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Allkem - Mt Cattlin Resource Drilling Update

October 4, 2022 9:31 PM EDT

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BRISBANE, Australia, Oct. 05, 2022 (GLOBE NEWSWIRE) -- Allkem Limited (ASX|TSX: AKE, the Company) is pleased to provide an update on the resource extension drilling program currently underway at its Mt Cattlin spodumene operation in Western Australia.

The drilling program consists of three phases as described below:

Phase 1 – drilling within the US$900 2NW pit shell converting resource to reserve (planned 49 holes, 11,120 metres). Underway – ~77% complete.

Phase 2 – drilling to the north and down dip of the US$900 2NW pit shell to test resource extensions outside of the US$900 2NW pit (planned 80 holes, 19,125 metres) and within the US$1,100 pit shell. Underway – ~55% complete.

Phase 3 – drilling in the SW of the mine tenements to test additional targets and prospects (18 holes, 2,440 metres). To be undertaken in late 2022/early 2023.

HIGHLIGHTS

  • Phase 1 drilling is targeting to convert 3.2Mt of Resource to Reserves. Intercepts within this pit include high grade zones with large thicknesses such as 12m at 2.46% Li2O and 15m at 1.91% Li2O
  • Phase 2 drilling and assay results demonstrate resource extension potential to the north of the current pit with high grade intercepts in the lower pegmatite, including 9m at 2.98% Li2O and 7m at 1.86% Li2O
  • Phase 1 and 2 drilling at 2NW pit is on target for completion by end of October and a consultant has been engaged to immediately commence a study to convert mineral resources to Ore Reserves for scheduling, mine planning and detailed pit design
  • Mt Cattlin’s Mineral Resource tonnage recently increased 21% to 13.3Mt @ 1.2% Li2O and 131 ppm Ta2O5

INTERIM DRILLING RESULTS

Allkem commenced a three-phase resource extension program in mid-April that targets 147 holes for approximately 32,685 metres of reverse circulation (“RC”) drilling.

As of 14 September, 81 holes drilled for a total of 19,177 metres were complete and assay results for 47 drillholes were available.

Highlights from the assays of the upper pegmatite include:

DrillholeFrom(m)To(m)Thickness(m)Li2O%Ta2O5ppm
NWRC186818981.41105
NWRC204879581.59128
NWRC2117991122.4653
NWRC21286101151.9172
NWRC23889105161.7392
NWRC24199112131.51115

All significant assays are tabulated in the appendix.

Image 1

Figure 1: Intercepts to the north of the US$1,100 whittle shell show potential for mineral resource expansion.

Highlights from the lower pegmatite include:

Drillhole    From(m)    To(m)   Thickness(m)    Li20%   Ta2O5ppm
NWRC128215227121.91218
NWRC12921322291.43177
NWRC13123724581.85176
NWRC13720321291.59286
NWRC138A239249101.69247
NWRC147191201101.16128
NWRC154189199101.01124
NWRC15620221191.39434
NWRC15822022990.9873
NWRC16419220190.7636
NWRC175228239112.15126
NWRC176232243110.97175
NWRC179179191121.66608
NWRC186181193121.3593
NWRC188209221121.3499
NWRC190216228121.66261
NWRC191216226101.94171
NWRC192229239102.08378
NWRC197204216121.3279
NWRC20023224192.98414
NWRC202246257111.01483
NWRC203166177111.92164
NWRC242221231101.76281

Pegmatite mineralisation to this point generally aligns with the existing geological model and of those assays returned to date and lithia (Li2O) content is consistent with historic (pre-2022) assays in the North West pit area of Mt Cattlin. Given the tendency for “pinch and swell” in pegmatite mineralisation, definitive conclusions are not possible at this stage, however geological logging and assay results to date are highly encouraging.

A typical cross section at northing 224160E (MGA 94) in Figure 1 shows ongoing thick pegmatite development down dip from the US$650 (Ore Reserve) pit shell and the USD 1,100 Whittle shell.

All drill hole collars for assay results are presented in Figure 2 and Appendix: Table 1.

Given the executed orientation of the drilling, assay intercepts reported are broadly true width.

Image 2

Figure 2: Drilling progress as of 14 September 2022 and location relative to USD 1,100 pit shell and current NW pit design and cut-back.

Next steps

The Phase 1 resource infill program at 2NW pit is on target for completion by the end of October and Perth based consultants Entech have been appointed to project manage an open pit, cut-back feasibility level study and execution.

Planning is underway for follow-up reverse circulation and diamond drilling, for the purposes of extension, geotechnical and metallurgical studies.

The study is anticipated to commence in October and aims to convert in-situ mineral resources (as announced on 25 August 2022) to Ore Reserves for scheduling, mine planning and detailed pit design in a NW pit.

