EMC Delivers World-Class Rubidium Resource at Mt Edon Project, WA

Highlights

• Mt Edon initial JORC Inferred Mineral Resource Estimate (MRE) of
  3.6 million tonnes @ 0.22% Rb₂O and 0.07% Li₂O (0.10% Rb₂O cut-off)
• MRE includes a world-class high-grade zone of 1.3Mt @ 0.33% Rb₂O and 0.07% Li₂O (0.25% Rb₂O cut-off)
• Mt Edon MRE contains more than 7,900 tonnes of Rb₂O; rubidium products trading at ~US$1,200/kg^[1], driven by increasing demand
• Rubidium is used in military and defence applications such as night vision equipment, radiation detection and infrared signals as well as aerospace, healthcare and energy
• Mt Edon’s initial MRE is based on drilling along a ~400m strike within a 1.2km-long pegmatite corridor on a granted mining lease
• Mineralisation remains open along strike and at depth, providing exploration upside and resource growth potential
• Resource model shows Mt Edon geometry amendable to open cut mining, suggesting a low stripping ratio

• Phase 2 resource drilling planned in late 2024 / early 2025
• Scoping Study commenced in conjunction with rubidium extraction and purification testwork. Results due in Q4 CY24; study expected Q1 CY25

Everest Metals Corporation Ltd (ASX: EMC) (“EMC” or “the Company”)is pleased to announce its maiden Mineral Resource Estimate (MRE) for the Mt Edon Critical Mineral Project (M59/714) in the Mid-West region of Western Australia of 3.6 million tonnes @ 0.22% Rb₂O and 0.07% Li₂O (at 0.10% Rb₂O cut-off) for more than 7,900 tonnes of contained Rb₂O.

EMC’s Executive Chairman and CEO Mark Caruso commented:

Pursuant to ASX Listing Rule 5.8, and in addition to the information contained in the body of this release, please refer to JORC Table 1 at Appendix 1, which is material to understanding the estimates of the Mineral Resources.

MT EDON RESOURCE OVERVIEW

Following recent drilling campaigns^[2], Mt Edon’s maiden Inferred Mineral Resource was prepared in accordance with the Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (“JORC Code (2012)”) and is estimated at 3.6 million tonnes grading 0.22% Rb₂O, and 0.07% Li₂O (at 0.10% Rb₂O cut-off) and has been independently peer reviewed (Table 1). The mineral resource is quoted at various cut-off grades.

Table 1: Mt Edon Maiden Mineral Resource Estimate (JORC Code 2012)

Category	Tonnes (Mt)	Rb2O (%)	Contained Rb2O (t)	Li2O (%)	Contained Li2O (t)
Inferred	3.6	0.22	7,900	0.07	2,500
Total	3.6	0.22	7,900	0.07	2,500

• Mineral Resources are classified and reported in accordance with JORC Code (2012) and effective date of MRE is 20 August 2024.
• Mineral Resource estimated at a 0.10% Rb₂O cut-off.
• Mineral Resource is contained within mining licence M59/714.
• The estimate of the Mineral Resource may be materially affected by any unknown environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant issues.
• All tabulated data have been rounded.

The initial Inferred MRE includes a high-grade subset of 1.3Mt at 0.33% Rb₂O and 0.07% Li₂O (at 0.25% Rb₂O cut-off) which is nearly 56% of the total contained Rb₂O tonnes. This verifies the tier-1 scale and grade of the Mt Edon deposit. The MRE is limited to a strike length of only ~400m within a 1.2km lithium-caesium-tantalum (LCT) pegmatite corridor and a vertical depth of ~140m below surface (Figures 1, 5 and 6).

Multiple geological and geophysical targets exist across the project, which along with the resource modelling that underpins the MRE, form the basis for further exploration and anticipated resource growth. Modelling has shown the mineralisation remains open along strike to the northeast and southwest, providing immediate potential to significantly increase the MRE with follow-up drilling.

