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CRITICAL RESOURCES LIMITED — Capital/Financing Update 2018
Aug 20, 2018
64708_rns_2018-08-20_c432c013-aa2d-4bc7-8d91-5bf35fa4353c.pdf
Capital/Financing Update
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21 August 2018
ASX Announcements Office 152–158 St Georges Terrace Perth WA 6000 Australia
EXPLORATION UPDATE - KANUKA LITHIUM PRODUCTION PROJECT
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Figure 1: RC Drilling at the Kanuka Lithium Production Project in the DRC
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Phase 1 RC drilling program at the Kanuka Lithium Production Project nearing completion with 3 of the 5 drill fences now completed.
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29 RC holes completed, each to a depth of 60m, for a combined 1,740m of RC drilling.
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All drillholes have intersected multiple and parallel pegmatitic rock-types confirming surface geological mapping completed by the Company earlier this year.
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Samples from the first 21 RC drillholes have been dispatched to ALS in Lubumbashi for sample preparation and to Johannesburg for multi-element analytical determinations.
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Assay results received from the initial Phase 1 auger drill program at Kanuka confirm broad surface lithium mineralisation across the Kania Main Pegmatite with 50 of 51 samples returning lithium and a best result of 2.13% Li2O. Lithium grades are consistent with expectations for weathered material and indicative of a mineralised LCT system.
Force Commodities Ltd | Ground Floor, 20 Kings Park Road, West Perth, WA, 6005 | PO Box 1024 West Leederville WA 6007 Ph: +61 8 6202 6530 | F: +61 8 6323 3347 | web:forcecommodities.com.au | ABN 12 145 184 667 | ASX:4CE
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Auger assays and geochemistry information to assist in refining the drill targets for remainder of the Phase 1 RC and diamond drilling programs at Kanuka.
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Phase 1 RC drilling at Kanuka to be completed within the next 3 weeks, with the drill rig to then relocate to the Company’s Kitotolo Lithium Project.
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Diamond drilling at Kanuka to follow RC drilling, upon review of RC drilling results.
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All siteworks completed at Kitotolo in preparation for the 15,000m RC drilling program to commence upon arrival of the RC drill rig in early September 2018.
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RC drill planning at the Kitotolo well underway and to be supported by in-house ‘Tromino passive seismic’ survey geophysics to target pegmatites beneath the shallow Lateritic cover.
Force Commodities Ltd ( Force or the Company ) (ASX Code: 4CE) is pleased to provide an update on the Company’s current RC drilling activities at its at its Kanuka Lithium Production Project located in Tanganyika Province in the south east of the Democratic Republic of Congo ( DRC ).
The Kanuka Lithium Production Project is a Joint Venture between Force (51%) and established Congolese tin and tantalum mining company, MMR (49%).
The Joint Venture includes granted Mining License PE13082 and Exploration License PR4100, which together extend over an area of 194km[2] .
The Kanuka Lithium Project Joint Venture is located just 5km immediately south of AVZ Mineral’s ‘worldclass’ Manono-Kitotolo Lithium Project licenses and 20km east of the Company’s Kitotolo Lithium Project.
Kanuka Lithium Production Project RC and Diamond Drilling
As previously advised, Equity Drilling Limited ( Equity Drilling ), who were appointed as the Company’s drilling contractor (refer ASX Announcement dated 28 March 2018) to complete a combined 20,000m Phase 1 RC and diamond drilling program at the Company’s Kanuka Lithium Production Project and Kitotolo Lithium Project.
At the Kanuka Lithium Production Project, Equity Drilling are completing a ~3,000m RC drilling program which is to be followed by a diamond drilling program.
The Phase 1 RC Drilling program at the Kanuka Lithium Production Project JV, has been designed to target near surface lithium mineralisation hosted within exposed pegmatites.
The Company is pleased to confirm that Equity Drilling has completed a total of 29 holes, each to a depth of 60m and for a combined 1,740m. Drill fences 1, 2 and 3 on the Kania Main Pegmatite have been completed.
To date all RC drillholes have intersected multiple and parallel pegmatitic rock-types, intercalated with gneissic units, which confirms the surface geological mapping work completed earlier this year within the main alluvial mining area.
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Figure 2: Drilling Activities Concluding at KLJV022 at the Kanuka Lithium Production Project
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Figure 3, 4 and 5: RC Drilling and Samples at the Kanuka Lithium Production Project in the DRC
Samples from the first 21 RC drill holes have been dispatched to ALS in Lubumbashi for sample preparation and then to Johannesburg for multi-element analytical determinations. The first drill assay results are expected to be received within 3 to 4 weeks.
