PVW Resources : Tanami drill-ready REE and Gold targets defined

12 July 2021

9th March 2022

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Tanami drill-ready REE and Gold targets defined,

priority target of 3km strike supported by 2021 results

Highlights

Rare Earths

Soil sampling results demonstrate:

• Continuity between Killi Killi East 1 and 2 outline a 3km long drill target area;
• Soil sampling also identifies multiple drill targets at Watts Rise; and
• Regional soil sampling results support the prospectivity of the unconformity along the 18km long Watts Rise-Killi Killi East Trend with two new yttrium soil anomalies located along the trend.

Geophysical interpretation undertaken by Southern Geoscience supports priority one geochemical targets and new geochemical anomalies.

Gold

Soils also uncover significant Au anomalies at both Watts Rise (400m long and open to west) and Killi Killi East 1 (800m long and open to southwest) and Killi Killi East 2 (400m long and open to southwest).

2022 Program

Now finalising plans for drilling program to commence in April 2022, with an initial program of up to 10,000m RC drilling and 25,000m Aircore drilling.

2022 field program will include further ground-based reconnaissance work to follow up additional targets identified as part of the Southern Geoscience interpretation, including additional radiometric anomalies.

Commodity Markets

Rare Earth prices continue to rise with Dysprosium at US$488/kg, up 20% since June 2021.

Gold prices have strengthened to A$2,773/oz, up 15% since September 2021.

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Figure 1: Watts Rise -Killi Killi Trend- Yttrium soil anomalies

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Figure 2: Soil sampling at Killi Killi East

Executive Director Mr George Bauk said, "The 2021 field program has defined a significant area of interest in the Tanami for Heavy Rare Earths with particular emphasis on Dysprosium, Terbium and Yttrium. We have an 18km long geological structure (Watts Rise- Killi Killi Trend) with various points of surface mineralisation above 3% TREO and up to 12.45% TREO, some 12km apart. Further work has focused on the Watts Rise- Killi Killi Trend with a number of work programs completed to define areas that are drill ready".

"Results announced today with particular reference to the soil sampling have increased the area of interest at Killi Killi East to around 3km in strike length. This is our highest priority REE target for drilling based on many geological factors including rock chip, soils, structural information, radiometrics and mapping. The other great outcome is, in addition to the targets at Watts Rise and Killi Killi East, additional geochemical anomalies have been located away from these two priority targets but within the Watts Rise-Killi Killi Trend".

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"Whilst Rare Earths is our main target in 2022, you cannot simply overlook the outstanding gold results we have received in both rock chips and soils. Rock chip results including multiple results over 1 g/t and up to 3 g/t gold and soil anomalies up to 750m long, up to 80 ppb gold and open. Not only does the location of the gold anomalies reinforce the geological interpretation, but the tenor of anomalism from surface samples is very encouraging."

"The program that has been designed for 2022 is significant and it will be managed through a gated process based on drilling results as we go. However, we have several REE and Au targets and therefore our first pass drilling program will comprise 10,000m of RC drilling and 25,000m of aircore drilling. The start of the program is contingent on several factors including the weather and availability of drilling rigs. The team has been working on all aspects of the program and are doing everything they can to start in April".

"Rare Earth prices are increasing, and we are seeing Dysprosium prices at US$488/kg which is up from US$355/kg in June 2021, Terbium at US$2,376/kg which is up from US$950/kg in June 2021. The other significant increase in pricing is in Yttrium which has been low for many years and is now US$14.81/kg, up from US$4.60/kg in June 2021. Demand is strengthening and more projects are needed to meet this growing demand".

Geochemical soil sampling program

Geochemical soil sampling was caried out over the Watts Rise and Killi Killi East prospects and regional targets along the Watts Rise-Killi Killi Trend during the second half of 2021. A total of 630 samples were submitted for a multi-element assay suite which included all REE and gold. Close spaced sampling was completed over the Killi Killi East and Watts Rise prospects with samples generally at 100m x 25m centres but up to 50m x 25m in places. Regional sampling was wide spaced, usually on 500m x 50m centres. Samples were assayed for REE and associated elements using a lithium metaborate fusion and ICP-MS method, while Au was assayed by the UltraFine method.

Rare earth results

At Killi Killi East the soil sampling results have highlighted a near continuous yttrium anomaly (>20ppm Y) over a strike length of 1.7km, which is sub-parallel to the unconformity between the Pargee Sandstone and Killi Killi Formation (see Figure 3 below). Yttrium is a rare earth element that is reliably used as an indicator of rare earth minerals such as xenotime. The anomaly appears to be truncated on the eastern end by a northeast trending fault, however there are further smaller anomalies east of this fault, and proximal to the unconformity, that extends the overall anomalous zone and target to nearly 3km strike length. A complex array of dominantly east-west structures occurs in the area of Killi Killi East which intersect a series of northeast trending cross-cutting structures.

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At Watts Rise soil sampling has indicated multiple anomalies with the main yttrium anomaly being semi-continuous in a northeast-southwest orientation over 300m. Smaller

Figure 3: Killi Killi East soil sampling - Yttrium results

yttrium anomalies occur to the northwest and east and are open along strike. The geophysical interpretation has highlighted an array of east-northeast and northwest trending structures, including the unconformity, that are near-coincident with the yttrium soil anomalies at Watts Rise (see Figure 4 below).

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