Announcement PDF ASX Announcement 21 August 2024 REE Mineralisation Identified in Narlaby Palaeochannel HIGHLIGHTS • First-pass investigation for rare earth element (REE) mineralisation on historical drillholes at the Wirrulla Project in South Australia identifies significant and shallow REE results over a 3.5km-long trend within the Narlaby Palaeochannel • Total Rare Earth Element Oxide (TREO) results include: o o 6 m at 1,708 ppm from 39 m: including 3 m at 2,095 ppm TREO; 49% heavy REO (HREO) and 28% Magnet REO (MREO) 15m at 865 ppm TREO from 45 m: including 3 m at 1,475 ppm TREO; 25% HREO and 20% MREO • Preliminary ionic-leach tests identified a minor leachable portion of REE • The focus of the analysis was the Narlaby Palaeochannel which hosts the Boland REE Prospect (LSE: COBR) • Historical petrography of the basement material in the area suggests that the original premetamorphic intrusive may have associated carbonatites 1 • Results provide Pinnacle with a strong basis from which to investigate the potential for palaeochannel/clay-hosted REE mineralisation Pinnacle Minerals Ltd (PIM:ASX) (“Pinnacle”, the “Company”) is pleased to announce that select intervals from nine historical holes from within the footprint of the Narlaby palaeochannel have identified significant and shallow TREO concentrations, including 1,708 ppm TREO over 6 m from 39 m depth (SBRC 13). Importantly, a 3-m sample with the highest TREO grade of 2,095 ppm TREO has the highest portion of HREO at 49% and 105 ppm Tb+Dy-oxide (SBRC 13). This indicates a significant enrichment in valuable heavy REEs at Wirrulla. The MREOs average 24% and peak at 31% (SBRC 3). Hole ID SBRC 2 SBRC 3 SBRC 5 SBRC 11 including SBRC 13 including SBRC 18 including 1 Table 1: Significant results from ≥3-m interval samples >600 ppm TREO. From (m) To (m) Drilled Width (m) TREO ppm MREO (%) 69 72 3 1,009 23 84 87 3 759 31 63 66 3 775 22 36 42 6 686 21 36 39 3 833 24 45 60 15 865 22 45 48 3 1,475 20 39 45 6 1,708 29 42 45 3 2,095 28 HREO (%) 48 27 26 12 12 22 25 44 49 Open File Envelope Number 8981, EL 1952 Carawa, Annual and final report for the period 27/7/94 to 22/11/95 Pinnacle Minerals Ltd Issued Capital Australian Registered Office Directors ACN: 655 033 677 ASX: PIM 36,375,200 Shares 29,937,634 Options Unit 6, Level 1, 389 Oxford Street Mount Hawthorn WA 6016 T: + 61 8 9426 0666 E: admin@pinnacleminerals.com.au WILLIAM WITHAM – Non-Executive Chairman NIC MATICH – Managing Director LINCOLN LIU – Non-Executive Director STEPHEN ROSS – Non-Executive Director www.pinnacleminerals.com.au Rare earth elements are categorised as critical minerals by the Australian Governments Department of Industry Science and Resources 2 and have increased demand given the use of REE in permanent magnets and other high-tech applications. The analysed holes form a ~3.5-km-long transect that overlies a circular magnetic feature. Historical petrographic analysis from basement material in the target area suggested that the original premetamorphic intrusive could have been of ijolitic composition and may have associated carbonatites1. Pinnacle is targeting palaeochannel hosted ionic REE mineralisation similar to Cobra Resources (LSE: COBR) Wudinna/Boland Project which has MREO recoveries up to 58% 3 with-in the Narlaby Palaeochannel to the East of Pinnacle’s Wirrulla Project (Figure 1). Pinnacle Minerals Managing Director, Nic Matich, commented: “The assay results at Wirrulla further strengthen Pinnacle’s understanding of the complex geology of the Project and provide the company with confidence to conduct further exploration for REE-bearing minerals within the Narlaby Palaeochannel. Given that historical samples highlight high heavy REE components there is potential for REE mineralisation both at scale and shallow depth.” Figure 1: Wirrulla Project highlighting the Narlaby Palaeochannel and Cobra Resources Boland Ionic REE Project. 