The main pegmatite drill target, the Kania Main Pegmatite, which has been mapped over an approx. 5.5km of strike length and which is seen intercalated with gneiss, is observed to be widening towards the south west and this will be the focus of further RC and diamond drilling.
Initial drilling results suggest that the local stratigraphy is more complex than first interpreted through the surface geological mapping, with the stratigraphy appearing to be flat lying to shallowly dipping towards the NW.
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A number of the mineralised horizons intersected in the RC drilling to date are considered to be tentatively correlated with, and are interpreted to represent the up-dip continuation of mapped surface mineralisation exposed and sampled by the recent auger and rock chip sampling.
A summary of the Phase 1 RC drilling completed to date is provided in Table 1.
| Hole ID | Type | Max Depth |
Plan_Northing | Plan_Easting | Plan_RL | Grid ID | Sample status |
Assay Status |
Dip | Azimuth | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| KLJV001 | AC/RC | 60 | 9166821 | 544780 | 631 | WGS84_35S | Dispatched | Pending | -60 | 125 | |||||||||
| KLJV002 | AC/RC | 60 | 9166849 | 544739 | 631 | WGS84_35S | Dispatched | Pending | -60 | 125 | |||||||||
| KLJV003 | AC/RC | 60 | 9166878 | 544698 | 631 | WGS84_35S | Dispatched | Pending | -60 | 125 | |||||||||
| KLJV004 | AC/RC | 60 | 9166906 | 544657 | 631 | WGS84_35S | Dispatched | Pending | -60 | 125 | |||||||||
| KLJV005 | AC/RC | 60 | 9166935 | 544615 | 631 | WGS84_35S | Dispatched | Pending | -60 | 125 | |||||||||
| KLJV006 | AC/RC | 60 | 9166963 | 544574 | 631 | WGS84_35S | Dispatched | Pending | -60 | 125 | |||||||||
| KLJV007 | AC/RC | 60 | 9166992 | 544533 | 631 | WGS84_35S | Dispatched | Pending | -60 | 125 | |||||||||
| KLJV008 | AC/RC | 60 | 9167020 | 544492 | 631 | WGS84_35S | Dispatched | Pending | -60 | 125 | |||||||||
| KLJV009 | AC/RC | 60 | 9167049 | 544451 | 631 | WGS84_35S | Dispatched | Pending | -60 | 125 | |||||||||
| KLJV010 | AC/RC | 60 | 9167077 | 544410 | 631 | WGS84_35S | Dispatched | Pending | -60 | 125 | |||||||||
| KLJV011 | AC/RC | 60 | 9167106 | 544369 | 631 | WGS84_35S | Dispatched | Pending | -60 | 125 | |||||||||
| KLJV012 | AC/RC | 60 | 9167134 | 544328 | 631 | WGS84_35S | Dispatched | Pending | -60 | 125 | |||||||||
| KLJV013 | AC/RC | 60 | 9167163 | 544287 | 631 | WGS84_35S | Dispatched | Pending | -60 | 125 | |||||||||
| KLJV014 | AC/RC | 60 | 9167191 | 544246 | 631 | WGS84_35S | Dispatched | Pending | -60 | 125 | |||||||||
| KLJV015 | AC/RC | 60 | 9167220 | 544205 | 631 | WGS84_35S | Dispatched | Pending | -60 | 125 | |||||||||
| KLJV016 | AC/RC | 60 | 9167250 | 544161 | 631 | WGS84_35S | Dispatched | Pending | -60 | 125 | |||||||||
| KLJV017 | AC/RC | 60 | 9166075 | 543894 | 631 | WGS84_35S | Dispatched | Pending | -60 | 134 | |||||||||
| KLJV018 | AC/RC | 60 | 9166105 | 543864 | 631 | WGS84_35S | Dispatched | Pending | -60 | 134 | |||||||||
| KLJV019 | AC/RC | 60 | 9166139 | 543828 | 631 | WGS84_35S | Dispatched | Pending | -60 | 134 | |||||||||
| KLJV020 | AC/RC | 60 | 9166174 | 543792 | 631 | WGS84_35S | Dispatched | Pending | -60 | 134 | |||||||||
| KLJV021 | AC/RC | 60 | 9166209 | 543755 | 631 | WGS84_35S | Dispatched | Pending | -60 | 134 | |||||||||
| KLJV022 | AC/RC | 60 | 9166243 | 543719 | 631 | WGS84_35S | Pending | Pending | -60 | 134 | |||||||||
| KLJV023 | AC/RC | 60 | 9166278 | 543683 | 631 | WGS84_35S | Pending | Pending | -60 | 134 | |||||||||
| KLJV024 | AC/RC | 60 | 9166135 | 543531 | 631 | WGS84_35S | Pending | Pending | -60 | 138 | |||||||||
| KLJV025 | AC/RC | 60 | 9166097 | 543565 | 631 | WGS84_35S | Pending | Pending | -60 | 138 | |||||||||
| KLJV026 | AC/RC | 60 | 9166060 | 543598 | 631 | WGS84_35S | Pending | Pending | -60 | 138 | |||||||||
