TIDMCMET

RNS Number : 7197I

Capital Metals PLC

20 April 2022

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF ENGLISH LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMED. ON PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

20 April 2022

Capital Metals plc

("CMET" or the "Company")

Outstanding Drill Results Confirms Higher Grade

and Potential Resource Extensions

& Project Update

Capital Metals plc (AIM: CMET), a natural resources company focused on the development of the Eastern Minerals Project located in the Eastern Province in Sri Lanka (the "Project"), one of the highest-grade mineral sands projects globally, is pleased to announce the first half of results from the late-2021 auger drilling programme.

Highlights

   --      50% of the assays from the Q4 2021 auger drilling programme completed 

-- High levels of assay precision and accuracy returned from comprehensive quality assurance programme

   --      Exceptional high-grade results of +30%Total Heavy Minerals* ("THM"), including: 

o 1m at 86.1% THM

o 0.5m @ 70.86% THM

o 0.5m @ 56.77% THM

o 2.4m @ 50.14% THM

o 2.5m @ 46.40% THM

o 2.5m @ 38.29% THM

o 3.5m @ 33.40% THM

-- Average grade of results of 19.94% THM from 352 drill results received to date, compared to the existing JORC resource grade of 17.6%

   --      Confirmation of continuity of high grade as well as lateral extensions of resource areas 
   --      Results indicate likely new potential high-grade resource areas not previously identified 

-- All results from surface to maximum of only 3.5m depth due to limit of auger drilling and average depth 1.5m from surface. All results ended in mineralisation

-- Further air core drill programme planned later in the year in order to test lateral and depth extensions to increase the JORC Resource

The drill results are in the Komari and Ureni North sections, located in the southern portion of the Project (see link to map below). Extremely high-grade zones of +30% THM were identified within the drilling, with 63 of the 352 drill results received to date recording over 30% THM, and the highest result returning 1m at 86.1% THM.

The average grade of results to date is 19.94% THM which compares favourably with our current global resource grade of 17.6% THM and these results indicate possible high-grade resource areas not previously identified.

All drill results are from surface to a maximum of only 3.5m depth with average depth 1.5m from surface and we believe there is resource continuity at depth as shown from the 2018 drill programme, which included results of 14m at 26.3% THM; 8m at 26.6% THM.

Encouragingly, drilling to date has confirmed continuity of high grade as well as adjacent extensions of resource areas. Further analysis of the remaining samples and test work to characterise the mineral assemblage is still to be completed by the lab being used in Sri Lanka, however, given the results to date, the Company is expecting a further uplift to historical figures.

The Company's geologists are now preparing an air core drilling campaign for later this year that will test lateral and depth extensions with the aim of increasing our current JORC Resource of 17.2Mt at 17.6% THM, which will be funded from our oversubscribed February 2022 fundraise.

THM is defined here as the magnetic fraction plus the non-magnetic heavy liquid separation ("HLS") sink fraction.

A summary of the sampling and assay procedure is presented in Appendix 1.

A summary of significant intercepts is presented in Appendix 2.

A drilling and resource plan is included in a PDF version of this announcement on the Company's website by clicking the link below:

https://capitalmetals.com/auger-drilling-campaign-2021

Verified assay results returned to date have had extensive QA/QC review. Sample duplicates and heavy mineral standard samples have all been introduced to the laboratory for this drilling programme. A Competent Person ("CP") audit of the laboratory in March 2022 has confirmed the high level of accuracy and precision returned from quality assurance samples.

Development Study

We have been informed by IHC Mining, who are completing the Development Study and the revised Project Economics, that they are nearing the final draft of their report. Following feedback from the Company's commercial and technical team on the initial drafts of the Development Study, including the Project Economics, we are expecting to receive the final report imminently.

Economic Situation in Sri Lanka

The Company notes the economic and political events in Sri Lanka related to country's debt position and discussions with the International Monetary Fund ("IMF"), caused largely by the COVID shutdowns and the lack of tourist income on which the country is heavily reliant. This has resulted in shortages of foreign exchange reserves and essentials including fuel as well as power generation due to the shortages in hydroelectricity. However, the country is currently experiencing heavy showers which has eased some pressure on diesel power plants.

In response to the social pressure exerted by island wide protests, the Governor of the Central Bank and the Treasury Secretary has been replaced by respected and qualified professionals who have taken immediate steps to halt the current decline and are currently engaged with the IMF on debt restructuring and obtaining funding.

There have been no direct impacts on the Project from the situation and the Board believes that our Project, when operational, will be favourable for the country as it will generate foreign export earnings for the country. We are continuing to work diligently with the Sri Lankan authorities in order to progress the issue of our first Industrial Mining Licence ("IML"). This will enable us to move into commissioning the mineral sands concentrator to enable first production of a heavy minerals concentrate.

