Wrap Text
Significant Lithium Intercepted at 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”)
SIGNIFICANT LITHIUM INTERCEPTED AT BALD HILL MINE
ALL GRAPHICS HAVE BEEN REMOVED FOR SENS PURPOSES. PLEASE REFER TO TAWANA’SWEBSITE FOR THE FULL
ANNOUNCEMENT
Tawana Resources NL (“Tawana” or the “Company”) is pleased to announce an update on the Bald Hill Mine in
Western Australia.
As previously announced, Tawana has an option to acquire Lithco No 2 Pty Ltd (“Lithco”) which has entered into a
Farm-In and Joint Venture arrangement with SGX listed Alliance Mineral Assets (“AMAL”) for the purpose of
exploration and joint exploitation of lithium and other minerals.
An early stage step-out exploratory drilling program commenced at Bald Hill and is targeted at adding to the overall
understanding of the resource potential extending from the current permitted pit design. The drilling is part of a
larger program to upgrade resources and reserves to support possible re-commencement of mining in 2017. There
are two rigs working on the Mining Lease and another operating on the Company’s neighbouring Cowan Lithium
Project. The number of rigs is likely to increase in January.
Lithco is ramping up engineering studies focused on adding a spodumene concentrator and infrastructure upgrades.
The current concept study is a precursor to detailed planning commencing in the New Year.
Recent Highlights
- Initial very wide-spaced drilling at Bald Hill has intercepted multiple mineralised pegmatites up to 30m wide over
a large area, indicating significant resource potential. Ongoing drilling is continuing to expand the pegmatite
footprint.
- Results have been received for five RC holes south of the South Pit, including;
LRC0005 - 9m at 1.65% Li2O from 140m;
LRC0006 - 23m at 1.15% Li2O from 107m including 15m at 1.33% Li2O from 108m. The hole also intercepted a Li
Ta pegmatite returning 8m at 0.95% Li2O and 381ppm Ta2O5 from 73m;
LRC0007 - 8m at 1.30% Li2O from 109m and 15m at 1.18% Li2O from 127m including 8m at 1.61% Li2O from
134m.
- Lithium grades appear stronger to the south and at depth and tantalum is more abundant in the north. Pegmatites
are generally wider to the south.
- Phase one metallurgical test work completed with excellent results.
- Concept study for spodumene concentrator has commenced, the aim of the study is estimate the cost and time
required to install a spodumene concentrator.
- Approaches received from several significant entities within the lithium supply chain with strong demand to obtain
near-term spodumene concentrate.
Managing Director Mark Calderwood stated: “The first ever program focused on lithium at Bald Hill has resulted in
early success and we expect that over the coming months the resource potential will unfold as we increase the
pegmatite footprint to the south and west. The Company expects to release an exploration update from the
neighbouring Cowan Project next week.”
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, owned by Alliance Mineral
Assets Limited (“AMAL”), includes a permitted tantalum (pegmatite) mine, processing facility and
associated infrastructure.
Lithco No 2 Pty Ltd (“Lithco”) has entered into a Farm-In and Joint Venture arrangement with AMAL for
the purpose of joint exploration and exploitation of lithium and other minerals. Tawana has entered an
option agreement to acquire all the shares in Lithco.
Recent Drilling by Lithco
Deeper extensional drilling has commenced on the Bald Hill mining lease, on a nominal 320m x 160m grid. To
date a total of 13 deeper RC holes have been completed for which results have been received for seven
holes. Core drilling has commenced to obtain additional metallurgical samples and as tails to the RC holes
that have not reached target depth.
The drilling has intercepted significant spodumene mineralisation south of the largest pit (South Pit) within
pegmatites that are interpreted as those previously mined and newly discovered larger pegmatite/s located
in the footwall.