| KLJV027 | AC/RC | 60 | 9166023 | 543632 | 631 | WGS84_35S | Pending | Pending | -60 | 138 | |||||||||
| KLJV028 | AC/RC | 60 | 9165986 | 543665 | 631 | WGS84_35S | Pending | Pending | -60 | 138 |
Table 1: Summary of Completed Phase 1 RC Drilling Program at the Kanuka Lithium Production Project
The Company is pleased to confirm that Equity Drilling’s diamond drill rig is on site and the Phase 1 diamond drilling program will follow the RC drill program, upon review of the RC drilling esults.
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Figure 6: RC Drilling at the Kanuka Lithium Production Project in the DRC
The diamond drilling program will consist of up to 1,000m of PQ/HQ drilling and is expected to add valuable geological and structural information to assist in constraining the RC drilling and geochemistry information and further add to our geological understanding of the Kanuka Lithium Production Project.
Commenting on the Kanuka Lithium Production Project RC drilling program to date, the Company’s Head of Exploration, James Sullivan said “The RC drilling is progressing at a good and steady rate, so we are expecting to complete the remainder of the RC program within the next 2 weeks. The information we are gathering from the RC drilling program and the assay results from the previously completed auger program will greatly assist us in pinpointing the location and depth of holes in our maiden diamond drilling program – which will follow the RC program upon review of RC drilling results.”
“The results of our Phase 1 auger drilling program have further demonstrated broad shallow lithium mineralisation in pegmatite hosts at the Kalombo Mushwima Prospect area and we may well extend our drilling coverage along Fence 4 to maximise the deeper RC drilling program based on the shallow and higher-grade auger results now received”.
“At our Kitotolo Lithium Project, where our previous trenching and pitting work identified weathered spodumene, we have now established a new and fully equipped field camp and have everything ready to commence RC drilling next month once the Equity Drilling RC rig finished up at Kanuka and is remobilised to Kitotolo.”
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Figure 7: RC Drilling at the Kanuka Lithium Production Project in the DRC
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Figure 8: Diamond Drill Rig at the Kanuka Lithium Production Project in the DRC
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Phase 1 Auger Drilling Results
The Company is pleased to advise that results from the recent shallow auger drill program have confirmed broad lithium mineralisation of the Kania Main Pegmatite with 50 of 51 samples sent for assay returning lithium mineralisation.
The better results from the Phase 1 auger drilling program are shown below in Table 2; and the full results included in Appendix 1.
| Hole ID | Sample ID | **% Li2O ** | Hole ID | Sample ID | % Li2O | |
|---|---|---|---|---|---|---|
| KLJVA011 | A2555 | 2.13 | KLJVA025 | A2565 | 0.32 | |
| KLJVA012 | A2556 | 0.22 | KLJVA026 | A2566 | 0.59 | |
| KLJVA014 | A2558 | 0.25 | KLJVA048 | A2569 | 0.25 | |
| KLJVA015 | A2559 | 0.23 | KLJVA097 | A2584 | 0.24 | |
| KLJVA018 | A2561 | 0.48 | KLJVA106 | A2589 | 0.55 | |
| KLJVA021 | A2562 | 0.26 | KLJVA125 | A2594 | 0.42 |
Table 2: Summary Result from Phase 1 Auger Drilling Program at the Kanuka Lithium Production Project
The auger drilling results provide further evidence of broad surface lithium mineralisation at the Kanuka Project.
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The shallow auger drilling multi-element assay and XRD results, clearly indicate the Kanuka mineralisation has a (LCT Pegmatite) affinity.
The kaolinite content derived from the XRD analyses also indicate the surface areas of highly weathered pegmatite demonstrate near surface weatheringinduced lithium depletion.
