Ann: Pegmatite extensions confirmed & visible spodumene in core, page-287

IMO. DYOR. If anything is wrong or missed anything, let me know.

Resource and Reserve Assessment

Grade of Resource

• Reported Grades:
  • Lithium assays range between 0.11% and 2.1% Li₂O, derived from drilling across multiple target areas.
  • High-grade intersections include:
    • 2.1% Li₂O over 0.4m (ASDD010, 90.56–90.96m).
    • 1.42% Li₂O over 2.8m (ASDD007, 9–12.8m).
    • 1.29% Li₂O over 1.19m (ASDD006, 12.81–14m).
    • 1.8m at 35% visual spodumene content (ASDD025, 477.3–479.1m).
    • 0.25m at 50% visual spodumene content (ASDD025, 481.9–482.15m).
  • Pegmatite Swarm Observations:
    • Target Area 7’s pegmatites include visually identified spodumene-bearing zones, with multiple smaller intervals (e.g., 0.75m at 3% spodumene) pending assay confirmation.
• Spatial Distribution of Grades:
  • Target Area 7:
    • Extends 650m along strike, confirmed by drilling from ASDD023 and ASDD025.
    • Pegmatite swarms observed over 250m downhole in ASDD023 and ASDD025 suggest significant potential for continuous mineralization.
  • High-grade zones are isolated but indicate potential economic viability in select areas.
• Comparison to Industry Benchmarks:
  • Industry-standard projects aim for ≥1.5% Li₂O over consistent mineable widths.
  • While certain intervals meet or exceed this threshold (e.g., 2.1% over 0.4m), the project requires additional drilling to establish continuity and consistent high-grade zones.

Resource Size and Classification

• Defined Resources:
  • No classified resources (Measured, Indicated, or Inferred) under JORC guidelines.
  • Current drilling is focused on delineating the extent and grade continuity of pegmatite-hosted mineralization in Target Areas 1, 2, and 7.
• Key Observations:
  • Target Area 7 is the most promising, with pegmatite zones extending along a 650m strike and at depth.
  • Pegmatite thicknesses range from <1m to 57m, indicating potential for significant resources if grades are confirmed.
• Exploration Stage:
  • The project remains in the reconnaissance stage. Drilling density and coverage are insufficient to establish geological or grade continuity necessary for resource classification.
• Expansion Potential:
  • Untested zones in Target Areas 1 and 2 could contribute to resource expansion.
  • Pegmatites in Target Area 7 show characteristics (e.g., fractionation rates, spodumene content) aligned with economically viable deposits.

Reserves and Mine Life

• Current Reserves:
  • No Proven or Probable Reserves are defined due to the project’s early-stage status.
• Mine Life Projections:
  • Indeterminate; future mine life depends on:
    • Successful resource delineation and conversion to JORC-compliant categories.
    • Demonstrating consistent grades across mineable widths.
• Potential for Expansion:
  • High expansion potential in Target Area 7 due to its structural controls and large strike extent.
  • Deeper drilling in Target Area 7 and exploration of under-tested regions (e.g., Target Areas 1 and 2) are priorities.

Key Insights from ASDD025

• Strike Continuity:
  • Located 315m southeast of ASDD023, ASDD025 confirms the potential strike continuity of Target Area 7’s pegmatites.
• Spodumene Observations:
  • High spodumene content visually confirmed in multiple intervals, including:
    • 1.8m at 35% spodumene (477.3–479.1m).
    • 0.25m at 50% spodumene (481.9–482.15m).
  • These findings indicate localized high-grade zones requiring assay validation.
• Pending Assays:
  • Assay results for ASDD025 are expected in January 2025 and will provide critical data on lithium content and impurities.

Limitations and Inconsistencies

1. Reliance on Visual Estimates:

• Spodumene percentages observed visually (e.g., 35% or 50%) are qualitative and must be confirmed through assays.

Structural Complexity:

• True thicknesses of pegmatite zones remain undefined, with current reports relying on downhole widths only.

Limited Drill Coverage:

• Current drilling is reconnaissance in nature, with insufficient density for resource classification or reserve estimation.

Pending Data:

• Critical assay results (e.g., ASDD025) are pending, delaying confirmation of high-grade zones.

Additional Insights

• Exploration Progress:
  • A 5,000m diamond drilling program is underway to delineate high-grade zones and assess lateral and vertical extensions of mineralization.
  • Drilling is expected to continue until mid-December 2024 and resume in January 2025 after the holiday break.
• Geological Context:
  • Pegmatites are hosted in ultramafic and biotite-altered schists, with fractionation characteristics indicative of spodumene-bearing pegmatites.
  • Target Area 7 exhibits geological similarities to other high-grade lithium systems, further reinforcing its potential.
• Future Priorities:
  • Complete structural analysis to determine true widths and orientations.
  • Expand drilling in under-tested zones (e.g., Target Areas 1, 2, and 11) to increase resource potential.

Conclusion

The Andover South lithium project exhibits significant potential for lithium resources, though it remains in an exploratory phase. Drilling in Target Area 7 has identified substantial pegmatite formations containing spodumene, a key lithium-bearing mineral. While some intervals show high lithium concentrations, these occurrences are scattered, and further work is needed to determine their consistency and economic viability. Laboratory assays are pending to confirm lithium grades and the overall quality of the mineralization. The area under investigation spans a considerable strike length, suggesting the potential for a sizable resource. However, more extensive drilling and structural analysis are required to fully delineate the resource and evaluate its suitability for long-term, large-scale mining operations.