Allkem confirms material growth profile underpinned by 40 Mt Resource
BRISBANE, Australia, Sept. 24, 2023 (GLOBE NEWSWIRE) -- Allkem Limited (ASX: AKE, “*Allkem*” or the “*Company*”) has reviewed and updated technical studies for the Olaroz, Sal de Vida, Cauchari, James Bay and Mt Cattlin operations and projects which also assists with preparation for the proposed merger with Livent Corporation (NYSE:LTHM).The findings of these studies will be published in NI43-101 format as required by the Toronto Stock Exchange, the format required by the New York Stock Exchange under subpart 1300 of Regulation S-K of the United States Securities Act of 1933 and are summarised in individual JORC compliant ASX releases published at the date of this announcement.
*KEY POINTS*
*Group *
· Updated studies confirm the robust economics and tier one nature of the asset base, further de-risking both company growth and future production (refer to Table 1)
· Total group resources of ~40 million tonne (“*Mt*”) (refer to Table 2) lithium carbonate equivalent (“*LCE*”) demonstrates the world class asset base of the Allkem Group
· Highly competitive and low overall group cost of production and capital intensity of growth projects will deliver material operating cashflow under current market conditions and industry pricing forecasts
· Allkem (100% basis) plans to deliver 179,000 tonnes (“*kt*”) of LCE production capacity by FY28 (165kt of LCE capacity on an attributable basis) up from approximately 50kt forecast for FY24
· Growth projects are planned to be fully funded from existing corporate cash, existing or new corporate debt/project finance facilities and cash flow from operations
· Potential for further multiple large-scale expansions at Olaroz, Sal da Vida, James Bay and Cauchari
*James Bay*
· Material increase of Mineral Resource Estimate to 110.2 Mt at 1.30% Li[2]O. The deposit is open laterally and at depth with possible significant additional mineralisation to be drilled later CY23
· Capital costs have increased in-line with industry conditions, with economics remaining robust
· A larger development, supported by the increased Mineral Resource Estimate, will be evaluated by management and the technical team
· Continued evaluation of downstream opportunities in North America, which will include the potential to leverage the Bécancour site and design following the merger with Livent
· Federal approvals obtained in January 2023 and the Provincial approval process is in final stages*Mt Cattlin *
· Successful ore reserve and resources replacement confirms mine life extension
· Production forecast of 210-230kt for FY24 as main parts of the orebody are accessed
*Olaroz *
· Finalising commissioning of stage 2 with first wet production achieved in July
· Long term operating costs for the combined Stage 1 and Stage 2 operation are estimated at US$4,149 per tonne LCE over the life-of-mine (“*LOM”*) considering operational synergies from the joint operation of Stage 1 and 2
· Olaroz resource increased to 22Mt LCE and when combined with the adjacent Cauchari resource provides 28Mt of LCE, underpinning potential for future increases in production within the Olaroz/Cauchari complex*Sal da Vida (“SDV”)*
· SDV 1 and SDV 2 capital costs have increased to US$1,031million in-line with general industry inflation, with economics remaining robust. This cost increase incorporates the impact of engineering upgrades, Argentine inflation and new taxes on imports
· SDV 1 plans to achieve mechanical completion in H1 CY25 and first production in H2 CY25 after also incorporating engineering upgrades and experiences of other projects in the region
· Long term operating costs remain competitive at US$4,003 per tonne LCE for SDV 1 and SDV 2, and US$4,529 per tonne LCE for SDV 1 on a standalone basis making it a very competitive operation able to deliver high margins across a range of pricing outcomes
· Resource upgraded to 7.2 Mt LCE supports potential further production expansion
· SDV plans to provide 30kt of additional LCE production with first production targeted CY27*Cauchari *
· The 2019 technical study has been updated for the 100% owned Cauchari project with production capacity of 25ktpa, operating costs at US$4,081 per tonne LCE and first production planned in CY27
· The proposed Cauchari development plan to benefit from engineering design work and learnings at Olaroz, with a significant efficiency improvement opportunity through leveraging Olaroz infrastructure
*Table 1: Allkem Group Key Metrics*
*Asset* *Location* *Production capacity conc.*
*(‘000) t* *Production*^*1**Capacity LCE (‘000) t* *Operating cost US$/t*
*conc.* *Development Capex*
*US$M* *NPV*^*2*
*(pre-tax)*
*US$B*
*James Bay* Quebec, Canada 311 39 407 382 2.9
*Mt Cattlin* Western Australia 220 27 850 80 1.0
*Total Hard Rock* *531* *66* *590* *3.9* *Production Capacity LCE (‘000) t* *Operating cost US$/t
LCE* *Development Capex*
*US$M* *NPV*^*2*
*(pre-tax)*
*US$B*
*Sal de Vida* Catamarca, Argentina 45 4,003 1,031 5.5
*Olaroz* Jujuy, Argentina 42.5 4,149 - 7.0
*Cauchari* Jujuy, Argentina 25 4,081 659 2.5
*Total Brine* *113* *4,075* *1,690* *15*
*Total Allkem (LCE basis)*^*3* *179* *2,152* *18.9*
*Table 2: Allkem Group Total Resources*^4
*Asset* *Location* *Ore Tonnes (Mt)* *Grade Li*[*2*]*O (%)* *Contained (‘000) t LCE*
*James Bay* Quebec, Canada 110.2 1.3 3,540
*Mt Cattlin* Western Australia 12.1 1.3 390
*Total Hard Rock*
*Resource* *122.3* *1.3* *3,930* *Brine volume (m3)* *Average Li*
*mg/l* *Contained (‘000) t LCE*
*Sal de Vida* Catamarca, Argentina 1.9 x 10^9 724 7,172
*Olaroz* Jujuy, Argentina 6.7 x 10^9 636 22,630
*Cauchari* Jujuy, Argentina 2.2 x 10^9 475 5,950
*Total Brine Resource* *35,752*
*Total Allkem Resource (LCE)* *39,682*
^__________________________
^1 Spodumene concentrate production amounts shown as metrics tons of spodumene at a Li[2]O% grade. Conversion to LCE is 0.02552 metric tons of lithium metal to 1 metric ton of spodumene concentrate at 5.5% Li[2]O. Conversion to LCE is 0.02784 metric tons of lithium metal to 1 metric ton of spodumene concentrate at 6.0% Li[2]O.
