Wrap Text
Option agreement to earn into the Bald Hill Mine
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”)
OPTION AGREEMENT TO EARN INTO THE BALD HILL MINE
ALL GRAPHICS HAVE BEEN REMOVED FOR SENS PURPOSES. PLEASE REFER TO TAWANA’S WEBSITE
FOR THE FULL ANNOUNCEMENT
Tawana Resources NL (“Tawana” or the “Company”) is pleased to announce that it has entered into
an option agreement to acquire Lithco No.2 Pty Ltd (“Lithco”). Lithco has the rights to earn into the
Bald Hill Mine (“Bald Hill” or “The Project”), located adjacent to and surrounds Tawana’s Cowan
Lithium Project.
Highlights
- Lithco has the right to earn a 50% interest in the lithium rights at Bald Hill and, by additional
expenditure, the right to earn 50% interest in all minerals and the processing plant and
infrastructure at Bald Hill.
- The Project covering 791.3 km2 is owned by Australian incorporated, Singapore Exchange
listed Alliance Mineral Assets Limited (“AMAL”). It is adjacent to the Company’s Cowan
Project.
- A number of spodumene-rich pegmatites have been discovered and partially mined for
tantalum. Spodumene was not recovered during prior mining however recently AMAL
produced spodumene rich by-product concentrates up to 6.73% Li2O during
recommissioning of the original tantalum plant.
- Metallurgical testwork has commenced on extracting spodumene from tantalum ore. Initial
results indicate high recoveries of spodumene through simple gravity process. Engineering
studies for the addition of a 1mtpa spodumene circuit are about to commence, the focus will
be on the speed and cost of such installation.
- Resource and exploration drilling has commenced on the main mining lease at Bald Hill.
- The Company is also currently drilling on the adjoining Cowan Project and has intercepted a
number spodumene bearing pegmatites.
- Tawana has until 31 December 2016 to exercise the option to acquire Lithco.
- Subject to shareholder approval (which will include an independent experts report on the
acquisition) and successful due diligence results the purchase consideration for Lithco will be
the issue of 50,000,000 Tawana shares.
- Board changes include Mark Calderwood being appointed Managing Director, Rob Benussi
being appointed Non-executive Chairman and Michael Bohm stepping down as a Director
due to increased work commitments.
Mark Calderwood stated, “The completion of the Lithco acquisition, could see Tawana rapidly
advance towards spodumene production in joint venture with AMAL, subject to completion Reserve
and plant upgrades. In addition to the active Mining Lease the combined 950km2 of the Cowan and
Bald Hill tenement packages covering two very large pegmatites belts provide significant potential
for further resources.
Bald Hill is one of few West Australian mines ever to have produced high grade spodumene
concentrate. Stored concentrates will provide material for detailed product assessment by
interested off-take parties.”
Bald Hill Project
The Bald Hill Project (“Project”) area is located 50km south east of Kambalda in the Eastern
Goldfields of Western Australia. It is located approximately 75km south east of the Mt Marion
Lithium project and is adjacent to and surrounds the Company’s Cowan Lithium Project. The Project
comprises 4 mining leases, 8 exploration licences, 8 Prospecting licences and 5 tenement
applications totalling 791.3 km2
Production History Bald Hill
Pre 2000, production within the Project Area was limited to a small amount of tin and/or tantalum
from eluvials at Bald Hill and soft rock mining at St John.
Between July 2001 and December 2005 Haddington Resources Limited (“Haddington”) undertook
shallow open pit mining of pegmatites, a total of 1.35Mt of ore was processed through a gravity
plant with a throughput rate of 340,000tpa. A total 4,000t of concentrate containing 364t of
tantalum pentoxide was sold and the mine was closed after the buyer Greenbushes Tin stopped
taking third party concentrates. During mining it was noted, that the pegmatite ore contained
varying amounts of spodumene (up to 30-50%) though lithium was not assayed for nor recovered
until AMAL noted high levels of spodumene in tantalum concentrates during re-commissioning of
the Haddington plant in 2015.
Tantalum Processing Facility
The existing processing plant previously operated by Haddington has been re-furbished and
upgraded by AMAL and successfully commissioned during late 2015 and early 2016. The plant
comprises conveying, screening, crushing to -1mm and then, using a bank of spirals, separates out
the heavy minerals; including tantalite, cassiterite and some of the contained spodumene into a
primary concentrate. This primary concentrate is then sent to a secondary beneficiation plant to be
further processed to produce a saleable 25-30% Ta2O5 final concentrate. During the secondary
beneficiation the non-magnetic -1mm concentrates were shown to contain high levels of lithium in
the form of spodumene. The +500µm Lithium concentrate totalling 5.9 tonnes averaged 6.73% Li2O
and the 250-500µm Lithium concentrate totalling 3.5 tonnes averaged 5.75% Li2O.
Recent Work by Lithco
Initial work has essentially been focused on extensive data review of all available exploration data
for Bald Hill and metallurgical testwork.
The first round of bulk metallurgical testwork focused on spodumene recovery has commenced with
very encouraging results.
Analysis of material crushed to 6.3mm resulted in 93.3% of contained lithium and 86.3% of tantalum
reporting to +250µm fractions.
