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EQ RESOURCES LIMITED Capital/Financing Update 2024

Apr 29, 2024

64867_rns_2024-04-29_33595f22-c1c3-4592-9e2d-95881f634f89.pdf

Capital/Financing Update

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resourcing the new economy for a better tomorrow

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30 April 2024

MT CARBINE INFILL DRILLING REVEALS HIGH-GRADE ZONES IN STAGE 2 PIT

EQ Resources Ltd is a global tungsten producer with mining activities in Australia and Spain.

Highlights:

  • Completed 9 holes of Infill RC Drilling at 10m spacing into the Iolanthe Vein System, confirming consistency of high-grade sections

  • Individual veins ranging with true widths of 0.3-2.5m were intersected at 0.5% to 3.66% WO3 grades

  • Interpretation confirms veins are increasing in grade as Stage 2 Pit commences at the 325m level

  • Shallow intercepts at Johnson Vein System (4 holes; starting 347m RL) with 11m @ 0.21% WO3, almost double the grade compared to the current geological model on this level

EQ Resources Limited (“EQR” or “the Company”) is pleased to announce the results of 13 Infill Reverse Circulation Drill holes (“RC” holes) targeted to confirm consistency of the high-grade vein systems scheduled in Stage 2 Pit.

Drilling into the Iolanthe Vein System was done on the 305-295m level and into the Johnson Vein System on the 350-340m level. This drilling program is complementary to the 2024 Diamond Drilling Campaign announced earlier in the year (see ASX announcement ‘Major Drilling Campaign at Mt Carbine to Infill Underground Resources and explore Extents of known High-Grade Resources’ dated 30 Januray 2024).

RC DRILL HOLE SUMMARY(SIGNIFICANT RESULTS) RC DRILL HOLE SUMMARY(SIGNIFICANT RESULTS) RC DRILL HOLE SUMMARY(SIGNIFICANT RESULTS) RC DRILL HOLE SUMMARY(SIGNIFICANT RESULTS) RC DRILL HOLE SUMMARY(SIGNIFICANT RESULTS) RC DRILL HOLE SUMMARY(SIGNIFICANT RESULTS)
Hole Vein From (m) To (m) Interval (m) Grade
(WO3%)
EQRC209 Iolanthe 0 3 3 0.74
EQRC210 Iolanthe 14 20 6 0.94
EQRC211 Iolanthe 14 15 1 0.93
EQRC212 Iolanthe 15 18 3 2.00
EQRC213 Iolanthe 30 33 3 1.86
EQRC214 Iolanthe 14 15 1 1.27
EQRC216 Johnson 6 7 1 0.69
12 14 2 0.57
EQRC217 Johnson 19 22 3 0.70
EQRC218 Johnson 20 23 3 0.55
EQRC219 Iolanthe 5 7 2 0.62
15 17 2 3.66

Table 1 - Significant Zones of Mineralisation (see individual hole details in Appendix 1)

PRINCIPAL PLACE OF BUSINESS: 6888 Mulligan Highway, Mt Carbine Qld 4871 POSTAL ADDRESS: PO Box 1496, Mareeba Qld 4880 ABN: 77 115 009 106 (ASX: EQR) T: (07) 4094 3072 | F: (07) 4094 3036 | W: eqresources.com.au

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EQR’s Chief Geologist, Tony Bainbridge, commented: "This area of the pit had only limited 50m spaced drilling and with the deepening of the pit, we started to see larger veins coming in and wanted to select a section to do this detailed analysis. Our team has long postulated that below the 315-325m level, the main ore body would be intercepted and it is pleasing to see these high-grade vein packages appearing at a critical time in our ramp-up. Being able to look at veining under UV light on the wall has given us all a comfort the modelling was on track, with the drilling confirming.”

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Fig.1 - Drone photo of pit after heavy rain when the veins are exposed; 13 RC holes drilled at 70 degress and 33m length each

At the 315-323m level the ore body changes from a thinner network of veins to more substantial veins of 50 cm or more (see Fig.2 below). Drilling into the Iolanthe Vein System, considered the strongest zone identified so far in the open pit, does not reflect the entire system but rather 1 of 4 major vein packages.

The Johnson Vein System follows a similar pattern. RC drilling was conducted on the 345m level, with significant zones at 11m @ 0.21% WO3 (which is almost double the grade compared to the current geological model , on this level). Historical drilling had indicated even higher grade zones at just 20m below (11m @ 0.68% WO3), in line with zonation models of similar sheeted-vein tungsten deposits.