Table 1| Significant Lithium Intercepts - Extensional Drilling
Hole ID From To Interval Li2O Ta2O5 Nb2O5 SnO2 Li2O
m m m % ppm ppm ppm Eqv.(1) %
LRC0005 140 149 9 1.65 125 73 180 1.83
incl 140 142 2 3.06 79 54 174 3.18
and 145 149 4 2.03 57 40 166 2.11
LRC0006 73 81 8 0.95 381 173 166 1.50
incl 74 78 4 1.33 485 217 212 2.04
107 130 23 1.15 166 107 107 1.39
incl 108 123 15 1.33 173 113 107 1.58
incl 120 123 3 2.10 143 119 112 2.31
LRC0007 109 117 8 1.30 93 116 58 1.44
127 142 15 1.18 74 113 47 1.29
and 134 142 8 1.61 81 119 58 1.73
Notes
1) Li2O Equivelent grade is estimated based on the formula set out in Appendix 1.
2) The true width of pegmatites are generally considered 85-95% of the intercept width.
3) Details of Drill Holes and Pegmatite Intercepts are contained in Table 2.
There are strong indications that the pegmatites in the Bald Hill mine grade from narrow and tantalum rich
in the North to North East to wider and lithium rich in the South to South West. Where there are multiple
sub-horizontal pegmatites, the shallow ones tend to be richer in tantalum and deeper ones richer in
lithium.
Wider pegmatites show indications of mature pegmatite zoning with lithium rich and lithium poor zones.
Examples of this are;
- LRC0005 where a 2m central quartz feldspar zone (core) contains 0.06% Li2O whilst the spodumene
rich inner zones each side of this averaged 2.20% and 2.03% Li2O over 3m and 4m respectfully.
- LRC0007 where four discrete outer zones representing 17m of the 34m pegmatite interval averaged
1.51% Li2O whilst the central zone averaged 0.22% Li2O.
This zoning on the larger sub-horizontal pegmatites will provide opportunity for selective mining
particularly given the coarse and highly visible spodumene.
RC and core drilling will continue to expand the footprint of the pegmatite and undertaken infill drilling
within the permitted pit design to better delineate spodumene zones for detailed mine planning.
Metallurgical Testwork
Metallurgical test work results announced 24 October 2016, page 4, showed potential to produce high grade
DMS concentrates. Subsequently sighter floatation test-work on combined <1mm Reflux Classifier and low
grade >1mm DMS gravity concentrates (middlings) has been undertaken. The resulting floatation recovery
was favourable with returning a recovery of 74.7% at a grind size of P80 0.18mm, with a combined
concentrate grade of 6.42% Li2O.
The combined DMS and Floatation concentrates accounted for 83% of the calculated contained lithium at
an average grade of 6.1% Li2O with very low mica content. Further work will be undertaken to optimise
recovery and concentrate grade.
Proposed Engineering
A concept study has commenced with the aim of obtaining an indication of capital and operating costs for the
addition of a 1Mtpa spodumene concentrator. The study is being undertaken by Wave International in
conjunction with an owner’s team of consultants. The study proposes the use of contract mining, crushing and
concentrate haulage.
Off-Take Negotiations
Lithco/AMAL (“The JV”) have been approached by several significant entities within the lithium supply chain
with strong demand to obtain near term spodumene concentrate and has received written proposals from two
of the entities. Due to the apparent significant shortage of uncommitted spodumene in 2017-2018 to feed new
convertors, the JV will delay advanced negotiations until a definitive timeline to production can be determined.
However, The JV will continue to provide samples of concentrate product to converters to undertake test work
on lithium extraction.
Cowan Project
The Company plans to release an exploration update next week from the neighbouring Cowan Lithium Project,
where an RC rig is undertaking wide spaced exploratory drilling.
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
announcement or for any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this announcement.
Table 2| Drill Summary, Deeper Extensional Holes with Pegmatite Intercepts
Hole ID Easting Northing RL Depth Azm Dec. Type From To Width Pegmatite Visual
m m m m m m m Type Spod.(1)
LDD0001 421755 6512320 284 235 270 -60 RC/DD 22.9 24 1.1 Ta?
