Reconnaissance Drilling Heavy Mineral Separation and Analytical Results at Dehane 2

5 June 2024

BWA Group PLC

(“BWA”, or the “Company”) (AQSE: BWAP)

Reconnaissance Drilling Heavy Mineral Separation and Analytical Results at Dehane 2 Heavy Mineral Sands Project, Cameroon

BWA Group plc [AQSE: BWAP], which has mineral exploration licences in both Cameroon and Canada and is quoted on London’s AQSE Growth Market, provides further results from its recently completed reconnaissance drilling programme at its Dehane 2 rutile sands Licence, located in Central Cameroon (“Dehane 2” or the “Dehane Project”), initially reported on 27th February 2024 (see following link).

https://www.aquis.eu/stock-exchange/announcements/4488530

Dehane 2 is located 166 km southwest of Yaoundé, and 70 km from the deep seaport and industrial zone of Kribi (Figure 1).  The D2 licence covers an area of 54 km2 and includes 14 km of strike length of the Nyong river system, an area known to be prospective for Ilmenite, Rutile, Zircon and Kyanite heavy mineral sand (HMS) mineralisation. Moreover, the licence covers some 20 km of the mouth of the Nyong River as it empties into the Gulf of Guinea and adjacent sandy beach-setting coastline. The beach swash zone was the target for the 19-hole reconnaissance auger drilling being reported.

A version of this announcement that includes maps and additional tables can be viewed on the link below.

Highlights

The highlights of heavy mineral separation studies and x-ray fluorescence (XRF) analysis on 35 samples, and x-ray diffraction (XRD) analyses on 11 samples taken from the auger drilling are presented below:

• HMS mineralisation encountered from the surface down to the basement occurring at depths around 5-7 m.
• Total Heavy Mineral (THM) raw sample grades up to 13.5% over 2 metres thickness.
• Total Heavy Mineral (THM) significant interval grades up to 8.3% over 3.5 metres thickness.
• Valuable Heavy Mineral (VHM) content (kyanite, rutile, ilmenite, garnet and zircon) up to 9.4% over 2 metres thickness.
• Low slimes between 0.4 and 15.6%.
• Raw sample TiO2 grades ranging between 0.1 and 12.1%, Al2O3 grades vary between 0.2 and 7.7% and ZrO2 between 0.01 and 1.01%.
• Results outline a >1% coherent VHM exploration near surface target area of approximately 12 km x 0.25 km aerial extent and average three metres of thickness.

Jonathan Wearing, Chairman of BWA Group Plc, commented:

“These preliminary reconnaissance drilling results within the BWAR Dehane 2 licence are extremely encouraging and lend support to the BWA Board belief of the occurrence of HMS mineralisation of potential future economic interest. The percentage of THM and VHM encountered is higher than anticipated and HLS results were better than expected, as well as lower slimes given the sand environment. Although at an early stage of development, the results demonstrate that there are heavy mineral accumulations of the composition, extent and thickness to be of potential future economic and commercial interest.

BWA are currently further evaluating the significance of these results and designing follow-up exploration programmes including systematic drilling for the purposes of input to mineral resource estimates, and the commencement of ESG baseline studies.  It is intended to raise further funds to finance the work needed to produce mineral resources estimates.”

Work Completed

An initial first pass reconnaissance drilling programme was carried out between the 5th and 20th of November 2023, consisting of 19 drillholes completed at a spacing of between 500 and 1000 metres along strike and around 50 to 100 metres across the project width where access permitted (Figure 2). Holes were drilled to an average depth of around six metres using the Archway track rig and approximately three metres using the Van Walt hand auger.  Ninety-one primary samples were collected and composited within holes by similar lithologies. Thirty-five primary samples were selected and submitted to Scientific Services Laboratory, Cape Town, South Africa, for heavy liquid separation (HLS), x-ray fluorescence (XRF). 11 samples were selected from the THM sub-samples for x-ray diffraction (XRD) analysis. Drillhole locations are shown in Figure 2 and sample details and results are presented in Tables 1, 2 and 3.

Evidence of heavy minerals was observed at the surface and within all drillholes, which provides encouraging evidence for the potential economic accumulations of heavy mineral sands within the licence (reported on 27th February 2024). Within the drill core, medium and coarse-grained rutile, ilmenite and kyanite were observed in numerous horizons and appear to be continuous layers of sand within the mouth of the Nyong River and to the south.

Significant downhole intercepts for THM% are presented below in Table 1 and Figure 3. The intercepts were calculated using a minimum thickness of 1 metre, a trigger value of 0.5% THM, a minimum grade of 1% THM and a maximum of 1 metre of dilution.

