BRISBANE, Oct. 05, 2022 - Allkem Ltd. (ASX|TSX: AKE, the Company) is pleased to provide an update on the resource extension drilling program currently underway at its Mt Cattlin spodumene operation in Western Australia.
The drilling program consists of three phases as described below:
Phase 1 - drilling within the US$900 2NW pit shell converting resource to reserve (planned 49 holes, 11,120 metres). Underway - ~77% complete.
Phase 2 - drilling to the north and down dip of the US$900 2NW pit shell to test resource extensions outside of the US$900 2NW pit (planned 80 holes, 19,125 metres) and within the US$1,100 pit shell. Underway - ~55% complete.
Phase 3 - drilling in the SW of the mine tenements to test additional targets and prospects (18 holes, 2,440 metres). To be undertaken in late 2022/early 2023.
HIGHLIGHTS
Phase 1 drilling is targeting to convert 3.2Mt of Resource to Reserves. Intercepts within this pit include high grade zones with large thicknesses such as 12m at 2.46% Li2O and 15m at 1.91% Li2O
Phase 2 drilling and assay results demonstrate resource extension potential to the north of the current pit with high grade intercepts in the lower pegmatite, including 9m at 2.98% Li2O and 7m at 1.86% Li2O
Phase 1 and 2 drilling at 2NW pit is on target for completion by end of October and a consultant has been engaged to immediately commence a study to convert mineral resources to Ore Reserves for scheduling, mine planning and detailed pit design
Mt Cattlin's Mineral Resource tonnage recently increased 21% to 13.3Mt @ 1.2% Li2O and 131 ppm Ta2O5
INTERIM DRILLING RESULTS
Allkem commenced a three-phase resource extension program in mid-April that targets 147 holes for approximately 32,685 metres of reverse circulation ("RC") drilling.
As of 14 September, 81 holes drilled for a total of 19,177 metres were complete and assay results for 47 drillholes were available.
Highlights from the assays of the upper pegmatite include:
Drillhole
From(m)
To(m)
Thickness(m)
Li2O%
Ta2O5ppm
NWRC186
81
89
8
1.41
105
NWRC204
87
95
8
1.59
128
NWRC211
79
91
12
2.46
53
NWRC212
86
101
15
1.91
72
NWRC238
89
105
16
1.73
92
NWRC241
99
112
13
1.51
115
All significant assays are tabulated in the appendix.
Figure 1: Intercepts to the north of the US$1,100 whittle shell show potential for mineral resource expansion.
Highlights from the lower pegmatite include:
Drillhole
From(m)
To(m)
Thickness(m)
Li20%
Ta2O5ppm
NWRC128
215
227
12
1.91
218
NWRC129
213
222
9
1.43
177
NWRC131
237
245
8
1.85
176
NWRC137
203
212
9
1.59
286
NWRC138A
239
249
10
1.69
247
NWRC147
191
201
10
1.16
128
NWRC154
189
199
10
1.01
124
NWRC156
202
211
9
1.39
434
NWRC158
220
229
9
0.98
73
NWRC164
192
201
9
0.76
36
NWRC175
228
239
11
2.15
126
NWRC176
232
243
11
0.97
175
NWRC179
179
191
12
1.66
608
NWRC186
181
193
12
1.35
93
NWRC188
209
221
12
1.34
99
NWRC190
216
228
12
1.66
261
NWRC191
216
226
10
1.94
171
NWRC192
229
239
10
2.08
378
NWRC197
204
216
12
1.32
79
NWRC200
232
241
9
2.98
414
NWRC202
246
257
11
1.01
483
NWRC203
166
177
11
1.92
164
NWRC242
221
231
10
1.76
281
Pegmatite mineralisation to this point generally aligns with the existing geological model and of those assays returned to date and lithia (Li2O) content is consistent with historic (pre-2022) assays in the North West pit area of Mt Cattlin. Given the tendency for "pinch and swell" in pegmatite mineralisation, definitive conclusions are not possible at this stage, however geological logging and assay results to date are highly encouraging.
A typical cross section at northing 224160E (MGA 94) in Figure 1 shows ongoing thick pegmatite development down dip from the US$650 (Ore Reserve) pit shell and the USD 1,100 Whittle shell.
All drill hole collars for assay results are presented in Figure 2 and Appendix: Table 1.
Given the executed orientation of the drilling, assay intercepts reported are broadly true width.
Figure 2: Drilling progress as of 14 September 2022 and location relative to USD 1,100 pit shell and current NW pit design and cut-back.
Next steps
The Phase 1 resource infill program at 2NW pit is on target for completion by the end of October and Perth based consultants Entech have been appointed to project manage an open pit, cut-back feasibility level study and execution.
Planning is underway for follow-up reverse circulation and diamond drilling, for the purposes of extension, geotechnical and metallurgical studies.
The study is anticipated to commence in October and aims to convert in-situ mineral resources (as announced on 25 August 2022) to Ore Reserves for scheduling, mine planning and detailed pit design in a NW pit.
