PVW Resources : Tanami - Metallurgical Test Work Delivers Positive Results

30 March 2022

Metallurgical sighter test work delivers positive results to support Tanami Heavy Rare Earth Project potential

Highlights

• • Ore sorting and magnetic separation testing have been successful in upgrading the rare earth grade of samples while rejecting significant mass, indicating important potential to save on downstream processing costs.

• • Ore Sorting obtained a TREO grade of 7.16% at a recovery of 87.3%.

• • Magnetic separation obtained an 81.2% recovery and 50.8% mass rejection.

• • Flotation testwork is being conducted on the magnetic separation concentrate to achieve a higher-grade concentrate suitable for downstream processing.

• • Mineralogical studies continue to add to the understanding of mineralogy and ore paragenesis, assisting the geological understanding and exploration.

Figure 1: Micro-XRF results from Killi Killi breccia, confirming a complex mineralising system.

PVW Resources ('PVW', "the Company") is pleased to provide an update on the metallurgical sighter testwork and mineralogical results at the Tanami Rare Earth Project.

The metallurgy and mineralogy go hand in hand and both studies indicate the xenotime mineralisation will be recoverable using known processing technologies.

Studies on the five 20kg samples collected for metallurgical testwork by metallurgical consultants IMO are progressing well with encouraging results. The assay results of the five metallurgical samples were previously reported with an average HREO percentage of 80% including an average of 2,990ppm dysprosium oxide and up to 5,795ppm dysprosium oxide (see PVW:ASX announcement dated 1st February 2022 titled "Metallurgical samples highlight significant rare earths").

Ore sorting and magnetic separation work on the samples is complete at a "sighter" level. The knowledge gained from these two steps will ensure ongoing flotation testwork is conducted on the most suitable material to achieve a higher-grade concentrate for downstream processing.

Figure 2: Average Rare Earth Oxide distribution for the five metallurgical samples (TAME001-005)

TREO = Total Rare Earth Oxides - Total of La2O3, CeO2, Pr6O11, Nd2O3, Sm2O3, Eu2O3, Gd2O3, Tb4O7, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3, Y2O3

HRE or HREO = Heavy Rare Earth Oxides - Total of Sm2O3, Eu2O3, Gd2O3, Tb4O7, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3, Y2O3

Executive Director Mr. George Bauk said, "The positive results from the initial sighter metallurgical test work have provided the team with a number of key findings. Additional mineralogy work using micro-XRF spectroscopy further supports the presence of xenotime mineralisation, host of key Rare Earths including dysprosium and terbium."

"Secondly, no fatal flaws have been identified in the testwork and initial tests have demonstrated that ore sorting, and magnetic separation works, with positive upgrade/mass rejection and very good recovery. The test work program at this stage is not focused on optimisation and variability studies, but simply to ensure the known method of processing xenotime works."

"We look forward to the flotation results and this program will provide the company with a baseline for future studies post the 2022 exploration program. We continue to build our knowledge base on this exciting project through the programs undertaken in 2021 and lookforwardto thecommencement of drilling, to start shortly".

Metallurgical test work

This initial test work program was conducted to confirm the amenability of the Tanami Rare Earth Project to known rare earth ore beneficiation techniques currently being conducted on other heavy rare earth ores within Western Australia and worldwide. The aim was to determine if there were any fatal flaws on a Master Composite ore sample which was generated from outcrop rock samples taken from various locations within the Killi Killi East Prospect.

The Master Composite underwent initial ore sorting testwork at a course crush (<50 mm) on two different size fractions (-50+25 mm and -25+10 mm) using a common x-ray transmission technique to successfully separate the ore on the different mineral densities within the host rock. The initial success of this sighter test shows the potential for ore sorting to be used on a commercial scale and warrants further testwork to further optimise the various ore sorting techniques and to confirm their application on a commercial scale. The success of the ore sorting also indicates that other gravity separation techniques will be applicable post ore sorting providing PVW with further processing options.