Additionally, a scoping study continues to evaluate the potential for either opencut or underground development of further resource extensions from Phase 2 drilling.

On completion of the drilling at the NW pit, the focus will shift to Phase 3 and further definition in the SW part of the reasonable prospects of eventual economic extraction (RPEEE) footprint and lead to programs that test pegmatite continuity in areas previously not included in resource and mineral resource modelling. These programs will continue towards the end of the year and extend onto exploration leases as conditions and permitting allows.

This release was authorised by Mr Martin Perez de Solay, CEO and Managing Director of Allkem Limited.

 Allkem LimitedABN 31 112 589 910 Level 35, 71 Eagle StBrisbane, QLD 4000Investor Relations & Media EnquiriesAndrew Barber M: +61 418 783 701 E: [email protected]Phoebe LeeP: +61 7 3064 3600 E: [email protected]Connect [email protected]+61 7 3064 3600www.allkem.co
          

IMPORTANT NOTICES

This investor ASX/TSX release (Release) has been prepared by Allkem Limited (ACN 112 589 910) (the Company or Allkem). It contains general information about the Company as at the date of this Release. The information in this Release should not be considered to be comprehensive or to comprise all of the material which a shareholder or potential investor in the Company may require in order to determine whether to deal in Shares of Allkem. The information in this Release is of a general nature only and does not purport to be complete. It should be read in conjunction with the Company’s periodic and continuous disclosure announcements which are available at allkem.co and with the Australian Securities Exchange (ASX) announcements, which are available at www.asx.com.au.

This Release does not take into account the financial situation, investment objectives, tax situation or particular needs of any person and nothing contained in this Release constitutes investment, legal, tax, accounting or other advice, nor does it contain all the information which would be required in a disclosure document or prospectus prepared in accordance with the requirements of the Corporations Act 2001 (Cth) (Corporations Act). Readers or recipients of this Release should, before making any decisions in relation to their investment or potential investment in the Company, consider the appropriateness of the information having regard to their own individual investment objectives and financial situation and seek their own professional investment, legal, taxation and accounting advice appropriate to their particular circumstances.

This Release does not constitute or form part of any offer, invitation, solicitation or recommendation to acquire, purchase, subscribe for, sell or otherwise dispose of, or issue, any Shares or any other financial product. Further, this Release does not constitute financial product, investment advice (nor tax, accounting or legal advice) or recommendation, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision.

The distribution of this Release in other jurisdictions outside Australia may also be restricted by law and any restrictions should be observed. Any failure to comply with such restrictions may constitute a violation of applicable securities laws.

Past performance information given in this Release is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance.

Forward Looking Statements

Forward-looking statements are based on current expectations and beliefs and, by their nature, are subject to a number of known and unknown risks and uncertainties that could cause the actual results, performances and achievements to differ materially from any expected future results, performances or achievements expressed or implied by such forward-looking statements, including but not limited to, the risk of further changes in government regulations, policies or legislation; the risks associated with the continued implementation of the merger between the Company and Galaxy Resources Ltd, risks that further funding may be required, but unavailable, for the ongoing development of the Company’s projects; fluctuations or decreases in commodity prices; uncertainty in the estimation, economic viability, recoverability and processing of mineral resources; risks associated with development of the Company Projects; unexpected capital or operating cost increases; uncertainty of meeting anticipated program milestones at the Company’s Projects; risks associated with investment in publicly listed companies, such as the Company; and risks associated with general economic conditions.

Subject to any continuing obligation under applicable law or relevant listing rules of the ASX, the Company disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements in this Release to reflect any change in expectations in relation to any forward-looking statements or any change in events, conditions or circumstances on which any such statements are based. Nothing in this Release shall under any circumstances (including by reason of this Release remaining available and not being superseded or replaced by any other Release or publication with respect to the subject matter of this Release), create an implication that there has been no change in the affairs of the Company since the date of this Release.

Competent Person Statement

The information in this announcement that relates to Exploration Results and Mineral Resources is based on information compiled by Albert Thamm, B.Sc. (Hons)., M.Sc. F.Aus.IMM, a Competent Person who is a Fellow of The Australasian Institute of Mining and Metallurgy. Albert Thamm is a full-time employee of Galaxy Resources Pty. Limited. Albert Thamm has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Albert Thamm consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

Any information in this announcement that relates to Mt Cattlin’s Mineral Resources and Reserves is extracted from the report entitled “Mt Cattlin Resource, Reserve and Operations Update” released on 25 August 2022 which is available to view on www.allkem.co and www.asx.com.au. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and that all material assumptions and technical parameters underpinning the Mineral Resources estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

Not for release or distribution in the United States

This announcement has been prepared for publication in Australia and may not be released to U.S. wire services or distributed in the United States. This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or any other jurisdiction, and neither this announcement or anything attached to this announcement shall form the basis of any contract or commitment. Any securities described in this announcement have not been, and will not be, registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States except in transactions registered under the U.S. Securities Act of 1933 or exempt from, or not subject to, the registration of the U.S. Securities Act of 1933 and applicable U.S. state securities laws.