Additionally, a scoping study continues to evaluate the potential for either opencut or underground development of further resource extensions from Phase 2 drilling.
On completion of the drilling at the NW pit, the focus will shift to Phase 3 and further definition in the SW part of the reasonable prospects of eventual economic extraction (RPEEE) footprint and lead to programs that test pegmatite continuity in areas previously not included in resource and mineral resource modelling. These programs will continue towards the end of the year and extend onto exploration leases as conditions and permitting allows.
This release was authorised by Mr Martin Perez de Solay, CEO and Managing Director of Allkem Ltd..
Andrew Barber M: +61 418 783 701 E: Andrew.Barber@allkem.co
Phoebe Lee P: +61 7 3064 3600 E: Phoebe.Lee@allkem.co
Connect
info@allkem.co +61 7 3064 3600 www.allkem.co
IMPORTANT NOTICES
This investor ASX/TSX release (Release) has been prepared by Allkem Ltd. (ACN 112 589 910) (the Company or Allkem). It contains general information about the Company as at the date of this Release. The information in this Release should not be considered to be comprehensive or to comprise all of the material which a shareholder or potential investor in the Company may require in order to determine whether to deal in Shares of Allkem. The information in this Release is of a general nature only and does not purport to be complete. It should be read in conjunction with the Company's periodic and continuous disclosure announcements which are available at allkem.co and with the Australian Securities Exchange (ASX) announcements, which are available at www.asx.com.au.
This Release does not take into account the financial situation, investment objectives, tax situation or particular needs of any person and nothing contained in this Release constitutes investment, legal, tax, accounting or other advice, nor does it contain all the information which would be required in a disclosure document or prospectus prepared in accordance with the requirements of the Corporations Act 2001 (Cth) (Corporations Act). Readers or recipients of this Release should, before making any decisions in relation to their investment or potential investment in the Company, consider the appropriateness of the information having regard to their own individual investment objectives and financial situation and seek their own professional investment, legal, taxation and accounting advice appropriate to their particular circumstances.
This Release does not constitute or form part of any offer, invitation, solicitation or recommendation to acquire, purchase, subscribe for, sell or otherwise dispose of, or issue, any Shares or any other financial product. Further, this Release does not constitute financial product, investment advice (nor tax, accounting or legal advice) or recommendation, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision.
The distribution of this Release in other jurisdictions outside Australia may also be restricted by law and any restrictions should be observed. Any failure to comply with such restrictions may constitute a violation of applicable securities laws.
Past performance information given in this Release is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance.
Forward Looking Statements
Forward-looking statements are based on current expectations and beliefs and, by their nature, are subject to a number of known and unknown risks and uncertainties that could cause the actual results, performances and achievements to differ materially from any expected future results, performances or achievements expressed or implied by such forward-looking statements, including but not limited to, the risk of further changes in government regulations, policies or legislation; the risks associated with the continued implementation of the merger between the Company and Galaxy Resources Ltd., risks that further funding may be required, but unavailable, for the ongoing development of the Company's projects; fluctuations or decreases in commodity prices; uncertainty in the estimation, economic viability, recoverability and processing of mineral resources; risks associated with development of the Company Projects; unexpected capital or operating cost increases; uncertainty of meeting anticipated program milestones at the Company's Projects; risks associated with investment in publicly listed companies, such as the Company; and risks associated with general economic conditions.
Subject to any continuing obligation under applicable law or relevant listing rules of the ASX, the Company disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements in this Release to reflect any change in expectations in relation to any forward-looking statements or any change in events, conditions or circumstances on which any such statements are based. Nothing in this Release shall under any circumstances (including by reason of this Release remaining available and not being superseded or replaced by any other Release or publication with respect to the subject matter of this Release), create an implication that there has been no change in the affairs of the Company since the date of this Release.
Competent Person Statement
The information in this announcement that relates to Exploration Results and Mineral Resources is based on information compiled by Albert Thamm, B.Sc. (Hons)., M.Sc. F.Aus.IMM, a Competent Person who is a Fellow of The Australasian Institute of Mining and Metallurgy. Albert Thamm is a full-time employee of Galaxy Resources Pty. Limited. Albert Thamm has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Albert Thamm consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.
Any information in this announcement that relates to Mt Cattlin's Mineral Resources and Reserves is extracted from the report entitled "Mt Cattlin Resource, Reserve and Operations Update" released on 25 August 2022 which is available to view on www.allkem.co and www.asx.com.au. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and that all material assumptions and technical parameters underpinning the Mineral Resources estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.
Not for release or distribution in the United States
This announcement has been prepared for publication in Australia and may not be released to U.S. wire services or distributed in the United States. This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or any other jurisdiction, and neither this announcement or anything attached to this announcement shall form the basis of any contract or commitment. Any securities described in this announcement have not been, and will not be, registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States except in transactions registered under the U.S. Securities Act of 1933 or exempt from, or not subject to, the registration of the U.S. Securities Act of 1933 and applicable U.S. state securities laws.