The Master Composite (composited from ore sorter products including tails, similar to the ore sorter feed) along with the four variability composites which were used to make up the Master Composite as well as an outcrop sample from Watts Rise were processed through a Wet High Intensity Magnetic Separation (WHIMS) unit (post grinding to 75 µm) at various magnetic strengths up until 10,000 Gauss. This test resulted in a continual increase in rare earth recovery with minimal decrease in rare earth grade as the magnetic strength was increased. This indicated the ore will be amenable to rare earth upgrade by magnetic separation possibly in combination with an ore sorter to significantly reduce the mass to downstream flotation. It also indicates that further increasing the magnetic intensity will increase the rare earths recovery with minimal further impact on the concentrate rare earth grade.

WHIMS concentrates from the Master Composite were combined and are currently undergoing the next phase of test work, which is flotation. The aim of flotation is to generate a final beneficiation concentrate suitable for processing through downstream hydrometallurgical unit operations.

Following assessment of results for the Master Composite, further flotation analysis is likely to be conducted on the Variability Composites WHIMS concentrates to confirm their performance.

Mineralogical studies

A key to understanding the metallurgical results is understanding the mineralogy. To improve the current understanding of the Killi Killi East mineralisation seven hand-sized rock chip samples collected in the 2021 field programme were selected for Micro-X-ray Fluorescence (XRF) spectroscopy using the Bruker M4 Tornado Plus spectrometer and imported into Advanced Mineral Identification Classification Software (AMICS). This technique allows for the acquisition of quantitative and qualitative geochemical data at high resolution (micron-scale) paired with manual mineral interpretation to confirm minerals identified using AMICS spectra analysis and to establish mineral abundance. Presence of these minerals was confirmed using SEM EDS/XRD analysis, details of which were provided in the ASX announcement dated 7 December 2021 titled "Mineralogy confirms Heavy Rare Earths at Tanami are Xenotime".

These studies have confirmed mineralisation in multiple styles in both the Pargee Sandstone (TATO002) and the Killi Killi Formation (TATO006). The Pargee Sandstone (TATO002) is an effective host rock for mineralisation, given the porosity and permeability of the conglomerate beds. This can be seen in the pervasive nature of the disseminated xenotime as shown in Figure 3 below.

The Killi Killi breccia (TATO006) contains several distinct structures which are geochemically unique, which suggests multiple stages of extensive hydrothermal fluid movement and xenotime precipitation.

Confirmation of several styles of mineralisation in both the Pargee Sandstone and the Killi Killi Formation indicates a significant mineral system hydrothermally altering the Meso/Paleoproterozoic unconformity, with evidence for multi-generational fluid flow and xenotime precipitation. The significance of the brecciation and mineralogy within the Killi Killi Formation potentially provides a range of additional exploration opportunities away from the immediate unconformity targets.

Figure 3: Mineralogy ofsamples TATO002 and TATO006 analysed by Micro-X-ray Fluorescence

Task	Commence	Description
Pre - Drilling Field Work	April	Site preparation
Geophysical Interpretation	Ongoing	Full project regional interpretation
Drilling	April	Following heritage survey.
Metallurgical Testwork - Flotation	May	Initial flotation testwork on concentrate blend from the master composite sample.

Figure 4: Tanami Project - Regional REE target (Watts Rise - Killi Killi Trend)

Regional REE Target

The contact between the Pargee Sandstone and the Killi Killi Formation is a regional-scale unconformity of over 18km strike length and is considered prospective for hydrothermal unconformity-related REE mineralisation, examples of which occur across a large part of the Birrindudu Basin (eg. Browns Range, Boulder Ridge). The two main prospect areas, Killi Killi East and Watts Rise occur 12km apart and are both located close to the contact between the Pargee Sandstone and the Killi Killi Formation (see Figure 4). PVW Resources exploration program will target faults and structures that transect the regional unconformity and potentially act as conduits for mineralising fluids. Deposits of the hydrothermal unconformity-related style can have a small areal footprint (<200m) which may require detailed geological mapping and close spaced drilling. As part of the drilling program in April, regional targets along the unconformity between Watts Rise and Killi Killi East will also be tested. These regional targets are currently still being finalised.

Key Next Steps