onlyASX Code: ESS
Corporate Profile
Shares on issue: 246,487,425
Listed Options: 20,720,729
($0.15 exercise: 30/11/22 expiry)
Cash: $10.5m (30 Jun 2022) useD bt: Nil
KEY PROJECTS
LITHIUM Pioneer Dome
GOLD Golden Ridge
GOLD Juglah Dome
personalJoint Ventures (ESS %)
2 x nickel projects (20-25%)*
4 x gold projects (25-30%)*
* Free carried to a decision to mine
Corporate Directory
N n-Executive Chairman
Craig McGown
Non-Executive Directors
Paul Payne
Warren Hallam
Managing Director
Timothy Spencer
CFO & Company Secretary
Carl Travaglini
Ex loration Manager
Andrew Dunn
ForInvestor Relations Nich las Read Read Corporate t: +61 8 9388 1474
e: nicholas@readcorporate.com.au
ABN: 44 103 423 981
t: +61 8 9322 6974
- info@essmetals.com.au
- essmetals.com.au
Level 3, 1292 Hay St
West Perth, WA 6005
Australia
PO Box 1787,
West Perth, WA 6872
Australia
29 July 2022
JUNE 2022 QUARTERLY REPORT
Outstanding high grade lithium drill results from shallow Resource drilling enhance the potential economics of the Dome North lithium Resource
HIGHLIGHTS
-
Pioneer Dome Lithium Project, WA: Key operational activities during the Quarter were:
o Assays were received for samples from the diamond core drill (DD) programme aimed at improving the quality and confidence of the lithium Mineral Resource Estimate (MRE) with excellent high-grade intersections recorded, such as: - Cade Deposit:
- 19.2m @ 1.44% Li2O from 15m (PDD596)
- 9.6m @ 1.42% Li2O from 14.4m (PDD598)
- 23.7m @ 1.26% Li2O from 3.6m (PDD599)
- 18.9m @ 1.24% Li2O from 21.1m (PDD600)
- 14.7m @ 0.90% Li2O from 11.6m (PDD595)
- Davy Deposit:
- 31.95m @ 1.24% Li2O from 45.4m (PDD601)
- 17m @ 1.32% Li2O from 97.1m (PDD605)
- 18.7m @ 1.05% Li2O from 17m (PDD603)
- 11.1m @ 1.70% Li2O from 99.2m (PDD604)
- Three composite samples were selected to represent the upper zone of the Cade deposit, the upper zone of the Davy deposit and the fresh rock zone of the Davy deposit for metallurgical test work, complementing the successful test work already completed on the fresh rock zone of the Cade deposit.
- The Company continued to implement its development-ready strategy to be underpinned by preparation of a scoping study in the December quarter.
- Closing cash on hand as at 30 June 2022 was $10.5 million.
- Corporate: An unsolicited, confidential, non-binding indicative takeover proposal was received in April from a credible lithium industry participant to acquire 100% of the issued capital of Essential by way of an off-market takeover, however it was subsequently withdrawn in light of the upward trajectory in the trading price of Essential shares around that time.
Page 1 of 26
PIONEER DOME LITHIUM PROJECT
The Pioneer Dome Project (ESS: 100%) is located in the heart of Western Australia's lithium corridor in onlythe Eastern Goldfields, approximately 130km south of Kalgoorlie and 275km north of the Port of Esperance. A Mineral Resource of 11.2Mt @ 1.21% Li2O1 has been defined at Dome North in the
northern area of the Project.
The southern Yilgarn area is recognised as being well-endowed with spodumene deposits, including the Bald Hill Mine, the Mt Marion Mine and the Buldania Project. The world-class Greenbushes Deposit, the Mt Holland Mine and the Mt Cattlin Mine are located further west, south-west and south- south-west, respectively.
For personal use
Dome North lithium MRE
Figure 1 - The location of the tenements of the Pioneer Dome Lithium Project relative to major infrastructure.
1 Refer ASX:ESS announcement 29 September 2020 - Dome North Resource upgrade
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DOME NORTH SHALLOW DIAMOND DRILL PROGRAMME
Assays for the 13-hole (909m) diamond drilling (DD) programme conducted in the previous quarter were received in this Quarter. The two main objectives of this drilling were:
only | 1. Increase the confidence in the current Dome North Lithium Mineral Resource Estimate (MRE) by | ||||||
converting a large part of the Davy deposit and areas across the upper zone of the Cade deposit from | |||||||
the Inferred to Indicated Resource categories by in-fill drilling, measuring the bulk densities and | |||||||
completing metallurgical test work. | |||||||
2. Conduct confirmatory metallurgical test work to determine lithium recoverability with a focus on the | |||||||
use | upper zone in Cade and the Davy deposit as well as the fresh rock zone in the Davy deposit. | ||||||
By the end of the Quarter, the drill core had been sampled and despatched to Nagrom Laboratories for | |||||||
sample preparation and compositing into three representative samples (Cade Oxide, Davy Oxide, Davy Fresh) | |||||||
in preparation for the metallurgical test work. The results are expected in September. | |||||||
personal | |||||||
Heller | |||||||
Cade | |||||||
For | Davy | ||||||
Figure 2 - Plan view of the Dome North area with the diamond holes shown as green circles. |
The DD programme consisted of six holes drilled into the upper ~40m of the Cade Deposit and seven holes drilled into the Davy Deposit for a total of 909 metres (Figure 2).