APPENDIX 1 – DRILL HOLE INFORMATION AND ASSAY RESULTS

Table 1: Drill hole collar and orientation as surveyed

Hole IDTYPEMGA94 Z51EastMGA94 Z51NorthRLDepthDipMGA94 Z51Azimuth
NWRC116RC2237586282275269255-70180
NWRC117RC2237616282420270300-56180
NWRC118RC2237596282450270285-69181
NWRC120RC2237966282216269209-70180
NWRC121RC2237996282279269250-71180
NWRC122RC2238006282430270270-63180
NWRC123RC2237966282471270270-73180
NWRC125RC2238326282239268236-70180
NWRC126RC2238356282278268235-70180
NWRC128RC2238506282375271250-70180
NWRC129RC2238396282415270260-67180
NWRC130RC2238406282440270260-70180
NWRC131RC2238406282471270260-72180
NWRC132RC2238416282520270260-88182
NWRC134RC2238286282657269290-76175
NWRC137RC2238816282375270252-87180
NWRC138ARC2238846282478270260-71184
NWRC142RC2238786282650267285-76181
NWRC147RC2239206282378269228-77180
NWRC148RC2239196282441270180-80180
NWRC149RC2239156282485270218-70180
NWRC151RC2239166282639268270-71180
NWRC153RC2239796282241266205-70180
NWRC154RC2239726282320268205-70191
NWRC155RC2239696282360269215-70188
NWRC156RC2239686282400269225-70188
NWRC157RC2239646282440270240-69184
NWRC158RC2239646282480270240-70184
NWRC162RC2239566282676266265-70180
NWRC164RC2240066282400270350-70183
NWRC165RC2240056282440270234-70184
NWRC166RC2240056282480270168-70184
NWRC167RC2240186282548270228-72195
NWRC168RC2240226282587269255-73197
NWRC170RC2239976282678267228-70180
NWRC171RC2239986282718264275-70180
NWRC172RC2240606282362255195-80218
NWRC174RC2240406282561269246-71180
NWRC175RC2240386282602269250-70180
NWRC176RC2240356282638268255-69180
NWRC179RC2240806282435255210-71180
NWRC181RC2240766282559269235-70180
NWRC182RC2240786282603268210-70180
NWRC186RC2241206282436255210-70180
NWRC188RC2241196282520269225-71180
NWRC189RC2241146282599268234-71174
NWRC190RC2241116282633268240-72171
NWRC191RC2241376282669265250-70180
NWRC192RC2241216282719264255-70180
NWRC195RC2241426282517262230-71168
NWRC196RC2241596282562262235-70180
NWRC197RC2241606282602267234-70180
NWRC198RC2241606282640265246-82180
NWRC199RC224160628266226571-70180
NWRC200RC2241596282758264270-70180
NWRC201RC2241596282798264275-70180
NWRC202RC2241676282838264285-70187
NWRC203RC2242016282395255186-70180
NWRC204RC2242006282434255192-70180
NWRC205RC2241956282477262215-70180
NWRC207RC2241966282650266246-63181
NWRC208RC2242006282717262245-70180
NWRC209RC2241936282773264264-67176
NWRC210RC2241986282798264264-70180
NWRC211RC2242406282394255186-70180
NWRC212RC2242416282435255186-70180
NWRC213RC2242346282477262220-71180
NWRC214RC2242376282519262153-70180
NWRC215RC2242416282557262230-69180
NWRC216RC2242406282599264224-70180
NWRC219RC2242316282743260260-70180
NWRC220RC2242396282757259250-70180
NWRC224RC2243046282656246225-61194
NWRC225RC2243056282672247235-70204
NWRC227RC2242826282794255260-61180
NWRC233RC2243136282674247225-68173
NWRC234RC2243216282714249220-83180
NWRC238RC2243606282547235300-73180
NWRC240RC2243606282753249220-62180
NWRC241RC2244006282628235144-86180
NWRC242RC2241596282702264250-75180

All significant intercepts with a minimum cut-off 0.4% Li2O%; minimum 4m interval; maximum 2m of internal waste are presented separately in Tables 2 and 3 below.

