Ann: Annual Report to shareholders, page-2

Project Overview
Hastings Technology Metals Ltd (ASX: HAS) released a report on 4 September 2024, announcing the maiden niobium resource at its Yangibana Rare Earth and Niobium Project in Western Australia’s Gascoyne region. This milestone achievement was based on extensive drilling and metallurgical work at the Bald Hill and Simon’s Find deposits, highlighting the project's multi-commodity potential, which includes niobium, rare earth elements (REEs), zirconium, and hafnium.

The Yangibana project now hosts an impressive niobium resource of 6.73 million tonnes (Mt) at an average grade of 2,305 ppm Nb₂O₅, yielding 15,501 tonnes of niobium pentoxide (Nb₂O₅). This resource sits within the same footprint as the rare earth elements at Yangibana, making it a valuable by-product that can enhance the project’s overall economics.

Niobium Resource Estimation

The resource is categorized as follows:

• Measured: 2.37 Mt at 1,035 ppm Nb₂O₅, yielding 2,451 tonnes of niobium pentoxide.
• Indicated: 4.36 Mt at 2,995 ppm Nb₂O₅, yielding 13,050 tonnes of niobium pentoxide.
• Inferred: 0.01 Mt at 1,435 ppm Nb₂O₅, yielding 20 tonnes of niobium pentoxide.

The total estimated resource of 6.74 Mt contains 15,521 tonnes of Nb₂O₅, spread across Bald Hill and Simon’s Find. The cut-off grade for this estimation was set at 0.24% TREO (total rare earth oxides), which ensures the resource includes economically viable amounts of both niobium and rare earth elements.

Geological and Deposit Structure

The Yangibana Project is hosted within a complex geological structure consisting of ironstone, which is the weathered and oxidized product of the primary hosts, ferro-carbonatite and phoscorite veins. The niobium mineralization occurs predominantly in ferro-columbite, while rare earths are present as monazite.

The mineralized veins vary in dip from horizontal to sub-vertical, with an average thickness of 2.2 to 3.5 meters, though thicker zones can reach up to 20 meters. The deposit's geological structure spans a strike length of 4 kilometers, and the mineralization extends from the surface to depths of around 125 meters.

The geological confidence is high, given that the interpretation was supported by a combination of detailed surface mapping and a comprehensive drilling program conducted between November 2021 and February 2022. This program consisted of 170 drill holes with a total length of 13,334 meters.

Drilling and Sampling Techniques

The drilling campaign used reverse circulation (RC) drilling with a 5¼ inch diameter face-sampling bit, and samples were collected every meter through a built-in cyclone and triple-tier riffle splitter. These samples, typically weighing between 2-4 kg, were sent to Intertek Genalysis in Perth for analysis, where they underwent sodium peroxide fusion followed by ICP-MS (Inductively Coupled Plasma Mass Spectrometry) analysis.

The project maintained rigorous quality control throughout the drilling process, with field duplicates, blanks, and reference standards inserted at a rate of 1 in 20 samples. Downhole surveys were conducted using multi-shot electronic survey tools, ensuring accurate data collection.

Metallurgical Testing and Process Optimization

Hastings Technology Metals has made significant progress in optimizing the metallurgical processes for niobium recovery. Niobium in the Yangibana project is hosted in ferro-columbite, which accounts for 89.7% of the niobium found in the deposits, and 48% of this niobium is classified as liberated at a particle size of 90µm (P80). This particle size allows for efficient recovery using magnetic separation and flotation techniques.

Niobium Recovery Process

The metallurgical process focuses on three main steps:

1. Ore Dressing: This involves gravimetric separation to remove low-value materials early in the process. The separation uses the high specific gravity of valuable minerals like monazite, zircon, and ferro-columbite. This step is expected to reduce material sent to the flotation circuit by up to 50%, lowering costs and improving recovery efficiency.
2. Magnetic Separation: Test work using a wet high-intensity magnetic separator (WHIMS) at 1 Tesla has shown promising results, recovering up to 84.5% of the niobium in concentrates.
3. Flotation: Further refinement of the flotation process will be required to optimize the selective recovery of niobium without compromising rare earth recovery. Early tests indicate that flotation could recover up to 75.2% of niobium under optimized conditions.

The report also emphasizes the need for further studies to develop a ferro-columbite depressant to enhance separation from monazite during flotation. This process will help maximize niobium recovery while maintaining efficient rare earth extraction.

Processing Plant and Niobium Circuit Integration

Hastings plans to integrate a niobium recovery circuit into its Yangibana beneficiation plant, which was originally designed to process rare earth elements. The proposed flowsheet includes a series of ore dressing, magnetic separation, and flotation stages that will allow the recovery of niobium alongside rare earth elements.

The integration of this recovery circuit will enhance the overall economic value of the project by generating additional by-product revenue from niobium, zirconium, and hafnium. Hastings is confident that the additional magnetic separation and flotation circuit can be effectively implemented within the existing plant design, and they are working closely with GR Engineering Services to optimize the plant's performance.

The Yangibana Project is on track to begin production by Q4 2026, with significant progress already made on early infrastructure, including the accommodation village, airstrip, and access roads.

Environmental and Infrastructure Considerations

Comprehensive environmental studies have been conducted, including Level 1 and Level 2 flora and fauna surveys. These surveys found no significant impact on rare species or threatened ecological communities, ensuring that the project meets environmental regulatory standards.

Infrastructure development is well underway, with early construction completed for essential facilities. The construction of the beneficiation plant is progressing, with long-lead equipment already secured.

Competent Person Statements and Data Integrity

The mineral resource estimates and metallurgical data were compiled by David Princep, an independent consultant, and Scott Atkinson, Hastings’ Principal Metallurgist. Both are qualified under the JORC (2012) Code, ensuring that the resource estimates are accurate and reliable.

• The data used for the resource estimation was managed through a secure database and validated using Micromine Mining software.
• Site visits have been conducted by various technical personnel over the past five years, ensuring a high level of confidence in the resource modeling and geological interpretation.

Conclusion and Future Work

The Maiden Niobium Resource at the Yangibana Project is a significant achievement, positioning Hastings Technology Metals as a multi-commodity producer with strong potential for by-product credits. The integration of niobium recovery alongside rare earth elements, zirconium, and hafnium ensures that the project will remain economically viable, even amid fluctuating commodity prices.

Future work will include:

• Additional drilling to extend the mineral resource,
• Further metallurgical testing to optimize the recovery process for niobium and associated by-products,
• Completion of the processing plant and integration of the niobium recovery circuit.

The project remains on schedule, with first production expected by 2026, and it is set to play a crucial role in the global supply of critical metals for industries such as electric vehicles, renewable energy, and high-tech manufacturing.

Summary by GPT4o