Michael Frayne, Chief Executive Officer, commented:

"The first half of results from our auger drilling campaign were spectacular. Less than 10% of the Project has been drilled to date and these latest results confirm our belief that this resource will expand and we will uncover high grade areas not previously identified.

"Our geologists are now planning the air core drill campaign for later this year which we expect will increase the resource.

"The Project is shaping up in every aspect to be a significant mineral sands project and we look forward to sharing the results of the Development Study in the very near term."

Competent Person

Information in this report relating to Exploration Results is based on data reviewed by Mr Richard Stockwell, a principal of Placer Consulting Pty Ltd and Technical Manager of the Company. Mr Stockwell is a Fellow of the Australian Institute of Geoscientists and has in excess of 20 years' experience, which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity he is undertaking, to qualify as a Competent Person as defined in the 2021 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral resources and Ore Reserves". Mr Stockwell consents to the inclusion of the information in the form and context in which it appears.

For further information, please visit www.capitalmetals.com or contact:

 
Capital Metals plc                    j ames.mahony@capitalmetals.com 
 Michael Frayne (CEO) 
 James Mahony (CFO) 
SPARK Advisory Partners (Nominated 
 Adviser) 
 Neil Baldwin / James Keeshan         +44 (0) 20 3368 3554 
WH Ireland Limited (Joint Broker) 
 Harry Ansell / Katy Mitchell         +44 (0) 20 7220 1666 
Tavira Securities Limited (Joint 
 Broker) 
 Jonathan Evans / Oliver Stansfield   +44 (0) 20 7100 5100 
 