Table 2: Significant intercepts - upper pegmatite body (61)

DrillholeFrom (m)To (m)MetresLi2O%Ta2O5ppmPegmatite Body
NWRC12815716141.277861
NWRC13118318850.9610061
NWRC14713013660.828561
NWRC15411512051.2814661
NWRC15512112541.595761
NWRC15613814241.1410761
NWRC15714615040.915861
NWRC16411812241.38361
NWRC172758271.549361
NWRC17415015550.933861
NWRC17516216640.867761
NWRC179838851.7418261
NWRC186818981.4110561
NWRC18812212641.57361
NWRC19013814240.9711061
NWRC20018519271.123161
NWRC20119420061.3935261
NWRC203778251.119461
NWRC204879581.5912861
NWRC2117991122.465361
NWRC21286101151.917261
NWRC21612913340.4711361
NWRC23889105161.739261
NWRC24199112131.5111561

                                                

Table 3: Significant intercepts - lower pegmatite body (62). Minimum cut-off 0.4% Li2O%; minimum 4m interval; maximum 2m of internal waste

DrillholeFrom (m)To (m)MetresLi2O%Ta2O5ppmPegmatite Body
NWRC12223624040.957762
NWRC12324925341.337762
NWRC128215227121.9121862
NWRC12921322291.4317762
NWRC13123724581.8517662
NWRC13720321291.5928662
NWRC138A239249101.6924762
NWRC147191201101.1612862
NWRC15316116650.8114862
NWRC154189199101.0112462
NWRC15519119760.4512662
NWRC15620221191.3943462
NWRC15822022990.987362
NWRC16419220190.763662
NWRC17216817460.8814362
NWRC175228239112.1512662
NWRC176232243110.9717562
NWRC179179191121.6660862
NWRC186181193121.359362
NWRC188209221121.349962
NWRC18921421841.558062
NWRC190216228121.6626162
NWRC191216226101.9417162
NWRC192229239102.0837862
NWRC197204216121.327962
NWRC20023224192.9841462
NWRC20124325071.8645762
NWRC202246257111.0148362
NWRC203166177111.9216462
NWRC20924124540.9313362
NWRC21117317740.6110362
NWRC21621421840.478562
NWRC242221231101.7628162

APPENDIX 2 – RESOURCE AND RESERVE TABLES

Mt Cattlin Mineral Resource at 30 June 2022

CategoryTonnageGradeGradeContained metalContained metalNet Variance to2021 Statement
Mt% Li2Oppm Ta2O5(‘000) t Li2Olbs Ta2O5%
MeasuredIn-situ------100%
IndicatedIn-situ4.51.3135591,339,000-6%
 Stockpiles2.40.812219646,000-20%
InferredIn-situ6.41.3131831,850,000121%
Total 13.31.21311613,835,00021%

Notes: Reported at cut-off grade of 0.4% Li2O contained within a pit shell generated at a spodumene price of USD1,100 at 6% Li20. The preceding statements of Mineral Resources conforms to the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) 2012 edition. All tonnages reported are dry metric tonnes. Excludes mineralisation classified as oxide and transitional. Minor discrepancies may occur due to rounding to appropriate significant figures. RPEEE is defined as reasonable prospects for eventual economic evaluation.

Mt Cattlin Ore Reserve at 30 June 2022

CategoryTonnage MtGrade% Li2OGradeppm Ta2O5Contained metal(‘000) t Li2OContained metallbs Ta2O5Variance to 2021 %
Proven-----%-100%
Probable2NW only3.31.1210537.0764,000-30%
 Stockpiles2.40.8012219.0646,000-20%
Total5.80.9811356.01,410,000-28%

Notes: Reported at cut-off grade of 0.4% Li2O within current mine design. The preceding statements of Ore Reserves conforms to the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) 2012 edition. All tonnages reported are dry metric tonnes. Reported with 17% dilution and 93% mining recovery. Revenue factor US$650/tonne applied. Minor discrepancies may occur due to rounding to appropriate significant figures.

