Neometals
Ltd
("Neometals" or "the
Company")
Spargos Exploration
Update
Innovative battery materials
recycler, Neometals Ltd (ASX: NMT & AIM: NMT) ("Neometals" or "the Innovative battery materials
recycler, Neometals Ltd (ASX: NMT & AIM: NMT) ("Neometals" or "the Company"), advises that its review
of the lithium exploration potential over its 100% owned Spargos
Project ("Spargos")
indicates a low potential for lithium-bearing
pegmatites.
Re-sampling and assaying of
historical nickel exploration diamond drill core and assaying of
recently collected rock chip and soil samples has returned no
significant lithium assay results.
Spargos, located 50 kilometres
southwest of Coolgardie in Western Australia, sits astride the Mt
Ida Greenstone Belt which hosts lithium projects such as Delta
Lithium's Mt Ida Lithium project and Liontown Resources Kathleen
Valley.
As previously announced[1], a review of historic data from Spargos tenement
E 15/1416-I identified extensive pegmatites in historic reverse
circulation, diamond drilling and surface mapping. Given the
attributes of the Spargos geological setting, Neometals set out to
better understand the prospective value of what was historically
framed as a nickel opportunity.
Previous field mapping, surface
sampling and drilling at Spargos focused on areas of outcrop on the
eastern side of the greenstone belt ("ESGB") (see Figure 1 legend for
location). For expediency, Neometals' exploration review focused on
the ESGB, however one of the key material findings is that the
Western Greenstone Belt ("WGB"), located 1.5km west of the ESGB,
has been interpreted to be a possible undercover and unexplored
greenstone belt along a structural splay emanating from the Ida
Fault. This unexplored WGB area has only 8 historic RAB holes of
known drilling. Two discrete Potassium anomalies have been
identified on the margin of the WGB within felsic intrusive
material which are shown in Figures 4 and 5.
Exploration results were as
follows:
· 11 of
12 historic ESGB diamond drill cores were re-sampled with no
significant lithium assay results returned;
· ESGB
pegmatitic surface and rock chip samples (historic and recently
collected in the field) did not return significant Li2O results;
and
· Collation and reprocessing of historic ESGB geophysical data
(Airborne Magnetics ("AMAG"), Airborne Versatile Time Domain
Electromagnetic ("VTEM")
did not identify sites for potential pegmatite
intrusions.
Upon review of the reprocessed imagery, assay results and whole
rock geochemistry, Neometals has concluded that the ESGB has a low
chance for Lithium-Caesium-Tantalum ("LCT") pegmatite
prospectivity.
Neometals Managing Director Chris Reed said:
"We are naturally disappointed the pegmatites
in historic drilling didn't contain lithium despite having the geological features to
host lithium mineralisation. Given the current market conditions
for both nickel and lithium, further exploration activities have
been placed on hold pending a strategic review of the Project. Our
core focus remains our Primobius Lithium Battery Recycling JV and
the installation of a turn-key recycling plant for a leading German
carmaker."
Exploration Activities
Work focused on three main
workstreams;
1. Assay of surface and
rock chip samples on ESGB;
2. Re-sampling of ESGB
diamond drill holes; and
3. Collation and
reprocessing of historic geophysical data.
Previously field mapping,
surface sampling and drilling at Spargos focused on areas of
outcrop to the east of the greenstone belt. The western portion of
the greenstone belt is observed to be under cover and under
explored as a result. This was evident during Neometals' November
2023 field visit with all surface sampling (consisting of both rock
chip and soil samples) taken to the east of the green stone
package. In total 118 surface samples were taken between 2021 and
2024, see Figures 2 and 3. The November field mapping focused on
ground truthing of historical mapped pegmatite outcrop.
Unfortunately, while samples were taken in the field that appeared
pegmatitic, no significant Li2O results have been
returned.
Surface samples collected
at Spargos comprised two types:
1. Rock chips - the
highest Lithium result returned was QVRK003 sampled 16/08/2021
which returned 42.6ppm (0.0043%) Li2O, see Figure 2 and Appendix
3.
2. Soil samples - Taken
where no competent outcrop present - the highest Lithium result
returned was QVRK044 which returned 98.38ppm (0.0099%) Li2O, see
Figure 3 and Appendix 4.
Neometals retained core
from 12 Spargos diamond holes drilled between 1994 and 2009. These
holes were checked and sampled targeting all intrusions intersected
with pegmatitic texture, or of felsic origin. 11 of the 12 holes
were sampled for a total of 551 samples not including standards,
see Figure 3. Neometals is disappointed to report that no
significant results were returned, see Table 1. The felsic
intrusive material bearing coarse plagioclase, and described as
having pegmatitic texture, encountered in the historical drilling
at Spargos does not fit the Lithium-Caesium-Tantalum ("LCT") pegmatite category. Key
indicative accessory minerals such as large muscovite, tourmaline,
and beryl are absent, and whole rock geochemistry is not supportive
of a fractionated system being present. Again, all historic diamond
holes were drilled into the Spargos ESGB as they were designed to
test historic nickel targets, see Figure 3.
Existing airborne magnetics
("AMAG"), Airborne
Versatile Time Domain Electromagnetc ("VTEM") and radiometric data for Spargos
was collated and provided to external geophysical consultancy
groups for assessment and reprocessing with particular focus on
identifying sites for potential pegmatite intrusions within the
Spargos greenstone belt. Upon review of the reprocessed imagery,
poor Li2O assay results and whole rock geochemistry,
Neometals has concluded that the Spargos ESGB has a low chance for
LCT pegmatite prospectivity.
Neometals is however pleased to
confirm that a previously unexplored greenstone belt has been
identified west of the main
Spargos project, WGB. The textural grain of the domain is akin to
the nearby exposed greenstone basement rocks despite being of lower
amplitude. The shape of the magnetic domain is somewhat dendritic
and drainage-like, but the VTEM data does not exhibit any obvious
sign of paleochannel there. The western magnetic domain is
interpreted to be a possible undercover and unexplored greenstone
belt along a structural splay emanating from the Ida Fault. Note
this interpretation is consistent with the Geological Survey of
Western Australia 100k interpreted bedrock map, see Figure
1.
The identification of 8km strike
length of previously unexplored greenstone belt on a structural
splay off the Ida fault which is untested for lithium, nickel and
gold mineralisation provides an opportunity for future limited
exploration.
Figure 1 - Location of Spargos relative
to the Ida Fault overlying Geological Survey of Western Australia
100k interpreted bedrock map. Shown on map is the eastern area
greenstone belt where previous exploration has focused highlighted
in orange hatch. Highlighted in blue hatch is the new western
greenstone belt which Neometals will focus on for
further mineral exploration.
Figure
2
- Updated Spargos geology map with the point
locations for all rock chip samples taken and assayed for
Li2O.
Figure
3
- Updated Spargos geology map with the point
sample locations of
soil samples plus the collar location of all diamond holes sampled
for Li20.
Figure
4
- Reprocessed AMAG and VTEM data depicting
interpreted western green
stone belt outlined in white west of the historical Spargos
exploration area.
Figure
5
- Review of the high-resolution radiometrics
revealed two discrete potassium
highs, possible sub-cropping felsic intrusive material within
metasediments.
Next Steps
· Field
mapping to investigate two discrete Potassium (K) anomalies
identified in reprocessed high-resolution radiometrics, see Figure
5; and
· A
strategic review of the project
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 Capital Markets Limited - 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
|
|
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, fully integrated, 21,000tpa plant offer
to Canadian company Stelco in the JunQ 2025;
· 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.
For further information
visit www.neometals.com.au
Competent Person Attribution