APPIX 1 - JORC Table 1

 
Criteria             Explanation                              Comment 
Sampling             Nature and quality of sampling           Hand auger drilling is executed by 
 techniques           (e.g. cut channels, random               the Geological Survey & Mines Bureau 
                      chips, or specific specialised           in Sri Lanka ("GSMB") field team using 
                      industry standard measurement            a manually operated enclosed-flight 
                      tools appropriate to the minerals        Spiral Auger (SP / SOS) system from 
                      under investigation, such as             Dormer Engineering in Queensland, Australia. 
                      down hole gamma sondes, or               Drilling proceeds to the water table, 
                      handheld XRF instruments, etc.).         which is intersected at an average 
                      These examples should not be             depth, for this dataset, of 1.5m from 
                      taken as limiting the broad              surface. 
                      meaning of sampling.                     The first 0.5m advance is withdrawn 
                                                               and the contents of the auger removed 
                                                               onto a sheet and set aside for bagging. 
                                                               The subsequent samples are taken in 
                                                               the same manner at 1m intervals or 
                                                               until the hole is abandoned at the 
                                                               water table. 
                                                               The whole sample is retained. 
                     Include reference to measures            All drilling is completed above the 
                      taken to ensure sample representivity    water table. 
                      and the appropriate calibration          Drilling and sampling activities are 
                      of any measurement tools or              supervised by a suitably qualified 
                      systems used.                            GSMB geologist who is present at all 
                                                               times. All drill samples are geologically 
                                                               logged by the geologist at the drill 
                                                               site. 
                                                               Each sample is bagged at site and transferred 
                                                               to the GSMB laboratory. Samples are 
                                                               dried and weighed prior to analysis. 
                     Aspects of the determination             All samples are dried and weighed. 
                      of mineralisation that are               A riffle-split sub sample is then wet 
                      Material to the Public Report.           screened to determine slimes (-63 um) 
                      In cases where 'industry standard'       and oversize material (+1mm) . Approximately 
                      work has been done this would            100g of the resultant sand sample is 
                      be relatively simple (e.g.               then oven-dried and passed over a Franz 
                      'reverse circulation drilling            Isodynamic Magnetic Separator to produce 
                      was used to obtain 1 m samples           magnetic (M) and non-magnetic (NM) 
                      from which 3 kg was pulverised           fractions. The NM fraction is then 
                      to produce a 30 g charge for             subjected to heavy liquid separation 
                      fire assay'). In other cases,            (HLS) using Lithium heteropolytungstate 
                      more explanation may be required,        (LST) with a density of 2.82g/ml. 
                      such as where there is coarse            All fractions are weighed and reported 
                      gold that has inherent sampling          as a percentage of the in-ground total 
                      problems. Unusual commodities            sample weight. 
                      or mineralisation types (e.g.            Grain counting of heavy minerals is 
                      submarine nodules) may warrant           completed by mineralogist and mineral 
                      disclosure of detailed information.      assemblage data is then reported as 
                                                               a percentage of the HM fraction. 
Drilling             Drill type (e.g. core, reverse           All samples are generated by hand auger 
 techniques           circulation, open-hole hammer,           drilling utilising 75 mm diameter enclosed-flight 
                      rotary air blast, auger, Bangka,         spiral auger. Drill holes are oriented 
                      sonic, etc.) and details (e.g.           vertically by eye. 
                      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.). 
Drill sample         Method of recording and assessing        Samples are assessed visually for recoveries. 
 recovery             core and chip sample recoveries          Samples are retrieved moist from the 
                      and results assessed.                    ground. The configuration of drilling 
                                                               and nature of materials encountered 
                                                               results in negligible sample loss. 
                                                               Hand-auger drilling is ceased when 
                                                               recoveries become poor once the water 
                                                               table has been reached. Water table 
                                                               and recovery information is included 
                                                               in lithological logs. 
Drill sample         Measures taken to maximise               The GSMB's trained geologists supervise 
 recovery,            sample recovery and ensure               drilling on a 1 team 1 geologist basis 
 cont'd.              representative nature of the             and are responsible for monitoring 
                      samples.                                 all aspects of the drilling and sampling 
                                                               process. 
                     Whether a relationship exists            No relationship is believed to exist 
                      between sample recovery and              between grade and sample recovery. 
                      grade and whether sample bias            The moisture content and absence of 
                      may have occurred due to preferential    hydraulic inflow above the water table 
                      loss/gain of fine/coarse material.       results in a sample size that is well 
                                                               within the expected size range. 
Logging              Whether core and chip samples            Qualitative logs of geological characteristics 
                      have been geologically and               are collected in the field to allo 
                      geotechnically logged to a               w a comprehensive geological interpretation 
                      level of detail to support               to be carried out. Drill holes are 
                      appropriate Mineral Resources            characterised by their location within 
                      estimation, mining studies               the beach-barrier sequence to assist 
                      and metallurgical studies.               with domaining each sequence unit in 
                                                               subsequent resource estimations. 
                     Whether logging is qualitative           Logging of sand samples in the field 