^2 NPV figures are from each project ASX release utilising Wood McKenzie pricing forecasts. Net Present Value (“*NPV*”) for Hard Rock assets at 8% real discount rate. NPV for Brine assets at 10% real discount rate
^3 Production is on 100% basis, attributable production is 165ktpa
*Managing Director and Chief Executive Officer, Martin Perez de Solay commented:*
“These project updates confirm the robust economics and tier one nature of our asset base, further de-risking company growth, future production and profitability. The studies which are underpinned by our significant operating and project development experience demonstrate low costs and low capital intensity that will maximise margins and shareholder returns throughout the pricing cycle. The Allkem project portfolio provides us with a solid base to enhance our vertical integration strategy and relationships downstream in the global supply chain.”
*JAMES BAY PROJECT SUMMARY*
· Updated Feasibility Study confirms a robust, high-value hard rock lithium operation utilising renewable hydropower
· Material ~108% increase in pre-tax Net Present Value (“*NPV*”) to US$ 2.9 billion with a strong internal rate of return and short payback period
*Project Details *
· Recently announced Total Mineral Resource of 110.2 Mt at 1.30% Li[2]O, including 54.3 Mt at 1.30% Li[2]O in the Indicated Category, and 55.9 Mt at 1.29% Li[2]O in the Inferred Category with further drilling planned to test possible extensions to mineralisation
· Ore Reserve of 37.3 Mt at 1.27% Li[2]O provides a long life, low cost spodumene operation and remains in line with permitting considerations
· Average annual production of 311 ktpa of spodumene concentrate with an 18.8-year mine life
· Shallow, near-surface mineralisation ideal for open cut mining with a low LOM strip ratio of 3.6:1
· 2 Mtpa process plant design remains unchanged from 2021 feasibility study, producing a 6.0% Li[*2*]O spodumene concentrate with operational flexibility to produce a 5.6% Li[*2*]O spodumene concentrate
· Very similar process design and flowsheet to that already successfully employed at Mt Cattlin
· Low-cost, sustainable source of hydropower now installed to site
· Strong relationships with Cree Nation of Eastmain, Cree Nation Government and all stakeholders
*__________________________*
^4 Resources are presented as the sum of Measured, Indicated and Inferred Resource and are reported in line with the JORC Code (2012). The confidence categories assigned under the JORC Code are comparable to the confidence categories in the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards on Mineral Resources and Mineral Reserves, May 2014. The reader should be cautioned that under NI 43-101 guidelines, Inferred Mineral Resources cannot be grouped with Measured and Indicated categories and that the JORC code is considered an “accepted foreign code” as described in Part 7 of the NI 43-101 Standards of Disclosure . See individual project releases dated as per this release for further information
*Project Financials *
· Updated capital cost estimate (“*CAPEX*”) of US$381.5 million, a 34% increase since 2001 which reflects inflationary conditions
· Cash operating costs (FOB Montreal) of US$407 per tonne of 5.6% Li[2]O concentrate also reflecting some inflationary impact. This cost of production remains highly competitive and will deliver high margins across a range of pricing outcomes
· Pre-tax NPV of US$2.9 billion at an 8% discount rate and post-tax NPV of US$1.7 billion reflecting an increase in lithium price assumptions and market outlook
· Pre-tax Internal Rate of Return (“*IRR”*) of 62.2% and pre-tax payback period of 1.4 years
· Post-tax Internal Rate of Return (“*IRR”*) of 45.4% and post-tax payback period of 1.7 years*Project Execution *
· Detailed engineering and procurement activities progressed at 80% supporting the updated cost estimate and bringing the project ready for approximately 19 months of construction once provincial authorisation is obtained
· Impact and Benefit Agreement discussions and Provincial Environmental and Social Impact Studies Review is in final stages
· Further carbon studies and initiatives underway to align the project to Allkem’s target of net-zero emissions by 2035*OLAROZ PROJECT SUMMARY^5*
*Stage 1 and 2 (42,500 lithium carbonate equivalent tonnes per annum)*
*Financial Metrics*
· Pre-tax *NPV* of US$7.01 billion at a 10% discount rate and a Post-tax NPV of US$4.56 billion
· Long term operating costs for the combined Stage 1 and Stage 2 operation are estimated at US$4,149 per tonne LCE over the LOM considering operational synergies from the joint operation of Stage 1 and 2 enabling high profit margins
*Mineral Resource *
· Total Mineral Resource Estimate of 22.63 Mt of LCE*, *a 10% increase from the previous estimate in March 2023 with a 52% increase in Measured Mineral Resources