58.7 59.7 0.9 Li 5%
81.6 81.7 0.1 Barren? nil
82.1 83.2 1.1 Li 5%
100.3 113.3 13.0 Li 5-10%
146.7 153.9 7.2 Li 15%
LRC0001 421800 6512800 290 174 90 -60 RC 35.0 38.8 3.8 Ta N/R
154.5 156.0 1.5 Ta
LRC0002 422040 6512800 297 160 90 -60 RC 44.1 47.0 2.9 Ta, Li N/R
LRC0003 422240 6512320 286 174 270 -60 RC 0.0 4.5 4.5 Ta
15.9 16.9 1.0 Li, Ta
18.9 21.1 2.2 Ta
25.0 32.0 7.0 Li, Ta (zoned)
64.0 66.5 2.5 Ta, Li
89.0 91.0 2.0 Barren
94.0 95.1 1.1 Ta, Li
100.0 103.9 3.9 Ta
154.0 155.0 1.0 barren
LRC0004 422080 6512320 284 172 90 -60 RC 29.0 30.0 1.0 Ta N/R
90.0 102.6 12.6 Ta, Li (zoned)
159.4 161.1 1.7 barren
LRC0005 421920 6512320 283 163 90 -60 RC 34.0 36.5 2.5 Ta N/R
87.0 91.0 4.0 Ta
111.0 113.0 2.0 Ta, Li
135.0 154.0 19.0 Li (zoned)
LRC0006 421760 6512320 284 160 90 -60 RC 55.0 56.1 1.1 barren N/R
73.4 80.0 6.6 Li, Ta
107.7 130.0 22.3 Li, Ta
LRC0007 422260 6512000 277 151 90 -60 RC 57.3 59.0 1.7 Ta N/R
76.0 77.0 1.0 Ta
108.8 142.0 33.2 Li (zoned)
146.0 149.0 3.0 Ta, Li
LRC0014 421640 6512800 287 136 90 -60 RC 25.0 26.0 1.0 Ta?
65.1 79.0 13.9 Li, Ta (zoned) 3-70%
LRC0015 421560 6512800 286 122 90 -60 RC 0.0 1.0 1.0 Ta?
74.7 80.0 5.3 Li? 2-10%
LRC0016 422200 6512320 286 126 270 -60 RC 11.8 28.0 16.2 Li, Ta 1-30%
77.2 86.1 8.9 Li, Ta 7-15%
LRC0023 422100 6512000 282 123 90 -60 RC 80.9 96.9 16.0 Li 5-25%
LRC0024 421935 6512000 284 112 90 -60 RC 96.0 108.0 12.0 Li, Ta 0-35%
Notes
1) Visual esitmate of the range of spodumene content.
2) The true width of pegmatites are generally considered 85-95% of the intercept width.
3) N/R denotes not numerically recorded
Table 3| Drill Summary, Shallow Infill Northern Holes with Pegmatite Intercepts
Hole ID Easting Northing RL Depth Azm Dec. Type From To Width Pegmatite Visual
m m m m m m m Type Spod.(1)
LRC0008 421840 6512800 291 52 90 -60 RC 21.0 36.1 15.1 Ta, Li N/R
LRC0009 421880 6512800 292 52 90 -60 RC 34.0 41.0 7.0 Li, Ta? N/R
LRC0010 421920 6512800 293 46 90 -60 RC 28.8 37.1 8.3 Li? N/R
LRC0011 421960 6512800 294 40 90 -60 RC 29.1 32.0 2.9 Ta? N/R
LRC0012 422000 6512800 296 74 90 -60 RC 60.0 63.1 3.1 Li, Ta? N/R
LRC0013 421720 6512800 289 100 90 -60 RC 41.4 45.2 3.8 Ta, Li? N/R
69.0 70.0 1.0 barren?
LRC0017 421920 6513000 295 71 90 -60 RC mined
LRC0018 421840 6513000 294 95 90 -60 RC mined
LRC0019 421760 6513000 290 58 90 -60 RC 0.6 1.5 0.9 Ta? <1%
2.6 11.2 8.6 Ta? <1%
Notes
1) Visual esitmate of the range of spodumene content.
