TIDMNMT
RNS Number : 2273T
Neometals Ltd
13 November 2023
This announcement contains inside information
13 November 2023
Neometals Ltd
("Neometals" or "the Company")
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; and
-- Neometals ground truthing of historic mapping has identified
pegmatitic textures in felsic outcrop in multiple locations over a
2km strike length.
Innovative battery materials recycler, Neometals Ltd (ASX: NMT
& AIM: NMT) ("Neometals" 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.
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;
-- 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 1); and
-- The Company's datasets are being updated with historic data
and field verification of interpretations and mapping currently
underway.
Table 1: Diamond Holes awaiting Assay
Hole MGA MGA RL Prospect Dip Azimuth Depth Hole Date
ID East North Type Drilled
VQVD0003 299610.0 6533380.0 442.6 Spargos -60 224 352.1 DDH 23/11/2009
========= ========== ====== ========= ==== ======== ====== ====== ===========
QVD09 300831.7 6532950.9 453 Spargos -60 43 385 DDH 13/04/2005
========= ========== ====== ========= ==== ======== ====== ====== ===========
QVD10 300248.3 6533630.2 465 Spargos -60 45 285.1 DDH 20/04/2005
========= ========== ====== ========= ==== ======== ====== ====== ===========
Table 2: Holes included on cross-section with VQVD0003
Hole MGA MGA RL Prospect Dip Azimuth Depth Hole Date
ID East North Type Drilled
DDH13 299749.7 6533519.7 450 Spargos -55 20 306 DDH 14/01/1993
========= ========== ==== ========= ==== ======== ====== ====== ===========
QVD11 299845.1 6533538.7 455 Spargos -60 45 193 DDH 24/04/2005
========= ========== ==== ========= ==== ======== ====== ====== ===========
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.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.
ASX Trading Halt
Neometals advises that trading in the shares of the Company have
been halted on the Australian Securities Exchange ("ASX") effective
Monday 13 November 2023 in accordance with ASX Listing Rules,
seeking a retraction and clarification following this announcement.
The Company's response to the requested retraction and
clarification can be found on the Neometals website:
https://wcsecure.weblink.com.au/pdf/NMT/02739182.pdf .
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.
Authorised on behalf of Neometals by Christopher Reed, Managing
Director.
For more information, please contact:
Neometals Ltd
Chris Reed, Managing Director & Chief Executive
Officer +61 8 9322 1182
Jeremy McManus, General Manager - IP & IR +61 8 9322 1182
Cavendish Securities plc - NOMAD & Joint
Broker
Neil McDonald +44 (0)131 220 9771
Peter Lynch +44 (0)131 220 9772
Adam Rae +44 (0)131 220 9778
RBC Capital Markets - Joint Broker +44 (0) 20 7653 4000
Paul Betts
Jamil Miah
+ 44(0) 20 3 757
Camarco PR 4980
Gordon Poole
Emily Hall
Lily Pettifar
About Neometals
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 21,000 tpa plant offer to Canadian
company Stelco in the DecQ 2023;
-- Lithium Chemicals (70% technology) - Commercialising patented
ELi(TM) 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 50:50 JV with related entity to
Bondalti, Portugal's largest chemical company; and
-- Vanadium Recovery (100% technology) - aiming to produce
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.
For further information visit www.neometals.com.au
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