APPENDIX 3 – JORC 2012 TABLE 1 DISCLOSURE

Section 1: Sampling Techniques and Data

MT CATTLIN LITHIUM PROJECT SAMPLING AND DATA
Sampling techniquesNature and quality of sampling (e.g. cut channels, random chips, or specific specialized industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling. Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. Aspects of the determination of mineralization that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverized to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralization types (e.g. submarine nodules) may warrant disclosure of detailed information.Pre-2017 Mt Catlin mineralization was sampled using a mixture of Diamond (DD) Reverse Circulation drill holes (RC), rotary Air Blast (RAB) and Open Hole (OH). In the north zone drilling is a 40mE x 40mN spacing and infilled to 20mE to 25mE x 20mN to 20mN in the central zone. In the south the drilling is on a 40mE x 80mN pattern. Drill holes were drilled vertical to intersect true thickness of the spodumene mineralization.A total of 39 DD holes for 1,528.56m, 986 RC holes for 48,763m, 59 OH holes for 1,999m and 23 RAB for 402m had been completed before 2017.The drill-hole collars were surveyed by professional survey contractors. A total of 71 drill holes were surveyed by Surtron Technologies Australia of Welshpool in 2010. Sampling was carried out under Galaxy Resources QAQC protocols and as per industry best practice.RC sample returns were closely monitored, managed and recorded. Drill samples were logged for lithology and SG measurements. Diamond HQ and PQ core was quarter-cored to sample lengths relating to the geological boundaries, but not exceeding 1m on average. RC samples were composited from 1m drill samples split using a two-stage riffle splitter 25/75 to obtain 2kg to 4kg of sample for sample preparation. All samples were dried, crushed, pulverized and split to produce a 3.5kg and then 200g sub-sample for analysis For Li (method AAS40Q), for Ta, Nb and Sn (method XRF78O) and in some cases for SiO2, Al2O3, CaO, Cr2O3, Fe2O3, K2O3, MgO, MnO, P2O5, SO3, TiO2 and V2O5 were analysed by XRF78O. Entire drill-hole lengths were submitted for assay.Drilling 2017-8 From 1m of drilling and sampling, two 12.5% splits are taken by a static cone splitter in calico drawstring bags. This obtains two 2kg to 4kg samples with one being retained as an archive sample and the other submitted for assay, where required an archive bag is used as the duplicate sample.A 4.5-inch diameter rod string is used and the cyclone is cleaned at the end of every 6m rod as caking occurs from the mandatory use of dust suppression equipment.Drilling November 2018 – 2021 Subsequent to 2018 update, 5,912m (41 holes)m of new reverse circulation (RC) and 273.65 of diamond tails (2 holes) has been completed (excluding metallurgical and geotechnical) has taken place.From 1m of drilling and sampling, two 12.5% splits are taken by a static cone splitter in calico drawstring bags. This obtains two 2kg to 4kg samples with one being retained as an archive sample and the other submitted for assay, where required an archive bag is used as the duplicate sample.A 4.5-inch diameter rod string is used and the cyclone is cleaned at the end of every 6m rod as caking occurs from the mandatory use of dust suppression equipment.Drilling April 2022 onwardsA total of 81 holes drilled for a total of 19,177 metres and 47 holes remaining planned for a total remaining of 11,155 metres as of 14 September, 2022.
Drilling techniquesDrill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc.).RC drilling hammer diameter was generally 4 & 5/8 inches in early exploration, from 2009 and 2010 the bit diameter was 5 ¼ inches.RC 2017 - 2020 5.25-inch face sampling hammer, reverse circulation, truck mounted or tracked drilling rigs, Three Rivers Drilling, Castle Drilling.Diamond core is generally RC from surface, and either PQ size tails in weathered rock and narrowed to HQ in fresh rock (standard tubing). Core was not oriented as the disseminated and weathered nature of the mineralization does not warrant or allow it. Diamond core is typically for metallurgical test-work. Precollars drilled short of mineralisation.RC 2021 A 5.25-inch face sampling hammer, used in reverse circulation. ASX (Australian Surface Exploration) drillers used for RC (including pre-collars).Diamond 2021: Wizard Drilling utilised for diamond drilling from surface. HQ size Metallurgical and geotechnical diamond drilling (standard tubing). Two Metallurgical holes were diamond tails from approximately 70m to 80m. Four Geotechnical holes were diamond from surface and two tails from 50-60m depth.RC 2022PXD, RC drilling, 5 1/3 inch, face sampling hammer.