                      or quantitative in nature.               is qualitative and includes description 
                      Core (or costean, channel,               of sand colour, sorting and angularity. 
                      etc.) photography.                       Estimates of black HM and garnet is 
                                                               recorded. A comments field is employed 
                                                               to allow further description of the 
                                                               location or sand sample. 
                     The total length and percentage          All drill holes are logged in full 
                      of the relevant intersections            and all samples are assayed. 
                      logged. 
Sub-sampling         If core, whether cut or sawn             All samples comprise unconsolidated 
 techniques           and whether quarter, half or             sand. 
 and sample           all core taken. 
 preparation 
                     If non-core, whether riffled,            Samples are taken in their entirety. 
                      tube sampled, rotary split,              Drill samples are oven-dried and split 
                      etc. and whether sampled wet             for analysis. 
                      or dry. 
                     For all sample types, the                Sample preparation is recorded on a 
                      nature, quality and appropriateness      standard flow sheet and detailed QA/QC 
                      of the sample preparation technique.     is undertaken on all samples. Sample 
                                                               preparation techniques and QA/QC protocols 
                                                               are appropriate for the magnetic separation 
                                                               and heavy mineral determinations. 
Sub-sampling         Quality control procedures               Quality assurance protocols include 
 techniques           adopted for all sub- sampling            the application of trained geological 
 and sample           stages to maximise representivity        staff and experienced samplers. Use 
 preparation,         of samples.                              of plastic sheets and sample bags to 
 cont'd.                                                       remove the potential of sample loss 
                                                               and cleaning of sample equipment between 
                                                               samples. 
                                                               Competent person (CP) review of laboratory 
                                                               techniques and flowsheet is applied 
                                                               to ensure representative sample splitting. 
                                                               Inspection of laboratory procedure 
                                                               and equipment is completed to ensure 
                                                               appropriate technique, good housekeeping 
                                                               and application of accurate sample 
                                                               handling and sample management procedures. 
                                                               Laboratory duplicate and standard sample 
                                                               geostatistical analysis is employed 
                                                               to manage sample precision and analysis 
                                                               accuracy. Twin drilling is applied 
                                                               to determine short range variability 
                                                               in grade and lithological character. 
                     Measures taken to ensure that            Samples are taken in their entirety. 
                      the sampling is representative           Laboratory duplicates are generated 
                      of the in-situ material collected,       for precision analysis at the sample 
                      including for instance results           splitting stage. Results indicate a 
                      for field duplicate/second-half          high level of precision is achieved. 
                      sampling. 
                     Whether sample sizes are appropriate     The sample size is considered adequate 
                      to the grain size of the material        for a medium-grained sand. 
                      being sampled. 
  Quality of         The nature, quality and appropriateness  Sample preparation and analysis of 
   assay data         of the assaying and laboratory           drill samples is completed by the GSMB 
   and laboratory     procedures used and whether              research laboratory in Colombo. Analysis 
   tests.             the technique is considered              is conducted on a split fraction of 
                      partial or total.                        the total sample and the retains are 
                                                               labelled and stored. 
                                                               Techniques employed conform to contemporary 
                                                               analysis methodology in the treatment 
                                                               of minerals separable by their physical 
                                                               properties. A CP audit of the facility 
                                                               was completed with no recommended improvements 
                                                               noted. 
                     For geophysical tools, spectrometers,     None used. 
                      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. 
Quality              Nature of quality control                Quality assurance is maintained by 
 of assay             procedures adopted (e.g. standards,      laboratory duplicate and standard sample 
 data and             blanks, duplicates, external             assaying procedure. Standard samples 
 laboratory           laboratory checks) and whether           are provided by Placer Consulting Pty 
 tests, cont'd.       acceptable levels of accuracy            Ltd and are submitted blind to the 
                      (i.e. lack of bias) and precision        laboratory. As a total sample is generated 
                      have been established.                   by the drilling, a field duplicate 
                                                               is not generated. A laboratory duplicate 
                                                               is created at the sample splitting 
                                                               stage. 
                                                               Standards and duplicates are submitted 
                                                               at a frequency of 1:20 samples. They 
                                                               are subjected to the complete sample 
                                                               preparation and assaying process. 
                                                               Analysis of sample duplicates is undertaken 
                                                               by standard geostatistical methodologies 
                                                               (Scatter, Pair Difference and QQ Plots) 
                                                               to test for bias and to ensure that 
                                                               sample splitting is representative. 
                                                               Standards determine assay accuracy 
                                                               performance, monitored on control charts, 