APPENDIX 1 - DRILL HOLE INFORMATION AND ASSAY RESULTS
Table 1: Drill hole collar and orientation as surveyed
Hole ID
TYPE
MGA94 Z51 East
MGA94 Z51 North
RL
Depth
Dip
MGA94 Z51 Azimuth
NWRC116
RC
223758
6282275
269
255
-70
180
NWRC117
RC
223761
6282420
270
300
-56
180
NWRC118
RC
223759
6282450
270
285
-69
181
NWRC120
RC
223796
6282216
269
209
-70
180
NWRC121
RC
223799
6282279
269
250
-71
180
NWRC122
RC
223800
6282430
270
270
-63
180
NWRC123
RC
223796
6282471
270
270
-73
180
NWRC125
RC
223832
6282239
268
236
-70
180
NWRC126
RC
223835
6282278
268
235
-70
180
NWRC128
RC
223850
6282375
271
250
-70
180
NWRC129
RC
223839
6282415
270
260
-67
180
NWRC130
RC
223840
6282440
270
260
-70
180
NWRC131
RC
223840
6282471
270
260
-72
180
NWRC132
RC
223841
6282520
270
260
-88
182
NWRC134
RC
223828
6282657
269
290
-76
175
NWRC137
RC
223881
6282375
270
252
-87
180
NWRC138A
RC
223884
6282478
270
260
-71
184
NWRC142
RC
223878
6282650
267
285
-76
181
NWRC147
RC
223920
6282378
269
228
-77
180
NWRC148
RC
223919
6282441
270
180
-80
180
NWRC149
RC
223915
6282485
270
218
-70
180
NWRC151
RC
223916
6282639
268
270
-71
180
NWRC153
RC
223979
6282241
266
205
-70
180
NWRC154
RC
223972
6282320
268
205
-70
191
NWRC155
RC
223969
6282360
269
215
-70
188
NWRC156
RC
223968
6282400
269
225
-70
188
NWRC157
RC
223964
6282440
270
240
-69
184
NWRC158
RC
223964
6282480
270
240
-70
184
NWRC162
RC
223956
6282676
266
265
-70
180
NWRC164
RC
224006
6282400
270
350
-70
183
NWRC165
RC
224005
6282440
270
234
-70
184
NWRC166
RC
224005
6282480
270
168
-70
184
NWRC167
RC
224018
6282548
270
228
-72
195
NWRC168
RC
224022
6282587
269
255
-73
197
NWRC170
RC
223997
6282678
267
228
-70
180
NWRC171
RC
223998
6282718
264
275
-70
180
NWRC172
RC
224060
6282362
255
195
-80
218
NWRC174
RC
224040
6282561
269
246
-71
180
NWRC175
RC
224038
6282602
269
250
-70
180
NWRC176
RC
224035
6282638
268
255
-69
180
NWRC179
RC
224080
6282435
255
210
-71
180
NWRC181
RC
224076
6282559
269
235
-70
180
NWRC182
RC
224078
6282603
268
210
-70
180
NWRC186
RC
224120
6282436
255
210
-70
180
NWRC188
RC
224119
6282520
269
225
-71
180
NWRC189
RC
224114
6282599
268
234
-71
174
NWRC190
RC
224111
6282633
268
240
-72
171
NWRC191
RC
224137
6282669
265
250
-70
180
NWRC192
RC
224121
6282719
264
255
-70
180
NWRC195
RC
224142
6282517
262
230
-71
168
NWRC196
RC
224159
6282562
262
235
-70
180
NWRC197
RC
224160
6282602
267
234
-70
180
NWRC198
RC
224160
6282640
265
246
-82
180
NWRC199
RC
224160
6282662
265
71
-70
180
NWRC200
RC
224159
6282758
264
270
-70
180
NWRC201
RC
224159
6282798
264
275
-70
180
NWRC202
RC
224167
6282838
264
285
-70
187
NWRC203
RC
224201
6282395
255
186
-70
180
NWRC204
RC
224200
6282434
255
192
-70
180
NWRC205
RC
224195
6282477
262
215
-70
180
NWRC207
RC
224196
6282650
266
246
-63
181
NWRC208
RC
224200
6282717
262
245
-70
180
NWRC209
RC
224193
6282773
264
264
-67
176
NWRC210
RC
224198
6282798
264
264
-70
180
NWRC211
RC
224240
6282394
255
186
-70
180
NWRC212
RC
224241
6282435
255
186
-70
180
NWRC213
RC
224234
6282477
262
220
-71
180
NWRC214
RC
224237
6282519
262
153
-70
180
NWRC215
RC
224241
6282557
262
230
-69
180
NWRC216
RC
224240
6282599
264
224
-70
180
NWRC219
RC
224231
6282743
260
260
-70
180
NWRC220
RC
224239
6282757
259
250
-70
180
NWRC224
RC
224304
6282656
246
225
-61
194
NWRC225
RC
224305
6282672
247
235
-70
204
NWRC227
RC
224282
6282794
255
260
-61
180
NWRC233
RC
224313
6282674
247
225
-68
173
NWRC234
RC
224321
6282714
249
220
-83
180
NWRC238
RC
224360
6282547
235
300
-73
180
NWRC240
RC
224360
6282753
249
220
-62
180
NWRC241
RC
224400
6282628
235
144
-86
180
NWRC242
RC
224159
6282702
264
250
-75
180
All significant intercepts with a minimum cut-off 0.4% Li2O%; minimum 4m interval; maximum 2m of internal waste are presented separately in Tables 2 and 3 below.
