Metals Australia : Lithium Pegmatite Drilling to Commence at Manindi Project

ASX Announcement
07 February 2022	ASX:MLS
	Lithium Pegmatite Drilling to Commence at Manindi Project, WA
➢ Drilling rig has been mobilised to commence an RC drilling program of up to 3,500m, designed to
	test key lithium-tantalum bearing pegmatites on the Company's Manindi Project in WA.
➢ In addition, the Company has carried out systematic rockchip sampling along the entire strike
only	length of the Foundation Pegmatite, as well as other pegmatites identified nearby (e.g. Dibbler).
➢ Initial XRF readings and visual inspection indicates that the Foundation and nearby Dibbler
	Pegmatites contain lithium bearing minerals in sampled surface outcrops (Figure 1).

useMetals Australia Ltd (ASX: MLS) ("Metals" or, "the Company") is very pleased to announce that a drilling rig has been mobilised to commence a reverse circulation (RC) drilling program of up to 3,500m, testing the key lithium-tantalum-caesium (LCT) pegmatites at the Company's Manindi Project, located approximately 20 km southwest of the Youanmi Gold Mine in the Murchison District of Western Australia.

In addition to the drilling program, the Company has recently completed a systematic rockchip channel personalsampling campaign. The channel sampling averages 40m line-spacing over the entire 500m strike length of the recently discovered Foundation Pegmatite (see Figure 1, below) and other nearby Pegmatites (e.g.

Dibbler Pegmatite) (see location, Figure 2), which remain untested by drilling. For

Figure 1: Foundation Lithium - Caesium - Tantalum (LCT) Pegmatite, Manindi Project, WA

MNRK0002: 1.25% Li2O, 126.0 ppm Ta205 and 154.6 ppm Cs2O (Foundation)11

Channel samples have been submitted to Intertek laboratories in Perth for the "lithium suite" of analyses. XRF readings have detected Rubidium (Rb) levels in the Foundation and Dibbler Pegmatites that, supported by visual inspection, indicates that extensive lithium bearing minerals are present (see Figure 1).

The recently discovered Foundation Pegmatite11 is the largest pegmatite identified to date at Manindi and onlyhas been mapped for over 500m in a southwest-northeast direction and includes multiple pegmatite

outcrops across a 200m zone in a northwest-southeast direction (see Figure 2).

Previously announced rockchip sampling of the Foundation Pegmatite produced high-grade lithium, tantalum and caesium results that confirm that the Foundation Pegmatite is a LCT pegmatite (Figure 2), including:

These results compare favourably with previous rockchip results from the Mulgara pegmatites (Figures 2 useand 3) that produced high-grade results of up to 2.84% Li2O, 296 ppm Ta205 and up to 746ppm Cs2O1.

personalFor

Figure 2: Manindi Lithium Project, mapped pegmatites and Rockchip sample locations

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Previous, shallow, RC drilling5,6 tested the three initially identified pegmatites at the Mulgara Prospect on an approximate 40m spacing, but with only one hole per section. This program delivered multiple significant intersections of lithium and tantalum mineralisation (see locations Figure 2), including:

• 8m @ 1.06% Li2O from 18m incl. 3m @ 1.65% Li2O with up to 1.96% Li2O in MNRC0305,6
• 8m @ 1.00% Li2O, 158ppm Ta205 from 32m, and 7m @ 1.29% Li2O, 242ppm Ta205 from 42 m incl. 5m @ 1.53% Li2O in MNRC0335,6

onlyA drilling rig operated by Westdrill has been mobilised to commence the current RC drilling program, which will include up to 45 holes for 3,500m, designed to meet the following objectives:

1. Following up the previous high-grade lithium and tantalum results at Mulgara with both deeper drilling on key sections and extension drilling along strike of the three LCT pegmatites identified to date (see Figure 3 below), and,
2. Initial RC drilling of the Foundation Pegmatite (and other nearby pegmatites e.g. Dibbler) at approximately 40m section spacing along the entire 500m strike length of this pegmatite zone.

useDrillholes will range from 60m depth in areas of initial testing and up to 120m depth on sections with existing significant intersections or as immediate follow-up below encouraging new pegmatite intersections.

Selected diamond core drilling is also planned, at a second stage, to provide accurate intersection

boundaries, structural orientations and petrography as well as metallurgical samples for concentrate testing. personalFor

Figure 3: Manindi Project, Mulgara Lithium Pegmatite Prospect, drillhole locations and intersections

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About the Manindi Lithium Project:

The Manindi Project includes three granted mining leases in the fertile Youanmi Igneous geological complex, located approximately 20 km southwest of the Youanmi Gold Mine in the Murchison District of Western Australia (see location inset Figure 2).

onlyDetailed surface mapping carried out at Mulgara and Warabi, situated approximately 1.3km SE of the Kultarr and Kowari zinc resources (Figure 2), previously identified at least three lithium bearing pegmatites outcropping at surface with strike lengths of over 300m and widths of up to 25-30m. The pegmatite intrusions cross-cut the main geological strike in a northeast-southwest orientation and appear to be moderately zoned with coarser grained crystals adjacent to the contacts, fining inward toward the centre. The pegmatite dykes generally trend east-northeast and have a moderate dip to the north-northwest.

Lithium-tantalum mineralisation also appears to be more concentrated adjacent to contacts exhibiting usecoarser grained and more abundant lepidolite +/- spodumene crystals. The pegmatites overall strike-length is not limited to surface outcrop as detailed airborne magnetics strongly suggests far more extensive

development of pegmatite structures exist sub-surface.