This is typical of weathered pegmatites and is indicative of a well mineralised system
Figure 7: Highlighting gridded assay results (Inverse distance to a power) of the new Auger bedrock geology results, combined with previous ASX Due Diligence results (2017) and inferred pegmatites Phase 1 RC Drilling. Contouring was conducted using 74 sample points.
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A total of 143 sample points was collected, of these, 51 samples were sent for multi-element analysis. The auger drilling and sampling was designed to test bottom of hole bedrock geology geochemistry. Representative rock-chip fragments brought to the surface from the auger bit were between 2-3kg.
A 48 multi element suit was conducted, however only Li2O percent results are being reported in this release.
In addition, the Company engaged Geolabs Global (Pty) Ltd (South Africa) to complete XRD analyses of 5 selected shallow high-grade auger samples, with the results shown in Table 3 below.
| Sample ID | Lepidolite | Petalite | Albite | Apatite | Garnet | Microcline | Kaolinite | Quartz | Total |
|---|---|---|---|---|---|---|---|---|---|
| % | % | % | % | % | % | % | % | % | |
| A2555 | 26.70 | 1.51 | 4.10 | 0.55 | 0.76 | 0.00 | 0.00 | 66.37 | 100.00 |
| A2556 | 2.23 | 0.88 | 3.01 | 0.04 | 1.84 | 34.77 | 18.92 | 38.31 | 100.00 |
| A2561 | 5.97 | 0.34 | 1.69 | 0.07 | 5.20 | 21.70 | 17.64 | 47.39 | 100.00 |
| A2565 | 3.87 | 0.48 | 19.64 | 0.22 | 2.17 | 33.46 | 16.06 | 24.11 | 100.00 |
| A2566 | 7.46 | 0.24 | 1.81 | 0.07 | 4.07 | 26.89 | 15.73 | 43.73 | 100.00 |
Table 3: XRD Analyses of Shallow High Grade Auger Samples
RC Drilling Program to Commence at Kitotolo Lithium Project
On completion of the RC program at the Kanuka Lithium Production Project, Equity Drilling will mobilise the RC drill rig and equipment to the Company’s Kitotolo Lithium Project, located 20km to the west of Kanuka.
The Company is expecting to commence the Phase 1, 15,000m AC/RC drilling program at the Kitotolo Lithium Project in the next 2 to 3 weeks.
RC drill planning at the Kitotolo Lithium Project is well underway and it is to be supported by in-house ‘Tromino passive seismic’ survey geophysics that will take place in the next two weeks, with information returned to assist in targeting the identified pegmatites beneath the shallow alluvial cover.
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For further information contact:
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Jason Brewer Managing Director Force Commodities Limited Tel: +61 (0) 8 6462 1421
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Competent Person Statement
The information in this release that relates to sampling techniques and data, exploration results, geological interpretation and Exploration Targets, Mineral Resources or Ore Reserves has been compiled by Mr James Sullivan is a member of the Australian Institute of Geoscientists. Mr Sullivan is engaged by Force Commodities as a fulltime employee of Force Commodities Ltd.
Mr Sullivan has sufficient experience of relevance to the styles of mineralisation and the types of deposits under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Sullivan consents to the inclusion in this report of the matters based on information in the form and context in which it appears.
Forward looking statements
Information included in this release constitutes forward-looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as “may”, “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “continue”, and “guidance”, or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs or production outputs.
Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance and achievements to differ materially from any future results, performance or achievements. Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licences and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which the company operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation.
Forward looking statements are based on the Company and its management’s good faith assumptions relating to the financial, market, regulatory and other relevant environments that will exist and affect the Company’s business and operations in the future. The Company does not give any assurance that the assumptions on which forward looking statements are based will prove to be correct, or that the Company’s business or operations will not be affected in any material manner by these or other factors not foreseen or foreseeable by the Company or management or beyond the Company’s control.
Although the Company attempts and has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in forward looking statements, there may be other factors that could cause actual results, performance, achievements or events not to be as anticipated, estimated or intended, and many events are beyond the reasonable control of the Company. Accordingly, readers are cautioned not to place undue reliance on forward looking statements. Forward looking statements in these materials speak only at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information the company does not undertake any obligation to publicly update or revise any of the forward-looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based.