Page 3 of 26
At Cade, observations of the drill core indicated that, while the metasediment (host rock) was strongly weathered, the upper portion of the pegmatite had visual spodumene with minimal weathering and the lower portion of the pegmatite was weakly to moderately weathered depending on the fracture density.2
Assay results mostly confirmed visual observations and the results from previous deeper drilling. All the holes drilled at Cade contained significant intersections:
only | • 19.2m | @ 1.44% Li2O from 15m (PDD596) | ||||||||||||||
• | 2.7m @ 2.28% Li2O from 51m (PDD596) | |||||||||||||||
• 10m @ 1.13% Li2O from 18.5m (PDD597) | ||||||||||||||||
use | • 9.6m @ 1.42% Li2O from 14.4m (PDD598) | |||||||||||||||
• 23.7m | @ 1.26% Li2O from 3.6m (PDD599) | |||||||||||||||
• 18.9m | @ 1.24% Li2O from 21.1m (PDD600) | |||||||||||||||
• 5.5m @ 1.19% Li2O from 46.8m (PDD600) | ||||||||||||||||
• | 14.7m | @ 0.90% Li2O from 11.6m (PDD595) | ||||||||||||||
personal | ||||||||||||||||
14.7m@0.90% Li2O | 9.6m@1.42% Li2O | |||||||||||||||
18.9m@1.24% Li2O | 23.7m@1.26% Li2O | |||||||||||||||
19.2m@1.44% Li2O | ||||||||||||||||
For | 10m@1.13% Li2O | |||||||||||||||
Figure 3 - Long-section of the Cade deposit with previous drilling (thin black traces), completed HQ3 diamond drilling (thick | ||||||||||||||||
green traces) with lithium intersections and Lithium (Li2O) Mineral Resource Estimate (coloured by grade as per the legend).
Seven diamond drill holes totalling 547.65m were drilled at Davy. The four holes drilled above fresh rock (PDD601 to 603 and PDD607) had weakly to strongly weathered pegmatite hosted in weathered ultramafic lithology. The three holes drilled into fresh rock (PDD604 to 606) intersected pegmatite with fine to coarse spodumene and minor lepidolite.
2 Refer to ASX announcement dated 25 February 2022 "Pioneer Dome Lithium Project update - amended"
Page 4 of 26
Assay results largely confirmed the observations from the drill core with some changes to the interpretation of the pegmatite and mineralisation. Holes PDD601, PDD602, PDD603 and PDD607 indicate a steepening of
the pegmatite, particularly near surface, such that PDD602 only intersected the wall zone of the pegmatite | ||||||||||||||||||||||||||||||
that was not significantly mineralised. Intersections in the strongly weathered pegmatite areas (within 15m | ||||||||||||||||||||||||||||||
only | ||||||||||||||||||||||||||||||
of surface) appear to be significantly depleted in lithium compared to those deeper in the weathered zone. | ||||||||||||||||||||||||||||||
use | ||||||||||||||||||||||||||||||
1m@0.88% Li2O | ||||||||||||||||||||||||||||||
11.6m@0.82% Li2O | ||||||||||||||||||||||||||||||
personal | 31.95m@1.24% Li2O | |||||||||||||||||||||||||||||
17m@1.32% Li2O | ||||||||||||||||||||||||||||||
11.1m@ 1.70% Li2O | ||||||||||||||||||||||||||||||
18.7m@ 1.05% Li2O | ||||||||||||||||||||||||||||||
Figure 4 - Long-section of the Davy deposit with previous drilling (thin black traces), completed HQ3 diamond drilling (thick | ||||||||||||||||||||||||||||||
green traces) with lithium intersections and Lithium (Li2O) Mineral Resource Estimate (coloured by grade as per the legend). | ||||||||||||||||||||||||||||||
Table 1 - Highlighted lithium intersections | ||||||||||||||||||||||||||||||
For | Area | Hole_ID | From | To (m) | Width | Li2O% | ||||||||||||||||||||||||
(m) | (m) | |||||||||||||||||||||||||||||
Cade | PDD595 | 11.6 | 26.3 | 14.7 | 0.90 | |||||||||||||||||||||||||
Cade | PDD596 | 15 | 34.2 | 19.2 | 1.44 | |||||||||||||||||||||||||
Cade | PDD596 | 51 | 53.7 | 2.7 | 2.28 | |||||||||||||||||||||||||
Cade | PDD597 | 18.5 | 28.5 | 10 | 1.13 | |||||||||||||||||||||||||
Cade | PDD598 | 14.4 | 24 | 9.6 | 1.42 | |||||||||||||||||||||||||
Cade | PDD599 | 3.6 | 27.3 | 23.7 | 1.26 | |||||||||||||||||||||||||
Cade | PDD600 | 21.1 | 40 | 18.9 | 1.24 | |||||||||||||||||||||||||
Cade | PDD600 | 46.8 | 52.3 | 5.5 | 1.19 | |||||||||||||||||||||||||
Davy | PDD601 | 45.4 | 77.35 | 31.95 | 1.24 | |||||||||||||||||||||||||
Davy | PDD603 | 17 | 35.7 | 18.7 | 1.05 | |||||||||||||||||||||||||
Davy | PDD604 | 99.2 | 110.3 | 11.1 | 1.70 | |||||||||||||||||||||||||
Davy | PDD605 | 97.1 | 114.1 | 17 | 1.32 | |||||||||||||||||||||||||
Davy | PDD606 | 72.6 | 84.2 | 11.6 | 0.82 |
Page 5 of 26
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Essential Metals Ltd. published this content on 28 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 July 2022 22:03:12 UTC.