2 3 https://www.industry.gov.au/publications/australias-critical-minerals-list-and-strategic-materials-list https://cobraplc.com/project/wudinna-project/ www.pinnacleminerals.com.au 2 Figure 2: Peak TREO values underlain by Total Magnetic Intensity (TMI) image. www.pinnacleminerals.com.au 3 Figure 3: Cross-section of adjacent holes SBRC 11–13. Given that the angled nature of the drilling intercepts do not likely represent true thickness; which is more likely to be 70–80% of the thickness reported here. Results Discussion Collar locations with peak TREO results are presented in Figure 2. All historical collars are located on private land with road access all year around. Preliminary investigations for land access agreements for follow up exploration is underway. Two geochemical techniques were utilised to analyse the historical core held at the Tonsley Core Library, South Australia; reverse circulation drillholes were originally drilled by Newcrest Mining in 1998 4. The mineralisation largely occurs at the contact between overlying cover and saprolite (Figure 3). A lithium borate fusion followed by acid dissolution and ICP-MS/AES analysis (ME-MS81) was conducted in conjunction with an ammonium sulphate leach (ME-MS19). The ME-MS81 method is considered representative of the total REE content in the sample (Table 3). The ammonium sulphate leach was utilised to understand the potential for liberating REEs from ionic clays formed by the natural weathering of REEbearing minerals and adsorption of REE ions onto clay surfaces. The ammonium sulphate leach was able to liberate a portion of the REEs in each of the samples tested (Table 4). Up to 11% MREO were recovered from ionic leach tests (Appendix 2). The results provide impetus for the company to follow up with further metallurgical test work prior to committing to a drilling program. It has to be noted that the samples have been in the drill core shed for 26 years which may have reduced the ionic component over time. Pinnacle’s assessment of historical samples serves as proof of concept that REE mineralisation with an ionic component is present in the Narlaby Palaeochannel. Follow-up work will target shallower parts of the palaeochannel and produce fresh samples that may have a higher ionic component. Acidic groundwater within the Narlaby Palaeochannel (pH recorded as low as 2.2) 5 interacting with favourable source rocks rich in REE-containing minerals such as apatite (recorded in basement rock in CAR 10-26) have the potential to result in REE mobilisation or REE accumulation in regolith7. Therefore, Pinnacle targets palaeochannel-hosted REE mineralisation analogous to the Boland Project in the same palaeochannel. To this end the company has engaged specialist geological consultants RSC Open File Envelope Number 9207, EL 2176 Streaky Bay, Annual and final report for the period 7/6/97 to 6/6/98 Cobra Resources PLC (LSE:COBR) LSE announcement 12th February, 2024 6 Open File Envelope Number 8981, EL 1952 Carawa, Annual and final report for the period 27/7/94 to 22/11/95 7 Bamforth et al, High-Grade accumulation in regolith: Insights from supergene alteration of an apatite-rich vein at the Kapunda Cu mine, South Australia, Mineralium Deposita 4 5 www.pinnacleminerals.com.au 4 (https://www.rscmme.com/) to review all available data for the project in conjunction with the geochemical data from ALS to determine follow up steps to progress the project. This announcement has been authorised for release by the Board of Pinnacle Minerals Ltd. For further information, please contact: Media and Investor Inquiries Jane Morgan Jane Morgan Management +61(0) 405 555 618 E: jm@janemorganmanagement.com.au Managing Director Nic Matich Pinnacle Minerals Limited T: + 61 (0) 475 870 345 E: admin@pinnacleminerals.com.au About Pinnacle Minerals Pinnacle Minerals Ltd (ASX: PIM) is an ASX listed technology minerals company focused on delivering shareholder value via the systematic exploration and development of its portfolio of battery and technology metals projects in Canada, Western Australia and South Australia. Pinnacle aims to deliver exploration success via systematic and geologically rigorous techniques. The Company’s focus is the “Adina East Project” in James Bay, Quebec which is proximal to the world class Adina Lithium Project (Winsome Resources: ASX: WR1) and adjacent to the Trieste Lithium Project (Loyal Lithium: ASX: LLI) and the Tilly Lithium Project (ASX: WR1). The Company’s Australian exploration assets are prospective for Rare Earth Elements and Heavy Mineral Sands. Forward Looking Statements This announcement contains ‘forward-looking information’ that is based on the Company’s expectations, estimates and projections as of the date