Initial results from first pass +1mm Density Media Separation (“DMS”) at both 6.3mm and 3.35mm
crush sizes were very encouraging with excellent spodumene recovery and concentrate grades at a
crush size of 6.3mm:
- 93.7% of the lithium reported to DMS concentrates representing 37% of the mass at a
relatively high grade of 5.08% Li2O and less that 0.2% mica;
- 82.0% of the lithium reported to the high grade concentrates at an average grade of 6.08%
Li2O; and
- Only 6.3% of the lithium reported to the >SG2.7 ‘lights’ representing 63% of the original
mass.
At a crush size of 3.35mm;
• Only 5.7% of the lithium reported to the ‘lights’ representing 62% of the original +1mm
mass; and
• The 94.3% of the lithium reported to the concentrates grading an average 5.57% Li2O.
Initial results from first pass -1mm Reflux Classifier (“ReC”) gravity concentration testwork on 0.25-
1mm and -0.25mm fractions was successful in removing most of the fine mica and producing an
interim concentrate representing 66% of the -1mm mass and containing 92% of the lithium finer
than 1mm, after de-sliming. Ongoing metallurgical testwork will include further beneficiation of
“ReC” concentrates and the intermediate DMS concentrate after regrinding.
Table 1 | Sizing after Crushing P100 6.3mm
Sizing Mass Li2O Ta2O5 SnO2 Nb2O5 Fe2O3 Li2O Ta2O5
% of
total
% of total
% % ppm ppm ppm % cont. cont.
Feed 100.0 1.70 517 543 169 0.60 100 100
+1mm 72.0 1.84 500 545 155 0.54 77.8 69.6
-1mm +0.25mm 17.7 1.49 486 502 189 0.68 15.5 16.7
-0.25mm 10.3 1.11 691 602 238 0.90 6.7 13.7
Table 2 | DMS Concentrate Grades, P100 6.3mm
Li2O Ta2O5 SnO2 Nb2O5 Fe2O3 Lithium Cum.
DMS Mass Recovery Grade
% % ppm ppm ppm % Cum. % %Li2O
SG 3.1 Underflow 5.2 6.93 1,000 1,610 260 1.17 18.1 6.93
SG 3.1 Overflow 22.1 5.79 380 690 90 1.05 82.0 6.01
SG 2.95 Overflow
(intermediate) 9.6 2.43 460 390 130 0.88 93.7 5.08
SG 2.7 Overflow 63.0 0.20 290 160 90 0.66
Proposed Engineering
The existing process plant is not suitable for recovering the bulk of the spodumene in the ore that is
processed, engineering studies are about to commence, to assess installing a front end spodumene
recovery circuit to the existing facility and to increase significantly overall production rates. The
agreed approached is to minimize the construction timeline and capital cost and envisions the use of
contract crushing as originally undertaken by Haddington. Initial indications are that this additional
circuit could be operating within 10-14 months and have a modest capital requirement subject to
final configuration.
Discussions with potential off-take partners has commenced and will be advanced over the coming
months.
Geology
The Project area covers most of the known remaining extent of two belts of rare element Lithium-
Caesium-Tantalum type (“LCT”) pegmatites previously described by the Company in its
announcement dated 15 September 2016.
The Pegmatites at Bald hill fall into five categories:
1) Tantalum – Generally narrow, high in tantalum, low in spodumene, main focus of prior
mining;
2) Zoned Lithium-Tantalum - generally wider pegmatites with simple zoning, spodumene
richest in central zone, tantalum typically richer on the margins;
3) Lithium-Tantalum – pegmatites with no apparent zonation;
4) Lithium – unzoned and simply zoned pegmatites containing abundant spodumene but low
tantalum; and
5) Barren – the least common and often narrow pegmatites, contain <0.1% Li2O and <100ppm
Ta2O5.
Overall zoning is so poorly defined that these pegmatites can be generally classified as unzoned
albite-spodumene pegmatites.
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.
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 Exploration
Prior exploration by tantalum explorers on the tenement comprising the Bald Hill Project has
essentially been limited to:
A) Wide spaced shallow RAB drilling for bottom of hole geochemistry including lithium assays.
Less than 10% of the project area has been covered resulting in strong lithium anomalism
around the Bald Hill mine.
B) Wide spaced 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.
Trenching has exposed large pegmatites at the Madoonia prospect but no assay data is
available and drilling was apparently never undertaken.
C) Between 1983 and 2014 RC drilling was mainly focused on shallow resource drilling on
M15/400. A total of 972 RC holes were completed totalling 24,050m of which only 33% of
holes were deeper than 30m and only 6% deeper than 50m with the deepest 73m. A total
of 61 early holes (1983-85) and 112 AMAL RC holes (2014) were assayed for lithium however
these were generally focused on narrower tantalum pegmatites or those peripheral to the
main deposit. Occasionally logs of RC holes drilled (2001-2005) in the larger central part of
the main pegmatite (‘Central’) provided sufficient detail to indicate subjective levels of
spodumene mineralisation. The larger Central pegmatite represents the largest portion of
current tantalum mineral resources declared by AMAL totalling 3.44Mt at 305ppm Ta2O5
(see table 3).
