Kangaroo Hills Lithium Project

Future Battery Minerals’ Kangaroo Hills Lithium Project (KHLP)(FBM 100%) is a recent and exciting hard rock Lithium discovery located in the Goldfields of Western Australia (WA) only 17kms south of the township of Coolgardie.

Spodumene mineralisation within Lithium-Caesium-Tantalum (LCT) pegmatites was discovered during regional exploration drilling of the Nepean Nickel Project in late 2022

Exploration Activity

The Company announced the discovery of high-grade lithium mineralisation in reverse circulation (RC) drill-hole samples at the Nepean Nickel Project in Western Australia in late 2022. Previously completed exploration drill-holes NPRC084 and NPRC085 at the Nepean North prospect were re-assayed for lithium, caesium and tantalum (LCT) mineralisation for all pegmatite intercepts. Assays returned exceptional lithium down-hole grades, including:

• 6m @ 1.38% Li2O from 198m, including
  • 2m @ 3.26% Li2O from 198m (NPRC084)
• 3m @ 0.36% Li2O from 165m, including
  • 1m @ 0.52% Li2O from 167m (NPRC085); and
• 4m @ 0.29% Li2O from 242m (NPRC085).

The two holes were drilled approximately 150m apart, approximately 420m north of the previously reported lithium result in NPRC058 consisting of 1m @ 0.88% Li2O from 78m, 2 which suggests potential LCT-enriched pegmatites over a significant strike length at the Nepean North Prospect. Following this significant discovery, the Company commenced exploration programme to potentially delineate further high grade spodumene mineralisation.

The Company commenced Phase 1 reverse circulation (RC) drilling programme in January 2023, focusing on three high-priority lithium-caesium-tantalum (LCT) pegmatite targets identified from surface geochemistry and previous drill hole intercept NPRC084 (6m @ 1.38% Li2O from 198m). A total of 14 shallow holes were drilled for 3,440m, with drilling depths ranging between 150-270m. Pegmatite lithologies were identified visually in 12 of the holes.

• 29m @ 1.36% Li₂O from 38m (KHRC011);
• 7m @ 1.00% Li₂O from 198m (KHRC002);
• 2m @ 1.68% Li₂O from 1m (KHRC001);
• 5m @ 0.51% Li₂O from 42m (KHRC004)
• 3m @ 1.23% Li2O, from 0m (KHRC013);
• 1m @ 0.7% Li2O, 706ppm Cs, 68ppm Ta from 204m (KHRC006);
• 1m @ 0.82% Li2O, 255ppm Cs, 141.5ppm Ta from 262m (KHRC006);
• 1m @ 0.4% Li2O, 627ppm Cs from 129m (KHRC006);
• 2m @ 117ppm Ta from 2m (KHRC005); and
• 1m @ 462ppm Cs from 27m (KHRC007).

Following the success of the Phase 1 drilling campaign the Company commenced a Phase 2 drilling programme consisting of both 2,500m of RC and up to 500m of diamond drilling (DD). The programme is specifically testing for strike extensions of the high-grade intercept 29m @ 1.36% Li₂O from 38m. Twenty – Seven  (27) holes for over 3,200m were completed in the RC component of Phase 2.  

Four high priority holes from the Phase 2 RC programme returned thick and shallow high-grade Lithium in spodumene bearing pegmatite:

• 27m @ 1.32% Li₂O from 64m (KHRC017), including:
  • 4m @ 2.5% Li₂O from 80m
• 19m @ 1.03% Li₂O from 42m (KHRC015);
• 16m @ 1.09% Li₂O from 11m (KHRC022); and
• 12m @ 1.02% Li₂O from 8m (KHRC021).

Assays are still pending for the remaining 23 holes of the Phase 2 RC drilling programme, which is expected to extend the width and strike of the prospective pegmatite unit.

The diamond drilling (DD) programme at KHLP has also been completed and the DD has intersected multiple thick spodumene bearing pegmatite intersections in widths of up to 23.8m near surface. The DD programme was designed to infill the RC drill holes and provide core sample of the Li pegmatite. Drilling consisted of five (5) shallow holes for 313 metres, infilling the previously announced1 high-grade intercepts.

The diamond core samples will be utilised for early-stage metallurgical and mineralogical test work and to provide much needed structural information.

Further to the RC and DD drilling programmes, FBM recently discovered multiple new large scale spodumene pegmatite targets with a combined total strike length of over 3km at the KHLP. These consist of the Big Red Prospect (Big Red), which hosts the recently identified thick high-grade spodumene bearing pegmatites, Western Grey, Eastern Grey, Rocky, Quokka, Wallaroo and Pademelon prospects which have all been identified as high priority drill targets with the potential to host further lithium-caesium-tantalum (LCT) pegmatites.

Passive Seismic and Ground Gravity Survey

A trial survey is currently underway testing the known pegmatites at the Big Red. In addition, velocity measurements of the recent diamond drill (DD) core were taken to assist in the processing of the passive Seismic and Ground Gravity Survey data. If the trial survey produces material results, a large-scale Survey will be undertaken across the Kangaroo Hills Lithium Project.