Neometals Discovers Spodumene-bearing Pegmatite at Spargos Project

Highlights

-          Visual spodumene identified in pegmatite intercepts from historic diamond drill core at 100% owned Spargos Project covering 55 square kilometres of the prolific Ida Fault;

-          A review of reverse circulation and diamond drill core from historical nickel exploration supports the potential for multiple stacked pegmatite intrusions. Re-sampling is in progress and assays expected in Q4 2023;

-          Spargos has a geological signature analogous to Mt Marion, Kathleen Valley and Mt Ida i.e., textbook pegmatite emplacement associated with potassium-rich granite sources and Proterozoic dykes intersecting a mafic/ultramafic greenstone belt, analogous to Mt Marion, Kathleen Valley and Mt Ida; and

-          Neometals ground truthing of historic mapping has identified pegmatitic textures felsic outcrop in multiple locations over a 2km strike length.

November 13, 2023 - Innovative battery materials recycler, Neometals Ltd (ASX: NMT AIM: NMT) (“” or “the Company”), is pleased to announce the discovery of visible spodumene at its 100% owned Spargos Project (“Spargos”) located 50 kilometres southwest of Coolgardie in Western Australia.

Cautionary Statement

In relation to the disclosure of visual mineralisation, the Company cautions that visual estimates by the Company’s geologists of spodumene material abundance should never be considered a proxy or substitute for laboratory analysis. Laboratory assay results are required to determine the type and grade of the visible mineralisation reported in geological mapping described in this announcement. The Company will update the market when laboratory analytical results become available.

Figure 1 – Diamond Core from VQVD003 showing pegmatite intercepted between 242.3 – 246.77m under

UV wavelength 365nm (blacklight). Spodumene fluoresces orange-pink under UV light from 242.3 – 245.5m.

A recent review of a tenement E15/1416, originally acquired primarily for its nickel prospectivity has identified extensive pegmatites in historic reverse circulation (“RC”) and diamond drilling and surface mapping. Visual examination of historic core has identified spodumene mineralisation under UV wavelength 365nm (“Blacklight”), see figure 1. 

Spargos is located in an area of regional interest. Specifically, the Mt Ida fault in the Yilgarn region of Western Australia is attracting attention for its rare metal pegmatites. The fault line hosts lithium projects such as Delta Lithium’s (“Delta”) Mt Ida Lithium project with an MRE of 14.6Mt @ 1.2% Li2O (as of October 2023, ASX Announcement: Mt Ida Lithium Project Mineral Resource Estimate upgrade) and Liontown Resources (“Liontown”) Kathleen Valley with an MRE of 156Mt @ 1.4% Li2O and 130ppm Ta2O5 (as of April 2021, reported in Liontown FY23 Annual report).

Figure 2 – Location of the Spargos Project Relative to Major Western Australia Lithium Mines or Developments in the Goldfields Area (Publicly Available Lithium Resource Data Sourced from Department of Mines, Industry Regulation and Safety 1 May 2023).

Liontown and Delta’s mineral resources share a similar geological setting to Spargos with pegmatites that have intruded their greenstone belts in close proximity to the Mt Ida fault. Both are flanked by large granite fluid sources and have been intruded by late-stage Proterozioic dykes. Key characteristics of Neometals Spargos project include;

-          The Mt Ida fault traversing the Neometals tenement E15/1416;

-          The fault splays bound an Archean greenstone belt consisting of mafic, ultramafic and interbedded meta-sediments;

-          Up to 13 interpreted granite/pegmatite units intrude this greenstone stratigraphy;

-          The Spargos greenstone belt is flanked between the Woolgangie Monzogranite and the Burra Monzogranite, and;

-          All units are cut by late stage, Proterozoic dolerite dykes.

Figure 3 – Spargos Geology with Field Mapping and Lithium Exploration. Location of Section 1 shown on map.

Neometals Managing Director Chris Reed said:

“We are excited by this discovery, the presence of fertile, spodumene-bearing pegmatites in diamond core from historic nickel exploration is serendipitous. The geological model is reminiscent of our former Mt Marion project and analogous to significant deposits further north up the Mt Ida Fault. It is important to note that there has been no historic or recent drilling for lithium.

Whilst Neometals core focus remains the commercialisation of our downstream battery materials technologies, our senior executives have the capacity and expertise to maximise value from what could be an exceptional upstream lithium opportunity.”