A total of 228 RC holes for 5,532m were completed outside M15/400 of which only 18% were
deeper than 30m. No samples from these holes were assayed for lithium, most were drilled at the
Creekside, Fenceline and St John prospects, spodumene has been logged in RC cuttings from all
three prospects. The pegmatite swarm extending over 1.6km by 3km from St John southward into
the Cowan project area has the potential to host large tonnages based on the wide distribution and
width of drill and trench pegmatite intercepts. However, the tantalum grade is generally modest
and the lithium content is expected to be variable based on visual assessment of old drill samples.
Despite the high pegmatite hit rate in RC drilling at Bald Hill and surrounding prospects and the
relatively high success rate of the pegmatites to contain economic tantalum resources the area
remains significantly underexplored for lithium. An example of this is the Lake Side prospect where
several outcrops of vertical pegmatites contain significant levels of spodumene, however no drill
holes were ever drilled there.
Table 3 | Bald Hill Mine Resources and Reserves
Classification1 Tonnes Ta2O5 Contained Ta2O5
(million) ppm kg
Probable – Reserve2 1.69 303 510,000
Indicated – Resource2 0.65 306 200,000
Inferred Resource2 1.10 339 370,000
Notes
1 Resources and Reserves reported to JORC 2012.
2 Refer to AMAL announcement released to the Singapore Exchange Securities Trading
Limited on 12 August 2016 “Independent Qualified Person’s Report on the Bald Hill
Tantalum Project” including relevant JORC Code Explanations Table 1 sections 1,2,3 and
4 contained therein.
3 The Company is not in possession of any new information nor has there been any
material changes to supporting information for the estimates. The JORC 2012
estimations are considered adequate for tantalum based on current knowledge,
however the Company will undertake further verification of Resources including
additional drilling to confirm prior results and determine lithium grades.
Initial Exploration Planned
Drilling is currently focused on the existing Mining Leases with initial wide spaced holes planned to
be drilled deeper than 100m to gain an understanding of the potential for stacked pegmatites. This
understanding will guide the depth of drilling for infill RC drilling within and close to current pit
designs, where lithium results are lacking and core drilling will be undertaken to obtain additional
metallurgical samples.
Exploration drilling will also be undertaken on spodumene bearing pegmatites on the St John Mining
Leases and the western Retention Licence.
Terms of the Lithco No.2 Pty Ltd Option Agreement
Tawana has entered an option agreement to acquire all the shares in Lithco for an option fee of
$25,000 payable immediately. The Company can exercise the option to acquire Lithco any time
before 31 December 2016 for 50,000,000 Tawana shares.
Tawana will be seeking shareholder approval for the acquisition of Lithco and the issue of the
50,000,000 shares. A Notice of Meeting to Shareholders will be sent in the next couple of weeks
which will include an independent experts report. Although none of the Lithco shareholders are
substantial holders for the purposes of ASX Listing Rule 10.1, Tawana will include sufficiently detailed
information in its notice of meeting to allow for an informed voting decision. In addition to an
independent expert’s report on the Lithco acquisition, Tawana would include detailed disclosure on
the Bald Hill project and the effect of the acquisition on its capital structure and corporate intentions
generally.
Terms of the Farm In Agreement and Joint Venture Arrangement Lithco has with Alliance Mineral
Assets Limited
Lithco has entered into a Farm-In and Joint Venture arrangement with Alliance Mineral Assets
Limited (“AMAL”) with respect to AMAL’s Bald Hill project in Western Australia for the purpose of
joint exploration and exploitation of lithium and other minerals.
The commercial terms require Lithco:
1. to spend, by 31 December 2017 (or such later date as may be agreed between the parties), a
minimum of $7.5 million on exploration, evaluation and feasibility (including administrative
and other overhead costs in relation thereto) (“Expenditure Commitment”); and
2. to spend, $12.5 million in capital expenditure required for upgrading and converting the
plant for processing ore derived from the Project, infrastructure costs, pre-stripping
activities and other expenditures including operating costs (“Capital Expenditure”).
Upon completion of the Expenditure Commitment, Lithco shall be entitled to 50% of all rights to
lithium minerals from the tenements comprising the Project (“Tenements”).
Upon completion of the Expenditure Commitment and Capital Expenditure, Lithco will be entitled to
a 50% interest in the Project (being all minerals from the Tenements and the processing plant and
infrastructure at Bald Hill).
Upon completion of the Expenditure Commitment and Capital Expenditure and subject to entering
into binding definitive farm-in and joint venture agreements, a joint venture between Lithco and
AMAL will be formed and funded 50:50 by Lithco and AMAL.
Board Changes
The Company also wishes to announce at this time that Mr Michael Bohm has stepped down
effective 21 October 2016 as a Director due to increased other work commitments. Mr Bohm has
been replaced in the role of Chairman by Mr Rob Benussi who is an existing non-executive Director
of the Company. Mr Benussi commented on taking on the role of Chairman “Over the last 12
months Mike has had a hands-on role and played an integral part in transitioning Tawana from a
Company with a single West African iron ore project to one that now has advanced lithium projects
in Australia and Namibia. With that the Company has acquired an experienced management team
along with a strong shareholder support base. The board and I wish to thank Mike for the significant
time he dedicated to the Company and to wish him all the very best. We look forward to building on
what the team has achieved over the last 12 months as we look to progress Tawana toward the
project development phase”.
