Mt Monger Resources : Key Tenement Secured at Ravensthorpe

ASX Announcement

ASX:MTM

22 April 2022

KEY TENEMENT SECURED AT RAVENSTHORPE PROJECT FOR NICKEL AND LITHIUM EXPLORATION

Highlights:

•  Important tenement application secured in the centre of the Young River prospect

•  Area contains ultramafic rocks interpreted to be the continuation of the Lake Johnston greenstone belt

•  Known nickel mineralisation including the Boanaernup nickel laterite deposit, where historic result includes:

  • o ~9.1m @ >1% Ni and 0.11% Co from ~21.3m depth

•  Limited historical work exploring for nickel sulphides

•  Lithium, graphite and REE potential untested by previous exploration

Mt Monger Resources Ltd (ASX:MTM, Mt Monger or the Company) has secured a key piece of ground at the Company's Ravensthorpe Project. Exploration licence application E74/727 is located over several known mineralised prospects in the Young River area and is completely surrounded by the Company's other tenements (refer Figure 1 below). The Company now controls an area over 1,600km2 in the Ravensthorpe district.

The new tenement contains two high priority nickel sulphide exploration areas known as the Young River Nickel Prospect and the Boanaernup Nickel Laterite Deposit. The ground is also prospective for lithium, graphite and rare earth elements (REE) but has never been systematically explored for these commodities. Regarding the new tenement, Managing Director Lachlan Reynolds commented:

"Following our recent acquisition of multi-element battery metal projects in the Ravensthorpe region, we identified that this key tenement area would be an important addition to our ground position.

Historical exploration has identified ultramafic rocks on the ground that we interpret to be the southern continuation of the Lake Johnston greenstone belt. Lateritic nickel has been discovered in the area and we intend to advance a program of exploration for nickel sulphides. In addition, we have recognised the whole area is prospective for lithium-bearing pegmatites and ionic clay-hosted rare earth element deposits and we now have an excellent opportunity to undertake a comprehensive search for these deposits.

We are now busy compiling the exploration information that is available for the new exploration licence application and the surrounding tenements and planning for fieldwork to confirm and extend the historical results from the area."

Mt Monger Resources Limited (ABN 27 645 885 463)

Suite 2, 38 Colin Street, West Perth, 6005, Australia

P: [phone], E:[e-mail]

Figure 1: Project location map showing current Mt Monger tenement locations and new E74/727 licence application in the centre of the Young River tenement block.

Figure 2: Regional structural interpretation of the Ravensthorpe Project based on aeromagnetic data (modified from Hronsky, 2013). Thick yellow lines represent major structural domain boundaries within the Albany-Fraser Orogen. Purple dashed lines are interpreted Archaean Komatiite belts (with associated iron formations). Green line is a major domain boundary that is spatially coincident with the Halberts shear zone that hosts graphite mineralisation.

The Ravensthorpe project areas are located within the Albany-Fraser Orogen of Western Australia, between the regional towns of Esperance, Ravensthorpe and Jerramungup (Figure 1). Regionally, the basement rocks in the area are referred to as the Munglinup Gneiss (Figure 2), a complex package of Archean rocks including granites and greenstone remnants that have been strongly overprinted by later Proterozoic deformation and metamorphism.

NICKEL POTENTIAL

Mt Monger considers the Young River area to contain high-priority nickel sulphide targets. The tenements are situated on the interpreted southern extension of the Lake Johnston Greenstone Belt (Figure 2), which contains the Poseidon Nickel Ltd (ASX:POS) Maggie Hays and Emily Ann nickel sulphide deposits, located approximately 150km to the north of the tenement block.

In 2013, Lithex Resources Ltd commissioned a review of the area's nickel potential by Western Mining Services Pty Ltd (see Lithex Resources ASX announcement dated 9 September 2013). The review, completed by Dr Jon Hronsky concluded that, on a regional scale, the Young River tenements host a significant strike length of prospective ultramafic rocks that have received little or no effective previous exploration for nickel sulphide mineralisation (Hronsky, 2013).

The new application area includes extensive areas of mafic and ultramafic rocks that have been defined by previous exploration. Within these areas, Mt Monger has identified prospective nickel-cobalt and nickel targets at Boanaernup and Young River (Figure 3). Neither of these areas have been subjected to detailed electromagnetic (EM) surveys and they require follow-up exploration for nickel sulphides.

Figure 3: Location of E74/727 within the Company's tenement group at Young River, showing known mineralised prospect areas on aeromagnetic image (TMI, RTP source GSWA).

Boanaernup Nickel Deposit

The Boanaernup lateritic nickel-cobalt deposit (Figure 3) was discovered in 1970 by Central Pacific Minerals NL (Best, 1971). An exploration program comprising surface geochemical sampling, induced polarisation, ground magnetics and rotary percussion drilling was completed in a relatively small area of strong, near-surface nickel mineralisation (Figure 4). The drilling program included 37 holes for a total of 3,800ft (approximately 1,160m) (Appendix II). 760 samples were taken for geochemical assay over 5ft (~1.5m) intervals and assayed for copper, nickel, zinc, lead, cobalt and silver (Appendix III).

Nickel mineralisation, tested to a maximum detection level of 1% Ni, was returned for several intervals, with the best result of:

Hole BPH22, 30ft (~9.1m) @ >1% Ni and 0.11% Co from 70ft (~21.3m) depth

Narrower intervals of nickel mineralisation were intersected in holes surrounding BPH22, with other notable results including:

Hole BPH21, 5ft (~1.5m) @ >1% Ni from 65ft (~19.8m) depth

Hole BPH25, 5ft (~1.5m) @ >1% Ni and 0.03% Co from 80ft (~24.4m) depth Hole BPH26, 5ft (~1.5m) @ 0.83% Ni from 60ft (~18.3m) depth

Hole BPH27, 10ft (~3m) @ >1% Ni and 0.06% Co from 85ft (~25.9m) depth

The Company has identified that the prospective Boanaernup ultramafic rocks may lie within a regional antiformal or dome structure and that a potential target zone for additional nickel-cobalt nickel laterite mineralisation occurs along about 4km of strike length extending to the northeast. This zone has not been tested with drilling, nor assessed for sulphide nickel mineralisation.

Figure 4: Drill hole collar locations at the Boanaernup Laterite Nickel Deposit showing interpreted domal structure and possible strike extensions of mineralisation to the northeast (TMI RTP aeromagnetic image, source GSWA).

Young River Nickel Prospect

Immediately to the north of the Boanaernup nickel deposit, the Company has identified an extensive area of magnetic anomalism, where sub-cropping ultramafic rocks with elevated nickel in soil and "boxwork" gossan assays are reported at the Young River nickel prospect.

Previous exploration programs within this prospective zone include regional stream sediment sampling, surface rock chip and soil sampling programs and ground magnetics (Pickands Mather and Company International, 1967). The ultramafic rocks are described as "continuous and elongated in a generally northerly direction over a distance of two to three miles (approximately 3 to 5km) and are 300 to 2,500 feet in width (approximately 90 to 760m). Overlying the ultramafics are remnant caps of laterite, similar to the nickeliferous laterites of Bandulup Creek in the Ravensthorpe district".

Detailed geological mapping carried out by Pickands Mather outlined extensive areas of typical lateritic weathering, including nickel-bearing laterite across ultramafic subcrop areas (Figure 5). The potential for sulphide nickel at this prospect has not been followed-up and no drilling has been completed.

Figure 5: Mapped extent of ultramafic subcrop and gossan textures at the Young River nickel prospect shown on aeromagnetic image (TMI, RTP source GSWA).