*Analysis of Key HighlightsSignificant Niobium InterceptsStinger...

*Analysis of Key Highlights

Significant Niobium Intercepts

Stinger Zone:

• CBRC176: 50m @ 0.9% Nb₂O₅, including 20m @ 1.3% Nb₂O₅
• CBRC174: 38m @ 0.5% Nb₂O₅, including 6m @ 1.2% Nb₂O₅
• CBRC175: 66m @ 0.4% Nb₂O₅, with 15m @ 15.0% P₂O₅

Rocky Road Zone:

• CBRC189: 24m @ 0.6% Nb₂O₅, including 6m @ 1.0% Nb₂O₅

Drilling Program Results

• 19 RC holes (1,795m) were drilled, with an additional 9 holes (1,508m) completed, and assays pending (October 2024).
• Discovery of fresh and oxide mineralization over a 1km strike at Stinger confirms significant tonnage potential for niobium.

Project Potential

The project is poised to become a multi-commodity hub with the potential to produce:

• Rare Earth Elements (REEs)
• Niobium
• Scandium
• Titanium
• Phosphorus

Mineralogical work has confirmed the presence of pyrochlore, a major source of niobium, which highlights the strategic importance of the project. This is particularly relevant given the growing global demand for niobium in renewable energy and electric vehicles.

Niobium (Nb₂O₅) Grades

Key Drilling Results:

• CBRC176: 50m @ 0.9% Nb₂O₅, including 20m @ 1.3% Nb₂O₅
• CBRC174: 38m @ 0.5% Nb₂O₅, including 6m @ 1.2% Nb₂O₅
• CBRC175: 66m @ 0.4% Nb₂O₅
• CBRC189: 24m @ 0.6% Nb₂O₅, including 6m @ 1.0% Nb₂O₅

Global Comparison for Niobium

• Araxá, Brazil: Niobium grades often exceed 2.5% Nb₂O₅, with some areas reaching 3% or more.
• Niobec, Canada: Average niobium grade is around 0.42% Nb₂O₅.
• Other global projects: Typically range from 0.2% to 1.0% Nb₂O₅.

Analysis of Gifford Creek Niobium Grades

The drilling program at the Stinger and Rocky Road zones has delivered strong results across multiple holes, confirming significant thickness and niobium grades, alongside additional valuable by-products like phosphate. These results collectively suggest the potential for economically viable mining operations.

Combined Strength of the Drilling Results:

1. Wide Intercepts: Many key holes returned wide intervals, with lengths up to 66m. Intervals exceeding 50m are particularly important because they indicate large volumes of mineralized material. This reduces per-tonne mining costs and enhances economic feasibility.

2. Competitive Niobium Grades: Niobium grades from the drilling program, such as CBRC176 (50m @ 0.9%, including 20m @ 1.3%) and CBRC189 (24m @ 0.6%, including 6m @ 1.0%), are globally competitive. While not reaching the elite grades of Araxá, they are comparable to Niobec, solidifying Gifford Creek’s position as a reliable source of niobium.

3. Additional Economic Potential from Phosphate:CBRC175 returned 15m @ 15.0% P₂O₅, which is considered excellent by global standards (typically 10-15% P₂O₅). This adds significant value to the project by providing an additional revenue stream.

Project-Wide Potential

1. Mineralization Continuity: Consistent grades and thick intercepts across several holes, particularly in the Stinger and Rocky Road zones, suggest strong continuity. This is crucial for supporting a long-term mining operation with reduced risk of patchy or uneconomical sections.

2. Fresh and Oxide Mineralization: The discovery of both fresh and oxide niobium mineralization over a 1km strike at Stinger further confirms the extensive nature of the deposit. Oxide mineralization is typically cheaper to process, which could allow for quicker returns in the early stages of mining.

Phosphate (P₂O₅) and Associated Elements

• CBRC175: 15m @ 15.0% P₂O₅ from 103m
  Phosphate is a valuable by-product, with grades of 15% P₂O₅ being excellent by global standards. This enhances the overall economic outlook of the project.

Other Critical Elements

The project contains rare earth elements (REEs), scandium, titanium, and iron. These additional minerals could provide further revenue streams, increasing the project’s financial appeal.