Table 2: Significant intercepts - upper pegmatite body (61)
Drillhole
From (m)
To (m)
Metres
Li2O%
Ta2O5ppm
Pegmatite Body
NWRC128
157
161
4
1.27
78
61
NWRC131
183
188
5
0.96
100
61
NWRC147
130
136
6
0.82
85
61
NWRC154
115
120
5
1.28
146
61
NWRC155
121
125
4
1.59
57
61
NWRC156
138
142
4
1.14
107
61
NWRC157
146
150
4
0.9
158
61
NWRC164
118
122
4
1.3
83
61
NWRC172
75
82
7
1.54
93
61
NWRC174
150
155
5
0.93
38
61
NWRC175
162
166
4
0.86
77
61
NWRC179
83
88
5
1.74
182
61
NWRC186
81
89
8
1.41
105
61
NWRC188
122
126
4
1.5
73
61
NWRC190
138
142
4
0.97
110
61
NWRC200
185
192
7
1.12
31
61
NWRC201
194
200
6
1.39
352
61
NWRC203
77
82
5
1.11
94
61
NWRC204
87
95
8
1.59
128
61
NWRC211
79
91
12
2.46
53
61
NWRC212
86
101
15
1.91
72
61
NWRC216
129
133
4
0.47
113
61
NWRC238
89
105
16
1.73
92
61
NWRC241
99
112
13
1.51
115
61
Table 3: Significant intercepts - lower pegmatite body (62). Minimum cut-off 0.4% Li2O%; minimum 4m interval; maximum 2m of internal waste
Drillhole
From (m)
To (m)
Metres
Li2O%
Ta2O5ppm
Pegmatite Body
NWRC122
236
240
4
0.95
77
62
NWRC123
249
253
4
1.33
77
62
NWRC128
215
227
12
1.91
218
62
NWRC129
213
222
9
1.43
177
62
NWRC131
237
245
8
1.85
176
62
NWRC137
203
212
9
1.59
286
62
NWRC138A
239
249
10
1.69
247
62
NWRC147
191
201
10
1.16
128
62
NWRC153
161
166
5
0.81
148
62
NWRC154
189
199
10
1.01
124
62
NWRC155
191
197
6
0.45
126
62
NWRC156
202
211
9
1.39
434
62
NWRC158
220
229
9
0.98
73
62
NWRC164
192
201
9
0.76
36
62
NWRC172
168
174
6
0.88
143
62
NWRC175
228
239
11
2.15
126
62
NWRC176
232
243
11
0.97
175
62
NWRC179
179
191
12
1.66
608
62
NWRC186
181
193
12
1.35
93
62
NWRC188
209
221
12
1.34
99
62
NWRC189
214
218
4
1.55
80
62
NWRC190
216
228
12
1.66
261
62
NWRC191
216
226
10
1.94
171
62
NWRC192
229
239
10
2.08
378
62
NWRC197
204
216
12
1.32
79
62
NWRC200
232
241
9
2.98
414
62
NWRC201
243
250
7
1.86
457
62
NWRC202
246
257
11
1.01
483
62
NWRC203
166
177
11
1.92
164
62
NWRC209
241
245
4
0.93
133
62
NWRC211
173
177
4
0.61
103
62
NWRC216
214
218
4
0.47
85
62
NWRC242
221
231
10
1.76
281
62
APPENDIX 2 - RESOURCE AND RESERVE TABLES
Mt Cattlin Mineral Resource at 30 June 2022
Category
Tonnage
Grade
Grade
Contained metal
Contained metal
Net Variance to 2021 Statement
Mt
% Li2O
ppm Ta2O5
('000) t Li2O
lbs Ta2O5
%
Measured
In-situ
-
-
-
-
-
-100
%
Indicated
In-situ
4.5
1.3
135
59
1,339,000
-6
%
Stockpiles
2.4
0.8
122
19
646,000
-20
%
Inferred
In-situ
6.4
1.3
131
83
1,850,000
121
%
Total
13.3
1.2
131
161
3,835,000
21
%
Notes: Reported at cut-off grade of 0.4% Li2O contained within a pit shell generated at a spodumene price of USD1,100 at 6% Li20. The preceding statements of Mineral Resources conforms to the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) 2012 edition. All tonnages reported are dry metric tonnes. Excludes mineralisation classified as oxide and transitional. Minor discrepancies may occur due to rounding to appropriate significant figures. RPEEE is defined as reasonable prospects for eventual economic evaluation.