LoggingWhether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography. The total length and percentage of the relevant intersections logged. All DD, RC and OH (PC) and RAB intervals were geologically logged (where applicable); RQD (DD only), interval weights, recovery, lithology, mineralogy and weathering were recorded in the database.The DD core was oriented using the Ezy-Mark tool and after 2019 using the Reflex ACT electronic orientation tool. Geological logging was qualitative.Recording of interval weights, recovery and RQD was quantitative. All DD core was photographed and representative 1m samples of RC and OH (PC) chips were collected in chip trays for future reference and photographed. All drill holes were logged in full.2017-2022 logging All drill holes are logged and validated via LogChief/DataShed systems. Stored in MS SQL server database.Assays, standards and control limits are monitored after loading of each batch and reports supplied on demand. All drill holes are logged in full.Different Lithium bearing mineral species and crystal sizes are logged in detail.
Sub-sampling techniques and sample preparationIf core, whether cut or sawn and whether quarter, half or all core taken. If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry. For all sample types, the nature, quality and appropriateness of the sample preparation technique. Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. Whether sample sizes are appropriate to the grain size of the material being sampled. Pre-2016 sampling All fresh rock DD core was quarter-cored using a stand mounted brick saw. Soft, weathered DD core was also sampled quarter-core, using a knife and scoop where applicable and practical.RC samples were collected using a two stage riffle splitter. All samples were dry or dried prior to riffle-splitting.All 2kg 1m drill samples were sent to SGS, dried, crushed, pulverized and split to approximately -75µ to produce a sample less than 3.5kg sub-sample for analysis.Sampling was carried out under Galaxy Resources QAQC protocols and as per industry best practice.Duplicate, blank and standard reference samples were inserted into the sample stream at random, but averaging no less than 1 blank and standard in every 25 samples.Samples were selected periodically and screened to ensure pulps are pulverized to the required specifications.Duplicate quarter-core samples were taken from DD core at random for testing averaging one in every 25 samples.Duplicate riffle-split RC samples were taken at random, but averaging one every approximately 25 samples.The sample sizes are appropriate to the style, thickness and consistency of the mineralization at Mt Catlin. Drilling 2016 (SGS) Core was halved by saw and sample lengths typically 0.5m in length. Sample preparation involved crushing followed by splitting of sample if sample greater than 3 kg using a riffle splitter (SPL26), Dry sample, crush to 6mm, pulverise to 75µm (PRP88) in a LM5 Mill. Drilling 2017-2021 Diamond drilling was typically sawn half core with whole core used for metallurgical test work.Intertek (2017-8) Samples are sorted and weighed. Samples >3kg are riffle split and milled in LM5 to obtain 85% passing 75 Microns. A 400g pulp is taken and a nominal 0.25g sub-sample is fused with sodium peroxide.Nagrom: 2018-2021 RC chips are dried to 105C°, crushed to nominal top-size of 2 mm in a Terminator Jaw crusher using method CRU01. Pulverised up to 3 kg in a LM5 pulveriser mill at 80% or better passing 75µm, using method PUL01. If the sample is greater than 3 kg, the sample is dried, and split with rotary splitter before analysis, Diamond core is dried, crushed in a Terminator Jaw crusher to top size 6.3 mm, and pulverised in a LM5 mill up to 2.5 kg using method CRU01. If the sample is greater than 2.5 kg, the sample is riffle split after drying to reduce the sample size.
Quality of assay data and laboratory tests The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.Pre-2016 QAQCAll samples were dried, crushed, pulverized and split to produce a 3.5kg and then 200g sub-sample for analysis For Li (method AAS40Q), for Ta, Nb and Sn (method XRF78O) and in some cases for SiO2, Al2O3, CaO, Cr2O3, Fe2O3, K2O3, MgO, MnO, P2O5, SO3, TiO2 and V2O5 were analysed by XRF78O. This process involves fusing the sample in a platinum crucible using lithium metaborate/tetraborate flux. For Cs, Rb, Ga, Be and Nb from time to time analysis was by IMS40Q – DIG40Q to ICPMS end.Duplicate, blank and certified reference samples were inserted into the sample stream at random, but averaging one every ~25 samples.Galaxy Resources utilized certified Lithium standards produced in China and one from SGS in Australia, STD-TAN1.Inter-laboratory checking of analytical outcomes was routinely undertaken to ensure continued accuracy and precision by the preferred laboratory. Samples were selected periodically and screened by the laboratory to ensure pulps are pulverized to the required specifications. All QAQC data is stored in the Mt Catlin database and regular studies were undertaken to ensure sample analysis was kept within acceptable levels of accuracy; the studies confirmed that accuracy and precision are within industry standard accepted limits. Umpire analysis performed on pulps at Genalysis and Ultratrace Perth. 2016-QAQC In 2016 Perth SGS were used for a small 6 hole diamond program by General Mining. Samples were digested using a sodium peroxide fusion digest, method DIG90Q and the resultant solution from the digest was then presented to an ICP-MS for the quantification of Li2O, using method IMS40Q. The majority of standards submitted performed within expected ranges with a positive bias observed for two standards. 