2) The true width of pegmatites are generally considered 85-95% of the intercept width.
3) N/R denotes not numerically recorded.
4) Assasys are penfing for hiles LRC009 to LRC0019.
Table 4| Significant Intercepts
From To Interval Li2O Ta2O5 Nb2O5 SnO2 Li2O
Hole ID m m m % ppm ppm ppm Eqv.(1) %
LRC0001 No Significant Intercepts
LRC0002 44 47 3 0.31 359 103 164 0.83
LRC0003 0 5 5 0.04 248 119 114 0.40
15 17 2 0.29 181 43 484 0.55
18 33 15 0.33 76 70 84 0.44
56 57 1 0.49 78 50 622 0.60
62 63 1 0.17 537 136 163 0.95
64 69 5 0.14 162 80 102 0.38
94 96 2 0.11 310 126 65 0.56
100 104 4 0.18 326 104 159 0.65
LRC0004 28 30 2 0.06 453 72 117 0.72
90 103 13 0.1 175 83 86 0.35
incl 94 96 2 0.17 501 90 151 0.90
LRC0005 87 91 4 0.03 335 106 113 0.52
95 97 2 0.24 176 57 90 0.50
111 113 2 0.32 180 97 104 0.58
134 140 6 0.26 104 59 161 0.41
140 149 9 1.65 125 73 180 1.83
incl 140 142 2 3.06 79 54 174 3.18
and 145 149 4 2.03 57 40 166 2.11
149 154 5 0.30 116 83 180 0.47
LRC0006 73 81 8 0.95 381 173 166 1.50
incl 74 78 4 1.33 485 217 212 2.04
107 130 23 1.15 166 107 107 1.39
incl 108 123 15 1.33 173 113 107 1.58
incl 120 123 3 2.1 143 119 112 2.31
LRC0007 109 117 8 1.30 93 116 58 1.44
127 127 8 0.22 28 59 38 0.26
127 142 15 1.18 74 113 47 1.29
Incl. 134 142 8 1.61 81 119 58 1.73
146 150 4 0.22 349 93 107 0.73
LRC0008 21 36 15 0.36 209 66 103 0.66
incl. 26 29 3 0.23 341 82 174 0.73
and 29 35 6 0.71 201 83 98 1.00
Notes
1) Li2O Equivelent grade is estimated based on the formula set out in Appendix 1.
2) Only intercepts of 0.3% Li2O or 150ppm Ta2O5 considered significant.
3) Assays for holes LDD0001 and LRC0009 to LRC0024 are pending
Appendix 1
Section 1 Sampling Techniques and Data
Criteria JORC Code Explanation Commentary
Sampling Nature and quality of sampling (e.g. cut channels, - Reverse Circulation Drilling
techniques random chips, or specific specialised industry - 1m samples collect
standard measurement tools appropriate to the
- Samples jaw crushed and riffle split to
minerals under investigation, such as down hole
gamma sondes, or handheld XRF instruments, 2-2.5kg for pulverizing to 80% passing
etc.). These examples should not be taken as 75 microns.
limiting the broad meaning of sampling. - Prepared samples are fused with
sodium peroxide and digested in dilute
Include reference to measures taken to ensure hydrochloric acid. The resultant
sample representivity and the appropriate solution is analysed by ICP, by Nagrom.
calibration of any measurement tools or systems
used. - Certified standards or blanks. Field
duplicates submitted at irregular
Aspects of the determination of mineralisation intervals at the rate of approximately
that are Material to the Public Report. In cases 1:25.
where ‘industry standard’ work has been done this - Check assays yet to be undertaken.
would be relatively simple (e.g. ‘reverse
circulation drilling was used to obtain 1 m samples
from which 3 kg was pulverised to produce a 30 g
charge for fire assay’). In other cases more
explanation may be required, such 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 Drill type (e.g. core, reverse circulation, open-hole RC and Diamond drilling conducted in line with
techniques hammer, rotary air blast, auger, Bangka, sonic, general industry standards.
etc.) and details (e.g. core diameter, triple or
standard tube, depth of diamond tails, face- All drill holes are angled
sampling bit or other type, whether core is
oriented and if so, by what method, etc.). Core has been oriented where possible
Drill Method of recording and assessing core and Chip recovery or weights for RC and RAB drilling
sample chip sample recoveries and results assessed. were not conducted.
recovery
Measures taken to maximise sample recovery Each metre of drill sample recovery and moisture
content is visually estimated and recorded.
and ensure representative nature of the
samples.
