Metals Australia Reports High-Grade Maiden JORC Resource at Lac Rainy Graphite Project in Quebec

Highlights:
▪ Maiden JORC (2012) Mineral Resource Estimate for the high-grade Lac Rainy Graphite Project:
o Indicated and Inferred Resource of 13.3Mt @ 11.5% Total Graphitic Carbon (TGC) for 1.529Mt of contained graphite using a 5% TGC cut-off, made up of:
▪ South-East Carheil Resource: High-grade Indicated Resource of 9.6Mt @ 13.1% TGC for 1.257Mt of contained graphite using a 5% TGC cut-off
▪ North-West Carheil Resource: Inferred Resource of 3.7Mt @ 7.3% TGC for 0.270Mt of contained graphite using a 5% TGC cut-off
o resource outcrops at surface with 90% of global resource defined within the first 100m
o based on an open cut mining method modelled down to 150m ▪ Ranks as one of the highest-grade global graphite deposits
▪ Only the first 1.6km of strike of the 4 km of strike along the Main Carheil Graphitic Trend has been drill tested. The SE and NW strike extensions and the recently discovered West Carheil Graphitic Trend are still to be drilled – planning is currently underway for extensional drilling
▪ Deposit is open to the north and south along strike, as well as down-dip and plunge, indicating significant exploration upside and drill ready targets
▪ Strike length along the Main Carheil Graphitic Trend including the recently discovered SE and NW extensions total approximately 4km
▪ Detailed metallurgical and mineralogical test work on Lac Rainy drill core is progressing well –final report from SGS is expected shortly
▪ Product specification test work and scoping study to commence once the results of the metallurgical testing program are received – graphite marketing program to commence following completion of scoping study and product specification test work.

Metals Australia Ltd (ASX: MLS) (Metals Australia or the Company) is pleased to announce the maiden JORC (2012) resource at its 100% owned Lac Rainy Graphite Project located in Quebec, Canada.
The Mineral Resource has been prepared in accordance with the Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, (“JORC Code (2012)”) and is estimated at 13.3Mt at 11.5% TGC in the category of Indicated and Inferred for 1.529Mt of contained graphite, using a 5% TGC cut-off.

The mineral resource at Lac Rainy offers significant flexibility for potential development into a long life, high-grade graphite mining operation. Lac Rainy has the potential to be mined using open cut mining methods with low strip ratios, with more than 90% of the current global resource defined within the first 100m.

Drilling completed to date has only tested the first 1.6km of the approximate 4km of strike along the Main Carheil Graphitic Trend with the SE and NW strike extensions and the recently discovered West Carheil Graphitic Trend still to be drilled. The Company is currently planning an extensional drilling program to further grow the resource base and drill test some of the other high-priority targets which have been identified.

The deposit at Lac Rainy remains open to the north and south along strike, as well as down-dip and plunge, indicating significant exploration upside and drill ready targets.

The global resource is made up of the high-grade South-East Carheil Graphite Deposit which is classified in the Indicated category and the North-West Carheil Graphite Deposit which is classified in the Inferred category, as shown in Table 1 (below)

Commenting on the successful delivery of the maiden JORC (2012) Mineral Resource for the Lac Rainy Graphite Project, Director of Metals Australia, Mr Gino D’Anna stated:
“The delivery of the maiden resource estimate at Lac Rainy signifies the culmination of our significant exploration efforts over the last 18 months. When we acquired Lac Rainy, it was a greenfield exploration project. Today, Lac Rainy possesses a significant high-grade resource which remains open along strike
as well as down-dip and plunge, indicating significant exploration upside.
Our resource is readily and rapidly expandable. We demonstrated that through the discovery of the West Carheil Graphitic Trend, which has a similar genesis as the Main Carheil Graphitic Trend. The Lac Rainy project offers significant flexibility, it has projected low strip ratios, can be readily accessed through open cut mining methods and has consistently delivered exceptionally high-grade results.
The metallurgical and mineralogical test work program undertaken with SGS (Canada) Inc. is nearing completion and the final report is expected imminently. This will be the catalyst for the Company to commence its first round of product specification test work, including spheronization test work and electrochemical exfoliation test work. We will then build this into a scoping study and commence our graphite marketing program.
The Lac Rainy Graphite Project offers significant upside and we look forward to building on this great success.”

Overall, this is an excellent outcome for shareholders. The Lac Rainy project has the potential to deliver attractive economics due to its potentially significant size, high grades and extensive surface outcrop that offers low strip ratios. Metallurgical studies to date indicate a straightforward processing flowsheet.

The Company plans on commencing its first round of product specification test work and will be aiming to deliver a scoping study during late-2020. The Company’s ongoing focus is to develop this Mineral Resource into a low-cost mining operation.

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