· The Mineral Resource now comprises 11.54 Mt of LCE as Measured, and 3.83 Mt as Indicated for a combined 15.38 Mt of Measured & Indicated Mineral Resource. There is an additional 7.25 Mt of Inferred Resources for a total resource of 22.6Mt (Measured, Indicated and Inferred)
· The improvement in Mineral Resource categorisation results from reclassification of Indicated Mineral Resources between 200 and 650 m depth as Measured Mineral Resources in the pumping field area. This reflects the greater amount of information available from pumping performance since installation of the Stage 2 wells and the addition of Maria Victoria tenements
· Olaroz's LOM production represents ~8.5% of the Measured and Indicated Mineral Resources, further confirming the Tier 1 status of the basin, and its potential to support additional expansions
*Stage 2 (25,000 lithium carbonate equivalent tonnes per annum)*
The expansion achieved first wet lithium carbonate production in July 2023. Commissioning activities are ongoing and production is scheduled for H2 CY23, ramp-up is planned to take 1 year.
^__________________________
^5 Reported on 100% basis, AKE share is 66.5%
*SAL DA VIDA PROJECT SUMMARY*
*Stage 1 and 2 (45,000 lithium carbonate equivalent tonnes per annum)*
*Financial Metrics*
· Pre-tax NPV of US$5.51 billion at a 10% discount rate. The Post-tax NPV[10] is US$3.18 billion
· Operating cost highly competitive at US$4,003 per tonne LCE despite increases in the price of soda ash, lime and labour costs
*Mineral Resource and Ore Reserve*
· Total Mineral Resource Estimate of 7.17 Mt LCE, a 5% increase from the previous estimate in 2022, with a 41% increase in Measured Mineral Resources
· Total Ore Reserve Estimate of 2.49 Mt LCE supporting a 40-year project life based on Ore Reserves only, a 43% increase from the previous statement due to a revised point of reference for Ore Reserve reporting of ‘brine pumped to the evaporation ponds’
*Stage 1 (15,000 **lithium carbonate equivalent** tonnes per annum)*
*Financial Metrics*
· Pre-tax NPV of US$2.01 billion at a 10% discount rate
· Operating costs of US$4,529 per tonne LCE despite increases in the price of soda ash, lime, natural gas and labour costs
*Project Cost and Schedule Update*
· Development CAPEX of US$374 million which is in line with inflationary conditions
· Substantial mechanical completion, pre-commissioning and commissioning activities are planned in H1 CY25 with first production planned H2 CY25 and ramp up planned to take 1 year
· The schedule adjustment comes with an improved understanding of the execution plan, the ongoing import challenges and delays experienced in country by Allkem and its contractors and vendors as well as an improved understanding of regional productivity factors*Stage 2 (30,000 tonnes **lithium carbonate equivalent **per annum)*
*Project Cost and Schedule Update *
· The prefeasibility study update confirms the Stage 2 expansion will be completed and substantially the same design basis as Stage 1 with a twofold modular replication of the Stage 1 design
· CAPEX is estimated at approximately US$657 million with Stage 2 benefiting from Stage 1 detailed engineering, established on site infrastructure and established regional construction teams and facilities
· Stage 2 construction is anticipated to commence upon receipt of applicable permits and substantial mechanical completion of Stage 1 with Stage 2 first production approximately 2.5 - 3 years thereafter*CAUCHARI PROJECT SUMMARY*
*Financial Metrics*
· Analysis based on 25,000 tonnes per annum production capacity updating the April 2019 study
· Pre-tax NPV of US$2.52 billion and Post-tax NPV of US$1.37 billion at 10% discount rate
· Operating costs of US$4,081 per tonne LCE after increases in the price of soda ash, lime, natural gas and employment costs*Mineral Resource and Ore Reserve*
· Total Mineral Resource Estimate of 5.95 Mt LCE
· Total Ore Reserve Estimate of 1.13 Mt LCE supporting a 30-year project life based on Ore Reserves only, an 11% increase from the previous statement due to a revised point of reference for Ore Reserve reporting of ‘brine pumped to the evaporation ponds’
*Project Cost and Schedule Update*
· Development CAPEX of US$659 million for mechanical completion
· Substantial mechanical completion, pre-commissioning and commissioning activities are planned by H1 CY27 with first production planned in H2 CY27 and ramp up planned to take 1 year
*MT CATTLIN RESOURCE AND ORE RESERVE ESTIMATE*
The Mt Cattlin Ore Reserve estimate is based on an updated Mineral Resource Estimate released on 17 April 2023. The Mineral Resource was updated after the completion of a major infill drilling program which successfully upgraded Inferred Mineral Resources.