2017 - 2021 QAQCSamples (including QA/QC samples) were processed by Intertek PLC, Perth laboratory in 2017 and 2018, by utilised method FP1 digest (Peroxide Fusion – complete), MS analytical finish, 22 elements, Li2O detection limit 0.03% Ta2O5 detection limit, 0.2 ppm. Monthly review of QA/QC, which includes blanks, field duplicates, high grade standards and CRM (certified reference materials) and SRM (standard reference materials). FS_ICPMS is a Laboratory Method FP1/MS (mass spectrometry) used to analyze for Cs, Nb, Rb, Ta,Th, and U . FS/ICPES (inductively coupled plasma emission spectroscopy) is Laboratory method FP1/OE used to analyze Al, Fe, K, Li, and Si. Reports include calculated values of oxides for all elements.RC samples and diamond (including QA/QC samples) have been processed by Nagrom Perth, Perth Western Australia. Methods utilised from Lithium and Tantalum are ICP004 and ICP005 (Peroxide Fusion – complete). ICP005 utilises tungsten carbide bowl to reduce iron contamination at exploration and resource development stages (detection limit of 10ppm and 1ppm for Li2O and Ta respectively) Monthly review of QA/QC, which includes blanks, field duplicates, high grade standards and CRM (certified reference materials) ) and SRM (standard reference materials).. All sampling has rigorous QAQC in terms of reference sampling as well as blank and standards introduced into the sample steam.Duplicate field samples show some evidence of high nugget effect. Typically, duplicate pairs plot within acceptable limits. Field duplicates have been submitted at a rate of 1 per 20.5 samples. Standards ASM0343, ASM0340 AMIS0339, OREAS147, OREAS148 and OREAS149.Standards reported only one result outside three standard deviations from 533 assays for Lithium. The vast majority of Tantalum standards reported within three standard deviations. Corse blanks have shown no evidence of systematic contamination from 2016-2021 with results consistently low.2022 Drilling: Lithium by Peroxide Fusion in Ni crucible with OES at both Intertek and Nagrom. Tantalum by Peroxide Fusion in Ni crucible with MS at Nagrom and Intertek or by XRF at Nagrom.Review of QA/QC, which includes blanks, field duplicates, high grade standards and CRM (certified reference materials) ) and SRM (standard reference materials) are conducted as assays are returned. All sampling has rigorous QAQC in terms of reference sampling as well as blank and standards introduced into the sample steam.Duplicate field samples show some evidence of high nugget effect. Typically, duplicate pairs plot within acceptable limits. Field duplicates have been submitted at a rate of 1 per 20.1 samples.Standards AMIS0339, AMIS0340, OREAS147, OREAS148, OREAS750 and OREAS751. Standards are submitted at a rate of 1 per 25 samples and Blanks after/within high grade zones at a target rate of approximately 1 per 20 samples.
Verification of sampling and assayingThe verification of significant intersections by either independent or alternative company personnel. The use of twinned holes. Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. Discuss any adjustment to assay data.Pre-2018 VerificationAn external geological consultant and GXY staff have visually assessed and verified significant intersections of core and RC and PC chips. Several core holes were compared to neighboring RC and PC drill holes. The geological logging of the DD holes supports the interpreted geological and mineralization domains. Studies on assays results from twinned holes showed a close correlation of geology and assays. Primary data is recorded by hand in the field and entered Excel spread sheets with in-built validation settings and look-up codes. Scans of field data sheets and digital data entry spread sheets are handled on site at Galaxy. Data collection and entry procedures are documented and training given to all staff. QAQC checks of assays by Galaxy identified several standards out of control, these were subsequently reviewed and results rectified. No clear and consistent biases were defined by Galaxy during the further investigations into QAQC performances although deviations were noted by Galaxy.2017-8 Verification CP independently verified drilling, sampling, assay and results from validated, externally maintained and stored database. No adjustments to assay data other than conversion from Li to Li20 and Ta to Ta2O5.2018 - 2021 Verification The CP independently verified drilling, sampling, assay and results from validated, externally maintained and stored database. No adjustments to assay data other than conversion from Li to Li20 and Ta to Ta2O5.Primary data capture by Maxwell LogChief and management by Maxwell DataShed. Assay data loaded directly from Laboratory supplied .csv files as are downhole and collar surveys.An independent data verification was completed as part of a 2021 Ni-43-101 filing by then then competent person.The CP has verified the drill collar, assay and assay QAQC data.