Lastly, Mark Calderwood, the Company’s Chief Executive Officer has been appointed Managing
Director also effective 21 October 2016.
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, an
employee of the Company. Mr Calderwood is a member of The Australasian Institute of Mining and
Metallurgy. Mr Calderwood has 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 Calderwood consents 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.
Table 4a | Drill Intercepts from Holes with Lithium Pegmatite Intercepts, Assay for
Lithium
location HOLE ID From To m Li2O Ta205 Li2O Pegmatite
Eqv.(1)
(2)
% ppm Type
%
North 12 3 10.8 7.8 0.59 491 1.31 zoned Li Ta
Incl. 6 9 3 1.36 580 2.20
13 3 7.3 4.3 1.49 367 2.02 zoned Li Ta
Incl. 4 7 3 2.11 277 2.51
BH85-08 3 10 7 1.39 456 2.05 zoned Li Ta
Incl. 4 8 4 2.30 278 2.70
East AMBC120 31 36 5 0.78 308 1.23 Li Ta
Incl. 32 35 3 1.13 303 1.57
AMBC123 35 41 6 0.37 190 0.65 Li Ta
AMBC124 31 35 4 0.32 271 0.71 Li Ta
AMBC130 36 39 3 0.57 1,505 2.76 Li Ta
AMBC132 14 21 7 0.55 371 1.09 Li Ta
South 37 5 8 3 0.40 532 1.18 zoned Li Ta
38 0 6 6 0.24 638 1.17 zoned Li Ta
28 0 3.5 3.5 0.34 557 1.15 zoned Li Ta
Incl. 2 3 1 0.73 530 1.50
29 6 9 3 0.38 597 1.25 Li Ta
30 4 7.5 3.5 0.28 560 1.10 zoned Li Ta
Incl. 5 7 2 0.46 504 1.19
35 16 20 4 0.21 440 0.85 zoned Li Ta
BH85-19 3 9 6 0.62 307 1.06 zoned Li Ta
Incl. 4 7 3 1.13 420 1.74
BH85-20 4 7 3 0.14 250 0.51 Li Ta
BH85-27 17 25 8 0.73 244 1.08 zoned Li Ta
Incl. 19 21 2 2.54 220 2.86
BH85-28 6 9 3 0.38 333 0.87 zoned Li Ta
Incl. 7 8 1 0.90 190 1.18
BH85-29 18 21 3 0.12 340 0.61 zoned Li Ta
South East AMBC073 19 31 12 0.23 218 0.55 zoned Li Ta
Incl. 22 24 2 0.92 158 1.15
AMBC076 28 37 9 0.23 401 0.82 zoned Li Ta
Incl. 29 31 2 0.70 184 0.97
AMBC082 4 11 7 0.43 185 0.70 zoned Li Ta
Incl. 8 10 2 0.94 103 1.09
14 21 7 0.49 87 0.62 zoned Li Ta
AMBC095 21 30 9 0.55 130 0.74 zoned Li Ta
Incl. 22 25 3 1.12 171 1.36
AMBC096 30 37 7 0.61 180 0.88 zoned Li Ta
Incl. 31 35 4 0.94 140 1.14
AMBC101 20 25 5 0.37 175 0.62 zoned Li Ta
Incl. 21 22 1 1.17 379 1.72
Table 4a Cont. | Drill Intercepts from Holes with Lithium Pegmatite Intercepts, Assay for
Lithium
location HOLE ID From To m Li2O Ta205 Li2O Pegmatite
Eqv.(1)
(2)
% ppm Type
%
South East AMBC105 16 19 3 1.10 485 1.81 zoned Li Ta
41 46 5 0.28 330 0.76 Ta
AMBC107 26 31 5 0.31 214 0.62 Li Ta
40 49 9 0.26 344 0.76 zoned Li Ta
AMBC108 22 37 15 0.14 213 0.45 zoned Li Ta
Incl. 26 28 2 0.58 122 0.76
AMBC111 10 15 5 0.20 177 0.45 zoned Li Ta
AMBC114 21 26 5 1.56 118 1.73 Li Ta
West 1 0 4.5 4.5 0.26 262 0.64 zoned Li Ta
Incl. 1 2 1 0.98 230 1.31
2 0 5.5 5.5 0.33 213 0.64 zoned Li Ta
Incl. 0 2 2 0.54 185 0.81
4 7 16 9 0.45 315 0.91 Li Ta
21 15 23 8 0.14 214 0.45 zoned Li Ta
Incl. 18 19 1 0.80 190 1.08
22 9 17 8.5 0.58 186 0.85 zoned Li Ta
Incl. 10 15 5 0.90 194 1.18
31 4 15 11 0.53 571 1.36 zoned Li Ta
Incl. 5 8 3 1.08 383 1.64
Bore line AMBC011 13 23 10 0.32 143 0.53 zoned Li Ta
Incl. 15 21 6 0.43 103 0.58
AMBC019 15 26 11 0.23 162 0.46 zoned Li Ta
Incl. 20 24 4 0.50 121 0.68
AMBC028 13 21 8 0.21 153 0.43 zoned Li Ta
Incl. 14 16 2 0.58 76 0.69
AMBC030 24 30 6 0.46 201 0.76 zoned Li Ta
AMBC036 24 29 5 0.26 305 0.70 zoned Li Ta
AMBC037 24 31 7 0.75 78 0.87 zoned Li Ta
Incl. 25 29 4 1.19 76 1.30
AMBC038 25 32 7 0.30 191 0.57 zoned Li Ta
Incl. 25 28 3 0.61 104 0.76
AMBC046 22 31 9 0.28 132 0.47 zoned Li Ta
Incl. 25 28 3 0.62 86 0.74
AMBC047 23 34 11 0.11 208 0.42 zoned Li Ta
AMBC048 25 32 7 0.82 178 1.08 zoned Li Ta
Incl. 26 30 4 1.35 210 1.66
AMBC049 28 35 7 0.50 218 0.82 zoned Li Ta
Incl. 29 32 3 0.99 176 1.25
AMBC050 28 34 6 0.47 209 0.78 Li Ta
AMBC051 19 31 12 0.51 346 1.01 zoned Li Ta
Incl. 23 29 6 0.88 264 1.26
Bore line South 68 6 10.8 4.8 0.95 128 1.13 zoned Li Ta
Incl. 6 8 2 2.18 52 2.26
Notes
1) Li2O equivelent grade assuming $65/Lb for Ta2O5 and $100/% for contained Li2O.
