Bynoe GR457 EL 29698, EL 29699, EL 30012, EL 30015, EL 31126, EL 31127, EL 31271 and EL 31279 Group Annual Technical Report for the period 1 March 2018 to 28 February 2019

Abstract

This is the second Group Annual Report for the Bynoe Group (GR457) which includes EL 29698, EL 29699, EL 30012 and EL 30015, EL 31126, EL 31127, EL 31271 and EL 31279, prepared by Core Lithium Ltd (CXO). The tenements make up CXO's Finniss and Bynoe Lithium Projects, and are in the Northern Territory, ~25 - 65 km north-northwest of Darwin (as the crow flies, ~70 - 80 km along main roads). The tenements cover an area of around 485 km2. The project area incorporates Paleoproterozoic aged Burrell Creek Formation of the Pine Creek Orogen (2000-1860 Ma) intruded by pegmatites that are genetically related to the Two Sisters Granite, the most north-western intrusion of the Cullen Batholith (~1850 Ma). These pegmatites belong to the Bynoe pegmatite field, where tin mining commenced in 1882 from alluvial deposits of cassiterite derived from weathered pegmatites. The industrial demand for tantalum during the early to mid-20th century saw the mining of several tin-tantalum pegmatites in the region. Exploration for lithium in the Bynoe field is still in its infancy, with much of the earlier work not recognising the presence of lithium, and rarely assaying for it; however, recent results reported from both CXO ground and neighbouring tenure indicate encouraging lithium grades that are comparable to some of the lithium grades at Greenbushes in WA, the world's largest lithium mine. From 1 March 2018 to 28 February 2019, CXO has been very active exploring the Finniss and Bynoe Projects with the following key activities undertaken. Loza Radar Australia (LRA) was contracted to undertake work with its innovative DGPR system at Finniss. In all, 15 lines of 250-800 m length (8.5 km total) were rolled out at various prospects at Finniss, including Hang Gong, Lees and Booths on EL 30015, and Talmina West, Saffums 3-5, Bilatos, Sandras, Chiastolite and Hungry on EL 30012. That brings the total DGPR obtained at Finniss to 84 lines for 32.94-line km. Surface sampling consisted of 18 rockchip samples collected (all assayed) over 13 prospects, 1,471 auger mapping sites (462 assayed samples, including QAQC) over 22 prospects, and 252 soil samples (including QAQC; all assayed). Auger drilling was completed over the Far West South Prospect with 20 holes drilled, totalling 29 m. RAB drilling was undertaken over 28 prospects with 716 holes drilled, totalling 14,641 m with 751 samples assayed. A total of 220 reverse circulation holes for 35,232 m were drilled and 4,672 samples submitted for assay. 15 diamond holes totalling 3,791.3 m were drilled at Grants, BP33, Hang Gong and Carlton. 654 quarter and half core samples (and QAQC) were prepared and submitted for analysis. Exploration continues to be very encouraging, and CXO still believes the project area has the potential to become a significant lithium producer in the years to come. Exploration work planned for the remainder of 2019 and into Q1 2020 will include auger-assisted mapping, soil sampling, and shallow RAB drilling to define pegmatite distribution and geometry on a prospect scale, collation of a geological dataset for prospect scale targeting, RC and Diamond drilling for both prospect-scale exploration and resource definition, discovery of further resources to add to the known resources at Grants, BP33, Carlton, Sandras and Hang Gong. Core has increased its knowledge of the pegmatite system at Finniss over the last 3 years and now believes there are three main pegmatite styles present: (i) 'Grants steep style', (ii) 'Hang Gong shallow-dipping stacked style' and (iii) 'Sandras large style'. Future exploration is aimed at discovery within these three styles, using slightly different methodologies.