Ann: Further Thick REE/TREO Intersections from Surface, page-4

*Detailed Interpretation of Results

Highlights:

1. Consistent, Thick Rare Earth Element (REE) Mineralisation:

   • The mineralisation is hosted in an alkaline granite intrusion, specifically biotite granite. This geological setting is favorable for REE deposits, as observed globally.
   • Results include significant weathering zones associated with shear zones, contributing to high grades.

2. Key Intercepts:

   • High-grade Total Rare Earth Oxide (TREO) up to 7193 ppm and Magnet Rare Earth Oxide (MREO) up to 1809 ppm.
   • Examples:
     • 24WCRC031: 76 meters at 1677 ppm TREO from 4m depth, including a high-grade zone of 3m at 4514 ppm TREO.
     • 24WCRC034: 68 meters at 1032 ppm TREO from 12m depth.
     • 24WCRC040: 60 meters at 1077 ppm TREO from surface.

3. Depth and Distribution:

   • Many intercepts are shallow, starting at or near the surface, making them favorable for potential open-pit mining.

4. High-Value REEs:

   • Magnet REEs such as Neodymium (Nd), Praseodymium (Pr), Dysprosium (Dy), and Terbium (Tb) are abundant, essential for electric vehicle and wind turbine manufacturing.

Comparison to Industry Standards:

1. Grade:

   • TREO grades of over 1000 ppm are considered robust in the global REE industry.
   • High-grade zones exceeding 4500 ppm TREO are comparable to leading deposits globally, such as Strange Lake in Canada.

2. Depth:

   • Intercepts starting close to the surface are advantageous, reducing overburden and mining costs.
   • Comparatively, some REE deposits globally require deeper, costlier extraction.

3. Mineralogy and Host Rock:

   • The biotite granite hosts consistent mineralisation, similar to deposits like the Strange Lake and Sybella REE projects.

4. Critical Metals:

   • Magnet REEs (MREOs) represent the most valuable components of the TREO basket. Grades such as 1809 ppm MREO are high relative to industry averages.

Economic and Strategic Potential:

1. Advantages:

   • Shallow, thick, and consistent mineralisation enhances the resource's potential for economic extraction.
   • The focus on MREOs aligns with market demands driven by renewable energy technologies.

2. Concerns:

   • Further exploration is needed to determine the extent and continuity of high-grade zones.
   • Metallurgical studies are required to confirm the ease of REE recovery.

3. Market Position:

   • The project is well-timed given the global push for diversified REE supplies outside China. Western governments' interest in supporting REE projects adds strategic value.

Recommendations:

1. Further Work:

   • Expand drilling to delineate resource boundaries.
   • Conduct metallurgical testing to confirm economic viability.
   • Consider geochemical and XRD analyses to refine the understanding of mineralogy.

2. Strategic Outlook:

   • Highlight the MREO grades in presentations to stakeholders, emphasizing their importance in EV and renewable energy supply chains.
   • Position the deposit as a competitor to other alkaline granite-hosted REE projects, focusing on its shallow depth and high-grade zones.

In summary, these results indicate a promising REE resource with competitive grades and shallow depths, aligning well with industry standards and current market trends. Further exploration and testing will be crucial for resource classification and economic assessment.
*GPT4o