Allkem has reviewed and updated the Mt Cattlin Ore Reserve (Table 3 below), incorporating infill drilling results from the 2NW deposit, depleted mined material and site stockpiles at 30 June 2023 and material to be mined after this date are presented in accordance with JORC (2012) Ore Reserve Reporting.
*Table 3: Mt Cattlin Ore Reserve Update at 30 June 2023*
*Classification* *Location* *Ore Tonnes (Mt)* *Grade Li*[*2*]*O (%)* *Grade Ta*[*2*]*O*[*5*]*(ppm)* *Contained Metal (‘000) t Li*[*2*]*O)* *Contained Metal (‘000) lbs Ta*[*2*]*O*[*5*]
*Proved* In-situ 0.2 0.9 120 1 45
*Probable* In-situ 5.2 1.3 130 69 1,500 Stockpiles 1.8 0.8 95 13 396
*Total Ore Reserve* *7.1* *1.2* *120* *84* *1,900*
Notes: Ore Reserves mine designs were conducted on a 0.4% Li[2]O cut-ff grade and Ore Reserves are reported above a marginal cut-off grade of 0.3 % Li[2]O. Estimates have been rounded to a maximum of two significant figures, thus sum of columns may not equal.
*Table 4: Mt Cattlin Mineral Resource Update as at 30 June 2023, depleted for mining*
*Classification* *Location* *Ore Tonnes (Mt)* *Grade Li*[*2*]*O (%)* *Grade Ta*[*2*]*O*[*5*]*(ppm)* *Contained Metal (‘000) t Li*[*2*]*O)* *Contained Metal (‘000) lbs Ta*[*2*]*O*[*5*] *Contained (‘000) t LCE*
*Measured* In-situ 0.2 1.0 % 172 2 75 5
*Indicated* In-situ 8.8 1.4 % 165 121 3,197 299
*Inferred* In-situ 1.8 0.8 % 95 13 396 32
*Indicated* Stockpiles 1.3 1.3 % 181 17 518 42
*Total Mineral Resource* *12.1* *1.3* *%* *167* *153* *4,186* *378*
Notes: Global Insitu Mineral Resource as at 30 June, 2023. COG 0.3% lithia. Depleted for mining 1.2Mt @1.2% lithia January-June, 2023
*Table 5: Mt Cattlin Mineral Resource Update as at 30 June 2023, depleted for mining, within a RPEEE shell USD 1,500*
*Classification* *Location* *Ore Tonnes (Mt)* *Grade Li*[*2*]*O (%)* *Grade Ta*[*2*]*O*[*5*]*(ppm)* *Contained Metal (‘000) t Li*[*2*]*O)* *Contained Metal (‘000) lbs Ta*[*2*]*O*[*5*]
*Measured* In-situ 0.2 1.0 171 2 44
*Indicated* In-situ 7.2 1.4 147 98 2,221
*Inferred* In-situ 0.2 1.1 133 2 48
*Indicated* Stockpiles 1.8 0.8 95 13 396
*Total Mineral Resource* *9.4* *1.2* *137* *115* *2,700*
Notes: RPEEE optimisations were conducted on a 0.4% Li[2]O cut-ff grade and are reported above a marginal cut-off grade of 0.3 % Li[2]O. Estimates have been rounded to a maximum of two significant figures, thus sum of columns may not equal
*Table 6: Mt Cattlin Mineral Resources Update as at 30 June 2023, depleted for mining, exclusive of Ore Reserves*
*Classification* *Location* *Ore Tonnes (Mt)* *Grade Li*[*2*]*O (%)* *Grade Ta*[*2*]*O*[*5*]*(ppm)* *Contained Metal (‘000) t Li*[*2*]*O)* *Contained Metal (‘000) lbs Ta*[*2*]*O*[*5*]
*Measured* In-situ 0.1 1.0 179 1.0 39
*Indicated* In-situ 3.2 1.4 201 44.8 1417
*Inferred* In-situ 0.6 1.1 207 6.6 273
*Total Mineral Resource* *3.9* *1.3* *201* *52.4* *1,700*
Notes: Mineral Resources, exclusive of Ore Reserves are reported above a marginal cut-off grade of 0.3 % Li[2]O. Estimates have been rounded to a maximum of two significant figures, thus sum of columns may not equal. Not constrained by the RPEEE USD1,500 shell.
*RESOURCE AND ORE RESERVE CONTROLS & GOVERNANCE*
Allkem continues to evolve processes to ensure that quoted Mineral Resource and Ore Reserve estimates are subject to internal controls and external review. Mineral Resource and Ore Reserves are estimated and reported in accordance with the 2012 edition of the JORC Code.
Allkem stores and collects exploration data using industry standard software that contains internal validation checks. Exploration samples from drilling have certified reference material standards introduced to the sample stream at set ratios, typically 1 per 25 samples. These are reported as necessary to the relevant Competent Persons to assess both accuracy and precision of the assay data applied to resource estimates. In resource modelling, block models are validated by checking the input drill hole composites against the block model grades by domain.