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APPENDIX 1: ALL AUGER DRILLING ASSAY RESULTS.
| Hole ID | Type | Depth | Sample ID | East | North | RL | % Li2O | Rock-type | Weathering |
|---|---|---|---|---|---|---|---|---|---|
| KLJVA001 | Auger | 3.00 | A2550 | 541453 | 9167180 | 714 | 0.05 | Alluvial | Intense |
| KLJVA002 | Auger | 3.00 | A2551 | 541481 | 9167164 | 717 | 0.07 | Alluvial | Intense |
| KLJVA003 | Auger | 3.00 | A2552 | 541531 | 9167142 | 717 | 0.18 | Alluvial | Intense |
| KLJVA009 | Auger | 4.00 | A2553 | 541948 | 9166670 | 732 | 0.11 | Alluvial | Intense |
| KLJVA010 | Auger | 4.00 | A2554 | 542016 | 9166665 | 733 | 0.11 | Alluvial | Intense |
| KLJVA011 | Auger | 1.50 | A2555 | 541892 | 9166199 | 773 | 2.13 | PEG | strong/Moderate |
| KLJVA012 | Auger | 2.20 | A2556 | 541886 | 9166266 | 761 | 0.22 | PEG | strong/Mod |
| KLJVA013 | Auger | 2.20 | A2557 | 541876 | 9166322 | 750 | 0.16 | PEG | strong/Moderate |
| KLJVA014 | Auger | 1.50 | A2558 | 541868 | 9166383 | 749 | 0.25 | PEG | strong/Mod |
| KLJVA015 | Auger | 2.20 | A2559 | 541862 | 9166430 | 745 | 0.23 | PEG | strong/Moderate |
| KLJVA016 | Auger | 3.00 | A2560 | 541954 | 9166286 | 760 | 0.14 | PEG | strong/Mod |
| KLJVA018 | Auger | 1.30 | A2561 | 542095 | 9166204 | 759 | 0.48 | PEG | Strong |
| KLJVA021 | Auger | 4.00 | A2562 | 542405 | 9166155 | 752 | 0.26 | PEG | strong/Mod |
| KLJVA022 | Auger | 3.00 | A2563 | 542503 | 9166155 | 748 | 0.18 | PEG | strong/Moderate |
| KLJVA023 | Auger | 3.30 | A2564 | 542604 | 9166153 | 741 | 0.08 | PEG | strong/Mod |
| KLJVA025 | Auger | 4.00 | A2565 | 542806 | 9166150 | 730 | 0.32 | PEG | strong/Moderate |
| KLJVA026 | Auger | 4.00 | A2566 | 542870 | 9165919 | 727 | 0.59 | PEG | strong/Mod |
| KLJVA028 | Auger | 3.50 | A2567 | 542934 | 9165835 | 722 | 0.14 | PEG | strong/Moderate |
| KLJVA039 | Auger | 4.00 | A2568 | 543042 | 9165923 | 716 | 0.14 | PEG | strong/Mod |
| KLJVA048 | Auger | 1.80 | A2569 | 543560 | 9165515 | 725 | 0.25 | Granite | Strong |
| KLJVA071 | Auger | 2.00 | A2570 | 542554 | 9165488 | 734 | 0.18 | PEG | strong/Mod |
| KLJVA076 | Auger | 2.00 | A2571 | 542601 | 9165002 | 758 | 0.04 | PEG | strong/Moderate |
| KLJVA077 | Auger | 3.00 | A2572 | 542498 | 9164999 | 761 | 0.04 | PEG | strong/Mod |
| KLJVA079 | Auger | 1.20 | A2573 | 542462 | 9165135 | 752 | 0.02 | PEG | strong/Moderate |
| KLJVA083 | Auger | 3.00 | A2574 | 542697 | 9165000 | 772 | 0.12 | PEG | strong/Mod |
| KLJVA084 | Auger | 3.00 | A2575 | 542759 | 9165002 | 760 | 0 | PEG | strong/Moderate |
| KLJVA086 | Auger | 2.50 | A2576 | 542804 | 9165010 | 750 | 0.06 | PEG/GNEISS | strong/Mod |
