Quarterly Activities Report December 2022

Marquee Resources Limited (ASX: MQR) (“MQR or The Company”) is pleased to provide this Quarterly Activities Report for the December 2022 quarter.

---

West Spargoville Project (Lithium, Gold & Nickel Project)

The West Spargoville Project (WSP) is located in the core of the Southern Yilgarn Lithium Belt, a prominent lithium area that is well known for spodumene deposits that include; the Bald Hill Mine, the Mt Marion Mine, the Buldania Project and Essential Metals Pioneer Dome Project. The world-class Earl Grey deposit and the Mt Cattlin Mine are located further west and south respectively. Post quarter end, MQR exercised its option with Fyfehill Pty Ltd to take 100% ownership of the Project and is now finalising the documents required for completion of the sale to occur (See ASX Release 23 August 2021 for further details).

Exploration Program 2022

During Q4-2022, Marquee completed its maiden lithium focused drilling program which consisted of:

• Completion of 122 holes of Reverse- Circulation Drilling (RC) for 18,687m.
  
• Completion of 258 holes of Aircore Drilling (AC) for 19,156m.

Post the December 2022 quarter, Marquee provided the market an update on the ongoing exploration activities at the West Spargoville Project (refer ASX release dated 24 January 2023).

Due to increased lab turn-around times (+12 weeks), a large amount of assays are still outstanding.

Following receipt of assays forward work programs will focus on following up on anomalous intercepts with drilling to recommence in early 2023.

Partnership with Mineral Resources Limited at the West Spargoville Project

The partnership with Mineral Resources Limited (ASX:MIN) (Mineral Resources) (MinRes) continues with total funding provided to 31 December 2022 amounting to $1.656 million. A funding amount of $500,000 (to exercise the Fyfehill option) was received subsequent to the December 2022 quarter (early January 2023) and a further

$2.569 million in exploration expenditure reimbursement has been invoiced to MinRes which is expected to be received shortly. The Key terms of the agreement are further outlined below.

Key Terms:

• MinRes has the right to acquire an initial 25% legal and beneficial interest in the lithium rights (Initial Farm-in Interest) by funding all exploration and development activities and completing a feasibility study for the Project, including a JORC compliant resource (Initial Farm-in Obligation) within 24 months (Initial Farm-in Period).
  
• In performing the Initial Farm-in Obligation, MinRes will fund at least $1,000,000 of exploration and development activities on the Tenements by 31 December 2022; and the $500,000 cost to exercise the Fyfehill Option - (Now complete).
• Marquee will be responsible for managing the implementation of the exploration and development activities on the Tenements during the Initial Farm-in Period.

Processing Farm-in: If MinRes elects to proceed with the Processing Farm-in, it has the right to acquire an additional 45% legal and beneficial interest in the lithium rights by funding the Project until the point of a final investment decision on a mine development for the Project (FID). MinRes will provide complete mine to port services to the JV including: mining; design, construction and operation of a processing plant; on-site power generation; haulage of product to nominated port facilities; marketing of product and shipment of product to purchasers.

Mine Gate Sale Farm-in: If MinRes instead elects to proceed with the Mine Gate Sale Farm-in (rather than the Processing Farm-in), it has the right to acquire an additional 26% legal and beneficial interest in the lithium rights by funding the Project until the development, construction and commissioning of a mine and related facilities. MinRes will build, own and operate all plant, equipment and infrastructure for the mining operations and buy lithium bearing ore from the JV for a mine gate sale price to be established on commercially competitive and industry standard terms.

Kibby Basin Lithium Project

Marquee Resources Limited announced the results from its Kibby Basin Lithium Project 2022 drill campaign in the December 2022 quarter. Assay results received indicated thick sequences of lithium-bearing sediments at the Project, with up to 924 ppm Li from the two exploration boreholes (KB 22-01 and KB 22-02) that were completed. Full results were provided, subsequent to the end of the December 2022 quarter. (Please also refer to ASX announcement dated 25 January 2023).

Core Assay Results

Hole KB 22-01 was drilled as a vertical borehole to a depth of 880 m (2888 ft). The hole was drilled as an air-core pre-collar to a depth of 329 (1080 ft), followed by HQ core, reduced to NQ core at 408 m (1338 ft).

Click here for the full ASX Release

This article includes content from Marquee Resources Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.