Re-sampling of previous diamond drillcore that targeted VHMS sulphide mineralisation at Mulgara, produced intersections including 15m @ 1.20% Li2O from 34m, including 5m @ 1.53% Li2O from 38m, in MND018 and 3m @ 1.00% Li2O from 41m in MND0221 (see location, Figure 3).

Following the positive identification of lithium bearing LCT pegmatites at Manindi, a shallow RC percussion drilling program was completed at the Mulgara Prospect to test the three outcropping pegmatite dykes (Figure 3).

A total of 17 RC percussion drill holes were completed along three traverses, for a total of 837 m of drilling. Hole collars were located at approximately 40 metre intervals along the traverses. Significant intersections produced from this RC drilling program were as follows5,6:

• MNRC030: 8m @ 1.06% Li2O from 18m incl. 3m @ 1.65% Li2O with up to 1.96% Li2O
• MNRC032: 7m @ 599ppm Ta205
• MNRC033: 8m @ 1.00% Li2O, 158ppm Ta205 from 32m, and 7m @ 1.29% Li2O, 242ppm Ta205 from 42 m incl. 5m @ 1.53% Li2O

personalPreliminary metallurgical testwork and mineralogical characterisation was completed on two composite samples of lithium mineralisation from the Manindi Project3. Tests completed included semi-quantitative XRD analysis, size fraction analysis, wet screen analysis, heavy liquid separation, magnetic separation, and sighter flotation testing.

These, preliminary, flotation tests produced concentrates with grades up to 3.05% Li O and lithium

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recovery of up to 77% from a concentrated 30% of the mass feed . Flotation tails contained significant tantalite mineralisation (Ta2O5) that could also be recovered and provide additional upside to the potential economics of the project.

Potential for further improvements in the metallurgical results are high, given that the previous tests carried out were scoping level in nature and that the flowsheet had not been optimised for the Manindi mineralization.

The current work program for the Manindi pegmatites includes the systematic rockchip sampling just completed and the up to 3,500m RC drilling program summarised in this release.

Diamond drilling is planned to follow, which will provide additional samples for metallurgical tests and flow- sheet optimisation (for Li and Ta recovery), prior to resource estimation and development studies initiation.

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About Metals Australia Ltd (ASX:MLS)

Metals Australia is also actively exploring a number of highly prospective battery minerals projects as well as base and precious metal projects within Australia and in Quebec, Canada.

onlyManindi Zinc Project

The Manindi Zinc project is located in the Murchison District of Western Australia in close proximity to the Golden Grove (Cu-Zn) Mine and the Youanmi Gold Mine. The Manindi Zinc Deposit hosts a JORC 2012, Measured, Indicated & Inferred resource of 1.08Mt @ 6.52% Zn for 70,102t Zn (2% Zn cut-off)7. A number of target zones remain to be tested, both close to the existing resource and in other prospect areas along strike. Drilling to date has been limited to a depth of approximately 250m.

Lac Rainy Graphite Project

useThe 100% owned Lac Rainy Graphite Project is located in Quebec, Canada, in close proximity to the operating mines around Fermont. The Lac Rainy project hosts a JORC 2012 Indicated and Inferred Resource of 13.3Mt @ 11.5% TGC8. In 2020, Metals Australia completed a Phase 1 Scoping Study highlighting the significant potential economic attractiveness of the Lac Rainy project9.

The Company is very close to completing an advanced stage of metallurgical testwork designed to improve the mesh size distribution across the large and jumbo flake sizes. In addition, the metallurgical testwork is

anticipated to show improvements in the optimised flowsheet which has the potential to reduce overall personalOPEX and CAPEX relative to the initial Scoping Study9 outcomes.

The testwork nearing completion will generate bulk concentrate sample to enable downstream testing for spheronized graphite, a critical component of lithium-ion batteries, as well as expandable graphite on larger flake sizes. This will provide impetus to discussions with key North American and European potential off- take and/or funding partners to assist driving the Lac Rainy Project towards feasibility, development and production.

Eade-Felicie-PontoisCopper-Gold-Polymetallic Projects

The Eade-Felicie-PontoisCopper-Gold-Polymetallic Projects are located in northern Quebec, Canada in the Lac Grande Greenstone Belt along strike of the Midland Exploration Inc. (TSX: MD) deposits.

The results of a EM-TDEM survey confirmed areas of identified mineralisation and identified new targets to be field tested across the extensive 15km strike. The Company recently completed a field program over high priority target areas and, based on the results of sampling, will finalise plans for an initial drilling campaign.

Lac du Marcheur Copper-Cobalt Project

ForThe Lac du Marcheur Copper-Cobalt Project is located in central Quebec, Canada, in close proximity to the Chilton Copper-Cobalt project. An initial field program was undertaken by the Company in 2017 which confirmed the historical high-grade copper and cobalt occurrences and prospects on surface. The Company has recently completed an airborne EM-TDEM survey and is expected to have the processed results shortly.

References

1. Metals Australia Ltd, 21 March 2017. High Grade Lithium Bearing Pegmatites Discovered at Manindi
2. Metals Australia Ltd, 30 January 2018. Expanded Lithium Exploration Opportunities at Manindi Project
3. Metals Australia Ltd, 13 April 2018. Preliminary Metallurgical Test program underway at Manindi Lithium Project
4. Metals Australia Ltd, 21 May 2018. Manindi Lithium Metallurgical testwork demonstrates high lithium recovery and favourable grades
5. Metals Australia Ltd, 12 June 2018. Lithium pegmatite drilling program commences at Manindi Lithium Project
6. Metals Australia Ltd, 24 July 2018. Results of RC percussion drilling program at Manindi Lithium Project

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