Section 2: Reporting of Exploration Results

CriteriaJORC Code explanationCommentary
Mineral tenement and land tenure status
  • Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.
  • The security of the tenure held at the time of reporting along with any known impediments to obtaining a license to operate in the area.
Mining Lease M74/244 was amalgamated and awarded on 04/08/2009 and is valid until 23/12/2030 and covers 1830 Ha.The project is subject to normal projects approvals processes as regulated by the WA Department of Mines, Industry and Regulation.The tenement is subject to the Standard Noongar Heritage agreement as executed 7 February 2018.The underlying land is a mixture of freehold property owned by Galaxy and vacant Crown land. The property Freehold title is held by Galaxy Resources or its child subsidiaries.
Exploration done by other parties
  • Acknowledgment and appraisal of exploration by other parties.
During the 1960’s WMC carried out an extensive drilling program to define the extent of t local spodumene bearing pegmatite. The WMC work led onto a further investigation into project feasibility.In 1989 Pancontinental Mining, Limited drilled 101 RC drill holes. In 1990 Pancontinental drilled a further 21 RC drill holes.In 1997 Greenstone Resources drilled 3 diamond holes and 38 RC holes, undertook soil sampling and metallurgical test work on bulk samples from the mine area. Haddington Resources Ltd in 2001 drilled 9 diamond holes for metallurgical test work and undertook further sterilization drilling.Galaxy acquired the M72/12 mining tenement from Sons of Gwalia administrators in 2006.
Geology
  • Deposit type, geological setting and style of mineralization.
The Mount Catlin Project lies within the Ravensthorpe Suite, with host rocks comprising both the Annabelle Volcanics to the west, and the Manyutup Tonalite to the east. The contact between these rock types extends through the Project area. The Annabelle Volcanics at Mt Cattlin consist of intermediate to mafic volcanic rocks, comprising both pyroclastic material and lavas.The pegmatites which comprise the orebodies occurs as a series of sub-horizontal sills, hosted by both volcanic and intrusive rocks, interpreted as a series of westward verging thrusts.Typical coarse grained spodumene (grey-green colour) from the NW pegmatite shown below.The NW pit pegmatites extend from near surface sub-crop to vertical depths of 250-300m and further down dip extensions are interpolated form 2D seismic data generated by previous owners.The pegmatites remain open down dip.
Drill hole Information
  • A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:
  • easting and northing of the drill hole collar
  • elevation or RL (Reduced Level – elevation above sea level in meters) of the drill hole collar
  • dip and azimuth of the hole
  • down hole length and interception depth
  • hole length.
Pre-2017 drilling reported 4 August 2015 by subsidiary GMM (ASX:GMM). Last prior resource and update was August 2022.2019-2021 drill collars New resource development collar information is presented in Table 1 above. Holes are generally steeply inclined between -80 to -70 degrees to determine true width or due to infrastructure.
Data aggregation methods
  • In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated.
  • Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.
  • The assumptions used for any reporting of metal equivalent values should be clearly stated.
Pre-2017 Data Where higher grade zones internal to broader intervals of lower grade mineralization were reported, these were noted as included intervals and italicized.2019-2021 Drilling New results are reported to a 0.4% cut-of grade (below), minimum 4m width, maximum 1m internal dilution. Only drillholes incorporated into the resource model are reported. 2022 Drilling Minimum cut-off 0.4% Li2O; minimum 4m interval; maximum 2m of internal waste.No metal equivalent values are used.
Relationship between mineralization widths and intercept lengths
  • These relationships are particularly important in the reporting of Exploration Results.
  • If the geometry of the mineralization with respect to the drill hole angle is known, its nature should be reported.
  • If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’).
All intersection grades have been reported previously as length weighted average grades using a 0.4% Li2O lower grade cut-off except where stated.Intersections were calculated allowing a maximum of 2m of internal dilution with no top-cut applied. Cutting of high grades is not required due to nature of the mineralization and grade distribution/estimation.The Mt Cattlin lithium and tantalum mineralization occurs as a thick horizontal to gently dipping pegmatite and generally lies 30 to 200m below the current topographic surface resulting in drill intercepts nearing true widths.2022 reported intersections are true widths.
Diagrams
  • Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.
Diagrams, both plan and section, are included in the text above.
Balanced reporting
  • Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.
2022 - All significant intersections above 0.4% Li2O have are reported.
Other substantive exploration data
  • Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk sample– size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.
Fe2O3 is modelled with Li and Ta to determine the effect of deleterious chemistry and mineralogy at or near pegmatite contacts and rafts of surrounding country rock with pegmatite.
Further work
  • The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).
  • Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.
Development and extraction of the NW Pit Mineral Resource and Reserve.Ongoing resource development drilling. New geotechnical and metallurgical test work drilling.Resource extension drilling to the SW.Resource update is expected in Q1, 2023 with study work to start Q4, 2022.

Graphics accompanying this announcement are available athttps://www.globenewswire.com/NewsRoom/AttachmentNg/e6a4b0dc-668b-4a68-ab2a-16f1900fec8c

https://www.globenewswire.com/NewsRoom/AttachmentNg/b561eb58-bb52-46cc-8e33-be7ad6f9e1ea

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Figure 1

Intercepts to the north of the US$1,100 whittle shell show potential for mineral resource expansion.
Figure 2

Drilling progress as of 14 September 2022 and location relative to USD 1,100 pit shell and current NW pit design and cut-back.
Source: Allkem Limited


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