                                                               where failure (beyond 3SD from the 
                                                               mean) triggers re-assay of the affected 
                                                               batch. 
                                                               A high level of accuracy and precision 
                                                               are displayed in geostatistical analyses 
                                                               to date. 
Verification         The verification of significant          Significant intersections are customary 
 of sampling          intersections by either independent      from hand auger and sonic core drilling 
 and assaying         or alternative company personnel.        at the Eastern Minerals Project. Results 
                                                               in excess of 20% THM are common and 
                                                               in some cases, substantially higher 
                                                               concentrations are intersected. Placer 
                                                               Consulting considers this to be reasonable 
                                                               and consistent with beach, berm and 
                                                               foredune accumulations in a highly-mineralised 
                                                               region. No audit analyses have been 
                                                               completed on these exploration results. 
                     The use of twinned holes.                Twinned holes are drilled across a 
                                                               geographically-dispersed area to determine 
                                                               short-range geological and assay field 
                                                               variability. Twin drilling is applied 
                                                               at a frequency of 1:25 drill holes. 
                                                               Geostatistical analysis of twin drilling 
                                                               data awaits the return of all assay 
                                                               results. 
                     Documentation of primary data,           Field logging data, photo's and maps 
                      data entry procedures, data              are generated in the field by the GSMB 
                      verification, data storage               geologist and provided to CMET staff 
                      (physical and electronic) protocols.     in excel spreadsheet, pdf document 
                                                               and jpeg files. These data are stored 
                                                               in the master database at the Colombo 
                                                               office and on a secured cloud-storage 
                                                               facility that is accessible by invitation. 
                     Discuss any adjustment to                Assay data adjustments are made to 
                      assay data.                              convert laboratory collected weights 
                                                               to assay field percentages and to account 
                                                               for moisture. 
Location             Accuracy and quality of surveys          These exploration results are located 
 of data points       used to locate drill holes               by GSMB staff using hand-held GPS. 
                      (collar and down-hole surveys),          Mineral resources are not considered 
                      trenches, mine workings and              in this report. 
                      other locations used in Mineral 
                      Resources estimation. 
                     Specification of the grid                The Kandawala Sri Lanka Grid is used 
                      system used.                             to locate the drill collars. 
Location             Quality and adequacy of topographic      Elevations are not recorded for these 
 of data points,      control.                                 exploration results. 
 cont'd. 
Data spacing         Data spacing for reporting               Drill spacing relates to the sequence 
 and distribution     of Exploration Results.                  stratigraphic unit and their extent. 
                                                               Drill holes are generally spaced at 
                                                               5m-east intervals in the beach and 
                                                               tidal zones. The Berm zone is drilled 
                                                               at 15 - 50m east spacings dependent 
                                                               on their lateral extent. 
                     Whether the data spacing and             No mineral resource or ore reserve 
                      distribution is sufficient               is considered in this report. 
                      to establish the degree of 
                      geological and grade continuity 
                      appropriate for the Mineral 
                      Resources and Ore Reserves 
                      estimation procedure(s) and 
                      classifications applied. 
                     Whether sample compositing               Samples are not composited. 
                      has been applied. 
Orientation          Whether the orientation of               Sample orientation is vertical and 
 of data in           sampling achieves unbiased               approximately perpendicular to the 
 relation             sampling of possible structures          dip and strike of the mineralization, 
 to geological        and the extent to which this             which results in true thickness estimates. 
 structure            is known, considering the deposit        Drilling and sampling is consistent 
                      type.                                    with the anisotropy of the mineralisation. 
                     If the relationship between              There is no apparent bias arising from 
                      the drilling orientation and             the orientation of the drill holes 
                      the orientation of key mineralised       with respect to the strike and dip 
                      structures is considered to              of the deposit. 
                      have introduced a sampling 
                      bias, this should be assessed 
                      and reported if material. 
Sample security      The measures taken to ensure             All samples are numbered, with sample 
                      sample security.                         splits, residues and HM sinks stored 
                                                               securely at the GSMB pending completion 
                                                               of the programme. Samples will be transferred 
                                                               for secured storage at CMET property 
                                                               upon completion. 
Audits or            The results of any audits                The Competent Person completed an audit 
 reviews              or reviews of sampling techniques        of the GSMB laboratory. Personnel, 
                      and data.                                equipment and procedures represent 
                                                               best practice and no recommended improvements 
                                                               were forwarded. Data are monitored 
                                                               by CMET staff and reviewed by the CP 
                                                               as they are returned. 
 
