Mt Edon Drilling Delivers World Class Rubidium Grades of Up to 0.54%

Highlights

• JORC Resource RC Drilling Program of 1,266 metres completed in May 2024
• Drilling Program delivers high-grade Rubidium results up to 0.54% Rb₂O and Li₂O up to 1%
• Mineralisation remains open over strike length of 550m within 1.2km pegmatite corridor
• Significant results include:
  • MD 45 – 90m at 0.32% Rb₂O from 36m, including 28m at 0.45% Rb₂O from 60m
  • MD 35 – 103m at 0.22% Rb₂O from 23m to EOH at 126m remained open, including 10m at 0.40% Rb₂O from 41m
  • MD 48 – 36m at 0.28% Rb₂O from 66m
  • MD 24 – 40m at 0.22% Rb₂O from 8m
  • MD 40 – 33m at 0.22% Rb₂O from 21m, including 14m at 0.30% Rb₂O from 35m
• Mt Edon maiden JORC mineral resource preparation underway
• Lithium credits further enhance potential economics of the project, with the best intercept of:
  • MD 49 – 8m at 1% Li₂O from 57m

“The resource drilling results solidifies EMC’s Mt Edon project as one of, if not the highest-grade Rubidium projects in the world. The project is further enhanced by its location at Paynes Find directly adjacent to the Great Northern Highway, on a granted mining lease. We are excited to deliver an initial JORC resource in the coming weeks with an exploration target of 3.2-4.5 million tonnes grading at 0.23-0.35% Rb₂O[1].”

CEO & Executive Chairman Mark Caruso commented:

Cautionary Statement:

The potential quantity and grade of the Exploration Target is conceptual in nature and as such there has been insufficient exploration drilling conducted to estimate a Mineral Resource. There is a low level of geological confidence associated with the Exploration Target due to the nuggety nature of the resource. There is currently no certainty that further bulk sampling and exploration will result in the determination of an inferred mineral. The Exploration Target has been prepared in accordance with the JORC Code (2012)

Everest Metals Corporation Ltd (ASX: EMC) (“EMC” or “the Company”)is pleased to announce drilling results of its Phase 1 Resource Drilling at the Mt Edon Critical Mineral Project (M59/714) located 5km southwest of Paynes Find, in the Mid-West region of Western Australia, approximately 420km northeast of Perth.

PHASE 1 RESOURCE DRILLING PROGRAMME

The Phase 1 Resource Drilling Program commenced early May 2024[2] and the drilling pattern was designed to complete a spacing of ~40m along strike, with the outcome being to define a mineralised wireframe and generate a maiden JORC 2012 Mineral Resource Estimate (“MRE”). Furthermore, to test the lateral extension of high-grade zones defined in the northeast corner of the Mt Edon tenement. The drilling program confirmed the existence of the main targets identified from the Deep Ground Penetration Radar (“DGPR”) program[3] and their northeast-southwest structural trends in the northeast corner of the mining lease.

The drilling included 14 x Reverse Circulation (“RC”) holes with an average depth of 90m. Drill collar information is outlined in Appendix 1. Samples collected during the recent drilling campaign were one-metre splits with 715 samples being sent to the ALS laboratory in Perth as well as Certified Registered Material (“CRM”) and duplicate samples. Samples were assayed for a standard multi-element LCT pegmatite suite using the process of a 4-acid digest followed by Lithium Borate Fusion ICP-MS for detection.

Figure 1: A Cross section looking southeast shows significant mineralised intersections over a 500m strike between holes MD-50 and MD-25 in the northwest area of the Mt Edon Mining Lease

The Phase 1 Resource Drilling Program was very successful, and pegmatites were intersected in most of the drill holes, covering about 56% of samples (715m pegmatite vs 1,266m total drilled metres). Included in this program is a very thick pegmatite intersection of 125m from the surface in one drill hole (MD-50). Some of the thickest and highest grade intersections with grades above 0.15% Rb are outlined below:

• Hole MD-45) intersected 10 meters @ 0.18% Rb₂O and 0.22% Li₂O from 5m and 90 meters @ 0.32% Rb₂O and 0.10% Li₂O from 37m to end of hole at 126m-open, including 28 meters @ 0.45% Rb₂O from 60m
• Hole MD-35) intersected 103 meters @ 0.20% Rb₂O and 0.12% Li₂O from 22m, including 10 meters @ 0.40% Rb₂O from 41m
• Hole MD-50) intersected 125 meters @ 0.17% Rb₂O and 0.10% Li₂O from surface, including 32 meters @ 0.32% Rb₂O from 84m 
• Hole MD-42) intersected 23 meters @ 0.22% Rb₂O and 0.10% Li₂O from 11 m and 28 meters @ 0.21% Rb₂O and 0.11% Li₂O from 44 m
• Hole MD-48) intersected 36 meters @ 0.28% Rb₂O and 0.12% Li₂O from 66 m
• Hole MD-49) intersected 23 meters @ 0.20% Rb₂O and 0.43% Li₂O from 55 m, including 8 meters @ 1.00% Li₂O from 57m
• Hole MD-25) intersected 30 meters @ 0.20% Rb₂O and 0.13% Li₂O from 35 m
• Hole MD-27) intersected 6 meters @ 0.28% Rb₂O from 13 m and 36 meters @ 0.21% Rb₂O from 38 m
• Hole MD-40) intersected 33 meters @ 0.22% Rb₂O and 0.11% Li₂O from 21m
• Hole MD-24) intersected 40 meters @ 0.22% Rb₂O and 0.13% Li₂O from 8m

