Neometals Discovers Spodumene-bearing Pegmatite

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 ID	MGA East	MGA North	RL	Prospect	Dip	Azimuth	Depth	Hole Type	Date 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 ID	MGA East	MGA North	RL	Prospect	Dip	Azimuth	Depth	Hole Type	Date 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	[phone]
Jeremy McManus, General Manager - IP & IR	[phone]
Cavendish Securities plc - NOMAD & Joint Broker
Neil McDonald	[phone]
Peter Lynch	[phone]
Adam Rae	[phone]
RBC Capital Markets - Joint Broker	[phone]
Paul Betts
Jamil Miah
Camarco PR	+ 44(0) 20 3 757 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™ 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

 

END