2) Pegmatite type including Li Ta (Lithium Tanalum) and zoned Li Ta (zoned Lithium Tantalum).
3) Most intercepts at Bald Hill are 80-100% of true width.
Table 4b | Drill Hole Details to Holes in Table 4a
HOLE GDA94 GDA94 RL Azm Declination Depth Drill
ID East North (m) (°) (°) (m) Method
1 421855 6512985 295.0 0 -90 7 RC
2 421802 6512996 293.0 0 -90 20 RC
4 421875 6512942 295.0 58 -60 18 RC
12 422056 6512895 299.0 259 -60 15 RC
13 422115 6512902 298.0 258 -60 24 RC
15 422069 6512846 300.0 261 -60 25 RC
21 421854 6512915 293.0 0 -90 27 RC
22 421838 6512895 293.0 0 -90 25 RC
28 422004 6512624 295.0 0 -90 6 RC
29 422018 6512630 295.0 255 -60 11 RC
30 422061 6512638 297.0 0 -90 34 RC
31 421794 6512936 292.0 0 -90 15 RC
34 422044 6512528 291.0 0 -90 20 RC
35 422067 6512538 292.0 256 -60 33 RC
37 422110 6512548 293.0 0 -90 30 RC
38 422167 6512557 295.0 0 -90 8 RC
49 422097 6512237 282.0 253 -60 6 RC
53 422267 6511712 273.0 0 -90 20 RC
68 422353 6511322 284.0 0 -90 14 RC
AMBC011 422454 6511740 274.2 0 -90 39 RC
AMBC019 422421 6511743 274.1 0 -90 37 RC
AMBC028 422376 6511749 274.1 0 -90 31 RC
AMBC030 422345 6511728 274.0 0 -90 37 RC
AMBC036 422285 6511659 272.3 0 -90 37 RC
AMBC037 422300 6511672 272.7 0 -90 43 RC
AMBC038 422311 6511686 273.0 0 -90 36 RC
AMBC046 422333 6511712 273.6 0 -90 37 RC
AMBC047 422332 6511694 273.3 0 -90 43 RC
AMBC048 422325 6511678 272.9 0 -90 37 RC
AMBC049 422314 6511663 272.5 0 -90 37 RC
AMBC050 422302 6511651 272.1 0 -90 37 RC
AMBC051 422284 6511638 271.8 0 -90 37 RC
AMBC073 422192 6512346 286.8 0 -90 37 RC
AMBC074 422170 6512342 286.4 0 -90 43 RC
AMBC076 422120 6512334 285.3 0 -90 43 RC
AMBC078 422125 6512310 284.9 0 -90 49 RC
AMBC082 422217 6512326 287.0 0 -90 31 RC
AMBC083 422248 6512332 287.3 0 -90 37 RC
AMBC095 422134 6512257 283.1 0 -90 37 RC
Table 4b Cont. | Drill Hole Details to Holes in Table 4a
HOLE GDA94 GDA94 RL Azm Declination Depth Drill
ID East North (m) (°) (°) (m) Method
AMBC096 422164 6512260 283.3 0 -90 49 RC
AMBC100 422257 6512286 285.5 0 -90 31 RC
AMBC101 422271 6512289 285.6 0 -90 31 RC
AMBC105 422197 6512245 282.7 0 -90 49 RC
AMBC107 422178 6512372 287.2 0 -90 61 RC
AMBC108 422219 6512377 288.0 0 -90 61 RC
AMBC109 422235 6512379 287.8 0 -90 37 RC
AMBC111 422274 6512383 287.2 0 -90 31 RC
AMBC114 422252 6512398 287.9 0 -90 43 RC
AMBC115 422232 6512398 288.4 0 -90 43 RC
AMBC117 422118 6512738 300.1 0 -90 61 RC
AMBC118 422146 6512742 298.9 0 -90 55 RC
AMBC119 422172 6512747 298.5 0 -90 61 RC
AMBC120 422197 6512752 297.6 0 -90 61 RC
AMBC121 422221 6512756 297.3 0 -90 61 RC
AMBC123 422193 6512778 297.8 0 -90 55 RC
AMBC124 422166 6512771 298.7 0 -90 55 RC
AMBC130 422182 6512828 298.0 0 -90 49 RC
AMBC132 422136 6512818 298.7 0 -90 31 RC
BH85-08 422036 6512940 298.0 0 -90 12 RC
BH85-19 422066 6512640 297.0 0 -90 9 RC
BH85-20 422007 6512576 293.0 0 -90 22 RC
BH85-27 422029 6512530 291.0 0 -90 26 RC
BH85-28 422098 6512545 292.0 0 -90 24 RC
BH85-29 422074 6512489 290.0 0 -90 25 RC
BH85-30 422096 6512497 290.0 0 -90 25 RC
BH85-31 422131 6512501 291.0 0 -90 18 RC
Appendix 1
Section 1 Sampling Techniques and Data
Criteria JORC Code Explanation Commentary
Sampling Nature and quality of sampling (e.g. cut 1983-1988
techniques channels, random chips, or specific
specialised industry standard ? Surveying, mapping & analysis RC, RAB drillholes.