Figure 1: A wireframe of the 3D resource model of the Mt Edon deposit displays mineralisation extending from the surface, looking east

RUBIDIUM OVERVIEW

Applications and Importance

Rubidium (Rb) is a critical raw material for various high-tech applications, including the development of new energy conversion technologies and new communication technologies. Key applications include:

• Defence and Military: Night vision imaging, special glass, radiation detectors, photoelectric tubes, radio electronic tubes and military infrared signal lights.
• Aerospace: ion propulsion engines and atomic clocks.
• Communications: Ion cloud communications and fibre optic communications.
• Emerging Energy Power Generation: Materials for magnetohydrodynamic power generation and thermionic power conversion.
• Medical: Sedatives, tranquilisers and medications for treating epilepsy and synthetic alkaline solvents.
• Special Glass: Enhancing glass conductivity, increasing lifespan and stability.
• Industrial Catalysts: Widely used in ammonia synthesis, sulfuric acid synthesis, hydrogenation, oxidation and polymerisation reactions.
• Electronic Devices: Important materials for photovoltaic cells, photoemission tubes, TV camera tubes and photomultiplier tubes.

Researchers have also recently proposed the use of rubidium for chemical storage within hydrogen batteries, expanding the potential market for this critical mineral^[3].

Production and Market Trends

Despite the breadth of applications and demand for rubidium and caesium and their hydrides, global production of Cs and Rb is significantly lower than that of other alkali metals, and the cost per kg is substantially higher than lithium, sodium or potassium. Due to the gradual depletion of caesium resources, but the continued demand of these industries, a replacement is required, with Rb being a suitable candidate. The downstream application fields of rubidium salts are rapidly growing, enhancing the Company’s market advantage in this sector. As a result, Rb has been listed as one of the 35 critical minerals by several countries around the globe including USA and Japan.

According to the U.S. Geological Survey (2023)^[4], global Rb resources are relatively scarce, with most resources containing limited Rb content. With the increasing interest in Rb resources in recent years, several granite-hosted Rb deposits/resources in leucogranite pluton have been discovered in China but all of them are very low grade, ranging 0.12-0.15% Rb₂O, and rubidium in these deposits is mainly hosted by K-feldspar^[5].

Several market factors support growth in demand for Rubidium and underpin the current price of ~USD1,200/kg^[6]. Among these, there is significant global demand for newer and faster electronic products due to the rapid pace of innovation, technology advancement and R&D activities in the electronics industry. This increasing demand for Rb, coupled with the fact that Rb is difficult to source due to extremely limited global production, underpins the extremely high price of Rb products.

North America holds a significant share of the rubidium market in terms of both market share and revenue. However, like most critical minerals, China maintains control of the market. Commodity analysts believe if more rubidium was produced, the market could grow rapidly and therefore its very small market size can be partially attributed to supply constraints, rather than a lack of demand.

PROJECT DEVELOPMENT SCHEDULE

Metallurgical test work for Rb extraction is ongoing at ECU’s Mineral Recovery Research Centre (“MRRC”). EMC is planning environmental studies, including Flora and Fauna assessments, and is preparing the necessary documentation for the Mining Proposal. The Company aims to obtain all required approvals by the end of 2025.

Figure 2: Timeline for Mt Edon development strategy

MINERAL RESOURCE ESTIMATE

The following subheadings present material information to comply with the reporting requirements for Mineral Resources under ASX Listing Rule 5.8.

Mineral Tenement 

Mt Edon Critical Mineral Project sits on mining lease M59/714 and is located 5km southwest of Paynes Find, in the Mid-West region of Western Australia, approximately 420km northeast of Perth (Figure 2). The mining lease area has proven lithium-caesium-tantalum- (LCT) rich zones associated with the pegmatites, as well as historical mining for tantalum (manganotantalite and alluvial deposits), beryl and microcline feldspar (1969-1978)[7].