| KLJVA089 | Auger | 2.50 | A2577 | 542704 | 9164904 | 789 | 0.05 | PEG | strong/Moderate |
| KLJVA090 | Auger | 3.00 | A2578 | 542608 | 9164892 | 775 | 0.04 | PEG | strong/Mod |
| KLJVA091 | Auger | 2.00 | A2579 | 542608 | 9164788 | 779 | 0.03 | PEG | strong/Moderate |
| KLJVA092 | Auger | 2.00 | A2580 | 542702 | 9164802 | 784 | 0.04 | Granite | strong/Mod |
| KLJVA093 | Auger | 2.00 | A2581 | 542804 | 9164799 | 769 | 0.17 | Granite | strong/Moderate |
| KLJVA094 | Auger | 2.50 | A2582 | 542580 | 9164802 | 782 | 0.03 | PEG | strong/Mod |
| KLJVA096 | Auger | 2.50 | A2583 | 542507 | 9164905 | 774 | 0.03 | PEG | strong/Moderate |
| KLJVA097 | Auger | 2.50 | A2584 | 542904 | 9164800 | 753 | 0.24 | PEG | Moderate |
| KLJVA098 | Auger | 1.20 | A2585 | 542802 | 9164707 | 780 | 0.18 | PEG | Intense |
| KLJVA101 | Auger | 2.00 | A2586 | 542608 | 9164706 | 788 | 0.02 | PEG | Intense |
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| Hole ID | Type | Depth | Sample ID | East | North | RL | % Li2O | Rock-type | Weathering |
|---|---|---|---|---|---|---|---|---|---|
| KLJVA102 | Auger | 3.00 | A2587 | 542389 | 9164804 | 789 | 0.03 | PEG | Intense |
| KLJVA103 | Auger | 1.50 | A2588 | 542502 | 9164694 | 785 | 0.03 | PEG | Intense |
| KLJVA106 | Auger | 1.00 | A2589 | 542433 | 9164492 | 783 | 0.55 | PEG | strong/Moderate |
| KLJVA112 | Auger | 1.00 | A2590 | 542269 | 9164538 | 771 | 0.1 | PEG | Strong |
| KLJVA115 | Auger | 1.50 | A2591 | 542017 | 9164576 | 769 | 0.04 | PEG | Intense |
| KLJVA117 | Auger | 0.20 | A2592 | 541932 | 9164634 | 762 | 0.07 | PEG | Intense |
| KLJVA118 | Auger | 2.00 | A2593 | 541810 | 9164630 | 761 | 0.02 | PEG | strong/Moderate |
| KLJVA125 | Auger | 1.00 | A2594 | 541348 | 9164943 | 793 | 0.42 | PEG | Intense |
| KLJVA128 | Auger | 1.00 | A2595 | 541745 | 9164353 | 769 | 0.02 | PEG | strong/Moderate |
| KLJVA130 | Auger | 1.00 | A2596 | 542414 | 9163989 | 788 | 0.04 | PEG | strong/Moderate |
| KLJVA132 | Auger | 2.00 | A2597 | 542509 | 9164157 | 801 | 0.01 | PEG | strong/Moderate |
| KLJVA134 | Auger | 0.20 | A2598 | 542679 | 9164189 | 801 | 0.03 | PEG | strong/Moderate |
| KLJVA139 | Auger | 3 | A2599 | 542871 | 9163898 | 759 | 0.01 | PEG | strong/Moderate |
| KLJVA141 | Auger | 2 | A2600 | 542454 | 9163676 | 768 | 0.01 | PEG | strong/Moderate |
*Note: As described in above text, augering drilling and sampling was designed to test bottom of hole geology geochemistry. It should not be considered a significant sample interval. It should be considered representative rock-chip fragments brought to the surface from the auger bit. Each collected auger sample was between 2-3kg.
