Carbine Resources : CRB Completes Maiden Drilling at Muchea West Silica Sands

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ASX / MEDIA ANNOUNCEMENT

15 December 2021

Carbine Completes Maiden Drilling at

Muchea West Silica Sand Project

HIGHLIGHTS

Carbine owns 100% of the highly prospective Muchea West Silica Sands Project

Carbine has completed its 2021 drill program testing the higher grade (99.7% - 99.9% SiO2) Eastern Area*

233 holes were drilled along existing tracks for 1,892m producing 1,088 samples

All samples have been delivered to Intertek Genalysis for assaying, first results expected in January 2022

Lines 1 and 2 run parallel and are closely spaced, sufficient to undertake a Mineral Resource Estimate

Widenbar and Associates have been engaged to complete the Mineral Resource Estimate

Independent Metallurgical Operations have been engaged to undertake process studies on the excess sample material

Program of Work application underway for 2022 drilling program

Carbine Resources Limited (ASX: CRB) (the Company) is pleased to provide an update on its 100% owned Muchea West Silica Sands Project, Western Australia (Muchea West, the Project).

Carbine has now completed its first drilling program at Muchea West since acquisition of the Project in July 2021. The maiden drill program was designed to:

advance the information available at the time of acquisition;

identify the area best suited for a Mining Licence application; and

provide sufficient data to undertake an initial Mineral Resource Estimate in order to commence mining studies.

As announced on 27 July 2021, the results of two reports have indicated that E70/4905 has the potential to host a substantial, high grade, low impurity silica sand deposit. The potential final processed grade is significant as it meets all the specifications for flat and container glass markets and for foundry glass at the top end of silica sand consumption market and the upper price ranges for these products.

*ASX Announcement 27 July 2021

Figure 1: Project Location

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MUCHEA WEST SILICA SAND PROJECT

Location, Access & Proximal Infrastructure

The Muchea West Project is located approximately 40km north-northeast of Perth and approximately 500m to the west of Muchea. Direct access from the tenure is via the Brand Highway thence via farm tracks and fence lines. Both the Brand Highway and the Moora-Kwinana Railway provide a direct connection with the Kwinana Bulk Terminal.

The Muchea West Project is located directly adjacent to VRX Silica Ltd's Muchea Project.

Tenure

The Muchea West Project covers a land area of 102km2 and consists of a single granted exploration licence, E70/4905.

Project Geology

The Project is underlain by the Bassendean Sand Formation, which extends over large areas of the Swan Coastal Plains of the Perth Basin from about 23 km north of Jurien, to about 15km southwest of Busselton. The Bassendean Sand Formation is considered to have a maximum thickness of about 45 m, and the unit is found as a strip parallel to the coast, having a width of about 10-20 km,

and its western edge about 5-10km inland. Concretionary ferruginous material, locally known as "coffee rock", is developed discontinuously in the sand near the groundwater table. In the Tenement, good quality silica sand overlies iron rich brown sand, occasionally interspersed with ferruginous nodules.

The upper units of the Bassendean Sand Formation are typically clean, well-rounded and well sorted sands. At depth, it is commonly brown to dark brown with high iron contents, however closer to the surface the sand is cream/white. The physical, chemical and mineralogical characteristics of the Bassendean Sands can vary considerably, resulting in variation in the quality of the sand regionally as well as locally. In general, the Bassendean Sand Formation is covered with very little or no overburden.

The region surrounding the Project has been explored for both silica sand and mineral sands.

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Figure 2: Project Geological Setting

Previous Exploration Undertaken

The region surrounding the Project has been explored for both silica sand and mineral sands.

A total of 82 vacuum drill holes (78 drill holes to a depth of 10m and 4 drill holes to depths between 15m and 20m) were drilled at nominal 200m spacing on six drill lines along existing tracks (as shown in Figure 3 below) within the tenement area. This drilling was completed by Australian United Silica Corporation Pty Ltd (Ausco). Previously the area within the tenement has been drilled for water and this drilling resulted in 28 water bores.

Current Exploration Activities

Carbine's maiden drill program consisted of a total of 233 vacuum drill holes which were drilled at nominal 50m spacing on five drill lines along existing tracks (as shown in Figure 3 below) within the tenement area. This drilling was completed by Strataprobe Pty Ltd.

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For	Figure 3: Drill Collar Plan

The drilling encountered unconsolidated sand and was terminated either at designated depth or the water table. The water table was in most places higher than expected due to the exceptional rainfall in the preceding two years. For the vacuum drilling, 1 metre downhole samples were collected at each drilling location. Vacuum drill samples are collected in a plastic tube and riffle split into two sample bags. One of the samples is prepared for laboratory and the other is retained for repeat analysis, process studies and QA/QC purposes. The sample splitter and vacuum tube are cleaned regularly to prevent sample contamination.

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Drilled samples for each 1 m interval were also placed into chip trays which were photographed to provide a permanent record of the downhole lithology. Detailed visual assessment and logging of sample recovery are provided in the drill logs. The first metre of all the drill holes is mainly the humus layer and, as such, not assayed.

The sample assays will determine the major and trace elements such as SiO2 (%), Fe2O3 (%), Al2O3 (%), CaO (%) MgO (%), K2O (%), TiO2 (%) and LOI (%). Major and trace elements in exception to SiO2 will be analysed using a four-acid digest followed by Inductively Coupled Plasma Optical (Atomic) Emission Spectrometry (ICP-OES) analysis. Loss on Ignition (LOI) at 10000C will be analysed by Thermal Gravimetric Analyser. SiO2 will be back calculated by subtracting all ICP major and trace elements plus LOI from 100%.

A total of 1,088 samples have been transported to Intertek Genalysis Laboratories, with results expected in January 2022.

Figure 4: Vacuum drilling line 5

Studies

A number of studies have been commissioned by Carbine to further progress the Muchea West Project and to advance towards a Mining Licence application.

Drill lines 1 and 2 (Figure 3) are spaced close enough for the sample results to be used to complete a Mineral Resource Estimate (MRE) within the JORC 2012 guidelines.

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