Opportunity for sample bias is considered
Whether a relationship exists between sample negligible for dry samples.
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 been Geological logs exist for all drill holes with
geologically and geotechnically logged to a lithological codes via an established reference
level of detail to support appropriate Mineral legend.
Resource estimation, mining studies and
Drillholes have been geologically logged in their
metallurgical studies. entirety. Where logging was detailed the
Whether logging is qualitative or quantitative subjective indications of spodumene content
in nature. Core (or costean, channel, etc.)
photography Assays have generally only been submitted
The total length and percentage of the through and adjacent to the pegmatites.
relevant intersections logged.
Criteria JORC Code Explanation Commentary
Sub- If core, whether cut or sawn and whether RC samples were collected at 1m intervals and
sampling quarter, half or all core taken. riffle split on-site to produce a subsample less
techniques If non-core, whether riffled, tube sampled, than 5kg.
and sample rotary split, etc. and whether sampled wet or
The RC drilling samples are considered robust for
preparation dry. sampling the spodumene and tantalite
For all sample types, the nature, quality and mineralisation.
appropriateness of the sample preparation
technique. Most samples were dry.
Quality control procedures adopted for all
sub-sampling stages to maximise Sampling is in line with general sampling
representivity of samples. practices.
Measures taken to ensure that the sampling is
representative of the in situ material Field duplicates, laboratory standards and
laboratory repeats are used to monitor analyses.
collected, including for
instance results for field duplicate/second- Sample size for RC drilling is considered
half sampling. appropriate.
Whether sample sizes are appropriate to the
grain size of
the material being sampled.
Quality of The nature, quality and appropriateness of the The assay technique is considered to be robust as
assay data assaying and laboratory procedures used and the method used (see above) offers total
and whether the technique is considered partial or dissolution of the sample and is useful for
laboratory total. mineral matrices that may resist acid digestions.
tests For geophysical tools, spectrometers, handheld
XRF instruments, etc., the parameters used in Standards, blanks and duplicates were submitted
determining the analysis including instrument in varying frequency throughout the exploration
make and model, reading times, calibrations campaign and internal laboratory standards,
factors applied and their derivation, etc. duplicates and replicates are used for
Nature of quality control procedures adopted (e.g. verification
standards, blanks, 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 intersections by No twinning of holes was undertaken
of sampling either independent or alternative company
and assaying personnel. The Ta and Li assays show a marked correlation
with the pegmatite intersections via elevated
The use of twinned holes. downhole grades.
Documentation of primary data, data entry Drill logs exist for all holes as both electronic
procedures, data verification, data storage files and hardcopy.
(physical and electronic) protocols.
All drilling data has been loaded to a database
Discuss any adjustment to assay data. and validated prior to use.
Location of Accuracy and quality of surveys used to locate drill Collar coordinates are currently only
data points holes (collar and down-hole surveys), trenches, approximate and considered accurate to within
mine workings and other locations used in Mineral 4m measured using hand held GPS. Accurate
Resource estimation. surveying will be undertaken at a later time.
Hole collars have been preserved until
Specification of the grid system used. completion of survey.
Quality and adequacy of topographic control.
Criteria JORC Code Explanation Commentary
Data spacing Data spacing for reporting of Exploration Results. The spacing of holes is considered not currently
and adequate for the Mineral Resource estimation
distribution Whether the data spacing and distribution is and classification.
sufficient to establish the degree of geological and
grade continuity appropriate for the Mineral There has been no sample compositing.