Mt Cattlin Ore Reserve at 30 June 2022
Category
Tonnage Mt
Grade % Li2O
Grade ppm Ta2O5
Contained metal ('000) t Li2O
Contained metal lbs Ta2O5
Variance to 2021 %
Proven
-
-
-
-
-
%
-100
%
Probable
2NW only
3.3
1.12
105
37.0
764,000
-30
%
Stockpiles
2.4
0.80
122
19.0
646,000
-20
%
Total
5.8
0.98
113
56.0
1,410,000
-28
%
Notes: Reported at cut-off grade of 0.4% Li2O within current mine design. The preceding statements of Ore Reserves conforms to the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) 2012 edition. All tonnages reported are dry metric tonnes. Reported with 17% dilution and 93% mining recovery. Revenue factor US$650/tonne applied. Minor discrepancies may occur due to rounding to appropriate significant figures.
APPENDIX 3 - JORC 2012 TABLE 1 DISCLOSURE
Section 1: Sampling Techniques and Data
MT CATTLIN LITHIUM PROJECT SAMPLING AND DATA
Sampling techniques
Nature and quality of sampling (e.g. cut channels, random chips, or specific specialized industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling. Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. Aspects of the determination of mineralization that are Material to the Public Report. In cases where 'industry standard' work has been done this would be relatively simple (e.g. 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverized to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralization types (e.g. submarine nodules) may warrant disclosure of detailed information.
Pre-2017 Mt Catlin mineralization was sampled using a mixture of Diamond (DD) Reverse Circulation drill holes (RC), rotary Air Blast (RAB) and Open Hole (OH). In the north zone drilling is a 40mE x 40mN spacing and infilled to 20mE to 25mE x 20mN to 20mN in the central zone. In the south the drilling is on a 40mE x 80mN pattern. Drill holes were drilled vertical to intersect true thickness of the spodumene mineralization.
A total of 39 DD holes for 1,528.56m, 986 RC holes for 48,763m, 59 OH holes for 1,999m and 23 RAB for 402m had been completed before 2017.
The drill-hole collars were surveyed by professional survey contractors. A total of 71 drill holes were surveyed by Surtron Technologies Australia of Welshpool in 2010. Sampling was carried out under Galaxy Resources QAQC protocols and as per industry best practice.
RC sample returns were closely monitored, managed and recorded. Drill samples were logged for lithology and SG measurements. Diamond HQ and PQ core was quarter-cored to sample lengths relating to the geological boundaries, but not exceeding 1m on average. RC samples were composited from 1m drill samples split using a two-stage riffle splitter 25/75 to obtain 2kg to 4kg of sample for sample preparation. All samples were dried, crushed, pulverized and split to produce a 3.5kg and then 200g sub-sample for analysis For Li (method AAS40Q), for Ta, Nb and Sn (method XRF78O) and in some cases for SiO2, Al2O3, CaO, Cr2O3, Fe2O3, K2O3, MgO, MnO, P2O5, SO3, TiO2 and V2O5 were analysed by XRF78O. Entire drill-hole lengths were submitted for assay.
Drilling 2017-8 From 1m of drilling and sampling, two 12.5% splits are taken by a static cone splitter in calico drawstring bags. This obtains two 2kg to 4kg samples with one being retained as an archive sample and the other submitted for assay, where required an archive bag is used as the duplicate sample.
A 4.5-inch diameter rod string is used and the cyclone is cleaned at the end of every 6m rod as caking occurs from the mandatory use of dust suppression equipment.
Drilling November 2018 - 2021 Subsequent to 2018 update, 5,912m (41 holes)m of new reverse circulation (RC) and 273.65 of diamond tails (2 holes) has been completed (excluding metallurgical and geotechnical) has taken place.
From 1m of drilling and sampling, two 12.5% splits are taken by a static cone splitter in calico drawstring bags. This obtains two 2kg to 4kg samples with one being retained as an archive sample and the other submitted for assay, where required an archive bag is used as the duplicate sample.
A 4.5-inch diameter rod string is used and the cyclone is cleaned at the end of every 6m rod as caking occurs from the mandatory use of dust suppression equipment.
Drilling April 2022 onwards
A total of 81 holes drilled for a total of 19,177 metres and 47 holes remaining planned for a total remaining of 11,155 metres as of 14 September, 2022.
Drilling techniques
Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc.).
RC drilling hammer diameter was generally 4 & 5/8 inches in early exploration, from 2009 and 2010 the bit diameter was 5 ¼ inches.
RC 2017 - 2020 5.25-inch face sampling hammer, reverse circulation, truck mounted or tracked drilling rigs, Three Rivers Drilling, Castle Drilling.
Diamond core is generally RC from surface, and either PQ size tails in weathered rock and narrowed to HQ in fresh rock (standard tubing). Core was not oriented as the disseminated and weathered nature of the mineralization does not warrant or allow it. Diamond core is typically for metallurgical test-work. Precollars drilled short of mineralisation.
RC 2021 A 5.25-inch face sampling hammer, used in reverse circulation. ASX (Australian Surface Exploration) drillers used for RC (including pre-collars).