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Fig.2 - Drill results and interpretation of Johnson Vein Package; Comparing with geological model for sheeted-vein tungsten deposits, left side (Source: Gu, J.Y., Morphological Zonation of Tungsten Deposits in South China)

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Both the Johnson and Iolanthe Vein Systems show increasing width to the veins as they go deeper and vein grades get stronger. The overall zone narrows slightly, which is expected from the modelling. It is observed that Stage 2 Pit enters the main ore zone which has a 200m vertical extent but in many places open to depth.

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these four veins in yellow is compared with historical EQR drilling on 50m centres in red

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Appendix 1 – Individual Assay Results

Hole #
Vein
East North RL EOH Dip Azm
(TN)
From To WO3 % Interval Average
WO3 %
EQRC207
Iolanthe
22,820 26,308 304.8 33 -65 180 6.00 7.00 0.46 2.00 0.38
7.00 8.00 0.30
15.00 16.00 0.35 1.00 0.35
EQRC208
Iolanthe
22,829 26,310 304.8 33 -65 180 7.00 8.00 0.21 1.00 0.21
28.00 29.00 0.13 2.00 0.32
29.00 30.00 0.50
EQRC209
Iolanthe
22,800 26,284 306.2 33 -65 180 0.00 1.00 0.80 3.00 0.74
1.00 2.00 0.78
2.00 3.00 0.63
EQRC210
Iolanthe
22,800 26,291 305.9 33 -65 180 0.00 1.00 0.22 1.00 0.22
14.00 15.00 2.15 6.00 0.95
15.00 16.00 0.00
16.00 17.00 0.00
17.00 18.00 2.51
18.00 19.00 0.82
19.00 20.00 0.27
EQRC211
Iolanthe
22,810 26,294 305.2 33 -65 180 9.00 10.00 0.12 3.00 0.10
10.00 11.00 0.00
11.00 12.00 0.17
14.00 15.00 0.93 1.00 0.93
EQRC212
Iolanthe
22,820 26,298 305.0 33 -65 180 2.00 3.00 0.10 2.00 0.14
3.00 4.00 0.17
15.00 16.00 3.29 3.00 2.00
16.00 17.00 1.71
17.00 18.00 1.05
EQRC213
Iolanthe
22,830 26,303 304.9 33 -65 180 0.00 1.00 0.28 1.00 0.28
9.00 10.00 0.15 1.00 0.15
21.00 22.00 0.19 1.00 0.19
30.00 31.00 2.50 3.00 1.86
31.00 32.00 0.47
32.00 33.00 2.61
EQRC214
Iolanthe
22,836 26,305 304.9 33 -65 180 3.00 4.00 0.17 1.00 0.17
14.00 15.00 1.27 1.00 1.27
EQRC215
Johnson
22,957 26,378 346.5 33 -70 350 10.00 11.00 0.16 1.00 0.16
21.00 22.00 0.46 1.00 0.46
29.00 30.00 0.44 2.00 0.38
30.00 31.00 0.32
EQRC216
Johnson
22,959 26,368 347.1 33 -70 350 6.00 7.00 0.69 1.00 0.69
12.00 13.00 0.95 2.00 0.57
13.00 14.00 0.19
28.00 29.00 0.45 1.00 0.44
EQRC217
Johnson
22,959 26,358 347.7 33 -70 170 11.00 12.00 0.10 2.00 0.11
13.00 14.00 0.11
19.00 20.00 0.65 3.00 0.70
20.00 21.00 1.06
21.00 22.00 0.40
25.00 26.00 0.12 2.00 0.13
27.00 28.00 0.14
EQRC218
Johnson
22,957 26,349 347.6 33 -70 170 1.00 2.00 0.23 1.00 0.23
20.00 21.00 0.13 3.00 0.55
21.00 22.00 1.39
22.00 23.00 0.13
EQRC219
Iolanthe
22,810 26,302 304.7 33 -65 180 5.00 6.00 1.03 2.00 0.62
6.00 7.00 0.20
15.00 16.00 6.97 2.00 3.66
16.00 17.00 0.35
  • Note for grade control RC sampling the Company is using its own calibrated internal laboratory set up with a Thermo Scientific ARL Quant'X X-Ray Fluorescence Spectrometer that has been calibrated with official standards and has a 10% external QAQC program being applied to all assays. This machine however is not from a NATA accredited lab. See attached Table 1 from the JORC Code for full information on processing and QAQC details.