 
 
Criteria                 Explanation                              Comment 
Mineral                  Type, reference name/number,             The exploration results are coincident 
 tenement                 location and ownership including         with the granted Exploration Licence 
 and land                 agreements or material issues            EL2017/199 wholly owned by CMET JV 
 tenure status            with third parties such as               partner Damsila Exports (Pvt) Ltd. 
                          joint ventures, partnerships,            A 7% f.o.b. government royalty is 
                          overriding royalties, native             payable on exported minerals. 
                          title interests, historical 
                          sites, wilderness or national 
                          park and environmental settings. 
                         The security of the tenure               There are no known impediments to 
                          held at the time of reporting            the security of tenure over the area 
                          along with any known impediments         containing the reported exploration 
                          to obtaining a licence to operate        results. 
                          in the area. 
Exploration              Acknowledgment and appraisal             CMET and partners have completed the 
 done by other            of exploration by other parties.         only systematic exploration of this 
 parties                                                           region of the Eastern Minerals Project. 
                                                                   The reported results offer support 
                                                                   to previous drilling and in some cases, 
                                                                   higher heavy mineral grades and greater 
                                                                   lateral extent. 
Geology                  Deposit type, geological setting         Exploration results are indicative 
                          and style of mineralisation.             of modern, low slimes tidal, beach 
                                                                   and berm detrital heavy mineral sand 
                                                                   deposits. Holocene dunes are truncated 
                                                                   by the modern marine successions and 
                                                                   are also heavily mineralised. Heavy 
                                                                   minerals are derived originally from 
                                                                   the neighbouring Precambrian metamorphic 
                                                                   terrane and from Pleistocene dune 
                                                                   deposits. Two monsoon seasons provide 
                                                                   ample winnowing action on heavy mineral 
                                                                   deposits and generate both northerly 
                                                                   and southerly long-shore drift. 
Drill hole               A summary of all information             An intercept table is listed in the 
 Information              material to the understanding            report. 
                          of the exploration results               Results support previous releases 
                          including a tabulation of the            on exploration results and mineral 
                          following information for all            resources. 
                          Material drill holes: 
                          -- easting and northing of 
                          the drill hole collar 
                          -- elevation or RL (Reduced 
                          Level - elevation above sea 
                          level in metres) of the drill 
                          hole collar 
                          -- dip and azimuth of the hole 
                          -- down hole length and interception 
                          depth 
                          -- hole length. 
                          If the exclusion of this information 
                          is justified on the basis that 
                          the information is not Material 
                          and this exclusion does not 
                          detract from the understanding 
                          of the report, the Competent 
                          Person should clearly explain 
                          why this is the case. 
Data aggregation         In reporting Exploration Results,        Mineral intersections are reported 
 methods                  weighting averaging techniques,          at a 5% heavy mineral bottom cut, 
                          maximum and/or minimum grade             as is customary for the Eastern Minerals 
                          truncations (e.g. cutting of             Project resources. No top cut is applied. 
                          high grades) and cut-off grades 
                          are usually Material and should 
                          be stated. 
                         Where aggregate intercepts               No data aggregation is required. 
                          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. 
Data aggregation         The assumptions used for any             No metal equivalents are used for 
 methods,                 reporting of metal equivalent            reporting of exploration results. 
 cont'd.                  values should be clearly stated. 
Relationship             These relationships are particularly     All drill holes are vertical and perpendicular 
 between mineralisation   important in the reporting               to the dip and strike of mineralisation. 
 widths and               of Exploration Results. 
 intercept 
 lengths 
                         If the geometry of the mineralisation    Mineral deposits typically approximate 
                          with respect to the drill hole           a horizontal to shoreward dipping 
                          angle is known, its nature               accumulation. Intercepts are approximately 
                          should be reported.                      true thickness. 
                         If it is not known and only 
                          the down hole lengths are reported, 
                          there should be a clear statement 
                          to this effect (e.g. 'down 
                          hole length, true width not 
                          known'). 
Diagrams                 Appropriate maps and sections            Refer to link to website as set out 
                          (with scales) and tabulations            in RNS. 
                          of intercepts should be included 
                          for any significant discovery 
                          being reported These should 
                          include, but not be limited 
                          to a plan view of drill hole 
                          collar locations and appropriate 
                          sectional views. 
Balanced                 Where comprehensive reporting            Reporting of results is restricted 
 reporting                of all Exploration Results               to results returned to the 4(th) April 
                          is not practicable, representative       2022 from the 2021 GSMB drilling in 
                          reporting of both low and high           the Komari Region of the Eastern Minerals 
                          grades and/or widths should              Project. Intercepts are disclosed 
                          be practiced to avoid misleading         in an unambiguous way and include 
                          reporting of Exploration Results.        all intercepts >5% THM and >0.5m in 
                                                                   thickness. Only 37 from 223 intercepts 
                                                                   are excluded by these criteria. 
Other substantive        Other exploration data, if               No additional, substantive information 
 exploration              meaningful and material, should          has returned from the drill sample 
 data                     be reported including (but               analyses included in this report. 
                          not limited to): geological 
                          observations; geophysical survey 
                          results; geochemical survey 
                          results; bulk samples - size 
                          and method of treatment; metallurgical 
                          test results; bulk density, 
                          groundwater, geotechnical and 
                          rock characteristics; potential 
                          deleterious or contaminating 
                          substances. 
Further                  The nature and scale of planned          Further sample assay results are anticipated 
 work                     further work (e.g. tests for             from the GSMB to complete this drilling 
                          lateral extensions or depth              and assay campaign. Mineralogical 
                          extensions or large-scale step-out       results are anticipated from the total 
                          drilling).                               sample set. 
                         Diagrams clearly highlighting            Refer to link to website as set out 
                          the areas of possible extensions,        in RNS. 
                          including the main geological 
                          interpretations and future 
                          drilling areas, provided this 
                          information is not commercially 
                          sensitive. 
 