Allkem engages independent, qualified experts on a commercial fee for service basis, to undertake Mineral Resource and Ore Reserve audits. Allkem internally reconciles the resource outcomes to validate both the process and the outcome.
The Company has developed its internal systems and controls to maintain JORC compliance in all external reporting, including the preparation of all reported data by Competent Persons who are members of the Australasian Institute of Mining and Metallurgy or a ‘Recognised Professional Organisation’. As set out above, the Mineral Resource and Ore Reserve statements included in this announcement were reviewed by suitably qualified Competent Persons (below) prior to their inclusion, in the form and context announced.
*ENDS*
This release was authorised by Mr Martin Perez de Solay, CEO and Managing Director of Allkem Limited.
*Allkem Limited*
ABN 31 112 589 910
Level 35, 71 Eagle St
Brisbane, QLD 4000 *Investor Relations & Media Enquiries*
Andrew Barber
*M: +*61 418 783 701*E:*Andrew.Barber@allkem.co
Phoebe Lee
*P:*+61 7 3064 3600*E**:*Phoebe.Lee@allkem.co *Connect*
info@allkem.co
+61 7 3064 3600
www.allkem.co
*IMPORTANT NOTICES*
This investor ASX/TSX release (*Release*) has been prepared by Allkem Limited (ACN 112 589 910) (the *Company* or *Allkem*). It contains general information about the Company as at the date of this Release. The information in this Release should not be considered to be comprehensive or to comprise all of the material which a shareholder or potential investor in the Company may require in order to determine whether to deal in Shares of Allkem. The information in this Release is of a general nature only and does not purport to be complete. It should be read in conjunction with the Company’s periodic and continuous disclosure announcements which are available at allkem.co and with the Australian Securities Exchange (*ASX*) announcements, which are available at www.asx.com.au.
This Release does not take into account the financial situation, investment objectives, tax situation or particular needs of any person and nothing contained in this Release constitutes investment, legal, tax, accounting or other advice, nor does it contain all the information which would be required in a disclosure document or prospectus prepared in accordance with the requirements of the Corporations Act 2001 (Cth) (*Corporations Act*). Readers or recipients of this Release should, before making any decisions in relation to their investment or potential investment in the Company, consider the appropriateness of the information having regard to their own individual investment objectives and financial situation and seek their own professional investment, legal, taxation and accounting advice appropriate to their particular circumstances.
This Release does not constitute or form part of any offer, invitation, solicitation or recommendation to acquire, purchase, subscribe for, sell or otherwise dispose of, or issue, any Shares or any other financial product. Further, this Release does not constitute financial product, investment advice (nor tax, accounting or legal advice) or recommendation, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision.
The distribution of this Release in other jurisdictions outside Australia may also be restricted by law and any restrictions should be observed. Any failure to comply with such restrictions may constitute a violation of applicable securities laws.
Past performance information given in this Release is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance.
*Forward Looking Statements*
Forward-looking statements are based on current expectations and beliefs and, by their nature, are subject to a number of known and unknown risks and uncertainties that could cause the actual results, performances and achievements to differ materially from any expected future results, performances or achievements expressed or implied by such forward-looking statements, including but not limited to, the risk of further changes in government regulations, policies or legislation; the risks associated with the continued implementation of the merger between the Company and Galaxy Resources Ltd, risks that further funding may be required, but unavailable, for the ongoing development of the Company’s projects; fluctuations or decreases in commodity prices; uncertainty in the estimation, economic viability, recoverability and processing of mineral resources; risks associated with development of the Company Projects; unexpected capital or operating cost increases; uncertainty of meeting anticipated program milestones at the Company’s Projects; risks associated with investment in publicly listed companies, such as the Company; and risks associated with general economic conditions.
Subject to any continuing obligation under applicable law or relevant listing rules of the ASX, the Company disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements in this Release to reflect any change in expectations in relation to any forward-looking statements or any change in events, conditions or circumstances on which any such statements are based. Nothing in this Release shall under any circumstances (including by reason of this Release remaining available and not being superseded or replaced by any other Release or publication with respect to the subject matter of this Release), create an implication that there has been no change in the affairs of the Company since the date of this Release.
*Competent Person Statement *
*Mt Cattlin*
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 (203217), 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.
The information in this announcement that relates to the 30 June 2023 Mt Cattlin Ore Reserve is based on information compiled by Daniel Donald, B. Eng. (Mining), F.Aus.IMM (210032), a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy. Daniel Donald is an employee working for Entech Mining Pty Ltd and has been engaged by Allkem Limited to prepare the documentation for the Mt Cattlin operation on which the Ore Reserve Report (released 1 August 2023) is based, for the period ended 30 June 2023, and 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’. Daniel Donald consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.
Information in this announcement relating to Mt Cattlin scientific or technical information, production targets or forecast financial information derived from a production target is extracted from the report titled “Mt Cattlin Ore Reserve update confirms mine life extension” dated 16 June 2023 available at www.allkem.co and www.asx.com.au. The Company confirms that all the material assumptions underpinning the scientific or technical information, production targets or the forecast financial information derived from a production target in the original market announcement continue to apply and have not materially changed.