measurement tools appropriate to the ? Costeans sampled along walls..
minerals under investigation, such as ? 2-3kg drill samples collected at 1m intervals or
down hole gamma sondes, or handheld less.
XRF instruments, etc.). These examples ? Samples jaw crushed and riffle split to 100-150g
should not be taken as limiting the broad for pulverizing by roll milling and ring grinding.
meaning of sampling. ? XRF determination of Ta2O5, Nb2O5 & Sn by SGS
Australia Pty. Only limited anaylsis for Li
undertaken.
? No evidence of certified standards or blanks. Field
Include reference to measures taken to
duplicates submitted at 1 in 25 in drilling & 1 in 10
ensure sample representivity and the
costeaning.
appropriate calibration of any
? Assays greater than 800ppm Ta2O5 repeated by
measurement tools or systems used.
laboratory.
? Check assays completed at Greenbushes Analytical
Laboratories 1996-1999.
Aspects of the determination of 2000-2009
mineralisation that are Material to the
Public Report. In cases where ‘industry ? RC & RAB samples collected at 1m intervals or part
standard’ work has been done this would thereof, in intersected pegmatites.
be relatively simple (e.g. ‘reverse ? Samples riffle split to two 2.5kg samples pulverized
circulation drilling was used to obtain 1 m and analysis at laboratory as duplicates. Average of
samples from which 3 kg was pulverised assays in database.
to produce a 30 g charge for fire assay’). ? Field duplicates added to end of 2004 drilling.
In other cases more explanation may be ? Certified blanks and standards of appropriate
required, such as where there is coarse Ta2O5 grade reported in laboratory results. No
gold that has inherent sampling problems. Lithium analysis undertaken.
Unusual commodities or mineralisation ? Repeat analyses on approximately 10% of samples
types (e.g. submarine nodules) may 2001-2013.
warrant disclosure of detailed
information.
2014
? RC samples at 1m intervals.
? Samples split to 3-4kg pulverized and analysis at
laboratory. Ta, Nb, Sn and Li analysis was
undertaken.
? Standards of appropriate grade & lab repeats
reported in laboratory results.
? Field duplicates taken & submitted for analysis at 1
in 10 in drilling.
Drilling Drill type (e.g. core, reverse circulation, RC and RAB drilling conducted in line with general industry
techniques open-hole hammer, rotary air blast, standards.
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 Most drilling was vertical.
is oriented and if so, by what method,
etc.).
Criteria JORC Code Explanation Commentary
Drill Method of recording and assessing Chip recovery or weights for RC and RAB drilling were not
sample core and chip sample recoveries and conducted.
recovery results assessed.
It is not possible to establish if relationship between
sample recovery and sample grades exists
Measures taken to maximise sample
recovery and ensure representative
nature of the samples.
Opportunity for sample bias is considered negligible.
Whether a relationship exists
between sample recovery and grade
and whether sample bias may have
occurred due to preferential
loss/gain of fine/coarse material.
Logging Whether core and chip samples have Geological logs exist for most drill holes with lithological
been geologically and geotechnically codes via an established reference legend.
logged to a level of detail to support
appropriate Mineral Resource
estimation, mining studies and Drillholes have been geologically logged in their entirety
metallurgical studies. but the detail in the logging varied significantly. Where
logging was detailed the subjective indications of
Whether logging is qualitative or spodumene content have been added to cross sections
quantitative in nature. Core (or contained in Figure 3.
costean, channel, etc.) photography
The total length and percentage of
Assays have generally only been submitted through and
the relevant intersections logged.
adjacent to the pegmatites.