Figure 2: Cross section looking north shows significant near surface mineralised intersections between holes ME23-16 and MD-48

Geology and Mineralisation Interpretation

The Mt Edon mining lease area has proven LCT pegmatites zones, as well as historical mining for tantalum, beryl and microcline feldspar. 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 pegmatite’s trend to the northeast but several cleavelandite-bearing pegmatites mapped the trend to the northwest. Pegmatites have variable compositions with K feldspar 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.

The drilling results shows significant anomalous LCT pegmatite elements that occur in association with rubidium with a maximum value 0.54% Rb₂O, include maximum values in individual drilling assay Li₂O at 3.1%, Cs at 544 ppm, Nb at 1775ppm and Ta at 618ppm (Appendix 2). The most significant rubidium interval was intersected in hole MD-45, 90m at 0.32% Rb₂O and 0.10% Li₂O from 37m to the end of the hole at 126m-open (dip 50 degrees), including 28m at 0.45% Rb₂O from 60m. Additionally, hole MD-35 intersected 103m at 0.20% Rb₂O and 0.12% Li₂O from 22m, including 10m at 0.40% Rb₂O from 41m, located 50 meters south of MD-45 is another example of high grade rubidium mineralisation in a thick interval at Mt Edon pegmatites. Approximately 70m southwest of MD-35, hole MD-50 encountered 125m at 0.17% Rb₂O and 0.10% Li₂O from the surface, including 32m at 0.32% Rb₂O from 84m(Figure 3). Furthermore, the drilling results boasts Mt Edon as one of the highest grades of rubidium mineralisation systems and highlighted consistent near surface mineralisation over a strike of more than 550m from southwest to northeast. (Figure1).

Moreover, as mentioned above, lithium enhances the mineralisation system, with the best interval intercept in hole MD 49 intersected 8m at 1.00% Li₂O from 57m. 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 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 (Appendix 2).

The Recent mineralogical studies indicated that muscovite (White Mica) is the mineral with the highest average rubidium contents in the samples, averaging 7,600ppm Rb (0.67% Rb)[4]. Additionally, over 160 samples from the Phase 1 Resource Drilling Program were submitted to the ALS laboratory quantitative determination of mineral abundance using Fourier-Transform Infra-Red (“FTIR”) spectroscopy, results are pending. 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 testing at ECU’s Mineral Recovery Research Centre (MRRC) via Direct Rubidium Extraction method.

With the Phase 1 resource definition program completed, the Company expects to release the Mt Edon  maiden JORC Mineral Resource in early August 2024. The Company has now commenced planning an infill and step out Resource Definition drilling program (Phase 2) designed to infill the existing targeted resource areas and step out the resource from the 550m extent of the known mineralised pegmatites (Figure 3). Phase 2 drilling is planned to commence in late September 2024 quarter.

A summary of important assessment and reporting criteria used for this Exploration Results announcement is provided in Appendix 3 – 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.

Figure 3: Location of RC drill holes located in the northeast portion of the Mt Edon mining lease (M59/714)

BACKGROUND

Mt Edon Pegmatite Project sits on mining lease M59/714 and covers the southern portion of the Paynes Find greenstone belt in the southern Murchison which hosts an extensive pegmatite field (Figure 4). There are several large irregular shaped felsic pegmatites which 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.

Figure 4: Mt Edon mining lease location map

Two stages of RC drilling were completed at the Mt Edon mining lease in late May and early August 2023. During Stage-1 drilling in late May 2023, drill hole ME23-07 intersected a mixed zone of altered mafic host rock and 62m of pegmatite up to a depth of 111m and remained open. Geological logging of the chip samples highlighted well-developed muscovite-rich zones. Hole ME23-007 intersected over 40m at 0.26% Rb₂O from 49m, including 19m at 0.33% Rb₂O (0.43% Rb₂O + Li₂O)^[5]. The entire mineralised intersection within ME23-007 indicates the highly fractionated and fertility of the pegmatite in the northeast corner of Mt Edon. The pegmatite body in this hole remained open at a depth of 111m (dip 60 degrees) and shows there is high potential for lateral extensions particularly toward the northeast.

Stage-2 drilling was designed to unlock the potential of a 600m pegmatite sitting along a northeast-southwest strike. This zone is interpreted to be a mineralised alteration zone located between the intrusive pegmatites and the mafic country rock. 10 x RC holes were drilled along this trend and all intercepted significant rubidium-lithium results. Hole ME23-019 intersected over 80m at 0.32% Rb₂O from 25m, including 9m at 0.47% Rb₂O from 87m and hole ME23-018 intersected 31m at 0.21% Rb₂O from 35m, including 7m at 0.34% Rb₂O from 39m^[6]. Additionally, findings from both the Stage-1 and Stage-2 drilling programs suggest that Mt Edon has the potential to be classified as a Rubidium-Lithium project^[7].