  • Intervals in table represent downhole depth, not true thickness with no applied upper cut. The highlight ( bold ) intervals represent where King-Veins have intersected above 0,5% WO3 grade.

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Released on authority of the Board by:

Kevin MacNeill Chief Executive Officer

Further Enquiries:

Peter Taylor Investor Relations 0412 036 231 [email protected]

About the Company

EQ Resources Limited is a leading tungsten mining company dedicated to sustainable mining and processing practices. The Company is listed on the Australian Securities Exchange, with a focus on expanding its world-class tungsten assets at Mt Carbine in North Queensland (Australia) and at Barruecopardo in the Salamanca Province (Spain). The Company leverages advanced minerals processing technology and unexploited resources across multiple jurisdictions, with the aim of being a globally leading supplier of the critical mineral, tungsten. While the Company also holds gold exploration licences in New South Wales (Australia), it aims to create shareholder value through the exploration and development of its current project portfolio whilst continuing to evaluate corporate and exploration opportunities within the new economy and critical minerals sector globally.

Competent Person’s Statements

EQ Resources’ exploration and resource work is being managed by Mr. Tony Bainbridge, AusIMM. Mr. Bainbridge is engaged as a contractor by the Company and is not "independent" within the meaning of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). Mr. Bainbridge has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in JORC Code 2012. The technical information contained in this announcement relating exploration results are based on, and fairly represents, information compiled by Mr. Bainbridge.

Forward-looking Statements

This announcement may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Particular risks applicable to this announcement include risks associated with planned production, including the ability of the Company to achieve its targeted production outline due to regulatory, technical or economic factors. In addition, there are risks associated with estimates of resources, and there is no guarantee that a resource will have demonstrated economic viability as necessary to be classified as a reserve. There is no guarantee that additional exploration work will result in significant increases to resource estimates. Neither the Australian Securities Exchange nor its Regulation Services Provider (as that term is defined in policies of the Australian Securities Exchange) accepts responsibility for the adequacy or accuracy of this announcement.

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JORC Table 1 – Exploration Results

Section 1 - Sampling Techniques and Data

Criteria 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 down
hole gamma sondes, or handheld XRF
instruments, etc.). These examples should
not be taken as limiting the broad meaning
of sampling.
Include reference to measures taken to
ensure sample representivity and the
appropriate
calibration
of
any
measurement tools or systems used.
Aspects of the determination of 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.
Sampling was taken from a cyclone mounted on
the side of the RC rig which provides a
continuous split as the sample is taken.
The sample locations were marked out using
DGPS locator staff and sampling was taken as
channel continuous sample of outcrop.
The samples each represent 1m of drilling and
generally weigh 5 kg of material that is P90 of
–5mm. Between samples the hole is flushed
with
air
between
samples
to
avoid
contamination between zones. A sieve is used
to fill a sample tray with each trip tray box
representing 1m. These chip trays are used to
log the hole and are examined under blue light
to see the presence of scheelite.
The entire sample size is split down to 500gm
charge which is then pulverized to 75 micron
before 200gm is split into making up the
representative sample.
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.).
Reverse Circulation Drilling.
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.
The samples were recorded on the maps and
also on the digital survey instrument (Texas
DGPS).
There does not appear to be any link between
sample recovery and grade.
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.
Mapping occurred on floor bench outcrop and
was
mapped
for
alteration,
geology,
mineralisation and structure. The veins shown
were measured for strike and continuity.

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Criteria 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 beingsampled.
The 5kg samples were crushed in Jaw initially
and split at <5mm to get down to 1kg. Finer
crushing then occurred until we could achieve
a representative 500gm sample. This was
pulverized in LM2 grinder and a subset of -
200mesh powder of 200gm was split off.
Approximately 10grams of this fine powder
was then taken for assay internally using our
own XRF analysis machine using full QAQC
protocols.
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)andprecision have been established.
The sample assay was taken with 10% of the
samples in the batch were standards with
known tungsten / Arsenic values. A further
10% blanks was inserted to ensure there was
no carryover of sample nor any variance in the
drift curve for the Thermofisher XRF machine.
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
Sampling was undertaken by Site Geological
Team
under
the
supervision
of
Tony
Bainbridge chief geologists who has 42 years
of experience in mining and exploration. The
samples and methodology for these samples
was also supervised by Tony Bainbridge as
QP for the Mt Carbine Project. It can be
verified the custody of the sample and that all
QAQC was checked before these results have
been reported here.
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.
Qualityand adequacyof topographic control.
The samples collected are representative and our
QAQC sampling in comparison to ALS
laboratories in Brisbane Australia resides with
2% of their results during checks. A calibration
curve is regularly checked for consistency in
our XRF machine.
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.
RC hole locations are shown in Figure 3 and
detailed in Appendix 1. Spacing is considered
sufficient to establish geological and grade
continuity. No composites were used.