Diamond 2021: Wizard Drilling utilised for diamond drilling from surface. HQ size Metallurgical and geotechnical diamond drilling (standard tubing). Two Metallurgical holes were diamond tails from approximately 70m to 80m. Four Geotechnical holes were diamond from surface and two tails from 50-60m depth.
RC 2022
PXD, RC drilling, 5 1/3 inch, face sampling hammer.
Logging
Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography. The total length and percentage of the relevant intersections logged.
All DD, RC and OH (PC) and RAB intervals were geologically logged (where applicable); RQD (DD only), interval weights, recovery, lithology, mineralogy and weathering were recorded in the database.
The DD core was oriented using the Ezy-Mark tool and after 2019 using the Reflex ACT electronic orientation tool. Geological logging was qualitative.
Recording of interval weights, recovery and RQD was quantitative. All DD core was photographed and representative 1m samples of RC and OH (PC) chips were collected in chip trays for future reference and photographed. All drill holes were logged in full.
2017-2022 logging All drill holes are logged and validated via LogChief/DataShed systems. Stored in MS SQL server database. Assays, standards and control limits are monitored after loading of each batch and reports supplied on demand. All drill holes are logged in full.
Different Lithium bearing mineral species and crystal sizes are logged in detail.
Sub-sampling techniques and sample preparation
If core, whether cut or sawn and whether quarter, half or all core taken. If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry. For all sample types, the nature, quality and appropriateness of the sample preparation technique. Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. Whether sample sizes are appropriate to the grain size of the material being sampled.
Pre-2016 sampling All fresh rock DD core was quarter-cored using a stand mounted brick saw. Soft, weathered DD core was also sampled quarter-core, using a knife and scoop where applicable and practical.
RC samples were collected using a two stage riffle splitter. All samples were dry or dried prior to riffle-splitting.
All 2kg 1m drill samples were sent to SGS, dried, crushed, pulverized and split to approximately -75µ to produce a sample less than 3.5kg sub-sample for analysis.
Sampling was carried out under Galaxy Resources QAQC protocols and as per industry best practice.
Duplicate, blank and standard reference samples were inserted into the sample stream at random, but averaging no less than 1 blank and standard in every 25 samples.
Samples were selected periodically and screened to ensure pulps are pulverized to the required specifications.
Duplicate quarter-core samples were taken from DD core at random for testing averaging one in every 25 samples.
Duplicate riffle-split RC samples were taken at random, but averaging one every approximately 25 samples.
The sample sizes are appropriate to the style, thickness and consistency of the mineralization at Mt Catlin.
Drilling 2016 (SGS) Core was halved by saw and sample lengths typically 0.5m in length. Sample preparation involved crushing followed by splitting of sample if sample greater than 3 kg using a riffle splitter (SPL26), Dry sample, crush to 6mm, pulverise to 75µm (PRP88) in a LM5 Mill.
Drilling 2017-2021 Diamond drilling was typically sawn half core with whole core used for metallurgical test work.
Intertek (2017-8) Samples are sorted and weighed. Samples >3kg are riffle split and milled in LM5 to obtain 85% passing 75 Microns. A 400g pulp is taken and a nominal 0.25g sub-sample is fused with sodium peroxide.
Nagrom: 2018-2021 RC chips are dried to 105C°, crushed to nominal top-size of 2 mm in a Terminator Jaw crusher using method CRU01. Pulverised up to 3 kg in a LM5 pulveriser mill at 80% or better passing 75µm, using method PUL01. If the sample is greater than 3 kg, the sample is dried, and split with rotary splitter before analysis, Diamond core is dried, crushed in a Terminator Jaw crusher to top size 6.3 mm, and pulverised in a LM5 mill up to 2.5 kg using method CRU01. If the sample is greater than 2.5 kg, the sample is riffle split after drying to reduce the sample size.
Quality of assay data and laboratory tests
The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.
Pre-2016 QAQC
All samples were dried, crushed, pulverized and split to produce a 3.5kg and then 200g sub-sample for analysis For Li (method AAS40Q), for Ta, Nb and Sn (method XRF78O) and in some cases for SiO2, Al2O3, CaO, Cr2O3, Fe2O3, K2O3, MgO, MnO, P2O5, SO3, TiO2 and V2O5 were analysed by XRF78O. This process involves fusing the sample in a platinum crucible using lithium metaborate/tetraborate flux. For Cs, Rb, Ga, Be and Nb from time to time analysis was by IMS40Q - DIG40Q to ICPMS end.
Duplicate, blank and certified reference samples were inserted into the sample stream at random, but averaging one every ~25 samples.Galaxy Resources utilized certified Lithium standards produced in China and one from SGS in Australia, STD-TAN1.
Inter-laboratory checking of analytical outcomes was routinely undertaken to ensure continued accuracy and precision by the preferred laboratory. Samples were selected periodically and screened by the laboratory to ensure pulps are pulverized to the required specifications. All QAQC data is stored in the Mt Catlin database and regular studies were undertaken to ensure sample analysis was kept within acceptable levels of accuracy; the studies confirmed that accuracy and precision are within industry standard accepted limits. Umpire analysis performed on pulps at Genalysis and Ultratrace Perth.