Tenement M59/714 (Tenement) covers an area of 192.4 hectares and is held by Everest Metals Corporation Ltd (51%) and Entelechy Resources Pty Ltd (49%). EMC has a farm-in agreement to acquire up to 100% of the Tenement[8]. The Tenement is valid until 26 October 2030. The Company conducted systematic mapping^[9], surface sampling and geophysical survey by Deep Ground Penetration Radar (DGPR) in early 2023^[10]. Three phases of drilling were carried out during 2023-2024 to test the extension of Mt Edon LCT pegmatite mineralisation and evaluate the resource potential.

Figure 3: Mt Edon mining lease location map, southwest of Paynes Find, Western Australia

Geology and Mineralisation Interpretation

The Mt Edon mining lease area is located within the southern portion of the Paynes Find greenstone belt, South Murchison and has proven LCT pegmatites zones. Historical mining for tantalum, beryl and microcline feldspar has been undertaken on the mining lease. The zonal nature of this pegmatite field has previously been defined with microcline feldspar (including amazonite) and more complex albite rich zones containing niobium and lithium. Muscovite-Lepidolite-Zinnwaldite (lithium mica) rich pegmatites have been previously identified. Most of the pegmatites trend to the northeast, but several cleavelandite-bearing pegmatites mapped the trend to the northwest. Pegmatites have variable compositions with K feldspar (microcline) being dominant along the eastern side of the belt, with many being aplitic pegmatites. The pegmatites of Mt Edon are generally medium grained albite-quartz-muscovite mica zones with segregations of microcline-quartz-muscovite and small pods of lepidolite.

There are several large irregular shaped felsic pegmatites that have intruded into the Paynes Find Greenstone Belt, a northeast trending sequence of mafic, ultramafic and sedimentary rocks, with east-west structures cutting these metasediments. Pegmatites appear to be folded sills dipping in variable directions and angles and are connected at depth representing both sill and dyke structures. These prospective pegmatites have a northeast-southwest strike of up to 650m and occur along a 1.2km interval of the LCT pegmatite corridor. Larger pegmatitic bodies appear less influenced by the underlying structural trends and fabrics, with many of these bodies cutting both structural fabrics. The larger pegmatitic bodies are interpreted as blowouts related to structural intersections.

Substantial mineralogical studies (XRD, RAMAN and FTIR) were undertaken and indicate that quartz, feldspar (microcline and albite) and lithium mica (muscovite-lepidolite-zinnwaldite) occur as essential rock-forming minerals of the Mt Edon pegmatite and comprise ~94% of the mineral assemblage, with subordinate amounts of other minerals including petalite, eucryptite and spodumene.

The drilling results boast Rubidium and Lithium mineralisation systems and highlight consistent near surface mineralisation over a strike of more than 650m from northeast to southwest. The pegmatite has been investigated to a vertical depth of 140m. Significant well-developed muscovite-rich zones were observed while logging RC chip samples, and lepidolite mineralisation was detected in certain intervals. The alteration zone indicates a high Rb/Li ratio, which in turn indicates the highly fractionated and fertile nature of the pegmatite and is interpreted to have a component of Rubidium mica. Also, the highest Rubidium grades were in mica rich pegmatites. The Potassium / Rubidium (K/Rb) ratio in the entire pegmatite intersected in the holes reflects the degree of substitution of Rb for K in the mica’s crystal structure. The Recent mineralogical studies indicated that muscovite (white mica) is the mineral with the highest average Rubidium contents in the samples, averaging 7,600ppm Rubidium (0.76% Rb). The next highest average Rubidium contents are from K-feldspar (microcline) with ~5,000ppm Rb(0.50% Rb)^[11].

Drilling Techniques

Drilling used to support the Mineral Resource Estimate includes 61 x Reverse Circulation (“RC”) holes for a total of 2,779m and their analyctical data. RC drilling utlised 127mm diameter face sampling hammers. No sample loss or cavitation were experienced and sample recovery was good and in excess of 90%. There is no correlation between grade and RC sample recovery.  In late 2022, scout RC drilling (24 holes) was initially carried out to test LCT pegmatites^[12]. Two phases of RC drilling were conducted during 2023 to test the extent of the mineralisation zones^[13]&[14]. Phase-1 resource drilling was completed in May 2024 with a focus on the northeast corner of the Mt Edon mining lease^[15]. Drilling was conducted at a range of densities based on the drilling programs typically completed on a spacing of about 20-60m along strike followed by irregular interval drilling which targeted individual pegmatites (Figure 4).

