A summary of the 2020 Mineral Resource estimate is provided in the table below. Note that Mineral Resources are reported inclusive of the Ore Reserve.

2020 Mineral Resource Estimate at 5,000 B Cut-off for Rhyolite Ridge South Basin
Mineral resource estimate 2020

  1. mt = million tonnes; Li = lithium; B = boron; ppm = parts per million; Li2CO3 = lithium carbonate; H3BO3 = boric acid; kt = thousand tonnes.
  2. Totals may differ due to rounding, Mineral Resources reported on a dry in-situ basis. Lithium is converted to Equivalent Contained Tonnes of Lithium Carbonate (Li2CO3) using a stochiometric conversion factor of 5.322, and boron is converted to Equivalent Contained Tonnes of Boric Acid (H3BO3) using a stochiometric conversion factor of 5.718.  Equivalent stochiometric conversion factors are derived from the molecular weights of the individual elements which make up Lithium Carbonate (Li2CO3) and Boric Acid (H3BO3).
  3. The statement of estimates of Mineral Resources has been compiled by Mr. Jerry DeWolfe, who is a full-time employee of Golder Associates (‘Golder’) and a Professional Geologist (‘P.Geo’.) with the Association of Professional Engineers and Geoscientists of Alberta (‘APEGA’), a “Recognized Professional Organization” included in a list promulgated by the ASX from time to time. Mr. DeWolfe has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he has undertaken to qualify as a Competent Person as defined in the JORC Code (2012).
  4. All Mineral Resource figures reported in the table above represent estimates at 20 January 2020. Mineral Resource estimates are not precise calculations, being dependent on the interpretation of limited information on the location, shape and continuity of the occurrence and on the available sampling results. The totals contained in the above table have been rounded to reflect the relative uncertainty of the estimate.
  5. Mineral Resources are reported in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The Joint Ore Reserves Committee Code – JORC 2012 Edition).
  6. The Mineral Resource estimate is the result of determining the mineralized material that has a reasonable prospect of economic extraction. In making this determination, constraints were applied to the geological model based upon a pit optimization analysis that defined a conceptual pit shell limit. The conceptual pit shell was based upon a 5,000ppm boron cut-off grade and was constrained by a conceptual Mineral Resource optimized pit shell for the purpose of establishing reasonable prospects of eventual economic extraction based on potential mining, metallurgical and processing grade parameters identified by mining, metallurgical and processing studies performed to date on the Project. Key inputs in developing the Mineral Resource pit shell included a 5,000ppm boron cut-off grade, Mining cost of US$2.67/tonne plus $0.0059/tonne-vertical metre of haulage; plant feed processing and grade control costs of US$45.45/tonne of plant feed; boron and lithium recovery of 83.5% and 81.8%, respectively; boric acid sales price of US$700/tonne; lithium carbonate sales price of US$10,000/tonne; and sales/transport costs of US$160/tonne of product.
  7. The Upper Zone within the 2020 Mineral Resource contains 77.6Mt at 1,800ppm lithium and 16,950ppm boron, which are greater than the average grades of 1,600ppm lithium and 14,200ppm boron in the total Mineral Resource. The planned starter pit (i.e., the Stage 1 Quarry) only contains ore from the Measured Mineral Resource within the Upper Zone.

Ore Reserve Statement and Parameters

A summary of the 2020 Ore Reserve estimate is provided in the table below. The Ore Reserve is the economically mineable part of the Measured and Indicated Resource. It includes allowances for mining dilution and ore losses in mining. Appropriate assessments and studies have been carried out and include consideration of and modification by realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social, and governmental factors. These assessments demonstrate at the time of reporting that the extraction could be reasonably justified.

2020 Ore Reserve Estimate at 5,000 B Cut-off for Rhyolite Ridge South Basin

2020 Ore Reserve Estimate at 5,000 B Cut-off for Rhyolite Ridge South Basin

 

Notes:

  1. mt = million tonnes; Li = lithium; B = boron; ppm = parts per million; Li2CO3 = lithium carbonate; H3BO3 = boric acid; kt = thousand tonnes.
  2. Totals may differ due to rounding, Ore Reserves reported on a dry in-situ basis delivered to the processing plant stockpile. Lithium is converted to Equivalent Contained Tonnes of Lithium Carbonate (Li2CO3) using a stochiometric conversion factor of 5.322, and boron is converted to Equivalent Contained Tonnes of Boric Acid (H3BO3) using a stochiometric conversion factor of 5.718.  Equivalent stochiometric conversion factors are derived from the molecular weights of the individual elements which make up Lithium Carbonate (Li2CO3) and Boric Acid (H3BO3).
  3. The statement of estimates of Ore Reserves has been compiled by Mr. Terry Kremmel, who is a full-time employee of Golder Associates Inc. (‘Golder’) and a certified Professional Engineer (‘PE’) in the US and a registered member of the Society for Mining, Metallurgy, & Exploration (‘SME’), a “Recognised Professional Organisation” included in a list promulgated by the ASX from time to time. Mr. Kremmel has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he has undertaken to qualify as a Competent Person as defined in the JORC Code (2012).
  4. All Ore Reserve figures reported in the table above represent estimates at 17 March 2020. Ore Reserve estimates are not precise calculations, being dependent on the interpretation of limited information on the location, shape and continuity of the occurrence and on the available sampling results. The totals contained in the above table have been rounded to reflect the relative uncertainty of the estimate. Ore Reserves are reported in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The Joint Ore Reserves Committee Code – JORC 2012 Edition).
  5. The reported Ore Reserve estimate was constrained by two designed pits, referred to as the Stage 1 Quarry and Stage 2 Quarry, and includes diluting materials and allowances for losses. All Proved Ore Reserves were derived from the Measured Mineral Resource classification, and all Probable Ore Reserves were derived from the Indicated Mineral Resource classification only. The results of the Ore Reserve estimate are supported by the outcomes of an economic analysis completed in support of the April 2020 DFS. The Competent Person is satisfied that the stated Ore Reserves classification of the deposit appropriately reflects the outcome of the technical and economic studies.

 

 

Rhyolite Ridge