APPIX 2 - Significant intercepts (5%THM bottom-cut, intervals > 0.5m)

 
BHID    INTERCEPT 
K27TE2  1m @ 86.1% THM from 0.5m 
K7T1    0.5m @ 70.86% THM from 0m 
K36TE1  0.5m @ 56.77% THM from 0m 
K33TE1  0.5m @ 54.9% THM from 0m 
K24BE1  0.5m @ 53.54% THM from 0m 
K9TE1   0.5m @ 50.45% THM from 0m 
K36TE2  0.6m @ 50.43% THM from 0.5m 
K37BE1  2.4m @ 50.14% THM from 0m 
K37TE1  0.5m @ 49.71% THM from 0m 
K36BE1  2.5m @ 46.4% THM from 0m 
K6T1    0.5m @ 44.37% THM from 0m 
K9TE2   1m @ 42.48% THM from 0.5m 
K37TE2  0.5m @ 42.21% THM from 0.5m 
K33TE2  0.5m @ 40.02% THM from 0.5m 
K40BE1  2.5m @ 38.29% THM from 0m 
K39TE1  0.5m @ 37.63% THM from 0m 
K9T1    0.5m @ 36.91% THM from 0m 
K29BE1  1.1m @ 35.595% THM from 0m 
K33BE1  2.2m @ 34.80% THM from 0m 
K35TE1  0.5m @ 34.23% THM from 0m 
K38TE1  0.5m @ 33.53% THM from 0m 
K29TE1  0.5m @ 33.49% THM from 0m 
K9BM1   3.5m @ 33.4025% THM from 
         0m 
K12TE1  0.5m @ 33.22% THM from 0m 
K7BM2   2.3m @ 31.925% THM from 0m 
K33BE2  2.2m @ 31.80% THM from 0m 
K8BM1   1.5m @ 31.745% THM from 0m 
K35TE2  1m @ 31.06% THM from 0.5m 
K8TE1   0.5m @ 30.83% THM from 0m 
K14TE2  1m @ 30.5% THM from 0.5m 
K16BE1  1.5m @ 29.47% THM from 0m 
K16TE1  0.5m @ 29.32% THM from 0m 
K35BE1  2.5m @ 29.03% THM from 0m 
K13BM1  1.5m @ 29.005% THM from 0m 
K8BM2   1.5m @ 28.97% THM from 0m 
K8BE1   1.5m @ 28.745% THM from 0m 
K6BM2   1.5m @ 28.665% THM from 0m 
K12BE1  1.5m @ 28.3% THM from 0m 
K7BE1   1.5m @ 28.285% THM from 0m 
K38BE1  1.5m @ 28.12% THM from 0m 
K10BE1  2.5m @ 28.1% THM from 0m 
K5BM2   1.5m @ 27.355% THM from 0m 
K33BM1  2.5m @ 27.10% THM from 0m 
K16TE2  1m @ 26.91% THM from 0.5m 
K12BM1  1.5m @ 26.89% THM from 0m 
K28TE1  0.5m @ 26.7% THM from 0m 
K6BM1   1.5m @ 26.65% THM from 0m 
K39BE1  1.5m @ 26.42% THM from 0m 
K38BM3  1.5m @ 26.385% THM from 0m 
K1T1    0.5m @ 26.2% THM from 0m 
K39BM3  1.5m @ 26.195% THM from 0m 
K34BE1  2.2m @ 26.19% THM from 0m 
K5BE1   2.2m @ 26.08% THM from 0m 
K9BM2   2.2m @ 25.99% THM from 0m 
K14BE1  1.5m @ 25.75% THM from 0m 
K15BE1  1.5m @ 25.74% THM from 0m 
K39BM2  1.5m @ 25.74% THM from 0m 
K37BM1  1.5m @ 25.665% THM from 0m 
K7TE1   0.5m @ 25.65% THM from 0m 
K6BE1   2m @ 25.64% THM from 0m 
K19TE1  0.5m @ 25.62% THM from 0m 
K11BE1  2.5m @ 24.775% THM from 0m 
K25TE2  1m @ 24.37% THM from 0.5m 
K11TE1  0.5m @ 23.96% THM from 0m 
K5BM1   1.5m @ 23.93% THM from 0m 
K9BE1   1m @ 23.91% THM from 0.5m 
K26BE1  1.5m @ 23.775% THM from 0m 
K3TE1   0.5m @ 23.75% THM from 0m 
K39BM1  1.5m @ 23.52% THM from 0m 
K38BM2  1.5m @ 23.29% THM from 0m 
K7BM1   2.2m @ 23.13% THM from 0m 
K36BM2  0.5m @ 23.04% THM from 0m 
K34TE1  0.5m @ 22.99% THM from 0m 
K36BM1  1.5m @ 22.71% THM from 0m 
K15TE2  1m @ 22.35% THM from 0.5m 
K26TE1  0.5m @ 22.29% THM from 0m 
K25TE1  0.5m @ 22.18% THM from 0m 
K34TE2  1m @ 22.11% THM from 0.5m 
K21TE1  0.5m @ 21.87% THM from 0m 
K2TE1   0.5m @ 21.79% THM from 0m 
K13TE1  0.5m @ 21.58% THM from 0m 
K20TE1  0.5m @ 21.3% THM from 0m 
K26TE2  1m @ 20.88% THM from 0.5m 
K10BM1  1.5m @ 20.855% THM from 0m 
K40BM2  1.5m @ 20.66% THM from 0m 
K40BM3  1.5m @ 20.54% THM from 0m 
K8TE2   0.5m @ 20.46% THM from 0.5m 
K41TE1  0.5m @ 20.43% THM from 0m 
K38BM1  1.5m @ 20.35% THM from 0m 
K11BM1  1.5m @ 20.315% THM from 0m 
K31BE1  1.1m @ 20.29% THM from 0m 
K13BE1  1.5m @ 20.035% THM from 0m 
K27TE1  0.5m @ 19.85% THM from 0m 