on which the statements were made. This forward-looking information includes, among other things, statements with respect to the Company’s business strategy, plans, development, objectives, performance, outlook, growth, cash flow, projections, targets and expectations, mineral reserves and resources, results of exploration and related expenses. Generally, this forward-looking information can be identified by the use of forward-looking terminology such as ‘outlook’, ‘anticipate’, ‘project’, ‘target’, ‘potential’, ‘likely’, ‘believe’, ‘estimate’, ‘expect’, ‘intend’, ‘may’, ‘would’, ‘could’, ‘should’, ‘scheduled’, ‘will’, ‘plan’, ‘forecast’, ‘evolve’ and similar expressions. Persons reading this announcement are cautioned that such statements are only predictions, and that the Company’s actual future results or performance may be materially different. Forward looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, level of activity, performance, or achievements to be materially different from those expressed or implied by such forward-looking information. Competent Person statement The information in this report that relates to Exploration Results is based on information compiled under the supervision of Dr Michael Gazley, a Competent Person who is a Member of The AusIMM and a Member of the AIG. Dr Gazley is employed by RSC as General Manager Geoscience & Exploration. The full nature of the relationship between Dr Gazley and Pinnacle Minerals Ltd has been declared, including any issue that could be perceived by investors as a conflict of interest. Dr Gazley has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity he has undertaken to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for the Reporting of Mineral Resources and Ore Reserves. Dr Gazley consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. www.pinnacleminerals.com.au 5 Figure 4: Pinnacle Minerals Projects' Location Map www.pinnacleminerals.com.au 6 Appendix 1 Collar Summary and Peak TREO Table 2: Collars referenced in this announcement Hole ID SBRC 2 SBRC 3 SBRC 5 SBRC 8 SBRC 9 SBRC 11 SBRC 12 SBRC 13 SBRC 18 Easting Northing EOH (GDA94 Zone 53) (GDA94 Zone 53) (m) 444983 445411 445133 446679 446505 446218 446085 445995 446679 6406292 6405706 6406079 6404013 6404227 6404598 6404768 6404885 6403369 84 105 77 42 29 44 32 63 60 www.pinnacleminerals.com.au Dip AZI 60° 60° 60° 60° 60° 60° 60° 60° 60° 140° 140° 140° 140° 140° 140° 140° 140° 180° 7 Appendix 2 Summary of Assay Results Table 3: Geochemical Results (ME-MS81) of samples > 400ppm TREO – Results are in parts per million (ppm) unless otherwise stated Hole ID From (m) To (m) CeO2 Dy2O3 Er2O3 Eu2O3 Gd2O3 Ho2O3 La2O3 Lu2O3 Nd2O3 Pr6O11 Sm2O3 Tb4O7 Tm2O3 Y2O3 Yb2O3 TREO MREO % HREO % SBRC 2 69 72 149 44 29 10 46 9 110 3 152 34 34 7 4 357 22 1,009 23% 48% SBRC 3 84 87 134 21 13 8 26 4 148 2 170 44 31 4 2 141 12 759 31% 27% SBRC 5 63 66 276 21 13 7 23 4 104 1 119 30 23 3 1 137 9 775 22% 26% SBRC 8 36 39 220 10 6 4 14 2 97 1 105 28 19 2 1 56 4 568 26% 15% SBRC 9 18 21 144 10 6 3 11 2 68 1 73 19 13 2 1 59 4 414 25% 21% SBRC 11 36 39 302 13 7 4 17 2 208 1 141 44 23 2 1 63 6 833 24% 12% SBRC 11 39 42 206 7 5 3 8 1 164 1 64 22 10 1 1 43 4 539 17% 12% SBRC 12 27 30 209 8 4 8 10 1 98 0 82 24 14 1 0 37 2 500 23% 13% SBRC 13 45 48 604 33 25 10 33 7 170 4 202 50 40 5 3 264 24 1,475 20% 25% SBRC 13 48 51 267 24 16 7 25 5 172 2 148 41 27 4 2 172 16 928 23% 27% SBRC 13 51 54 235 15 9 4 16 3 114 1 102 27 18 2 1 102 8 657 22% 22% SBRC 13 54 57 205 11 6 4 13 2 99 1 90 24 14 2 1 69 5 546 23% 18% SBRC 13 57 60 265 14 9 5 17 3 130 1 117 31 20 2 1 95 7 719 23% 19% SBRC 18 39 42 203 55 32 17 58 10 164 3 269 60 58 9 4 350 26 1,320 30% 38% SBRC 18 42 45 174 91 55 27 94 18 247 6 387 88 85 14 7 761 40 2,095 28% 49% www.pinnacleminerals.com.au 8 Table 4: Percentage of REEs extracted via ammonium sulphate leach (ME-MS19) Hole ID From To CeO2 Dy2O3 Er2O3 Eu2O3 Gd2O3 Ho2O3 La2O3 Lu2O3 Nd2O3 Pr6O11 Sm2O3 Tb4O7 Tm2O3 Y2O3 Yb2O3 TREO MREO HREO SBRC 2 69 72 3.5 2.6 2.4 2.9 2.7 2.4 0.7 2.7 1.8 1.3 3.1 2.7 2.6 2.0 2.7 2.2 1.9 2.2 SBRC 3 84 87 7.9 5.9 6.0 5.2 5.9 5.8 3.7 6.2 5.0 4.3 5.5 5.5 5.9 5.7 5.7 5.5 5.0 5.7 SBRC 5 63 66 0.4 1.8 2.3 1.0 1.4 2.0 0.2 4.2 0.6 0.4 1.1 1.5 3.1 1.9 3.5 0.8 0.7 1.9 SBRC 8 36 39 3.0 4.8 4.6 4.4 4.8 4.6 1.8 6.0 3.8 3.0 5.0 4.6 5.3 4.7 5.5 3.3 3.8 