveys used to locate Drill hole and rock chip sample locations are
points drill holes considered approximate though sufficiently
accurate given the wide spaced nature of
(collar and down-hole surveys), trenches, mine
programmes.
workings and
other locations used in Mineral Resource
estimation. The 2016 rock chip samples were located using a
handheld Garmin GPS using MGA 94/ Zone 51.
Specification of the grid system used. MGA 94 Zone 51
Page 10
Criteria JORC Code Explanation Commentary
Quality and adequacy of topographic control. No survey of drill holes appears to have been
undertaken
Data spacing and Data spacing for reporting of Exploration RAB drill spacing was nominally 400m by 200m,
distribution Results. RC drilling was sporadic and localised. Auger drill
spacing was nominally 100m x 500.m
Whether the data spacing and distribution is Not applicable
sufficient to establish the degree of geological
and grade continuity appropriate for the
Mineral Resource and Ore Reserve estimation
procedure(s) and classifications applied.
Whether sample compositing has been applied. No samples were composited
Orientation of Whether the orientation of sampling achieves The orientation of pegmatites intercepted in drilling
data in relation to unbiased sampling of possible structures and is unknown and variable.
geological structure the extent to which this is known, considering
the deposit type.
If the relationship between the drilling There is no apparent bias in any of the drilling
orientation and the orientation of key orientations used.
mineralised structures is considered to have
introduced a sampling bias, this should be
assessed and reported if material.
Sample security The measures taken to ensure sample security. Not applicable.
Audits or reviews The results of any audits or reviews of sampling The historic drill data were not independently
techniques and data. audited
Section 2 Reporting of Exploration Results
Criteria Explanation Commentary
Mineral tenement Type, reference name/number, location and Cowan Project area is held under E15/1205,
and land tenure ownership including agreements or material E15/1446, and E15/1377 all of which are granted and
status issues with third parties such as joint ventures, are subject to an option to purchase the details of
partnerships, overriding royalties, native title which are in the body of text.
interests, historical sites, wilderness or
national park and environmental settings.
Yallari Project is held as
Exploration Licence applications E15/1401 and
E15/1526 both of which have substantial areas the
subject to timber reserves.
All native title is cleared and there are no other
historical or noted environmentally sensitive areas.
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Criteria Explanation Commentary
The security of the tenure held at the time of See above, no other known impediments
reporting along with any known impediments
to obtaining a licence to operate in the area.
Exploration done Acknowledgment and appraisal of Previous exploration of relevance undertaken by
by other parties exploration by other parties.
Company WAMEX Ref.
Barrier Exploration NL 1973 A05370
Selcast Exploration Pty Ltd
1974 A05548
Gwalia Minerals NL 1989 A026496
E Dechow & Co Pty Ltd 1993 A038469
Rising Mining Holdings Pty Ltd
2012-13 A096807
Haddington Resources Limited A067510
2002-2008 A069520
A071648
A071649
A073249
A073417
A073418
A074259
A076533
A076988
A079237
A079239
A079379
Geology Deposit type, geological setting and style of The Project area comprises Archaean quartz-biotite
mineralisation. metasediments and amphibolites of the Eastern
Goldfields Terrane of the Yilgarn Craton. These
metasediments trend north-south and have been
intruded by large numbers of pegmatites.
Two main belts of Lithium Caesium Tantalum type
(“LCT”) pegmatites are known in the Cowan Project
area, LCT type rare-element pegmatites are derived
from highly siliceous, peraluminous (S-Type, ‘fertile’
granites) as highly fractionated granitic melts. These
fractionated melts contain the rare elements (Be, Rb,
Cs, Sn, Nb, Ta etc) and a high volatile content (H2O,
Page 12
Criteria Explanation Commentary
F, B, P and Li). Petr ?erný's pegmatite classification
(?erný 1982a, 1991) is the accepted standard.