Table 2 shows the VHM% calculations from the XRD analyses with VHM (kyanite rutile, ilmenite and garnets) ranging between 1.0 and 9.4% as shown in Figure 4.

Table 3 shows the key drilling results. There are low slimes (0.4 and 15.6%) and promising THM grades, ranging between 0.5 and 13.5% THM. Furthermore, the TiO2 grades are also encouraging with values ranging between 0.1 and 12.1%. The Al2O3 grades vary between 0.2 and 7.7% and ZrO2 grades vary between 0.01 and 1.01%.

Eleven samples were submitted for XRD analysis based on favourable THM% and high TiO2 and Al2O3 grades. From the 11 samples, TRIZ (Total Rutile, Ilmenite and Zircon) values ranged from 0.3 to 3.7%. THM, VHM and rutile grades and distributions are presented in Figures 3, 4 and 5. The images show that there is a slight increase in THM concentration in the south. Significant intercepts for THM% and VHM are presented below in Tables 1 and 2 respectively. The results are being interpreted and further work will be planned based on the updated understanding.

Table 1: THM% analysis. Holes were vertical, mineralisation horizontal and thicknesses are representative of the true thickness. The intercepts were created using a minimum thickness of 1 metre, a trigger value of 0.5% THM, a minimum grade of 1% THM and 1 metre of dilution.

Hole	From	To	Interval	THM %	Deslime %	TiO2%	ZrO2%	Al2O3%
DH2_001	0.00	3.00	3.00	7.79	0.66	5.78	0.29	4.73
DH2_002	0.00	5.00	5.00	3.02	3.00	1.69	0.26	1.77
DH2_003	0.00	6.00	6.00	3.07	1.51	2.00	0.14	1.93
DH2_004	0.00	7.00	7.00	2.32	2.78	1.18	0.14	1.27
DH2_005	0.00	6.00	6.00	3.26	1.27	1.41	0.13	1.88
DH2_006	0.00	6.00	6.00	1.62	1.76	0.93	0.14	0.84
DH2_007	0.00	7.00	7.00	1.09	2.23	0.78	0.11	0.51
DH2_008	0.00	7.00	7.00	1.77	3.02	1.26	0.12	0.93
DH2_009	0.00	3.50	3.50	8.03	1.73	7.10	0.61	4.55
DH2_010	0.00	3.00	3.00	7.42	0.74	5.82	0.36	4.33
DH2_012	0.00	3.00	3.00	5.87	1.54	5.57	0.77	2.64
DH2_014	0.00	4.00	4.00	2.31	2.83	1.59	0.10	1.36
DH2_017	0.00	4.00	4.00	1.58	4.81	1.12	0.12	0.79
DH2_019	0.00	3.00	3.00	2.13	0.77	1.93	0.22	0.96

Table 2: THM and VHM% analysis from select XRD samples.

						Valuable HM in Ground
Hole ID	Sample ID	From	To	Interval	THM sand	Kyanite	Garnet	Ilmenite	Rutile	Zircon	TRIZ	VHM
DH2_001	N027201	0.00	3.00	3.00	7.8%	1.3%	0.9%	1.6%	0.3%	0.5%	2.3%	4.5%
DH2_002	N027203	2.00	4.00	2.00	2.2%	0.7%	0.4%	0.2%	0.0%	0.0%	0.3%	1.4%
DH2_003	N027207	2.00	3.00	1.00	8.8%	3.7%	0.7%	1.0%	0.1%	0.2%	1.4%	5.7%
DH2_004	N027210	2.00	6.00	4.00	1.8%	0.6%	0.1%	0.2%	0.1%	0.0%	0.3%	1.0%
DH2_005	N027212	0.00	3.00	3.00	4.5%	1.5%	0.1%	0.4%	0.1%	0.0%	0.5%	2.2%
DH2_008	N027220	0.00	3.00	3.00	2.5%	0.6%	0.1%	0.4%	0.1%	0.1%	0.6%	1.3%
DH2_009	N027223	0.00	2.00	2.00	13.5%	4.7%	1.1%	2.7%	0.6%	0.3%	3.7%	9.4%
DH2_010	N027225	0.00	3.00	3.00	7.4%	2.7%	0.5%	1.4%	0.4%	0.2%	2.0%	5.2%
DH2_012	N027227	0.00	3.00	3.00	5.9%	1.9%	0.3%	1.5%	0.2%	0.2%	1.9%	4.1%
DH2_014	N027228	0.00	2.00	2.00	4.1%	1.3%	0.2%	0.5%	0.1%	0.0%	0.7%	2.2%
DH2_019	N027237	0.00	3.00	3.00	2.1%	0.5%	0.1%	0.5%	0.1%	0.1%	0.6%	1.2%

Geology and Geological Interpretation

The Dehane licences are located in the Western Cameroon Domain, which extends along the border between Nigeria and Cameroon. This domain consists of a series of medium-grade to high-grade schists and gneisses of volcanic and volcano-sedimentary origin, intruded by later-stage granitoid complexes, the basement rocks are the source of heavy minerals.