4.7 SBRC 9 18 21 9.3 11.6 10.7 7.4 12.8 12.5 8.6 8.8 11.3 10.0 12.9 12.5 11.0 11.1 10.9 10.1 11.1 11.2 SBRC 11 36 39 2.7 3.9 4.3 4.1 3.9 4.2 1.7 3.8 3.3 2.7 3.9 4.1 3.9 4.1 4.0 2.7 3.2 4.1 SBRC 11 39 42 2.4 6.5 6.3 4.3 6.5 6.9 1.8 5.9 3.9 3.0 6.0 5.7 6.8 6.8 6.1 3.1 3.9 6.5 SBRC 12 27 30 0.7 3.3 3.1 2.1 3.1 3.3 0.4 3.5 1.8 1.1 2.8 3.1 3.7 3.3 4.1 1.3 1.7 3.2 SBRC 13 45 48 4.4 5.0 4.6 4.7 5.1 4.9 2.4 5.0 4.5 3.8 5.1 4.8 5.0 4.5 5.2 4.3 4.5 4.7 SBRC 13 48 51 4.2 5.2 5.7 4.2 4.8 5.7 1.5 6.2 3.5 2.6 4.6 5.1 6.0 5.6 6.2 3.9 3.6 5.5 SBRC 13 51 54 5.0 6.1 7.2 4.2 5.8 6.7 2.1 7.8 3.6 3.0 4.2 6.0 7.8 7.3 7.7 4.6 3.8 6.9 SBRC 13 54 57 5.6 5.9 6.5 4.1 5.5 6.1 2.5 7.8 4.2 3.6 5.4 5.5 7.0 6.7 7.5 4.8 4.3 6.4 SBRC 13 57 60 4.1 4.3 4.6 3.7 3.8 4.4 2.2 5.0 3.3 2.8 3.7 4.3 5.8 4.7 5.9 3.6 3.3 4.6 SBRC 18 39 42 3.3 4.7 3.9 4.2 5.3 4.5 3.0 4.1 3.5 3.0 4.4 4.9 4.1 3.3 4.1 3.6 3.6 3.8 SBRC 18 42 45 3.4 2.7 2.3 2.9 2.9 2.5 2.4 2.5 2.6 2.3 2.9 2.7 2.4 1.6 2.6 2.3 2.6 2.0 www.pinnacleminerals.com.au 9 ASX Announcement 3 August 2024 Appendix 3 JORC Tables Section 1 Sampling Techniques and Data Criteria JORC Code explanation Sampling techniques • • • • Drilling techniques • Drill sample recovery • • • Commentary Nature and quality of sampling (e.g., cut channels, random chips, • or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling. Include reference to measures taken to ensure sample • representivity and the appropriate calibration of any measurement tools or systems used. Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (e.g., ‘reverse circulation drilling was used to obtain 1m samples from which 3 kg was pulverised to produce a • 30 g charge for fire assay’). In other cases, more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g., submarine nodules) may warrant disclosure of detailed information. Drill type (e.g., core, reverse circulation, open-hole hammer, • rotary air blast, auger, Bangka, sonic, etc.) and details (e.g., core diameter, triple or standard tube, depth of diamond tails, facesampling bit or other type, whether core is oriented and if so, by what method, etc.). Method of recording and assessing core and chip sample • recoveries and results assessed. Measures taken to maximise sample recovery and ensure representative nature of the samples. Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential • loss/gain of fine/coarse material. • Logging • • • Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. The total length and percentage of the relevant intersections logged. • Samples derive from historical drilling from the South Australia Drill Core Reference Library and do not relate to drilling carried out by Pinnacle Minerals. Sample compositing by Newcrest at the time of drilling of 1 m samples to 3 metres (1kg – 2kg) has been applied to the SBRC series holes. Approximate 50 g samples were taken with a small scoop for analysis. Aircore/Reverse Circulation drilling (with and without hammer attachment) was used to obtain samples. The twin-tube aircore drilling technique is known to provide appropriate samples from the face of the drill hole for exploration targeting. As this drilling campaign was not utilised for resource definition any variation over a metre-by-metre basis of sampling is not expected to alter the interpretation of the results. No historical sample return information was recorded. Every drill hole was logged in full (Open File Envelope Number 9207, EL 2176 Streaky Bay, Annual and final report for the period 7/6/97 to 6/6/98), with detailed logging based on the sample collected for each metre by the site geologist at the time of drilling. Pinnacle Minerals Ltd Issued Capital Australian Registered Office Directors ACN: 655 033 677 ASX: PIM 45,463,317 Shares 44,867,271 Options Unit 6, Level 1, 389 Oxford Street Mount Hawthorn WA 6016 T: + 61 8 9426 0666 E: admin@pinnacleminerals.com.au WILLIAM WITHAM – Non-Executive Chairman NIC MATICH – Managing Director LINCOLN LIU – Non-Executive Director STEPHEN ROSS – Non-Executive Director www.pinnacleminerals.com.au Criteria JORC Code explanation Sub-sampling techniques and sample preparation • • • • • • Quality of assay data and laboratory tests • • • Verification of sampling and assaying • • • • Commentary If core, whether cut or sawn and whether quarter, half or all core taken. If non-core, whether riffled, tube sampled, rotary split, etc., and whether sampled wet or dry. For all sample types, the nature, quality and appropriateness of the sample preparation technique. Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. Measures taken to ensure that the sampling is representative of the in-situ material collected, including for instance results for field duplicate/second-half sampling. Whether sample sizes are appropriate to the grain size of the material being sampled. • The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. Nature of quality control procedures adopted (e.g., standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e., lack of bias) and precision have been established. • The verification of significant intersections by either independent or alternative company personnel. The use of twinned holes. Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. Discuss any adjustment to assay data. • • • Sample methods were appropriate for scout drilling which as variation on a meterby-meter basis will not affect the interpretation of the results. 50 g is the maximum amount of sample allowed to collect from the core library and the sample sizes are suitable to reliably capture geological characteristics, based on industry experience of the geologists involved. Pinnacle used a total digest fusion method (ME-MS81) to analyse the full REE content of the samples including acidresistant minerals. For the ionic leach tests, an acidified ammonium sulphate leach method (ME–MS19) was carried out by ALS. This technique is appropriate to identify the leachable portion of clay-hosted REE mineralisation. Standard Certified Reference Material sample and results were checked to ensure they are within tolerance (<2 SD) and that there is no bias or drift for both ME-MS81 and ME-MS19. Accuracy and Precision are acceptable REE analysis was originally reported in elemental form, but it has been converted to relevant oxide concentrations as per the industry standard: TREO = La2O3 + CeO2 + Pr6O11 + Nd2O3 + Sm2O3 + Eu2O3 + Gd2O3 + Tb4O7 + Dy2O3 + Ho2O3 + Er2O3 + Tm2O3 + Yb2O3 + Lu2O3 + Y2O3 MREO = Dy2O3 + Nd2O3 + Pr6O11 + Tb4O7 HREO = Eu2O3 + Gd2O3 + Tb4O7 + Dy2O3 + Ho2O3 + Er2O3 + Tm2O3 + Yb2O3 + Lu2O3 + Y2O3 • www.pinnacleminerals.com.au Element to Oxide Conversion 11 Criteria JORC Code explanation Commentary Factors are: Element La Ce Pr Nd Sm Eu Gd Tb Dy Ho Er Tm Yb Lu Y • • Location of data points • • • Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. Specification of the grid system used. Quality and adequacy of topographic control. • • • Data spacing and distribution • • • Data spacing for reporting of Exploration Results. Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. Whether sample compositing has been applied. • • • CF (multiplier) 1.1728 1.2284 1.2082 1.1664 1.1596 1.1579 1.1526 1.1762 1.1477 1.1455 1.1435 1.1421 1.1387 1.1371 1.2699 Oxide La2O3 CeO2 Pr6O11 Nd2O3 Sm2O3 Eu2O3 Gd2O3 Tb4O7 Dy2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3 Y2O3 All results are checked by the Competent Person. The leach recovery from MEMS19 was calculated against ME-MS81 to obtain the recovery in percent. Coordinates were retrieved from open file documentation (SARIG) which were surveyed with a differential GPS. The datum used for is GDA94 and coordinates are projected as UTM zone 53. For the purposes of first pass exploration, the Competent Person considers that this is appropriate precision in location of drillhole collars. Historical drill density was 80– 600 m on a 140° traverse line for the SBRC 1–13 series holes where Pinnacle collected isolated historical samples of 8 holes. Historical drill spacing was 300–1,200 m on an east-west traverse line for the SRBC 1420 where Pinnacle collected two samples from hole SBRC 18. Each aircore sample is a single 1-m sample of material intersected down the hole. Samples have been composited to 3-m intervals. Orientation of data in relation to geological structure • • Whether the orientation of sampling achieves unbiased sampling • of possible structures and the extent to which this is known, • considering the deposit type. If the relationship between the drilling orientation and the www.pinnacleminerals.com.au SBRC holes drilled at -60°. 