Recognition of this analogous geological setting led to Neometals commencing a review of historic data at the Spargos tenement.  Important outcomes include:

-          Historic diamond core and RC holes have recorded the presence of multiple pegmatites down hole;

-          Of the 29 diamond core holes in the database, 20 holes recorded pegmatite;

-          None of the logged pegmatites have corresponding lithium assays (see Table 1);

-          Neometals retains 11 of the original 29 diamond holes for the Spargos project. Resampling and assaying of the priority holes (including VQVD003) is underway (see Table 2); and

-          The Company’s datasets are being updated with historic data and field verification of interpretations and mapping currently underway.

Table 1: Drill Data Summary including proportions for logged pegmatite and available Lithium Assays 

Table 2: Diamond Holes awaiting Assay

Table 3: Holes included on cross-section with VQVD0003

Cross-Section of VQVD003 with interpreted Pegmatites

Figure 4 – Cross-section of Spargos historical diamond drill holes with logged pegmatites.

Section 1 includes the sampled hole VQVD003 where multiple units of pegmatite were intersected down hole and logged in the historical logging completed in 2009. Upon review of the pegmatites down hole interval 242.3-246.77m was checked with a UV blacklight for the presence of Spodumene. The core was found to florescence pink for around 3.2m of the interval from 242.3m.

The cross-section includes historic diamond holes DDH13 and QVD11 with logged pegmatite intercepts. The logging indicates the potential for stacked pegmatites in the Spargos greenstone belt.

Next Steps

The relevant sections of historic core consisting of intrusions with a pegmatitic texture in holes QVD009 (328-340.25m, 342.78-343.61m and 375.8-377m) QVD010 (239m to 247.5m) and VQVD003 (241.7m to 248m) have been cut, sampled and despatched to the laboratory for assaying for the full suite of lithium, gold and rare earth minerals. Neometals will also relog all RC and Diamond core samples and is undertaking a review to determine the extent of planned exploration over the tenement to further increase understanding of the extent and grade of lithium mineralisation within the Spargos project.

Authorised on behalf of Neometals by Christopher Reed, Managing Director.

ENDS

For further information, visit www.neometals.com.au  or contact:

Jeremy McManus

General Manager

Investor Relations Intellectual Property

T +61 8 9322 1182

E [email protected]

Competent Person Attribution

The information in this report that relates to Exploration Results is based on information compiled by Owen Casey, who is a member of the Australian Institute of Geoscientists. Owen Casey is a full-time employee of Neometals Ltd and has sufficient experience relevant to the styles of mineralisation and type of deposit under consideration and the activity being undertaken, to qualify as a Competent Person as defined in the December 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”.  Owen Casey has consented to the inclusion of the matters in this report based on his information in the form and context in which it appears.

About Neometals Ltd

Neometals has developed and is commercialising three environmentally-friendly processing technologies that produce critical and strategic battery materials at lowest quartile costs with minimal carbon footprint.

Through strong industry partnerships, Neometals is demonstrating the economic and environmental benefits of sustainably producing lithium, nickel, cobalt and vanadium from lithium-ion battery recycling and steel waste recovery. This reduces the reliance on traditional mine-based supply chains and creating more resilient, circular supply to support the energy transition.

The Company’s three core business units are exploiting the technologies under principal, joint venture and licensing business models:

-          Lithium-ion Battery (“LiB”) Recycling (50% technology) – Commercialisation via Primobius GmbH JV (NMT 50% equity). All plants built by Primobius’ co-owner (SMS group 50% equity), a 150-year-old German plant builder. Providing recycling service as principal in Germany and commenced plant supply and licensing activities as technology partner to Mercedes-Benz. Primobius targeting first commercial 21,000tpa plant offer to Canadian company Stelco in the DecQ 2023;

-          Lithium Chemicals (70% technology) – Commercialising patented ELi™ electrolysis process, co-owned 30% by Mineral Resources Ltd, to produce battery quality lithium hydroxide from brine and/or hard-rock feedstocks at lowest quartile operating costs. Co-funding Pilot Plant trials in 2023 with planned Demonstration Plant trials and evaluation studies in 2024 for potential 25,000tpa LiOH operation in Portugal under a JV with related entity to Bondalti, Portugal’s largest chemical company; and

-          Vanadium Recovery (100% technology) – aiming to enable sustainable production of high-purity vanadium pentoxide from processing of steelmaking by-product (“Slag”) at lowest-quartile operating cost. Targeting partnerships with steel makers and participants in the vanadium chemical value chain under a low risk / low capex technology licensing business model.