*James Bay*
Any information in this announcement that relates to James Bay Mineral Resources & Ore Reserves is extracted from the report entitled “James Bay Lithium Project Update Confirms Strong Project Economics” released on 25 September 2023 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 and Ore Reserves 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.* *
Any information in this announcement relating to James Bay scientific or technical information, production targets or forecast financial information derived from a production target is extracted from the ASX Announcement entitled “James Bay Lithium Project Update Confirms Strong Project Economics” released on 25 September 2023 which is available to view on www.allkem.co and www.asx.com.au. The Company confirms that all the material assumptions underpinning the scientific or technical information, production targets or the forecast financial information derived from a production target in the original market announcement continue to apply and have not materially changed.
*Sal de Vida*
Any information in this announcement that relates to Sal de Vida Mineral Resources & Ore Reserves is extracted from the report entitled “Sal de Vida Update Delivers Improved Economics, Resource and Reserve” released on 25 September 2023 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 and Ore Reserves 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.
Any information in this announcement relating to Sal de Vida scientific or technical information, production targets or forecast financial information derived from a production target is extracted from the ASX Announcement entitled “Sal de Vida Update Delivers Improved Economics, Resource and Reserve” released on 25 September 2023 which is available to view on www.allkem.co and www.asx.com.au. The Company confirms that all the material assumptions underpinning the scientific or technical information, production targets or the forecast financial information derived from a production target in the original market announcement continue to apply and have not materially changed.
*Cauchari*
Any information in this announcement that relates to Cauchari Mineral Resources & Ore Reserves is extracted from the report entitled “Cauchari Mineral Resource and Ore Reserve Update and Project Update” released on 25 September 2023 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 and Ore Reserves 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.
Any information in this announcement relating to Cauchari scientific or technical information, production targets or forecast financial information derived from a production target is extracted from the ASX Announcement entitled “Cauchari Mineral Resource and Ore Reserve Update and Project Update” released on 25 September 2023 which is available to view on www.allkem.co and www.asx.com.au. The Company confirms that all the material assumptions underpinning the scientific or technical information, production targets or the forecast financial information derived from a production target in the original market announcement continue to apply and have not materially changed.
*Olaroz*
Any information in this announcement that relates to Olaroz Mineral Resources is extracted from the report entitled “Olaroz Mineral Resource Update, and Stage 1 & 2 Operations Update ” released on 25 September 2023 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 Resource 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.
Any information in this announcement relating to Olaroz scientific or technical information, production targets or forecast financial information derived from a production target is extracted from the ASX Announcement entitled “Olaroz Mineral Resource Update, and Stage 1 & 2 Operations Update” released on 25 September 2023 which is available to view on www.allkem.co and www.asx.com.au. The Company confirms that all the material assumptions underpinning the scientific or technical information, production targets or the forecast financial information derived from a production target in the original market announcement continue to apply and have not materially changed.
*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 – RESOURCES & RESERVES*
*James Bay*
*James Bay Mineral Resource Estimate – Effective date 30 June 2023*
*Category*
*Tonnage* *Grade* *Contained lithium oxide/LCE*
*Mt* *% Li*[*2*]*O* *(‘000) t Li*[*2*]*O* *(‘000) t LCE*
Measured - - - -
Indicated 54.3 1.30 706 1,746
*Measured + Indicated* *54.3* *1.30* *706* *1,746*
Inferred 55.9 1.29 724 1,790
*Total Mineral Resource* *110.2* *1.30* *1,430* *3,537*
1. The Independent Competent Person, as defined by the JORC Code 2012, responsible for the preparation of this MRE is Mr. Luke Evans, P.Eng, a full-time employee of SLR. Mr. Evans is a member of L’Ordre des Ingénieurs du Québec, a Recognised Professional Organisation defined by the JORC Code 2012. The effective date of the mineral resource is the 30^th June 2023 (erroneously identified as Aug. 9, 2023 in the earlier news release).
2. The Mineral Resource Estimate has been reported within a conceptual pit shell at a cut-off grade of 0.50% Li[2]O
3. The Mineral Resources are Inclusive of Ore Reserves.
4. The conceptual pit shell used to constrain the MRE has been defined using a spodumene concentrate price of US$1,500 per tonne, an exchange rate of CAD:US$ of 1.33, a total ore-based cost of CAD33.92 per tonne, a mining cost of CAD4.82 per tonne, a concentrate transport cost of CAD86.16 per tonne, and a metallurgical recovery of 70.1%.
5. The statements of Mineral Resources conform to the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code) 2012 edition.
6. Mineral Resources are not Mineral Reserves, as they do not demonstrate economic viability.
7. The Competent Persons are not aware of any problem related to the environment, permits or mining titles, or related to legal, fiscal, socio‐political, commercial issues, or any other relevant factor that could have a significant impact on this MRE.
8. The number of tonnes has been rounded to the nearest 100,000 tonnes, with any discrepancies observed in the totals due to rounding effects.
