Ann: Exceptional Niobium Intercepts at the Stinger Discovery, page-8

*Here’s a detailed analysis of the drilling results from Dreadnought Resources at the Stinger Zone, Gifford Creek Carbonatite, focusing on niobium mineralization, including a breakdown of grades, thickness, comparison to industry standards, economic viability, exploration potential, and a forward outlook.

1. Grades:

The reported niobium grades across the drill holes at the Stinger Zone vary, with some high-grade intercepts, but also extensive lower-grade zones.

• Key High-Grade Intercepts:

  • CBRC195: 130m @ 0.7% Nb₂O₅ from 71m, including 39m @ 1.3% Nb₂O₅ from 84m, and 4m @ 2.0% Nb₂O₅ from 86m.
  • CBRC200: 95m @ 0.9% Nb₂O₅ from 48m, including 20m @ 1.4% Nb₂O₅ from 102m, and 8m @ 1.7% Nb₂O₅ from 72m.
  • CBRC194: 122m @ 0.6% Nb₂O₅ from 71m, including 26m @ 1.1% Nb₂O₅ from 99m.
  • CBRC201: 98m @ 0.7% Nb₂O₅ from 54m, including 41m @ 1.1% Nb₂O₅ from 85m.

• Moderate Grades:

  • CBRC193: 57m @ 0.9% Nb₂O₅ from 51m, including 10m @ 1.2% Nb₂O₅ from 72m.
  • CBRC196: 24m @ 0.7% Nb₂O₅ from 81m, including 8m @ 1.3% Nb₂O₅ from 81m.

• Lower Grades:

  • CBRC175: 66m @ 0.4% Nb₂O₅ from 52m, with 15m @ 15.0% P₂O₅ (phosphorus) from 103m.
  • CBRC189: 24m @ 0.6% Nb₂O₅ from 39m, including 6m @ 1.0% Nb₂O₅ from 48m.

2. Thickness:

The thickness of the mineralized intercepts is significant, with several intervals exceeding 50m and extending up to 130m. These thick intercepts are promising for bulk mining potential. Key examples include:

• CBRC195: 130m @ 0.7% Nb₂O₅.
• CBRC200: 95m @ 0.9% Nb₂O₅.
• CBRC194: 122m @ 0.6% Nb₂O₅.

Such thicknesses, especially when combined with moderate grades, suggest the potential for large-scale mining operations, assuming continuity of the mineralization.

3. Comparison to Industry Norms:

• Niobium Grades:

  • Global niobium production is dominated by a few major deposits like Araxá in Brazil (CBMM), which reports grades of 2.5%–3.0% Nb₂O₅, and Niobec in Canada, with grades of around 0.5%–0.6% Nb₂O₅.
  • The Stinger Zone grades (typically between 0.6%–0.9% Nb₂O₅) are comparable to Niobec but below the higher grades seen in Araxá. However, the discovery of higher-grade zones up to 2.0% Nb₂O₅ is promising.

• Economic Threshold:

  • For niobium projects, grades around 0.3%–0.5% Nb₂O₅ are often considered the lower limit for economic feasibility, especially for large-scale operations. Given the Stinger Zone’s grades (0.6%–1.3%), the project remains within an economically viable range, particularly with the thicker intercepts.

4. Economic Viability:

• Grade and Thickness:

  • The moderate grades (around 0.6%–0.9% Nb₂O₅) combined with thick intercepts suggest the deposit could support a bulk mining operation. If the high-grade zones (1.3%–2.0%) can be expanded, this would further enhance the project's viability.

• Depth:

  • Many of the mineralized intercepts begin relatively close to the surface (starting around 50–80m depth). This is advantageous for potential open-pit mining, which is generally more cost-effective than underground mining.

• By-Product Credits:

  • The presence of phosphate (P₂O₅), rare earth oxides (TREO), and other critical minerals like scandium (Sc) and titanium (TiO₂) enhances the project’s economics. Phosphate, in particular, is present in high concentrations (e.g., 15.0% P₂O₅ in CBRC175), and rare earths (up to 2.1% TREO) could provide additional revenue streams, offsetting the cost of niobium production.

5. Continued Exploration Potential:

• Untapped Potential:

  • Only 25% of the Gifford Creek Carbonatite has been explored so far. The deposit remains open in all directions, suggesting that further drilling could significantly increase the resource size.

• Mineralization Continuity:

  • The mineralization at Stinger is hosted in a dyke-like geometry, and fresh niobium mineralization has been confirmed over 1.2km of strike length. The presence of thick, continuous intercepts is a positive indicator of resource expansion potential.

• Comparison to Other Carbonatite Deposits:

  • Carbonatite-hosted niobium deposits, such as Araxá and Niobec, are known for large-scale operations with significant resources. Gifford Creek, as one of the world’s largest alkali-carbonatite complexes, has the potential to follow a similar trajectory if further exploration can delineate additional high-grade zones.

6. Forward Outlook:

• Expansion Drilling:

  • Given the open-ended nature of the Stinger Zone mineralization, further step-out drilling is warranted. Expanding the resource laterally and at depth will be crucial for proving up the size of the deposit. This will also help to identify more high-grade zones that could enhance the project’s economics.

• Metallurgical Testing:

  • Further metallurgical work is needed to confirm the recovery rates and economic feasibility of producing a niobium concentrate. The presence of coarse-grained pyrochlore (the primary niobium-bearing mineral) is a positive sign, as it accounts for 95% of global niobium production.

• Environmental and Regulatory Considerations:

  • As with all niobium projects, managing the presence of uranium and thorium will be important for meeting environmental regulations and securing the necessary permits. While these elements have not been the focus of this particular report, they were mentioned in earlier findings and will need careful consideration.

• Infrastructure and Logistics:

  • The project is well-positioned geographically, with access to sealed roads, ports, and regional workforces. This lowers the potential logistical challenges associated with transporting concentrate and supplies, reducing operational costs.

7. Final Conclusion:

• Promising Discovery: The Stinger Zone shows promising niobium mineralization, with grades and thicknesses comparable to other commercially viable deposits like Niobec. While not as high-grade as Araxá, the significant thickness of the mineralized intercepts suggests the potential for a large-scale operation.

• Economic Viability: The project appears economically viable at this stage, with niobium grades ranging from 0.6% to 1.3%, thick intercepts, and the potential for additional revenue from by-products like phosphate and rare earths.

• Next Steps: Further exploration drilling is essential to fully define the size and grade of the resource. Metallurgical testing will also be key in determining the project's feasibility and final recovery rates.

If continued exploration confirms additional high-grade zones, the Gifford Creek Carbonatite could become a significant player in the global niobium market.

*GPT4o