Figure 4: Maiden inferred mineral resource outline and RC drill holes in the northeast portion of   the Mt Edon mining lease (M59/714)

Sampling techniques

Samples for analysis was based on a review of the drill chips for the presence of pegmatite with sampling extending into the country rock of the hanging wall and footwall pegmatite contacts. One-metre samples were collected from the drill cyclone and splitter into prenumbered calico bags at a weight of about 2-2.5kg each. Duplicated samples were collected from the cone splitter to monitor the consistency of splitting quality.

Certified Reference Materials (CRM), analytical blanks and field duplicates were used as part of the QA/QC procedures. Sample preparation and sub-sampling were completed at ALS Perth. All samples were sorted, dried and pulverised to -75μm to produce a homogenous representative pulp for analysis. A grind quality target of 85% passing -75μm was established.

Sample analysis method

All samples were sent to the ALS laboratory in Perth and were assayed for a standard multi-element LCT pegmatite suite using Peroxide Fusion ICP-MS (MS91-PKG) and a total of 24 elements (Al₂O₃, As, CaO, Co, Cr₂O₃, Cu, Fe₂O₃, K₂O, Li, MgO, MnO, Ni, Pb, S, SiO₂,TiO₂, Zn, Cs, Nb, Rb, Sn, Ta, Th and U) were analysed. In addition, about 10 percent of samples were analysed by Sodium Peroxide Fusion (MS89L, 52 elements) to evaluate for rare earth and other trace metals.

QA/QC has been conducted using field and lab duplicates, Certified Reference Materials, and blank samples. Overall, the QA/QC results indicated good to moderately good performance. Laboratory QA/QC procedures include the use of internal lab standards with certified reference materials and blanks as part of their in-house protocols. This data undergoes a formal review periodically. No significant issues have been encountered and the data shows acceptable levels of accuracy and precision. The adopted QA/QC protocols are suitable for the Mineral Resource and public reporting, with the QA/QC system consistently returning acceptable results.

Furthermore, comprehensive mineralogical studies by RAMAN spectroscopy scan using a Bruker BRAVO Raman system on 263 down hole samples from 9 drill holes were conducted at Portable Spectral Services in Perth. Also, quantitative determination of mineral abundance using Fourier-Transform Infra-Red (FTIR) spectroscopy on 164 samples from 12 drill holes was undertaken at ALS as well as quantitative and semi-quantitative X-Ray diffraction (XRD) to determine mineral abundance on eleven samples to establish the mineral assemblage of Mt Edon pegmatite.

Moreover, CODES Analytical Laboratories at the University of Tasmania used SEM-based modal mineralogy (AMICS) and Laser Ablation Inductively Coupled Plasma Mass Spectrometry (LA-ICP-MS) to identify Rb and Li bearing minerals and determine their distributions. Grains of various minerals were analysed for trace elements using a RESOlution 193 nm excimer laser ablation system coupled with an Agilent 7900 ICP-MS and a range of elements and isotopes were analysed.

Density values were derived from 65 samples with density measurements from six recent drill holes that were sent to ALS for specific gravity determination (OA-GRA08f), described as “Specific Gravity on solid object” resulting in an average specific gravity of 2.64 g/cm³ for pegmatite. Density data was merged with assays for further interpretation and has been used in the resource modelling.

Estimation Methodology and Resource Classification

The Mineral Resource estimation involved the use of drillhole and geology/topography to construct three-dimensional wireframes of the applicable mineralised domains using Leapfrog Geo software. The MRE has been reported in accordance with the JORC Code 2012.

The ore body shell was delineated using logging data. The geometry of mineralisation was defined based on the pegmatite bodies’ geometry, identified through colour differences in the pegmatite. Contact analysis shows that there is a hard boundary between the pegmatite ore and the waste material. This distinct separation ensures that the mineralisation domains are well-defined, preventing the mixing of ore and waste in the estimation process. Data capping was avoided to ensure that high-grade ore values remain in the model. Additionally, given the nature of RC drilling and sampling at one-metre intervals, compositing was not required as all data had a length of one metre.