9. All tonnages reported are dry metric tonnes.
*James Bay Ore Reserve – Effective date 30 June 2023*
*Category*
*Tonnage* *Grade* *Contained Metal*
*Mt* *% Li2O* *(‘000) t Li*[*2*]*O*
Proven - - -
Probable 37.3 1.27 474
*Proven + Probable* *37.3* *1.27* *474*
1. The Independent Competent Person, as defined by the JORC Code 2012, responsible for the preparation of the Ore Reserve estimate is Mr. Normand Lecuyer, P.Eng., an employee of SLR. Mr. Lecuyer is a member of L’Ordre des Ingénieurs du Québec (License No. 34914), a Recognised Professional Organisation defined by the JORC Code 2012. Effective date of the estimate is June 30^th, 2023.
2. Ore Reserves are estimated using the following metal prices (Li[2]O Conc = US$ 1,500/t Li[2]O at 6.0% Li[2]O) and an exchange rate of CAD/US$ 1.33.
3. A minimum mining width of 5 m was used.
4. A cut-off grade of 0.62% Li[2]O was used.
5. The bulk density of ore is variable, is outlined in the geological block model, and averages 2.7 g/cm^3.
6. The average strip ratio is 3.6:1.
7. The average mining dilution factor is 8.7% at 0.42% Li[2]O.
8. Numbers may not add due to rounding
*Olaroz*
*Olaroz Mineral Resource Estimate at August 2023*
*Category* *Brine volume* *Average Li* *In Situ Li* *Li*[*2*]*CO*[*3*]
*Equivalent* *Li*[*2*]*CO*[*3*]
*Variance to March 2023* m^3 mg/l tonnes Tonnes %
Measured 3.3 x 10^9 659 2,170,000 11,540,000 53 %
Indicated 1.2 x 10^9 592 720,000 3,840,000 -46 %
*Measured & Indicated* 4.5 x 10^9 641 2,890,000 *15,380,000* 5 %
Inferred 2.2 x 10^9 609 1,360,000 7,250,000 21 %
*Total* *6.7 x 10*^*9* *636* *4,250,000* *22,630,000* 10 %
1. The Competent Person(s) for these Mineral Resources estimate is Hydrominex Geoscience for Olaroz
2. Comparison of values may not add up due to rounding or the use of averaging methods
3. Lithium is converted to lithium carbonate (Li[2]CO[3]) with a conversion factor of 5.323
4. The cut-off grade used to report Olaroz Mineral Resources is 300 mg/l
5. Mineral Resources that are not Ore Reserves do not have demonstrated economic viability, there is no certainty that any or all of the Mineral Resources can be converted into Ore Reserves after application of the modifying factors
*Sal de Vida *
*Sal de Vida Mineral Resource Estimate at August 2023 *
*Category* *Brine volume* *Average Li* *In Situ Li* *Li*[*2*]*CO*[*3*]
*Equivalent* *Li*[*2*]*CO*[*3*]
*Variance to 2022* m^3 mg/l tonnes Tonnes %
Measured 8.8 x 10^8 752 660,595 3,516,000 41 %
Indicated 7.6 x 10^8 742 564,375 3,004,000 -20 %
*Measured & Indicated* 1.6 x 10^9 747 1,224,970 *6,520,000* 5 %
Inferred 2.2 x 10^8 556 122,497 652,000 5 %
*Total* *1.9 x 10*^*9* *724* *1,347,467* *7,172,000* 5 %
Note: Cut-off grade: 300 mg/L lithium. The reader is cautioned that Mineral Resources are not Ore Reserves and do not have demonstrated economic viability. Values are inclusive of Ore Reserve estimates, and not “in addition to”.
*Sal de Vida Ore Reserve Estimate at August 2023 *
*Category* *Wellfield* *Time Period* *Li Total Mass* *Li*[*2*]*CO*[*3*]*Equivalent* *Li*[*2*]*CO*[*3*]*Variance to 2022* years tonnes tonnes %
Proved Stage I East 1-7 30,541 163,000 81 %
Proved Stage II Expansion 3-9 53,046 282,000 57 %
*Total Proved* 1-9 83,587 445,000 65 %
Probable Stage I East 8-40 146,520 780,000 53 %
Probable Stage II Expansion 10-40 236,947 1,261,000 31 %
*Total Probable* 8-40 383,467 2,041,000 39 %
*Total Proved and Probable* *40* *467,054* *2,486,000* *43* *%*
Note: Assumes 300 mg/L Li cut-off grade
*Cauchari *
*Cauchari Mineral Resource Estimate at August 2023 *
*Category* *Brine volume* *Average Li* *In Situ Li* *Li*[*2*]*CO*[*3*]
*Equivalent* *Li*[*2*]*CO*[*3*]
*Variance to 2019* m^3 mg/l tonnes Tonnes %
Measured 6.5 x 10^8 527 345,000 1,850,000 %
Indicated 1.1 x 10^9 452 490,000 2,600,000 -12 %
*Measured & Indicated* 1.8 x 10^9 476 835,000 *4,450,000* -7 %
Inferred 6.0 x 10^8 473 285,000 1,500,000 %
*Total* *2.4 x 10*^*9* *475* *1,120,000* *5,950,000* -6 %
1. The Competent Person(s) for these Mineral Resources and Ore Reserves estimate is Atacama Water
2. Comparison of values may not add up due to rounding or the use of averaging methods
3. Lithium is converted to lithium carbonate (Li2CO3) with a conversion factor of 5.323
4. The cut-off grade used to report Cauchari Mineral Resources is 300 mg/l
5. Mineral Resources that are not Ore Reserves do not have demonstrated economic viability, there is no certainty that any or all of the Mineral Resources can be converted into Ore Reserves after application of the modifying factors
*Cauchari Project Reserve Estimate at 30 June 2023*
*Category* *Year* *Brine Vol (Mm*^*3**)* *Average Lithium Grade (mg/L)* *Lithium (kt)* *Li*[*2*]*CO*[*3*]*Equivalent (kt)*
