Round 16 Geophysics and Drilling Collaboration Brownfields Diamond Drilling Grant Funding - Final Report Huandot Magnesite Project Exploration Licence 30879

Abstract

The Huandot Magnesite (MgCO3) Project has Inferred and Indicated Mineral Resources totalling 9.1Mt at 44.5% MgO. The resource extends to 50m and mineralisation is open at depth but is constrained by drilling which the majority is to ~40m depth with two drill holes to 60m depth completed in 2018 (post the most recent resource update). Mineralisation is hosted in the Coomalie Dolomite which strikes north - south through the central part of EL 30879. The magnesite unit is very continuous along strike, evidenced from both mapping and drilling. Magnesite is a critical mineral which can be processed to higher value products with applications across agriculture, chemicals, construction, industrial processing, pharmaceuticals, and refractory bricks. It is also a feedstock to produce magnesium for metal which is a critical component in the production of electrical vehicles and the decarbonised economy. Thessally Resources sought grant funding from the Geophysics and Drilling Collaboration Grants Program (Round 16 - Brownfields Diamond Drilling) to complete six diamond drill holes to test for mineralisation at depth and to highlight the potential to expand the Mineral Resource estimate. The proposed program comprised one 210m angled (-60 degrees west) and five 120m vertical HQ diamond holes. The drilling was designed to test the Coomalie Dolostone to 120m below surface - more than double the maximum depth of prior drilling. Thessally was successful at receiving brownfields diamond drilling grant funding to complete three of the planned holes - sites 1 (THDD003), 5 (THDD005) and 6 (THDD004). Drilling commenced on 2nd November 2023 and the program was completed on the 7th December 2023, with all three of the funded drill holes intersecting high-grade magnesite mineralisation to depths well beyond (greater than 3x) the resource model depth limits. The other proposed holes were not drilled due to a re-prioritisation of the drill rig to complete a water bore program. Vertical hole THDD003 was extended from a planned depth of 120m to a final depth of 174.56m to drill through the bottom of the magnesite mineralisation (173m), more than tripling the depth of mineralisation in the northern end of the deposit. The other two holes THDD004 (vertical) and THDD005 (angled west to drill through the mine sequence) intersected mineralisation to downhole depths of 111.3m and 153.65m respectively. The results demonstrate there is very high potential to significantly expand the size of the resource at depth (by more than a factor of 3x) and along strike, enhancing the value of the project.