Audalia Resources Limited provided an update on activities at the Medcalf Project, a vanadium-titanium-iron project located approximately 470km southeast of Perth near Lake Johnston, Western Australia. The addition of titanium bearing material in the blast furnace is a popular protection measure applied in the iron making industry to reduce the wear of hearth refractory linings. Audalia has recently identified the opportunity of producing a High Titanium Lump Ore Product to be used for blast furnace refractory liner protection.

The proposed product is a direct shipping ore (DSO) type product only requiring crushing and screening process. The minimum product requirement is: TiO2 > 12.5%, TFe > 35%, and particle size between 10 and 60mm. A bulk sampling programme was completed in October 2021 and approximate 13 tonnes of bulk samples were delivered to Nagrom to undergo the metallurgical testwork.

The bulk samples were collected within the proposed open pit footprint. The mineral resource model developed by Cube Consulting has indicated the mineralisation exists at the surface of the selected location. After removing the top soil, the bulk samples were excavated from surface to approximate 3m below the ground.

These bulk samples are representative of the initial operation conditions. The bulk sample testwork programme was developed in conjunction with Nagrom. The bulk samples were composited to a single unified composite sample by a bobcat.

The composite was staged crushed to P100 60mm. The crushed composite was then dry screened at 10mm. The +10mm to -60mm portion is the target product and was assayed at various size fraction.

The -10mm portion is the mineralized waste and was assayed at various size fraction as well. This bulk testwork has confirmed the opportunity to produce a high titanium lump ore product of the mineralisation at Medcalf, with a weighted average grade of 21.48% TiO2, 59.69% Fe2O3, 0.97% V2O5, 4.02% SiO2 and 7.72% Al2O3. The weighted average was calculated based on the proportion of each size fraction.

The titanium and iron content in the lump ore product are well above the product requirement. The bulk testwork has also confirmed the low deleterious elements across all size fractions, with weighted average grades of 4.02% SiO2, <0.06% S and <0.01% P. The testwork results indicated, for the proposed lump ore product, the concentration of major elements is very consistent across all different size ranges. This will allow great flexibility in actual operation to produce specific size product meeting customer's specification.

The high titanium and iron grade combined with low levels of impurities demonstrates the scope for the Medcalf High Titanium Lump Ore Product to meet or exceed the market product specifications. The testwork results also confirmed the concentration of major elements in the fine ore fractions (-10mm to +1mm) is almost equivalent to the lump ore product. The fine ore fractions could potentially be used for ore blending of sinter pellet.

This could generate additional income stream for the Medcalf Project. The bulk testwork results is a critical component of the current PFS study. The testwork results will provide information for flowsheet definition and engineering design.

Ongoing work in support of the development of the Medcalf Project includes: Delivery of the product samples to potential customers for testing and analysis; Completion of the PFS study incorporating the bulk testwork results; Discussion with Southern Port Authority (SPA) on access to Esperance Port.