2016-QAQC In 2016 Perth SGS were used for a small 6 hole diamond program by General Mining. Samples were digested using a sodium peroxide fusion digest, method DIG90Q and the resultant solution from the digest was then presented to an ICP-MS for the quantification of Li2O, using method IMS40Q. The majority of standards submitted performed within expected ranges with a positive bias observed for two standards.
2017 - 2021 QAQC
Samples (including QA/QC samples) were processed by Intertek PLC, Perth laboratory in 2017 and 2018, by utilised method FP1 digest (Peroxide Fusion - complete), MS analytical finish, 22 elements, Li2O detection limit 0.03% Ta2O5 detection limit, 0.2 ppm. Monthly review of QA/QC, which includes blanks, field duplicates, high grade standards and CRM (certified reference materials) and SRM (standard reference materials). FS_ICPMS is a Laboratory Method FP1/MS (mass spectrometry) used to analyze for Cs, Nb, Rb, Ta,Th, and U . FS/ICPES (inductively coupled plasma emission spectroscopy) is Laboratory method FP1/OE used to analyze Al, Fe, K, Li, and Si. Reports include calculated values of oxides for all elements.
RC samples and diamond (including QA/QC samples) have been processed by Nagrom Perth, Perth Western Australia. Methods utilised from Lithium and Tantalum are ICP004 and ICP005 (Peroxide Fusion - complete). ICP005 utilises tungsten carbide bowl to reduce iron contamination at exploration and resource development stages (detection limit of 10ppm and 1ppm for Li2O and Ta respectively) Monthly review of QA/QC, which includes blanks, field duplicates, high grade standards and CRM (certified reference materials) ) and SRM (standard reference materials).. All sampling has rigorous QAQC in terms of reference sampling as well as blank and standards introduced into the sample steam.
Duplicate field samples show some evidence of high nugget effect. Typically, duplicate pairs plot within acceptable limits. Field duplicates have been submitted at a rate of 1 per 20.5 samples.
Standards ASM0343, ASM0340 AMIS0339, OREAS147, OREAS148 and OREAS149.
Standards reported only one result outside three standard deviations from 533 assays for Lithium. The vast majority of Tantalum standards reported within three standard deviations. Corse blanks have shown no evidence of systematic contamination from 2016-2021 with results consistently low.
2022 Drilling: Lithium by Peroxide Fusion in Ni crucible with OES at both Intertek and Nagrom. Tantalum by Peroxide Fusion in Ni crucible with MS at Nagrom and Intertek or by XRF at Nagrom.
Review of QA/QC, which includes blanks, field duplicates, high grade standards and CRM (certified reference materials) ) and SRM (standard reference materials) are conducted as assays are returned. All sampling has rigorous QAQC in terms of reference sampling as well as blank and standards introduced into the sample steam.
Duplicate field samples show some evidence of high nugget effect. Typically, duplicate pairs plot within acceptable limits. Field duplicates have been submitted at a rate of 1 per 20.1 samples.
Standards AMIS0339, AMIS0340, OREAS147, OREAS148, OREAS750 and OREAS751. Standards are submitted at a rate of 1 per 25 samples and Blanks after/within high grade zones at a target rate of approximately 1 per 20 samples.
Verification of sampling and assaying
The verification of significant intersections by either independent or alternative company personnel. The use of twinned holes. Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. Discuss any adjustment to assay data.
Pre-2018 Verification
An external geological consultant and GXY staff have visually assessed and verified significant intersections of core and RC and PC chips. Several core holes were compared to neighboring RC and PC drill holes. The geological logging of the DD holes supports the interpreted geological and mineralization domains. Studies on assays results from twinned holes showed a close correlation of geology and assays. Primary data is recorded by hand in the field and entered Excel spread sheets with in-built validation settings and look-up codes. Scans of field data sheets and digital data entry spread sheets are handled on site at Galaxy. Data collection and entry procedures are documented and training given to all staff. QAQC checks of assays by Galaxy identified several standards out of control, these were subsequently reviewed and results rectified. No clear and consistent biases were defined by Galaxy during the further investigations into QAQC performances although deviations were noted by Galaxy.
2017-8 Verification CP independently verified drilling, sampling, assay and results from validated, externally maintained and stored database. No adjustments to assay data other than conversion from Li to Li20 and Ta to Ta2O5.
2018 - 2021 Verification The CP independently verified drilling, sampling, assay and results from validated, externally maintained and stored database. No adjustments to assay data other than conversion from Li to Li20 and Ta to Ta2O5.
Primary data capture by Maxwell LogChief and management by Maxwell DataShed. Assay data loaded directly from Laboratory supplied .csv files as are downhole and collar surveys.
An independent data verification was completed as part of a 2021 Ni-43-101 filing by then then competent person.
The CP has verified the drill collar, assay and assay QAQC data.