K6TE2   0.7m @ 19.64% THM from 0.5m 
K6TE1   0.5m @ 19.54% THM from 0m 
K40TE1  0.5m @ 19.49% THM from 0m 
K22TE1  0.5m @ 19.23% THM from 0m 
K24T1   0.5m @ 18.95% THM from 0m 
K19T1   0.5m @ 18.81% THM from 0m 
K4TE1   0.5m @ 18.4% THM from 0m 
K25BE1  1.5m @ 18.385% THM from 0m 
K5TE1   0.5m @ 18.29% THM from 0m 
K4BM1   0.5m @ 17.67% THM from 0m 
K34BM1  2.5m @ 17.62% THM from 0m 
K38TE2  0.5m @ 17.57% THM from 0.5m 
K35BM1  2.5m @ 17.34% THM from 0m 
K28TE2  1m @ 17.22% THM from 0.5m 
K23T1   0.5m @ 17.18% THM from 0m 
K37BM2  1.5m @ 17.025% THM from 0m 
K13TE2  1m @ 16.93% THM from 0.5m 
K31BM2  2.5m @ 16.64% THM from 0m 
K22TE2  1m @ 16.38% THM from 0.5m 
K37BM3  0.5m @ 16.28% THM from 0m 
K40BM1  1.5m @ 16.23% THM from 0m 
K32BM2  2.2m @ 16.14% THM from 0m 
K19BE1  1.5m @ 15.955% THM from 0m 
K23TE1  0.5m @ 15.65% THM from 0m 
K12TE2  1m @ 15.56% THM from 0.5m 
K32BE1  1m @ 15.185% THM from 0m 
K4BM2   1.5m @ 15.01% THM from 0m 
K22T1   0.5m @ 14.55% THM from 0m 
K14TE1  0.5m @ 14.53% THM from 0m 
K21TE2  1m @ 14.35% THM from 0.5m 
K34BM2  2.5m @ 14.27% THM from 0m 
K32TE1  0.5m @ 14.2% THM from 0m 
K35BM2  2.2m @ 14.16% THM from 0m 
K2T1    0.5m @ 14.03% THM from 0m 
K24BM1  1.5m @ 14.025% THM from 0m 
K21T1   0.5m @ 14.02% THM from 0m 
K18TE1  0.5m @ 13.56% THM from 0m 
K28BE1  1.5m @ 13.505% THM from 0m 
K21BM1  2.5m @ 12.76% THM from 0m 
K11TE2  0.7m @ 12.29% THM from 0.5m 
K31TE1  0.5m @ 12.14% THM from 0m 
K21BE2  1.5m @ 12.14% THM from 0m 
K32BM3  2.5m @ 12.02% THM from 0m 
K30BM2  3.5m @ 11.785% THM from 0m 
K3BM1   1.5m @ 11.665% THM from 0m 
K29BE2  1.2m @ 11.645% THM from 0m 
K22BM1  2.5m @ 11.63% THM from 0m 
K3BM2   1.5m @ 11.565% THM from 0m 
K28BM1  1.5m @ 11.03% THM from 0m 
K4T1    0.5m @ 10.98% THM from 0m 
K22BE1  0.5m @ 10.9% THM from 0m 
K22BE2  1.5m @ 10.895% THM from 0m 
K10T1   0.5m @ 10.8% THM from 0m 
K27BM1  1.5m @ 10.725% THM from 0m 
K2BM2   1.5m @ 10.62% THM from 0m 
K18TE2  0.7m @ 10.39% THM from 0.5m 
K31BE2  1.2m @ 10.195% THM from 0m 
K2BM1   1m @ 10.15% THM from 0.5m 
K19TE2  1m @ 10.09% THM from 0.5m 
K32BE2  1.2m @ 10.085% THM from 0m 
K11T1   0.5m @ 9.97% THM from 0m 
K10TE2  0.7m @ 9.9% THM from 0.5m 
K5TE2   0.6m @ 9.68% THM from 0.5m 
K30BE1  0.5m @ 9.08% THM from 0m 
K27BE1  0.5m @ 8.58% THM from 0m 
K17BE1  1m @ 8.495% THM from 0m 
K21BE1  1.5m @ 8.43% THM from 0m 
K18BE2  1.5m @ 8.34% THM from 0m 
K17TE2  0.7m @ 8.22% THM from 0.5m 
K25BM1  2.5m @ 8.11% THM from 0m 
K20BM1  1.5m @ 7.975% THM from 0m 
K30BM1  1.5m @ 7.89% THM from 0m 
K3TE2   1m @ 7.85% THM from 0.5m 
K20TE2  1m @ 7.69% THM from 0.5m 
K26BM1  2.5m @ 7.58% THM from 0m 
K10TE1  0.5m @ 7.5% THM from 0m 
K4BE1   1.5m @ 7.49% THM from 0m 
K3T1    0.5m @ 7.35% THM from 0m 
K4TE2   1m @ 7.32% THM from 0.5m 
K1BE3   1.5m @ 7.265% THM from 0m 
K2BE2   1.5m @ 7.20% THM from 0m 
K1BM1   1.5m @ 7.09% THM from 0m 
K3BE1   1.5m @ 6.86% THM from 0m 
K41T1   0.5m @ 6.81% THM from 0m 
K23BM2  1.5m @ 6.415% THM from 0m 
K24BM2  1.5m @ 6.37% THM from 0m 
K19BM1  0.5m @ 6.22% THM from 0m 
K17T1   0.5m @ 6.1% THM from 0m 
K12T1   0.5m @ 5.74% THM from 0m 
K31BM3  2.5m @ 5.63% THM from 0m 
K1BE2   0.5m @ 5.45% THM from 0m 
K17TE1  0.5m @ 5.35% THM from 0m 
K24TE1  0.5m @ 5.09% THM from 0m 
 

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April 20, 2022 02:11 ET (06:11 GMT)

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