Sub- If core, whether cut or sawn and RC samples were collected at 1m intervals and riffle split
sampling whether quarter, half or all core on-site to produce a subsample less than 5kg.
techniques taken.
and sample
preparation If non-core, whether riffled, tube
The RC drilling samples are considered robust for sampling
sampled, rotary split, etc. and the tantalite mineralisation.
whether sampled wet or dry.
For all sample types, the nature,
quality and appropriateness of the It appears most samples were dry.
sample preparation technique.
Quality control procedures adopted
Sampling is in line with general sampling practices of that
for all sub-sampling stages to time.
maximise representivity of samples.
Measures taken to ensure that the
sampling is Field duplicates, laboratory standards and laboratory
repeats were used to monitor analyses.
Criteria JORC Code Explanation Commentary
representative of the in situ material
collected, including for
Sample size for RC drilling is considered appropriate for
instance results for field the tantalite mineralization.
duplicate/second-half sampling.
Whether sample sizes are
appropriate to the grain size of
the material being sampled.
Quality of The nature, quality and appropriateness The XRF assay technique is considered to be robust.
assay data of the assaying and laboratory Standards, blanks and duplicates were submitted in varying
and procedures used and whether the frequency throughout the exploration campaigns.
laboratory technique is considered partial or total.
tests
For geophysical tools, spectrometers,
handheld XRF instruments, etc., the Bald Hill operated as a producing mine until 2006, during
parameters used in determining the which verification of assay results from drilling was
analysis including instrument make and conducted.
model, reading times, calibrations
factors applied and their derivation, etc.
Nature of quality control procedures No geophysical methods were used to determine assay
adopted (e.g. standards, blanks, results.
duplicates, external laboratory checks)
and whether acceptable levels of
accuracy (i.e. lack of bias) and precision
have been established.
Verification The verification of significant The correlations made between closely spaced holes is
of sampling intersections by either independent or considered reasonable. No twinning of holes was
and assaying alternative company personnel. undertaken
The use of twinned holes. The Ta and Li assays show a marked correlation with the
pegmatite intersections via elevated downhole grades.
Documentation of primary data, data
entry procedures, data verification, data Drill logs exist for all holes either as electronic files or
storage (physical and electronic) hardcopy.
protocols.
All drilling data has been loaded to a database and
Discuss any adjustment to assay data. rigorously validated prior to use.
Criteria JORC Code Explanation Commentary
Graphical verification was made to see that elevated
tantalum and lithium assays correlated with the assigned
downhole lithology.
Location of Accuracy and quality of surveys used to Collar coordinates were derived from a 1983 50m by 50m
data points locate drill holes (collar and down-hole local grid. This was resurveyed in 1996.
surveys), trenches, mine workings and
other locations used in Mineral Resource
estimation.
The drilling coordinates prior to 2014 have been
transformed to produce GDA94 coordinates.
Specification of the grid system used. 2014 drilling was surveyed via a Differential GPS to
produce GDA94 coordinates.
Quality and adequacy of topographic
control.
The area is of low relief and topographic control is of
reasonable accuracy.
Data spacing Data spacing for reporting of Exploration The majority of the drill holes ranged from 20m by 20m to
and Results. 25m by 25m on rotated grids.
distribution
Whether the data spacing and The spacing of holes is considered adequate for the
distribution is sufficient to establish the Mineral Resource estimation and classification.
degree of geological and grade continuity
appropriate for the Mineral Resource and
Ore Reserve estimation procedure(s) and
classifications applied. There is no evidence of sample compositing.
Whether sample compositing has been
applied.
Orientation Whether the orientation of sampling The majority of drilling was vertical.
of data in achieves unbiased sampling of possible
relation to structures and the extent to which this is
geological known, considering the deposit type.
structure The lithium tantalite-bearing pegmatites are generally flat
If the relationship between the drilling to shallowly dipping in nature. Therefore, the majority of
orientation and the orientation of key drilling intercepts are assumed to be only marginally
mineralised structures is considered to greater than true width, with minimal opportunity for
have introduced a sampling bias, this sample bias.
should be assessed and reported if
material.
Criteria JORC Code Explanation Commentary
Sample The measures taken to ensure sample The procedures applied were aligned to the industry
security security. practices prevailing at the time of sample collection,
despatch, and analysis. Given the relative grade and value
of the commodity, the procedures are considered to be
adequate.
Audits or The results of any audits or reviews of Prior to 1989 Fugro Spatial Solutions Pty Ltd were
reviews sampling techniques and data. commissioned to confirm collar locations of a selected
number of drillholes.
Section 2 Reporting of Exploration Results
Criteria Explanation Commentary
Mineral Type, reference name/number, The portfolio of mineral tenements, comprising mining
tenement and location and ownership including leases, exploration licences, prospecting licences,
land tenure agreements or material issues with miscellaneous licences, a general-purpose lease, and a
status third parties such as joint ventures, retention lease are in good standing.
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
licence to operate in the area.
Exploration Acknowledgment and appraisal of Alluvial tantalite has been mined periodically from the early
done by other exploration by other parties. 1970s.
parties
Gwalia Consolidated Limited undertook exploration for
tantalite-bearing pegmatites from 1983-1998. Work included
mapping, costeaning, and several phases of drilling using
RAB, RC, and diamond methods. The work identified
mineral resources that were considered uneconomic at the
time.