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APPENDIX 2 – JORC TABLE 1 CHECKLIST OF ASSESSMENT AND REPORTING CRITERIA
Section 1 Sampling Techniques and Data
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Sampling techniques |
>Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as downhole 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 mineralisation 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 pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information. |
The samples are a collection from auger drill holes, designed to intersect the in-situ bedrock of pegmatite outcrops under alluvial sand cover. In all instances, sampled rock chip fragments were collected from the auger drill heads. The auger drill rockchip samples are representative of the sampled interval in the locality of sampling but cannot be considered representative of the entire pegmatite body. The rock chips sampling of the outcrops was completed according to best practice and industry standards. Given the purpose of first pass reconnaissance exploration work, sampling practices appear to have been appropriate at the time. None of the rockchips or channel samples are appropriate for, or have been used for, Mineral Resource estimates. Recent auger derived rockchip sampling has been completed for the purpose of helping to assist with definition of mineralised zones within the pegmatite outcrops and have been sampled in accordance with standardised sampling procedures and protocols. |
| 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.). |
Handheld and motorised auger drilling using 75mm auger head to depths of 3-4m |
| Drill sample recovery |
>Method of recording and assessing core and chip sample recoveries and results assessed. >Measures taken to maximise sample recovery and ensure representative nature of the samples. >Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. |
This information release does not report drill sampling or results. Augering was drilled to depths where bedrock geology was encountered and sampled accordingly. In some instances, bedrock was not intersected, and hole was abandoned due to depth constrains of auger drill. |
| 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. |
The auger drill holes were logged where bedrock geology was intersected. Logging of the pit faces was both quantitative and qualitative. The Lithology excavated along the length was logged qualitatively, while the interval of the pit wall sampled was measured from a set beginning and end-points. Bedrock geology was logged using auger drill samples, which can be considered rock chips/fragments recovered from auger drill head. |
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| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| 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. |
This information in this release refers to auger/rockchip/fragments recovered from intersecting bedrock geology. Representative auger samples were drilled until a sample weight of 2-3kg was collected. All recovered samples were dry. The samples from the auger drilling were collected as and comprised of rock- chips. The bagged samples were sent to ALS Chemex Lubumbashi (DRC) where they were crushed and pulverized to a pulp. A 250g subset was split from the pulp and sent to ALS Chemex Modderfontein (RSA) for analytical determinations No duplicate sampling has been undertaken for the rock chip or channel program. In-house laboratory duplicates have been relied upon. For first-pass reconnaissance sampling this is adequate. Sampling of pegmatites is problematic because of the variation in coarse grain size and minerals distribution. The 2kg-3kg mass of the samples is considered appropriate and representative to the sampling methodology and the material being sampled. |
| 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. |
All samples from the sampling program were shipped to the ALS laboratory in Lubumbashi, DRC for sample preparation and then JBurg for chemical analysis. The crushing preparation code was CRU-31 (Prep 31B) (Crush to 70% less than 2mm, riffle split off 1kg, pulverize split to better than 85% passing 75 microns. The pulverizing code used was PUL-32(Prep 31B)(Crush to 70% less than 2mm, riffle split off 1kg, pulverize split to better than 85% passing 75 microns The analyses code was ME-MS61 (multi-acid digestion with ICP-MS finish), which has a range for Li of 1 to 10,000 (1%) ppm Li. Four acid digestion quantitatively dissolves nearly all minerals in the majority of geological materials. However, it may sometimes be necessary to use even stronger dissolution techniques such as fusions in order to achieve fully quantitative results for refractory minerals. No geophysical Instruments were used in collecting or analysis. As sampling undertaken was of a first pass nature, only laboratory introduced standards, blanks and repeats were relied upon. Examination of the QA/QC sample data indicates satisfactory performance of field sampling protocols and assay laboratories providing acceptable levels of precision and accuracy. |
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| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| 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. |
No verification exploration work has so far been Undertaken at this stage. This information release does not report twinned drill sampling or results. The data from recent exploration is currently stored in hardcopy and digital format on site. A hard drive copy of this is located at the administration office in country and will be frequently uploaded to the company’s database in Perth, WA. Samples were assayed for a multi element suite of 48 elements. However, the presented data has been reduced to just Li. In addition Li2O has been reported. It has been calculated from the reported assay result for Li in ppm. The calculation is %Li2O = (ppm Li x 2.153)/10000 and the presented results have been rounded to the second decimal place. No adjustments have been made to reported assay data. |
| Location of data points | >Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. >Specification of the grid system used. >Quality and adequacy of topographic control. |
The geological data, including start-point, end-points have been surveyed using handheld GPS devices, giving an accuracy of +/- 3m in open-ground. WGS84 UTM (Zone 35S) No survey has been undertaken. Hand held GPS coordinates have been utilised to locate sampling to date |
| Data spacing and distribution |
>Data spacing for reporting of Exploration Results. >Whether the data spacing, and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. >Whether sample compositing has been applied. |
Sampling undertaken to date was of a reconnaissance nature and wide spread and focused on intersecting shallow bedrock geology under cover and mapped pegmatitic exposures. Not applicable as no resource estimation. Sampling undertaken to date was of a reconnaissance nature and wide spread along geologic bodies. By their nature, channel samples are composite samples |
