Significant Maiden Molybdenum Resource Defined Adjacent to the Tungsten Orebody at Sangdong Mine in South Korea - Seite 2

Mineral Resource Estimate

The current evaluation work has been carried out and prepared according to the guidelines of the JORC Code (2012). The current resource estimation is shown below, for a cut-off of 0.19%MoS₂. This cut-off level was derived from a molybdenum price of 14.25$/lb Mo. The resource model uses a maximum lateral extrapolation of 100m.

AKM Project – Inferred Mineral Resource Estimate

Host Rock Type	Tonnes Mt	MoS2 %
Slate	4.34	0.28
Quartzite	17.14	0.26
Total	21.48	0.26

Notes:

• As of 31st May, 2022
• Block Size 25m x25m x 5m
• Cut-off 0.19% MoS2
• All resources categorised as Inferred

Geology and geological interpretation

The Jangsan quartzite underlies the main tungsten skarn deposit of the Sangdong mine. This formation contains the Sangdong Molybdenum Stockwork (SMS), a zone of quartz veins hosting predominantly molybdenum mineralisation (Kuehnbaum, 2006 and Le, 2001). The mineralisation appears to be hydrothermal in nature and with two stages of mineral deposition; the first molybdenum-poor scheelite mineralisation was related to skarn alteration, which was followed by quartz-scheelite-molybdenite-bismuthenite vein emplacement. It is currently considered that the deep molybdenum mineralisation is likely to comprise a system of sheeted or stockwork veins.

In previous evaluation work, a mineralised envelope had been defined which terminated upwards at the top of the quartzite. However, it is clear that the MoS₂ mineralisation continues up into the overlying slates. The upper part of the overall MoS₂ mineralisation overlaps with the tungsten-bearing beds and underground mine workings. The current interpretation has been based on capturing the majority of the +0.1%MoS₂ assays.

Drilling Database

The drillhole database stems from underground drilling, and some surface drilling, completed prior to 1992 by the Korea Tungsten Mining Company Ltd. (“KTMC”), as well by Oriental Minerals OTL during 2006-2008. The KTMC drilling covers 14,300m over 27 holes. The OTL drilling which intersected the area of molybdenum mineralisation, covers 4,000m over 6 holes. The sample database is in the form of an Excel spreadsheets.