In December 2023, the maiden Exploration Target was reported and was based on the results of exploration activities undertaken to date and supported by the drill hole database containing over 600m of reverse circulation drilling in the northeast corner of the Mt Edon mining lease, geological mapping, and estimation in accordance with the JORC Code (2012)^[8]. The reported Exploration Target is exclusively defined by wide spaced drilling which is insufficient to support either indicated or inferred resource classification (Figure 5). Importantly, the Exploration Target does not include any untested targets along strike or at depth extensions which have yet to be drill tested as the absence of any material geological information is considered insufficient to estimate an Exploration Target at this time, however these areas provide excellent exploration potential given the Pegmatite zones, being the principal control on mineralisation, have been mapped over the entire Mt Edon project and will be drill tested in the next phases of the planned exploration program.

Initial Exploration Target comprises only the north-eastern corner of the Mt Edon mining lease, the surrounding mineralised area measuring approximately 450m x 100m. The estimate was limited to a vertical depth of about 100m below surface 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 current Exploration Target (JORC 2012) ranges from 3.2 to 4.5 million tonnes with a grade of 0.23 to 0.35% Rb₂O and 0.08 to 0.12% Li₂O (Table 1 and Figure 5).

Table 1- Mt Edon Exploration Target estimate summary

Category	Lower Limit (Mt)	Upper Limit (Mt)	Grade Range Rb2O (%)	Grade Range Li2O (%)
Exploration Target	3.2	4.5	0.23 – 0.35	0.08 – 0.12

• All tabulated data have been rounded
• The potential quantity and grade of mineralisation is conceptual in nature
• The Exploration Target is reported as a range of grade and tonnages for the project based on drillhole data statistical confidence limits and various assumptions of continuity

Cautionary Statement:

The Exploration Target has been prepared and reported in accordance with the 2012 edition of the JORC Code. The potential quantity and grade of the Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource. It is uncertain if further exploration will result in the estimation of a Mineral Resource.

Figure 5: Wireframe encompassing the mineralised holes at the Mt Edon tenement

RESEARCH AGREEMENT

On 26 February 2024 Edith Cowan University (“ECU”) and EMC executed a Research Agreement (“Agreement”) for studies in relation to the Extraction of Rubidium and Mica from Mt Edon ore^[9]. The research activities will be undertaken at ECU’s Mineral Recovery Research Centre (“MRRC”) for a period of 12 months. The Direct Rubidium Extraction test work and studies will utilise advanced processes such as ion exchange. This project focuses on extracting the Rubidium and Mica from ore by using a Direct Rubidium Extraction technology. Due to the increasing need for sustainable and environmentally friendly extraction processes, these studies aim to develop a state-of-the-art extraction technique that maximise the recovery of Rubidium and Mica. By selecting suitable Cations and optimising operating conditions, the project aims to achieve maximum Rubidium and Mica extraction by utilising a cost effective and environmentally friendly method. This approach will leverage cutting-edge technologies, innovative methodologies, and industry best practices to ensure a sustainable and profitable extraction process. The process encompasses purification and refining, ultimately leading to the conversion into a final product such as Rubidium salt, and metal, and Mica. Under the Research agreement any intellectual property rights deriving from the project will be owned by EMC. As part of this study, critical assessment of the feasibility and potential enhancements of the Direct Rubidium Extraction method will be done. This will allow EMC and ECU to jointly apply for the Cooperative Research Centres Projects (“CRC-P”) Grants to scale up the process technology. The Company expenditure for this project will be eligible for Federal Government Research and Development (“R&D”) Tax Incentive thereby having a nil cash impost to EMC.

NEXT STEPS 

• Maiden Mineral Resource Estimate at Mt Edon in early August 2024
• Rubidium Extraction Test work results in Mid Q3-2024
• Phase 2 Resource Drilling in late Q3-2024

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[1] ASX: EMC announcement Mt Edon Exploration Target defined – Drilling to Recommence, dated 14 December 2023

[2] ASX: EMC announcement: Resource Drilling Commences At Mt Edon Critical Mineral Project, dated 10 May 2024

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

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

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

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

[7] The high grade intersected Rubidium is in line with world class Rubidium occurrences including the Karibib pegmatite deposit in Namibia (8.9 Mt at 0.23%Rb) and Guobaoshan deposit in China (234 Mt at 0.12%Rb).

[8] ASX: EMC announcement Mt Edon Exploration Target defined, supporting resource drilling commencement, Continued high grade rubidium-lithium assays from surface, dated 14 December 2023

[9] ASX: EMC;EMC To Advance Mt Edon Critical Mineral Project Through Rubidium And Industrial Mica Product Development, dated 27 February 2024