Resource and Ore Reserve estimation procedure(s)
and classifications applied.
Whether sample compositing has been applied.
Orientation Whether the orientation of sampling achieves The drilling is angled.
of data in unbiased sampling of possible structures and the
relation to extent to which this is known, considering the The lithium tantalite-bearing pegmatites are
geological deposit type. generally flat to shallowly dipping in nature. The
structure If the relationship between the drilling orientation true width of pegmatites are generally
and the orientation of key mineralised structures considered 85-95% of the intercept width, with
is considered to have introduced a sampling bias, minimal opportunity for sample bias.
this should be assessed and reported if material.
Sample The measures taken to ensure sample security. The RC samples are taken from the rig by
security experienced personal and stored securely and
transport to the laboratory by a registered
courier and handed over by signature.
Audits or The results of any audits or reviews of sampling No audits have been undertaken to date.
reviews techniques and data.
Section 2 Reporting of Exploration Results
Criteria Explanation Commentary
Mineral Type, reference name/number, The portfolio of mineral tenements, comprising mining leases,
tenement and location and ownership including exploration licences, prospecting licences, miscellaneous
land tenure agreements or material issues with licences, a general-purpose lease, and a retention lease are
status third parties such as joint ventures, 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 and
Information material to the understanding of the or tantalum pegmatites of 1m or more in width that have
exploration results including a been assayed for lithium have been included in the release.
tabulation of the following
information for all Material drill All drill hole details are contained in Table 2 and 3 of the
holes: release.
• easting and northing of the
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.
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 Assays are report as pure elements such as Li, Ta, Nb, Sn and
truncations (e.g. cutting of high converted to oxides using atomic formulas.
grades) and cut-off grades are
usually Material and should be Reported intervals in Table 1 and 4 represent the aggregation
stated. of the intercepts containing samples of at least 0.3% Li2O
Where aggregate intercepts and/or 150ppm Ta2O5, lower grade zones are included
incorporate short lengths of high adjacent to higher grade zones where the grade varies
grade results and longer lengths of significantly from the average of the entire width of the
low grade results, the procedure mineralised pegmatite. Only lithium, tin and niobium
used for such aggregation should be tantalum oxide results are tabled, other potential by-products
stated and some typical examples of are currently considered to be insignificant in economic
such aggregations should be shown in importance.
detail.
The assumptions used for any Insitu lithium oxide equivalent grades have been included in
reporting of metal equivalent values Tables 1 and 4. This has been calculated based on
should be clearly stated. US$65/pound ($145.6/kg) for contained tantalum pentoxide
and US$100 per % of contained lithium oxide and assumes
overall similar recovery of both Li and Ta minerals. These are
Criteria Explanation Commentary
broadly consistent with recent market rates for comparable
products and does not allow premiums paid for Bald Hill
tantalum concentrates. No value has been applied to
Niobium or Tin.
Relationship These relationships are particularly All recent drilling is angled.
between important in the reporting of
mineralisation Exploration Results. The lithium tantalite-bearing pegmatites are generally flat to
widths and shallowly dipping in nature. The true width of pegmatites are
intercept If the geometry of the generally considered 85-95% of the intercept width, with
lengths mineralisation with respect to the minimal opportunity for sample bias
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’).
Diagrams Appropriate maps and sections (with Drilling locations are shown on figure 1 of the release.
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.
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
substantive meaningful and material, should be The metallurgical test work for spodumene referred to in the
exploration reported including (but not limited release was undertaken by Nagrom. Nagrom has extensive
data to): geological observations;
experience with Tantalum and Lithium extraction testwork
geophysical survey results;
geochemical survey results; bulk and has ISO9001:2008 accreditation. Results have been
samples – size and method of reported without interpretation.
treatment; metallurgical test
results; bulk density, groundwater,
geotechnical and rock
characteristics; potential deleterious
or contaminating substances.
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).
Diagrams clearly highlighting the
areas of possible extensions,
including the main geological
interpretations and future drilling
areas, provided this information is
not commercially sensitive.
17 November 2016
Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Limited
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