Economic Viability

1. Infrastructure and Location: Gifford Creek’s proximity to existing infrastructure reduces capital expenditure (CAPEX), improving project feasibility.

2. Market Demand: Growing demand for niobium in high-strength, low-alloy steels and emerging technologies, such as electric vehicle (EV) batteries, supports a strong long-term market. Niobium’s role in reducing EV charge times could further drive demand.

3. Grade Assessment: The observed grades, especially those ranging between 1.0-1.3% Nb₂O₅, are competitive on a global scale. The wide intercepts and shallow depths make these deposits likely to support economically viable mining operations.

Geological Features

1. Geological Formations and Structures: The deposit is located within the Gifford Creek Carbonatite Complex, a geological setting known for hosting critical minerals.

2. Host Rock Formations: Niobium is found within carbonatites, which are favorable for mining due to their relatively simple mineralogy and shallow ore bodies.

3. Depth of the Deposit: Niobium mineralization begins from 39 meters below the surface, enhancing the economic viability of extraction.

Strengths of the Gifford Creek Carbonatite Project

1. Strong Niobium Intercepts:
   Thick and high-grade niobium intercepts, such as CBRC176 (50m @ 0.9% Nb₂O₅), confirm the project’s significant resource potential.

2. Diverse Commodity Potential:
   The project has demonstrated potential for niobium, rare earth elements (REEs), phosphorus, titanium, and scandium, enhancing its overall economic attractiveness.

3. Large-Scale Carbonatite System:
   Gifford Creek is part of a 17km-long carbonatite system, one of the largest globally, with substantial upside potential for discovering additional mineralized zones.

4. 1km of Fresh and Oxide Mineralization:
   The discovery of both fresh and oxide niobium mineralization over a 1km strike at the Stinger zone highlights the project’s significant tonnage potential. Oxide mineralization is typically easier and cheaper to process, which could improve early-stage project economics.

5. Expansion of Mineralized Zones:
   Recent drilling has expanded the mineralized zones, particularly over the 1km strike at Stinger, and further drilling has been conducted at both Stinger and Rocky Road. Assays from 9 additional holes are pending, which could provide further insights into the grade and extent of mineralization.

6. Strategic Importance of Niobium:
   Niobium is a critical mineral, used in strengthening steel and reducing electric vehicle (EV) charge times. As global energy transitions continue, the importance of securing niobium supply will grow.

7. Exploration Upside:
   Ongoing drilling efforts continue to expand the known zones of mineralization. Future assays are expected to shed more light on the potential size and grade of the deposit.

8. Favorable Geopolitical Environment:
   Located in Western Australia, a mining-friendly jurisdiction with strong government support (co-funding from the Geological Survey of WA’s Exploration Incentive Scheme), the project benefits from reduced operational risks and supportive infrastructure.

Challenges

1. Mineral Complexity: Extracting and marketing the various mineral components (niobium, REEs, phosphorus, etc.) requires careful planning.

2. Drilling and Resource Definition: A significant portion of the carbonatite system remains unexplored. More drilling is needed to fully define the resource.

3. Metallurgical Testing: Comprehensive testing is necessary to determine the best processing methods for the various critical minerals.

4. Market Volatility: Critical mineral markets are subject to price volatility and geopolitical tensions, which may impact profitability.

Conclusion

The Gifford Creek Carbonatite Project is shaping up to be a highly promising strategic asset for Dreadnought Resources. With competitive niobium grades, a large-scale mineralized system, and multi-commodity potential, the project is well-positioned to benefit from growing global demand for critical minerals.

The consistent drilling results show thick and high-grade intercepts, with niobium grades reaching up to 1.3% Nb₂O₅ over intervals up to 66m. The additional presence of phosphate and rare earth elements enhances the project’s multi-commodity potential, making Gifford Creek a promising candidate for large-scale, economically viable mining operations.

While challenges such as further resource definition and metallurgical testing remain, the strong results to date suggest substantial upside potential. Gifford Creek could become a major supplier of niobium, rare earths, and other critical minerals, capitalizing on the global shift towards renewable energy and technological advances.

*GPT4o