eMetals Announces Significant Nickel and Rare Metal Results at Poona Project

HIGHLIGHTS:

• A new nickel sulphide target has been identified at the Mughal Prospect where soil sampling has returned significant results of up to 0.15% Ni, 162ppm Cu, 145ppm Co and 68ppb PGE’s approximately 5 kilometres west of (and in the same ultramafic sequence as) historical tenement intercepts of 8m @ 0.72% Ni, 0.13% Co and 26ppb PGE’s from 11m and 8m @ 1.0% Ni, 0.1% Co, 30ppb PGE’s from 26m1.
• Rock chip sampling has identified a large 23km long and 200-500m wide intrusion that contains highly anomalous nickel, copper, cobalt and platinum group elements 0.12% Ni, 277ppm Cu, 167ppm Co, 47 ppb Au + Pt + Pd.
• Rock chip samples have identified a further four priority targets for Rare Metals inclusive of the Panjshir Prospect where extreme results for Lithium, Rubidium, Caesium and Beryllium include 2.98% Li2O, 1.24% Rb2O, 0.155% Cs2O and 1.35% Be.
  ¹ – Wamex Report A69137

The Directors of eMetals Limited (ACN 142 411 390)(ASX:EMT)(eMetals or the Company), are pleased to announce the exploration results for the Poona Rare Metals Project (Poona Project).

eMetals Director, Mathew Walker commented: “Initial results from the Poona Rare Metal Project indicate potential for nickel sulphide mineralisation supported by highly anomalous and highly significant PGE assays. The extremely anomalous rare metal results further underline the prospectivity of the Poona Project.”

BACKGROUND

Poona Project

The Poona Project is located approximately 70 kilometres north west of Cue in the Murchison Domain of the Yilgarn Craton in Western Australia. The Poona Project is prospective for lithiumcaesium-tantalum “LCT type” pegmatite mineralisation hosted within the greenstone belts of the Weld Range where they are intruded by the younger Telegoothera Monzogranite and its various intrusive units.

eMetals acquired a 90% interest in E20/885 and a 100% interest in E20/896 from Venus Metals Corporation Limited and a 100% interest in E20/854 from Tungsten Mining NL. It also applied for two tenements (E20/963 and E20/964) to cover rare metal prospective granites. Please refer to Figure 1 below.

The Tenements have been explored since the early 1900’s when emeralds were discovered at the Aga Khan mine. Modern exploration has focussed on gold, nickel, gemstones and more recently for lithium and pegmatite associated mineralisation.

The Project remains under explored with 42 holes drilled on E20/885 and no known drilling on E20/896. Previous exploration update is summarised in the Company’s announcement dated 11 June 2020.

Exploration Program

eMetals exploration of the Poona Project has involved the collection of 261 rock chip samples and 621 soil samples. The distribution of sampling is shown in Figure 2 below.

Soil sampling was undertaken across priority areas of the Poona Project surrounding the historical gemstone mines at Poona and Aga Khan. Lines were spaced 800m apart, with sampling every 50m along lines, targeting broad metasomatic haloes around lithium-caesiumtantalum enriched pegmatite swarms. Sampling methodology and details are reported in the attached JORC Table 1 and 2 and significant rock chip sample results are tabulated in the Appendix. Non-anomalous rock chip samples make up approximately 75% of the sample population as not all pegmatites within the Poona Project contain economic potential.

Mughal Ni-Cu-PGE Prospect

eMetals has defined a new nickel sulphide target at the Mughal Prospect where soil sampling over mafic and ultramafic rocks has returned significant results of up to 0.15% Ni, 162ppm Cu, 145ppm Co and up to 68ppb PGE’s.

Base metal results were received and were considered indicative of magmatic Ni-Cu-PGE sulphides and were submitted for Au+Pt+Pd analysis. Results confirm:

• Coincident Ni-Cu-Co anomalies in ultramafic schists;
• 3 element PGE (Au + Pt + Pd) anomaly coincident at >25ppb; and
• 600m wide anomaly open along strike and unconstrained.

The presence of elevated platinum (up to 54ppb) and palladium (up to 23 ppb) in soil samples is consistent with the elevated Ni, Co and Cu being sourced from PGE enriched magmatic sulphides. The anomalies lie within lateritised ultramafic and mafic amphibolites of the Weld Range Greenstone Belt. The anomaly is defined by one line of soils within the main belt of rocks with several outliers and faulted fragments of ultramafic also containing Ni, Cu, and Co anomalies. Please refer to Figure 3 below.

Historical Ni-Cu-PGE Results

Historical drilling of ultramafics on E20/885 in the period 2000-2004 comprised of 33 air core holes for 1,243 metres and were drilled to test for nickel cobalt laterite with significant anomalous results returned. Only three of the holes were assayed for PGE’s and cobalt with results indicating the likely presence of nickel sulphides.

• PNAC022: 36m @ 0.42% Ni, 470ppm Co with 15ppb 3E PGEs from 11m, including 8m @ 0.72% Ni, 0.13% Co, and 26ppb PGE’s from 11m
• PNAC023: 48m @ 0.39% Ni, 242ppm Co, with 17ppb 3E PGE’s from 7m
• PNAC024: 8m @ 1.0% Ni, 0.1% Co, 30ppb PGE’s from 26m

Refer Table 2: Significant historical air core drilling results with PGE Assays, E20/885 Petrology undertaken by previous explorers indicated a complex sequence of biotised ultramafic and mafic lithologies including ultramafic pyroxene cumulate. eMetals has explored the biotised ultramafics for lithium but is also encouraged by the presence of pyroxenite cumulates which are host to significant Ni-Cu-PGE resources globally.

The closest analogue to this mineralisation within the Murchison region is a similar pyroxenite intrusion to the Gnangooragoo Complex where Podium Minerals Limited (ASX:POD) has delineated resources of 1.14M ounces of Ni-Cu-Co-PGE sulphides at Parks Reef. The Parks Reef intrusion is located approximately 40km north east of the Poona Project. Please refer to Figure 4 below.

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Upcoming Exploration

eMetals has mobilised a field crew to continue collection of soil samples to in-fill and expand upon the Moghul PGE anomaly, and expand sample coverage across priority areas of the tenement over the coming months, to deliver drilling targets in 2021.

Forward looking statements

This announcement contains forward-looking statements which are identified by words such as ‘may’, ‘could’, ‘believes’, ‘estimates’, ‘targets’, ‘expects’, or ‘intends’ and other similar words that involve risks and uncertainties. These statements are based on an assessment of present economic and operating conditions, and on a number of assumptions regarding future events and actions that, as at the date of this announcement, are expected to take place. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Company, the directors and our management. We cannot and do not give any assurance that the results, performance or achievements expressed or implied by the forward-looking statements contained in this prospectus will actually occur and investors are cautioned not to place undue reliance on these forward-looking statements. We have no intention to update or revise forward-looking statements, or to publish prospective financial information in the future, regardless of whether new information, future events or any other factors affect the information contained in this announcement, except where required by law. These forward looking statements are subject to various risk factors that could cause our actual results to differ materially from the results expressed or anticipated in these statements. Competent Persons Statement The information in this announcement that relates to Exploration Results is based on and fairly represents information and supporting documentation prepared by Mr Roland Gotthard. Mr Gotthard is a consultant geologist for eMetals and a member of the Australian Institute of Mining and Metallurgy. Mr Gotthard has sufficient experience relevant to the styles of mineralisation and types of deposits which are covered in this announcement and to the activity which they are undertaking 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’ (“JORC Code”). Mr Gotthard consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.