1–3 m samples are sufficient to define clay zones and to 12 Criteria JORC Code explanation Commentary orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material. • define layers / structures in the basement. The orientation of the drilling is considered appropriate for testing the lateral and vertical extent of mineralisation. Sample security • The measures taken to ensure sample security. • • Audits or reviews • The results of any audits or reviews of sampling techniques and data. • • www.pinnacleminerals.com.au The historical samples remained in the custody of Government employees at the Tonsley Core Library and were delivered to Challenger Geological Services for processing. The samples were delivered to the ALS laboratory in Adelaide. No independent audits or reviews of sampling techniques and data have been conducted. Internal reviews undertaken. 13 Section 2 Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section.) Criteria JORC Code explanation Mineral tenement and land tenure status • • Exploration done by other parties • Commentary Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area. • Acknowledgment and appraisal of exploration by other parties. • • • Geology • Deposit type, geological setting and style of mineralisation. • • • Drill hole Information • • A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill hole collar o elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o hole length. If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from www.pinnacleminerals.com.au • • • The historical drilling reported in this announcement lies within the granted exploration licences EL 6968 (Wirrulla Project). At the time of reporting all tenure was secure and any administrative costs or fees were fully paid up. Prior exploration in the tenement was for diamonds (Diamond Ventures NL), sedimentary uranium (Broken Hill Pty Co Ltd), heavy mineral sands (Iluka Resources Ltd) and base metals (Newcrest Mining Ltd). The state regional geophysics dataset was used to help interpret the local geology. Clay hosted REE mineralisation is a function of weathering of igneous rocks. The basement is interpreted to be early Mesoproterozoic Gawler craton undifferentiated granitoid intrusive rocks related to the Lincoln Complex, Palaeoproterozoic Hutchison Metasediments and tertiary sand and clay sediments The Narlaby Palaeochannel lies within the tenement. Coordinates, end of hole (EOH) depth, dip and azimuth are presented in Table 2. All significant drill results and drill hole collar locations have been identified in Appendix 1 and Appendix 2 of this report. No relevant material data 14 Criteria JORC Code explanation Commentary the understanding of the report, the Competent Person should clearly explain why this is the case. Data aggregation methods • • • In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g., cutting of high grades) and cut-off grades are usually Material and should be stated. Where aggregate intercepts incorporate short lengths of high-grade results and longer lengths of low-grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. The assumptions used for any reporting of metal equivalent values should be clearly stated. has been excluded from this report. • • • • Relationship between mineralisation widths and intercept lengths • • These relationships are particularly important in the reporting of Exploration Results. If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. • If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g., ‘down hole length, true width not known’). Diagrams • Balanced reporting • Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported. These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views. Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results. • • • Further work • • The deposit style is assumed to be flat-lying and the -60° holes are therefore not necessarily true width of the mineralisation. Further drilling will outline the geometry of mineralisation. • Figures and plans are displayed in the main text of the release. • Six samples from holes SBRC 11 and SBRC 12 had <250 ppm TREO and were therefore not classified as mineralisation/relevant for ionic leach testing. Only samples from holes outlined in Table 2 were analysed. • Other substantive exploration data Three intervals are reported as linear averages over 6–15 m sample lengths. Significant results in Table 1