Ann: Nickel Discovery at Kiabye Project, page-6

Resource Valuation

The Kiabye Project’s recent exploration program has yielded mineral grades in key samples that may warrant further investigation. Sample KPR065, for instance, returned 11,222 ppm Nickel (1.12%), 9,565 ppm Cobalt (0.95%), and 756 ppm Copper (0.07%), in addition to detectable levels of 95.2 ppb Palladium and 22.6 ppb Platinum. These findings indicate the potential presence of a polymetallic deposit, characterized by concentrations of battery metals and precious metals. Moreover, soil sampling in Kiabye South identified a 2-km North-South magnetic linear feature with gold values up to 64 ppb, which could be associated with mineralized leakage points along the structure. These values provide initial indications of mineralization but will require substantial follow-up exploration to determine economic viability.

Significance

The findings at the Kiabye Project align with some recognized benchmarks for initial mineral discoveries:

Nickel and Cobalt Content: The sample’s Nickel content (1.12%) and Cobalt content (0.95%) are above typical crustal averages and may indicate local enrichment. While these levels are significant for exploratory findings, they are below the grade levels generally associated with high-grade Nickel deposits, which can range from approximately 1.5% to 3% Ni in economically viable deposits.

Multi-Metal Potential: The presence of Nickel, Cobalt, Copper, Platinum, and Palladium may support a case for further exploration to establish a polymetallic resource. Industry standards for polymetallic projects often prioritize the potential for commercially recoverable grades of primary metals, such as Nickel and Copper, supplemented by economically viable levels of by-products like Cobalt, Palladium, or Platinum.

Geophysical Indicators: The magnetic feature and soil anomalies align with known indicators of mineralization, and similar features in other mining projects have warranted detailed follow-up exploration to establish drill targets.


Economic and Strategic Value

Alignment with Battery Metal Demand: Given the demand for Nickel and Cobalt in electric vehicle batteries, the Kiabye Project’s mineral composition aligns with an area of growing industry interest. This alignment can be an advantage if the resource is established at commercially viable grades.

Polymetallic Project Potential: The multi-metal composition of the gossan discovery may support a diversified economic base for the project, should subsequent exploration confirm continuity and grade of mineralization across broader areas. Multi-metal projects can offer more flexible revenue models but also involve complex processing requirements.

Exploration Region: Situated in the Yilgarn Craton, the Kiabye Project benefits from its location in a region historically associated with significant mineral deposits. Western Australia’s established infrastructure, regulatory frameworks, and mining expertise support mineral projects and could provide an advantageous environment if further resources are confirmed.


Limitations and Uncertainties

Early Exploration Stage: The Kiabye Project’s current stage is exploratory, and significant data gaps remain. Further drilling and geophysical work are necessary to validate the initial findings and establish a resource estimate. In resource exploration, early-stage projects often face substantial uncertainty until more comprehensive sampling and testing confirm the extent and continuity of mineralization.

Sampling Coverage and Interpretation: Less than half of the project area has been explored, with approximately 7% covered by prior exploration. While initial sampling has identified mineralized zones, these results cover a limited spatial area. This limited sample coverage can lead to incomplete interpretations, which may be adjusted or refined as exploration proceeds.

Economic Viability: The current mineral grades require validation to determine economic feasibility. Industry benchmarks generally indicate that deposits with higher Nickel grades (above 1.5%) are more likely to achieve commercial viability. For Cobalt, grades over 1% are often sought. The economic viability of projects with grades near 1% depends on a range of factors, including market prices, resource continuity, and processing costs, all of which remain to be assessed for Kiabye.


Inconsistencies

Historical Exploration Gaps: The document notes prior exploratory focus on base metals in nearby areas, which may have led to under-sampling of gold and Nickel anomalies at Kiabye. Historical inconsistencies, such as widely spaced soil sampling (e.g., 50m by 200m), introduce variability, as modern exploration typically involves more detailed sampling grids to reduce interpretive uncertainty.

Anomaly Interpretation: The report indicates potential mineralized leakage points along a magnetic feature, though these interpretations are preliminary. The significance of the anomalies, such as the 300 m x 200 m gold anomaly in the Northern area and the 2-km feature at Kiabye South, will need to be verified through drill testing.


Conclusion

The Kiabye Project’s initial sampling results highlight mineralization levels for Nickel, Cobalt, and Copper, accompanied by trace Palladium and Platinum. These initial findings meet some early benchmarks for further exploration interest but remain preliminary, with grade levels close to thresholds commonly associated with commercial viability. Given the project's early stage, RMX would need to invest in more extensive geophysical work, infill soil sampling, and drilling to develop an informed resource model. Furthermore, the project’s ultimate viability will depend on validating these grades across a larger area and confirming economically recoverable volumes.