Ordinary kriging was used as the primary estimator for grade estimation of Rb₂O, Li₂O, Cs and Ta value. Variogram analysis was performed to understand the spatial continuity of the variables Rb₂O, Li₂O, Cs, and Ta. Variogram maps show that the most continuity can be seen along with the orebody direction. Anisotropy modelling was carried out using Leapfrog to better represent the directional influences on grade distribution.

Figure 5: Example NE-SW cross-section, looking east show kriged block Rb₂O grade (%)

The block model was created with a parent block size of 5m x 5m x 5m based on the geometry of the mineralised material and considering the dip and thickness of pegmatite across different areas. This block size was selected to reflect the geometry of the mineralised domains and the spacing of drill holes, minimising dilution and ensuring the block model volume closely matches the wireframe volume. For precise estimation, a discretisation factor of 5 was applied in the X, Y, and Z directions. All negative weights were set to zero. Different search ellipses were utilised to estimate all blocks within the wireframe. Blocks were estimated in a one-pass strategy with maximum search distances of up to three times the variogram range for almost all variables. The minimum and maximum number of samples used were 3 and 8 respectively. No octant strategy was employed. The block model was validated using a combination of visual and statistical techniques including global statistics comparisons and swath plots.

Figure 6: Example NW-SE cross-section, looking north show kriged block Rb₂O grade (%)

For resource classification, geological continuity and drill hole spacing have been considered in interpreting boundaries and the associated mineralisation. Additionally, data quality, modelling techniques and estimation properties were evaluated. Based on these criteria, the resource is classified as inferred. Mineralisation at Mt Edon is constrained by drilling, and it remains open to the northeast and south and southwest. The estimate was limited to a vertical depth of ~140m below the surface for the entire model and highlights that Mt Edon may have the scale, grade, and other attributes to justify its continuing evaluation as a possible producer of a Rubidium concentrate that could then be processed for application in high technology manufacturing industries. The Mineral Resource Classification reflects the views of the Competent Person.

This work is preliminary in nature. The drilling, surveying and sampling undertaken, and the analytical methods and quality controls used, are appropriate for the style of deposit under consideration. The preliminary evaluation of factors that are likely to impact the future economic viability suggests that the Inferred Mineral Resource accurately represents the project’s potential. It is reasonably expected that with continued work and studies, a portion of the Inferred Mineral Resource could be upgraded to Indicated Mineral Resource.

Cut-off Grades

The Mineral Resource has been reported above a 0.10% Rb2O cut-off to represent the portion of the resource potentially suitable for extraction by open-pit methods. This cut-off was determined based on a peer review of publicly available data from similar projects with comparable mineralisation styles. It is more conservative than the cut-offs used for similar nearby deposits, including the Niobe and King Tamba projects in Western Australia. Given the stage of the Project and classification applied to the Mineral Resource, the applied cut-off is considered appropriate for the style and nature of mineralisation at the Mt Edon deposit.

Figure 7: Mt Edon grade-tonnage curve

Mining and Metallurgical Factors

The Mt Edon resource has outcrop or occurs close to surface and will be amenable to opencut mining, with the information suggesting a low stripping ratio. The assumed mining method is conventional truck and shovel, open pit mining at an appropriate bench height. Since the resource drilling is open-ended, further drilling will extend the mineralisation beyond the current boundaries of the maiden mineral resource. The Company believes there are no mining factors which affect the assumption that the deposit has reasonable prospects for mining.