Haddington entered agreement to develop the resource and
mining
? commenced in 2001 and continued until 2005.
? Haddington continued with exploration until 2009.
Living Waters acquired the project in 2009 and continued
with limited exploration to the north of the main pit area.
Criteria Explanation Commentary
Geology Deposit type, geological setting and The Bald Hill area is underlain by generally north-striking,
style of mineralisation. steeply dipping Archaean metasediments (schists and
greywackes) and granitoids.
Felsic porphyries and pegmatite sheets and veins have
intruded the Archaean rocks. Generally, the pegmatites
parallel the regional foliation, occurring as gently dipping
sheets and as steeply dipping veins.
The pegmatites vary in width and are generally comprised
quartz-albite- muscovite-spodumene in varying amounts.
Late-stage albitisation in the central part of the main
outcrop area has resulted in fine- grained, banded, sugary
pegmatites with visible fine-grained, disseminated
tantalite. A thin hornfels characterised by needle
hornblende crystals is often observed in adjacent country
rocks to the pegmatite.
Intrusives. Tantalite generally occurs as fine disseminated
crystals commonly associated with fine-grained albite
zones, or as coarse crystals associated with cleavelandite.
Weathering of the pegmatites yields secondary mineralised
accumulations in alluvial/eluvial deposits.
Drill hole A summary of all information Only results for drill holes that have intercepted lithium
Information material to the understanding of the pegmatites of 2m or more in width that have been assayed
exploration results including a for lithium have been included in the release.
tabulation of the following
information for all Material drill
holes:
All drill hole details are contained in Table 4b of the
• easting and northing of the release.
drill hole collar
• 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.
Criteria Explanation Commentary
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 In reporting Exploration Results, No cutting to intercept grades has been undertaken.
aggregation weighting averaging techniques,
methods maximum and/or minimum grade
truncations (e.g. cutting of high
grades) and cut-off grades are Reported intervals in Table 4a represent the aggregation of
usually Material and should be the entire intercept of the mineralised body, higher grade
stated. zones are included where the grade varies significantly from
the average of the entire width of the mineralised
Where aggregate intercepts pegmatite. Only lithium and tantalum oxide results are
incorporate short lengths of high tabled, other potential by-products are currently considered
grade results and longer lengths of to be insignificant in economic importance.
low grade results, the procedure
used for such aggregation should be
stated and some typical examples of
Insitu lithium oxide equivalent grades have been included in
such aggregations should be shown in
Table 4a This has been calculated on the basis of
detail.
US$65/pound ($145.6/kg) for contained tantalum pentoxide
The assumptions used for any and US$100 per % of contained lithium oxide. These a
reporting of metal equivalent values broadly consistent with recent market rates for comparable
should be clearly stated. products and do not take into account premiums paid for
Bald Hill tantalum concentrates.
Relationship These relationships are particularly The majority of drilling completed at Bald Hill was vertical
between important in the reporting of holes. The tantalite-bearing pegmatites are generally flat to
mineralisation Exploration Results. shallowly dipping in nature. Therefore, the majority of
widths and drilling intercepts are assumed to be only marginally greater
intercept than true width.
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 lengths are reported, there
should be a clear statement to this
effect (e.g. ‘down hole length, true
width not known’).
Criteria Explanation Commentary
Diagrams Appropriate maps and sections (with Drilling locations of RC and Diamond holes deeper than 30m
scales) and tabulations of intercepts are shown on figure 3 of the release.
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 of Results for all drill holes that have intercepted lithium
reporting all Exploration Results is not pegmatites that have been assayed for lithium have been
practicable, representative included in the release.
reporting of both low and high
grades and/or widths should be
practiced to avoid misleading
reporting of Exploration Results.
Other Other exploration data, if Bottom of hole (non pegmatite) lithium geochemistry data
substantive meaningful and material, should be has been successful in highlighting areas close to
exploration reported including (but not limited pegmatites.
data to): geological observations;
geophysical survey results;
geochemical survey results; bulk
samples – size and method of The incomplete metallurgical test work for spodumene
treatment; metallurgical test referred to in the release is currently being undertaken by
results; bulk density, groundwater, Nagrom. Nagrom has extensive experience with Tantalum
geotechnical and rock and Lithium extraction testwork and has ISO9001:2008
characteristics; potential deleterious accreditation. Results have been reported without
or contaminating substances. interpretation.
Further work The nature and scale of planned Further RC and diamond drilling is warranted at the various
further work (e.g. tests for lateral deposits to explore for additional resources and improve the
extensions or depth extensions or understanding of the current resources prior to mining.
large-scale step-out drilling).
Most of the pegmatites shown on figures are open ended
and are a function of shallow drilling. This is highlighted in
Diagrams clearly highlighting the figure 3 Where only holes deeper than 30 have been shown.
areas of possible extensions, Holes shallower that 30m are considered to not have
including the main geological adequately tested the potential for generally flat lying
interpretations and future drilling unmined pegmatites.
areas, provided this information is
not commercially sensitive.
24 October 2016
Sponsor
PricewaterhouseCoopers Corporate Finance (Pty ) Ltd
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