Proved 1-7 76 571 43 231
Probable 8-30 347 485 169 897
*Total* *1-30* *423* *501* *212* *1,128*
1. The Competent Person(s) for these Mineral Resources and Ore Reserves estimate is Atacama Water.
2. Comparison of values may not add up due to rounding or the use of averaging methods.
3. Lithium is converted to lithium carbonate (Li2CO3) with a conversion factor of 5.323.
4. The cut-off grade used to report Cauchari Ore Reserves is 300 mg/l.
5. Mineral Resources that are not Ore Reserves do not have demonstrated economic viability, there is no certainty that any or all of the Mineral Resources can be converted into Ore Reserves after application of the modifying factors.
6. The Lithium Ore Reserve Estimate represents the lithium contained in the brine produced by the wellfields as input to the evaporation ponds. Brine production initiates in Year 1 from wells located in the NW Sector. In Year 9, brine production switches across to the SE Sector of the Project.
7. Approximately 25% of M+I Mineral Resources are converted to Total Ore Reserves.
8. Potential environmental effects of pumping have not been comprehensively analysed at the PFS stage. Additional evaluation of potential environmental effects will be done as part of the next stage of evaluation.
9. Additional hydrogeological test work will be required in the next stage of evaluation to adequately verify the quantification of hydraulic parameters in the Archibarca fan area and in the Lower Sand unit as indicated by the sensitivity analysis carried out on the model results. Ore Reserves are derived from and included within the M&I Mineral Resources in the Mineral Resource.
*APPENDIX 2– JORC 2012 TABLE 1 DISCLOSURE FOR MT CATTLIN*
*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) of new reverse circulation (RC) and 273.65m 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.
*2022 Drilling*
The current drillhole dataset for the project contains 3,232 drillholes, for 175,950 metres, comprised of a combination of reverse circulation (RC), diamond drilling (DD), and RC with a diamond tail (RC_DDT) drillholes.
The dominant drillhole type is RC, with over 95% of the metres being from RC drillholes.
https://www.globenewswire.com/NewsRoom/AttachmentNg/cd40ca0c-ed34-4bc2-86c0-42226ac39945
*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. Pre-collars 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 drilling was utilised for RC drilling from surface. HQ size Metallurgical and geotechnical diamond drilling (standard tubing) by Orlando Drilling. Four Metallurgical holes and three Geotechnical holes were diamond drilled from surface and two diamond tails from 150-160m depth.
*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.
*2017-2023 logging*
All drill holes are logged and validated via LogChief/ Maxwells Geosciences/DataShed systems.
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 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.
*Intertek 2022-3*
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 assayed by Sodium peroxide fusion in a Ni crucible / MS, OES method FP6-Li/OM19.
*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 AS40Q), 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 analyse for Cs, Nb, Rb, Ta,Th, and U . FS/ICPES (inductively coupled plasma emission spectroscopy) is Laboratory method FP1/OE used to analyse 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 used are ASM0343, ASM0340 AMIS0339, OREAS147, OREAS148 and OREAS149.
Standards reported only one result outside three standard deviations from 533 assays for Lithium. The majority of Tantalum standards reported within three standard deviations.
Coarse blanks have shown no evidence of systematic contamination from 2016-2021 with results consistently low.
QAQC in 2022-3 is broadly in line with the processes above, assays are by Intertek, Perth and Kalgoorlie.
Standards used are OREAS 147, AMIS0341, OREAS 751, OREAS 753, OREAS 148, AMIS0341, AMIS0341, and OREAS 147 to support Sodium peroxide fusion in Ni crucible assay method MS, OES FP6-Li/OM19. This method provides near complete recovery for most samples.
Ore grade standards e.g. Oreas 751 reported only four results outside 2 standard deviations from assays for Lithia. The majority of Tantalum standards reported within 2 standard deviations.
https://www.globenewswire.com/NewsRoom/AttachmentNg/80217775-a8b7-4a4c-9ae6-624a95c78501
The data is moderately precise.
*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 staff have visually assessed and verified significant intersections of core and RC and PC chips.
Several core holes were compared to neighbouring 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 Mt Cattlin.
Data collection and entry procedures are documented, and training given to all staff.
QAQC checks of assays had 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 - 2022 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 competent person.
Data exported from SQL database and verified by the CP.
No adjustments are made to assay data.
* *
*Section 2: Reporting of Exploration Results*
Criteria JORC Code explanation Commentary
*Mineral tenement and land tenure statu**s* · 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 and vacant Crown land. The property Free