Significant mineralogical studies were undertaken to identify the nature of the Rubidium mineralisation to allow enhancement of potential recovery processes. Metallurgical test work was carried out at Edith Cowan University’s Mineral Recovery Research Centre (“MRRC”) and a range of testwork has been performed for the extraction of Rubidium and lithium from micas and feldspar. Two methods of non-destructive and destructive extraction were used to extract Rubidium and Lithium. During process development, special attention is given to potential by-products and to industrial minerals such as quartz, mica and feldspar which may be recovered during mineral concentration, leaching and purification. Various test work completed at ECU’s MRRC demonstrates acceptable levels of Rubidium and lithium extracted into leach liquor. The maximum Rubidium extraction achieved in this stage demonstrates repeatability within a range of 75±10%^[16].

By selecting suitable cations and optimising operating conditions, the project aims to achieve maximum Rubidium extraction by utilising a cost effective and environmentally friendly method. The Company is continuing geometallurgical testing and mineralogical studies to characterise the mineral assemblage of Rubidium-bearing minerals at the Mt Edon pegmatite, alongside extraction metallurgical testwork at ECU’s MRRC through the Direct Rubidium Extraction method[17].

The Mt Edon site is conveniently located just 5km southwest of Paynes Find, offering excellent access to the national road network, 420km to Perth via the Great Northern Highway and 360km to Geraldton Port. An environmental scoping study has been undertaken and fauna and flora baseline surveys planned. There are no reserves, national parks or other known material impediments on the tenure and there is no major drainage in the area.

A summary of important assessment and reporting criteria used for this Mineral Resource Estimation announcement is provided in Appendix 1 – JORC Table 1 in accordance with the checklist in the Australian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code, 2012 Edition). Criteria in each section apply to all preceding and succeeding sections.

NEXT STEPS 

Everest has a clear strategy to continue its development of Mt Edon, with the following steps set for delivery over the coming months:

• Continued discussion with potential commercial customers
• Rubidium Extraction and Purification testwork results expected in November 2024
• Phase 2 Resource Drilling scheduled for late 2024 / early 2025
• Scoping study expected to be completed in the March quarter 2025.

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[1] www.metal.com/Other-Minor-Metals/202012250004

[2] ASX: EMC announcement; Mt Edon Delivers World Class Rubidium Grades of Up To 0.54%, dated 4 July 2024

[3] S. Matalucci, May 2024, Researchers propose use of caesium, rubidium for hydrogen batteries, pv-magazine.

[4] U.S. Geological Survey, 2023, Mineral Commodity Summaries 2023

[5] Ore Geology reviews, Volume 141, February 2022, 104636

[6] www.metal.com/Other-Minor-Metals/202012250004

[7] Jacobson, Mark Ivan, Calderwood, Mark Andrew, Grguric, Benjamin Alexander (2007) Guidebook to the pegmatites of Western Australia. Hesperian Press, Perth, Western Australia.

[8] ASX: EMC announcement; Drilling Results Highlight Extensive Well Developed Pegmatite Field at Mt Edon, dated 13 January 2023

[9] ASX: EMC announcement; Mt Edon Project Exploration Update, dated 29 March 2023

[10] ASX: EMC announcement; Deep Ground Penetration Radar (DGPR) Geophysical Survey Successfully Identifies Previously Undiscovered Pegmatite Targets At Mt Edon, dated 1 May 2023

[11] ASX: EMC announcement; Mt Edon World Class Rubidium Critical Mineral Project – Update, dated 1 July 2024

[12] ASX: EMC announcement; Drilling Results Highlight Extensive Well Developed Pegmatite Field at Mt Edon, dated 13 January 2023

[13] ASX: EMC announcement; Mt Edon Drilling Results Confirms High Grade Rubidium in LCT Pegmatite Field, dated 13 July 2023

[14] ASX: EMC announcement; Mt Edon Drilling Program Continues to Deliver, 80 High Grade Rubidium Intersection With Associated Lithium, dated 21 September 2023

[15] ASX: EMC announcement; Phase-1 resource drilling successfully Concludes At Mt Edon Critical Mineral Project, dated 13 May 2024

[16] ASX: EMC announcement; Successful Recovery of Rubidium from Mt Edon Critical Mineral Project, dated 24 July 2024

[17] https://www.ecu.edu.au/newsroom/articles/research/ecu-breaking-new-ground-in-precious-metal-extraction