The Yallari Project contains the greenstone sequence that
hosts the Mt Marion and Londonderry pegmatite fields,
numerous pegmatites have been mapped by nickel and
base metal explorers however there are no records on the
rare element content of the pegmatites. Most of these
pegmatites are located very close to their probable granite
source and are described in previous exploration reports
as common pegmatites.
Drill hole A summary of all information material to the Comprehensive reporting of all RAB, RC, auger drill
Information understanding of the exploration results holes and prior rock chip samples is not practicable
including a tabulation of the following but all data is available under the WAMEX reports
information for all Material drill holes: referred to above.
• easting and northing of the drill hole
collar
Location of 2016 Rock Chip Samples (RL
• elevation or RL (Reduced Level – information has not been recorded)
elevation above sea level in metres) of
the drill hole collar Ref East North Tenement
• dip and azimuth of the hole P04 333869 6553570 E15/1526
• down hole length and interception P06 340472 6557648 E15/1401
depth
P09 340480 6558071 E15/1401
• hole length.
P10 417236 6521778 E15/1446
P11 417232 6521792 E15/1446
P13 416680 6522440 E15/1446
P16 416589 6522652 E15/1446
P17 416671 6522580 E15/1446
P18 416217 6522865 E15/1446
P22 416676 6521955 E15/1446
P23 416722 6521903 E15/1446
P24 416733 6521877 E15/1446
P33 417322 6521607 E15/1446
P36 417372 6521508 E15/1446
P37 417377 6521491 E15/1446
P42 416559 6522290 E15/1446
P45 416506 6522404 E15/1446
P49 416413 6522609 E15/1446
If the exclusion of this information is justified No material information was excluded.
on the basis that the information is not
Material and this exclusion does not detract
Page 13
Criteria Explanation Commentary
from the understanding of the report, the
Competent Person should clearly explain why
this is the case.
Data aggregation In reporting Exploration Results, weighting Not applicable
methods 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 Not applicable
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 Not applicable
metal equivalent values should be clearly
stated.
Relationship These relationships are particularly important Most drill holes have been drilled vertically which
between in the reporting of Exploration Results. significantly reduced the likelihood of intercepting
mineralisation sub-vertical mineralisation.
widths and intercept
lengths If the geometry of the mineralisation with
respect to the drill hole angle is known, its
nature should be reported
If it is not known and only the down hole Not applicable
lengths are reported, there should be a clear
statement to this effect (e.g. ‘down hole length,
true width not known’).
Diagrams Appropriate maps and sections (with scales) Figures 3 to 6 show areas of prior exploration and
and tabulations of intercepts should be subsequent areas of anomalous mineralisation and
included for any significant discovery being other target areas.
reported These should include, but not be
limited to a plan view of drill hole collar
locations and appropriate sectional views.
Balanced reporting Where comprehensive reporting of all Only selected significant RAB geochemical drill
Exploration Results is not practicable, holes have been tabled however a summary of the
representative reporting of both low and high total population of holes has been included and
grades and/or widths should be practiced to diagrams included show interpretation of results of
avoid misleading reporting of Exploration the entire database.
Results.
Other substantive Other exploration data, if meaningful and There is no other exploration data which is
exploration data material, should be reported including (but not considered material to the results or statements
limited to): geological observations; geophysical reported in this announcement.
survey results; geochemical survey results; bulk
samples – size and method of treatment;
metallurgical test results; bulk density,
groundwater, geotechnical and rock
characteristics; potential deleterious or
contaminating substances.
Page 14
Criteria Explanation Commentary
Further work The nature and scale of planned further work Further work will include drilling to test known
(e.g. tests for lateral extensions or depth pegmatites and geochemical anomalies.
extensions or large-scale step-out drilling).
Diagrams clearly highlighting the areas of The diagrams show areas untested within the broader
possible extensions, including the main prospective target belts
geological interpretations and future drilling
areas, provided this information is not
commercially sensitive.
11 July 2016
Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
Page 15
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