MINERAL COMMODITIES LTD – ELECTROMAGNETIC SURVEY RESULTS INDICATE GREAT NEW TARGETS AT MUNGLINUP GRAPHITE PROJECT

The Munglinup Graphite Project is recognised by the Australian Government as aCritical Mineral Project and included in the Australian Critical Minerals Prospectus in 2020 and 2021 206-line kilometres of high-resolution aeromagnetic survey and associated data processing has identified that: (i) the known graphite deposits (Halberts Main, Halberts South, Whites, Harris, McCarthy) in M74/245 may be contiguous; (ii) the known mineralisation may extent into E 74/565 to the east, and (iii)identified new geophysical anomalous zones in M74/245 and E 74/565 that may contain graphite mineralization
The Company has identified 12 priority targets for further evaluation. Areas with strong electromagnetic conductivity cover an area of approximately 120 hectares, while known graphite deposits comprise a total area of 35 hectares. It intends to commence a 3,000m RC drilling program by the September quarter of 2022, designed to expand the resource base, convert inferred resources to higher grades and drill new anomalous geophysical areas. The plan will target the delineation of an updated mineral resource and ore reserve in accordance with the JORC (2012) code.
General director
Background
The Munglinup graphite deposits occur in a zone of Archean to Paleoproterozoic graphitic gneiss within a sequence of hornblende and hornblende-garnet gneiss in the Albany-Fraser Orogen. The rocks were widely folded around a WNW-ESE axis, with superimposed minor anticlines and synclines.
Small-scale complex folding and faulting are common in relatively incompetent graphitic rocks and host competent hornblendic gneisses appear to be less deformed. Munglinup’s resources (mineral resource of 7.99 million tonnes at 12.2% GCT and ore reserve of 4.24 million tonnes at 12.8% GCT)1 are open along strike and at depth. Past exploration has focused near surface and has been driven by targeting deposits that are quick and easy to exploit. The project is subject to a mining lease granted until 2031, in a designated mining reserve. Munglinup’s mine life (“LOM”) exceeds 14 years, based on a LOM throughput of 400 kt per year in years 1-6 and 500 kt per year in years 7-14, which translates to an average graphite concentrate production of 52 kt per year. The MRC has undertaken significant work for environmental approvals.
In addition, the Company is continuing to develop its natural graphite purification process with the
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Caution
This report may contain forward-looking statements. All forward-looking statements reflect management’s current beliefs based on information currently available to management and are based on what management believes to be reasonable assumptions. It should be noted that several factors could cause the actual results or expectations to differ materially from the results expressed or implied by the forward-looking statements.