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Criteria Explanation Commentary
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.
All RC Holes are taken at a 65-70 degree dip with
both dip and direction surveyed accurately.
The veining in the pit is dominantly vertical and
the high angle to the veins needs to be
calculated in the estimations of zones.
Sample
security
The measures taken to ensure sample
security.
The sample is taken to the Company’s internal
laboratory on the same day as taken. The lab
has a perimeter fence and secured during the
night.
Audits or
reviews
The results of any audits or reviews of
sampling techniques and data.
No audit of the sampling has as yet been
undertaken and it is planned to drill shallow
percussion holes to validate this trench result.

Section 2 - Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria 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 resource estimates reported herein are all within
Mining Leases 4867 (358.5ha, expiry 31-07-2048)
and 4919 (7.891ha, expiry 31-08-2049), held by Mt
Carbine Quarries Pty Ltd. The Mining Leases lie
within Brooklyn Grazing Homestead Perpetual
Lease. Native Title has been extinguished in the
Mining Leases by Deed of Grant.
Exploration
done by other
parties
Acknowledgment
and
appraisal
of
exploration by other parties.
No previous examination of these results have been
reported.
Historical (1974-1987) mine records: A nearly
complete record of mine production, including
amounts of mined rock consigned to the LGS has
been compiled using published and unpublished
archives, including reporting for State Royalty
returns.
Geology Deposit type, geological setting and style
of mineralisation.
The Deposit
The Mt Carbine tungsten deposit is a sheeted quartz
vein deposit. Many sub-parallel, sub-vertical quartz
veins have been deposited in fractures developed
in the host rocks metasediments in a zone that
drilling and mapping of historical surface workings
have shown to be approximately 300m wide and at
least 1.4km long, trending at about 315 degrees.
Grade Variation
Sampling, drill core logging, geostatistical analysis of
drill core assay data and mapping of the open pit
have determined that all the material mined during
theprevious operation was mineralised to some

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Criteria Explanation Commentary
extent and that the mineralogy of the deposit was
uniform. There is little doubt that the mineralogy of
the stockpile material is identical to that mined and
processed. The material in the stockpile comprises
a single formation, the result of the alteration of
Siluro-Devonian meta-sedimentary host rocks
(Forsythe and Higgins, 1990).
The amount of quartz veining varies within the
mineralised zone and previous mining and
exploration have been concentrated at the south-
eastern end of the mineralised zone. It is well
understood that there are high-grade zones within
the mineralisation in this part of the deposit and that
the higher-grade zones are surrounded by lower
grade mineralisation. Interpretation of recent drilling
suggests that the main high-grade zone may plunge
to the north of the present open pit. The previous
mine assumption that quartz vein abundance is
directly correlated with grade is not supported by an
independent review of quartz vein abundance and
grade.
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 whythis is the case
See Appendix 1.
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
clearlystated
The samples have been composited on a weighted
average for the distance of each sample. No cut off
grades were used.

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Criteria Explanation Commentary
Relationship
between
mineralisation
widths and
intercept length
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’).
As the drilling is mainly at 65 degrees and the veins
intersected are dominantly vertical it is necessary
that the reader of such results understand they are
not true widths reported but rather downhole
intercepts which are taken into account in the
modelling and resource reporting information
provided.
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.
Sample locations are shown in Figure 3.
Balanced
reporting
Where comprehensive reporting of all
Exploration Results is not practicable,
representative reporting of both low
and high grades and/or widths should
be practiced to avoid misleading
reporting of Exploration Results.
The results of all the drilling at Mt Carbine had at one
point or another been reported in the public forum
and readers are asked to review these press
releases for context. The immediately adjacent hole
to this drilling is shown on the sections etc.
All sample results collected have been reported
including high and low intervals.
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.
N/A
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.
The company plans to continue to drill using an RC rig
on a 10 x 10m pattern for grade control. All holes
are at 65 degree dips.

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