Section 2: Reporting of Exploration Results
Criteria
JORC Code explanation
Commentary
Mineral tenement and land tenure status
Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.
The security of the tenure held at the time of reporting along with any known impediments to obtaining a license to operate in the area.
Mining Lease M74/244 was amalgamated and awarded on 04/08/2009 and is valid until 23/12/2030 and covers 1830 Ha.
The project is subject to normal projects approvals processes as regulated by the WA Department of Mines, Industry and Regulation.
The tenement is subject to the Standard Noongar Heritage agreement as executed 7 February 2018.
The underlying land is a mixture of freehold property owned by Galaxy and vacant Crown land. The property Freehold title is held by Galaxy Resources or its child subsidiaries.
Exploration done by other parties
Acknowledgment and appraisal of exploration by other parties.
During the 1960's WMC carried out an extensive drilling program to define the extent of t local spodumene bearing pegmatite. The WMC work led onto a further investigation into project feasibility.
In 1989 Pancontinental Mining, Limited drilled 101 RC drill holes. In 1990 Pancontinental drilled a further 21 RC drill holes.
In 1997 Greenstone Resources drilled 3 diamond holes and 38 RC holes, undertook soil sampling and metallurgical test work on bulk samples from the mine area. Haddington Resources Ltd in 2001 drilled 9 diamond holes for metallurgical test work and undertook further sterilization drilling.
Galaxy acquired the M72/12 mining tenement from Sons of Gwalia administrators in 2006.
Geology
Deposit type, geological setting and style of mineralization.
The Mount Catlin Project lies within the Ravensthorpe Suite, with host rocks comprising both the Annabelle Volcanics to the west, and the Manyutup Tonalite to the east. The contact between these rock types extends through the Project area. The Annabelle Volcanics at Mt Cattlin consist of intermediate to mafic volcanic rocks, comprising both pyroclastic material and lavas.
The pegmatites which comprise the orebodies occurs as a series of sub-horizontal sills, hosted by both volcanic and intrusive rocks, interpreted as a series of westward verging thrusts.
Typical coarse grained spodumene (grey-green colour) from the NW pegmatite shown below.
The NW pit pegmatites extend from near surface sub-crop to vertical depths of 250-300m and further down dip extensions are interpolated form 2D seismic data generated by previous owners.
The pegmatites remain open down dip.
Drill hole Information
A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:
easting and northing of the drill hole collar
elevation or RL (Reduced Level - elevation above sea level in meters) of the drill hole collar
dip and azimuth of the hole
down hole length and interception depth
hole length.
Pre-2017 drilling reported 4 August 2015 by subsidiary GMM (ASX:GMM). Last prior resource and update was August 2022.
2019-2021 drill collars New resource development collar information is presented in Table 1 above. Holes are generally steeply inclined between -80 to -70 degrees to determine true width or due to infrastructure.
Data aggregation methods
In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated.
Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.
The assumptions used for any reporting of metal equivalent values should be clearly stated.
Pre-2017 Data Where higher grade zones internal to broader intervals of lower grade mineralization were reported, these were noted as included intervals and italicized.
2019-2021 Drilling New results are reported to a 0.4% cut-of grade (below), minimum 4m width, maximum 1m internal dilution. Only drillholes incorporated into the resource model are reported.
2022 Drilling Minimum cut-off 0.4% Li2O; minimum 4m interval; maximum 2m of internal waste.
No metal equivalent values are used.
Relationship between mineralization widths and intercept lengths
These relationships are particularly important in the reporting of Exploration Results.
If the geometry of the mineralization with respect to the drill hole angle is known, its nature should be reported.
If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg 'down hole length, true width not known').
All intersection grades have been reported previously as length weighted average grades using a 0.4% Li2O lower grade cut-off except where stated.
Intersections were calculated allowing a maximum of 2m of internal dilution with no top-cut applied. Cutting of high grades is not required due to nature of the mineralization and grade distribution/estimation.
The Mt Cattlin lithium and tantalum mineralization occurs as a thick horizontal to gently dipping pegmatite and generally lies 30 to 200m below the current topographic surface resulting in drill intercepts nearing true widths.
2022 reported intersections are true widths.
Diagrams
Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.
Diagrams, both plan and section, are included in the text above.
Balanced reporting
Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.
2022 - All significant intersections above 0.4% Li2O have are reported.
Other substantive exploration data
Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk sample- size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.
Fe2O3 is modelled with Li and Ta to determine the effect of deleterious chemistry and mineralogy at or near pegmatite contacts and rafts of surrounding country rock with pegmatite.
Further work
The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).
Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.
Development and extraction of the NW Pit Mineral Resource and Reserve.
Ongoing resource development drilling. New geotechnical and metallurgical test work drilling.
Resource extension drilling to the SW.
Resource update is expected in Q1, 2023 with study work to start Q4, 2022.
Graphics accompanying this announcement are available at https://www.globenewswire.com/NewsRoom/AttachmentNg/e6a4b0dc-668b-4a68-ab2a-16f1900fec8c