| Orientation of data in relation to geological structure |
>Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. >If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material. |
Not applicable to the current sampling. Most holes are also intended to intersect the pegmatite at, or close to vertical to the pegmatite contact, |
| Sample security | >The measures taken to ensure sample security. |
Rock chip samples were shipped directly from the field by the project geologist in sealed rice bags or similar containers using a reputable transport company with shipment tracking capability so that a chain of custody can be maintained. Each bag was sealed with a security strap with a unique security number. The containers were locked in a shed if they were stored overnight at any point during transit, including at the drill site prior to shipping. The laboratory confirmed the integrity of the rice bag seals upon receipt |
| Audits or reviews |
>The results of any audits or reviews of sampling techniques and data. |
The sampling techniques and data have been reviewed and the assay results are believed to give a reliable indication of the lithium mineralisation within the samples. |
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Section 2 Reporting of Exploration Results
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Mineral tenement and land tenure status |
> Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. > The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area. |
The Kanuka licences consist of both Exploitation Permits and Research Permits PE 13082 (renewal) valid for 30 years and Exploitation Permit PR4100 valid for 5 years with further renewals of 5 years. See above, no other known impediments. |
| Exploration done by other parties |
> Acknowledgment and appraisal of exploration by other parties. |
The licence area is currently being mined for tin and tantalum including “Coltan” through a series of open pits, the largest over a total length of approximately 3km excavated by MMR and artisanal miners. Apart from the mining and test pit excavations, there has been no other exploration licences below alluvial layers and no lithium exploration has taken place. |
| Geology | > Deposit type, geological setting and style of mineralisation. |
The Kanuka Project is an early stage exploration project in terms of Lithium potential. There are high grade lithium occurrences only at this stage. Further exploration programs will be required to determine whether the project has further economic potential. The Project lies within the mid-Proterozoic Kibaran Belt - an intracratonic domain, stretching for over 1,300 km through Katanga and into southwest Uganda. The belt strikes predominantly SW-NE and is truncated by the NS to NNW-SSE trending Western Rift system. The Kibaran comprises a sedimentary and volcanic sequence that has been folded, metamorphosed and intruded by at least three separate phases of granite. The latest granite phase (900 to 950 My ago) is assigned to the Katangan cycle and is associated with widespread vein and pegmatite mineralisation containing tin, Tungsten, Tantalum, Niobium, Lithium and Beryllium. Deposits of this type occur as clusters and are widespread throughout the Kibaran terrain. In the DRC, the Katanga Tin Belt stretches over 500 km from near Kolwezi in the southwest to Kalemie in the northeast comprising numerous occurrences and deposits of which the Manono deposit is currently the largest. The geology of the Kitotolo area is poorly documented and no reliable maps of local geology have been observed for the licence area. |
| Drill hole Information |
> A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: > easting and northing of the drill hole collar > elevation or RL (Reduced Level – elevation above sea level in 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. |
Drill hole information is tabled as Appendix 1 in the report. |
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| Data aggregation methods |
> In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated. > Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. > The assumptions used for any reporting of metal equivalent values should be clearly stated. |
All results being reported for auger drill holes are based on approximately 0.1- 0.2 metre interval to provide a 2-3kg sample. No top/lower cut have been applied. At this stage it is considered that an insufficient data set has been collected to allow geostatistical methods of any relevance. Methodology may change as the collected dataset increase Not included in the reported results |
|---|---|---|
| Relationship between mineralisation widths and intercept lengths |
> These relationships are particularly important in the reporting of Exploration Results. > If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. > If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. ‘down hole length, true width not known’). |
All results being reported for pit faces are based on 0.1-0.2 metre interval lengths and have had sample intervals selected by 4CE personnel based on geological intervals and boundaries. The geometry of the mineralisation reported is not well understood, as it is under cover and early stage exploration, however the pegmatite is not of uniform thickness and their orientations vary down-dip and along strike. No top/lower cut have been applied. At this stage it is considered that an insufficient data set has been collected to allow geostatistical methods of any relevance. Methodology may change as the |
| Diagrams | >Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported. These should include, but not be limited to a plan view of drill hole collar locations and _appropriate sectional_views. |
~~ll~~ ~~t d d t~~ ~~t i~~ Refer to this press release body of text |
| Balanced reporting |
>Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced toavoid misleading reporting of Exploration Results. |
Due to the nature of the early stage project status and limited sampling to date, the results should be considered indicative only and not material. All results should be considered in the limited context of the sampling program. The samples collected to date are considered representative of the exposed mineralisation. |
| Other substantive exploration data |
➢ Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples–size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances. |
No further data available. |
| Further work | > The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling). > Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive. |
Further work may include mapping, soil sampling and bed rock sampling for geochemical anomalies to identify prospective target zones and then small amount of drill testing of higher priority targets. RC/ Diamond drilling will be included in subsequent phases of drilling. |
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