The Nyong River is the main river which runs through the licence areas (Figures 1 and 2).  The BWAR licences (D1, D2 and D3) allow access to approximately 60 km of the prospective Nyong River floodplain system, deltas, estuarine coastline and associated tributaries.

The licences encompass a large active river system and an even larger paleo-floodplain area, and marine coastline observed in satellite imagery (Figure 2), although this has yet to be fully ground-truthed through fieldwork. This paleo-floodplain is likely to be a significant target for exploration and covers the length of the river with an initial expected width of over 2 km in the north and increasing in the south. Other rivers of various importance are found there: Owoumbé, Nkoudou, Bidinga, Mbebe, Mboke, and Ongué.

The Dehane area has been known for some historic small-scale artisanal historical rutile mining. However, the extent of its exploitation has not translated to concentrated modern exploration.

Dehane 2 comprises approximately 14 kms of the Nyong river system, an area known to be prospective for Ilmenite, Rutile, Zircon and Kyanite heavy mineral sand mineralisation. Moreover, the licence covers some 20 km of the mouth of the Nyong River as it empties into the Gulf of Guinea. A river mouth can lead to a change in flow conditions that can cause the fluvial system to deposit any supplementary sediment including heavy mineral sand (HMS) it is carrying, where potentially economic accumulations of HMS are found within the lowest energy zone on the beach, the swash zone (Figure 2).

Mineralisation

Rutile and ilmenite were visible during the drilling. Generally, the rutile grains are reddish and medium to coarse-grained compared to the black finer-grained ilmenite (reported on 27th February 2024). The sands are generally thicker towards the southern part of the Dehane 2 licence, although the XRF and XRD results show that the HMS mineralisation is continuous and of similar grades, as shown in Figures 3, 4 and 5. Rutile and ilmenite mineralisation was observed in all sand horizons with larger grains of heavy minerals located within the coarser sands. Micas are generally observed in the drillhole near the boundary to the gneiss bedrock.

The typical drillhole lithologies consist of a thin layer of organic soil-sandy material measuring less than 10 cm from the surface. This layer overlies a varying thickness of coarse to medium-grained sands, where the HMS is predominant. The gneiss bedrock's depth varies between six to seven metres.

Competent Person’s Statement

The information in this report which relates to the BWA Dehane 2 Project is based upon and fairly represents information and data collected, supervised and compiled by Mr Lewis Harvey, MSc., Principal Consulting Geologist for Addison Mining Services, who is a Member of the Australian Institute of Geoscientists.

The results were reviewed by Mr J.N. Hogg, MSc. MAIG, Principal Geologist for Addison Mining Services (AMS) and Non-executive Director of BWAR.

Mr Harvey and Mr Hogg have sufficient experience relevant to the style of mineralisation, the type of deposit under consideration and the activity undertaken to qualify as a Competent Person as defined in the JORC Code 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.

Mr Harvey and Mr Hogg have reviewed and verified the technical information that forms the basis of and has been used in the preparation of this announcement, including all sampling and analytical data, and analytical techniques where applicable. Mr Harvey and Mr Hogg consent to the inclusion in this announcement of the matters based on the information, in the form and context in which it appears.

Forward-Looking Statement

This announcement contains forward-looking statements which involve a number of risks and uncertainties. These forward-looking statements are expressed in good faith and believed to have a reasonable basis. These statements reflect current expectations, intentions or strategies regarding the future and assumptions based on currently available information. Should one or more of the risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary from the expectations, intentions and strategies described in this announcement. No obligation is assumed to update forward-looking statements if these beliefs, opinions and estimates should change or to reflect other future developments. 

For further information on the Company, please visit www.bwagroupplc.com/index.html or:

BWA Group PLC James Butterfield Managing Director	[phone] [e-mail]
Allenby Capital Limited Corporate Adviser	[phone] Nick Harris/Lauren Wright

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BWAR D2 Drilling Analytical Results RNS FINAL

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