Announcement PDF May 23, 2023 Strong assays pave way for more Resource growth at Koppamurra rare earths project Latest drilling intersects significant mineralisation outside existing resource Australian Rare Earths Limited (ASX: AR3) is pleased to announce strong drilling results which point to another increase in the Resource at its Koppamurra ionic clay-hosted rare earths project in South Australia. The assays, which show the mineralisation extends north and south of the existing Resource, will be included in the Resource update scheduled for the coming quarter. Significant Intercepts include: • KM3892, 3m @ 1,311 ppm TREO from 4m, with 21.7% combined Neodymium/Praseodymium (Nd/Pr) and 2.0% Dysprosium (Dy) – section 1 • KM4053, 3m @ 857 ppm TREO from surface, with 23.5% combined Nd/Pr and 2.9% Dy – Section 3 • KM3922, 4m @ 1,210 ppm TREO from surface, with 21.9% combined Nd/Pr and 2.6% Dy • KM3949, 3m @ 1,242 ppm TREO from 2m, with 22.4% combined Nd/Pr and 2.7% Dy – Section 2 • KM4027, 7m @ 935 ppm TREO from 3m, with 19.5% combined Nd/Pr and 2.6% Dy • KM4038, 2m @ 2,181 ppm TREO from 3m, with 21.8% combined Nd/Pr and 3.4% Dy • KM3748, 2m @ 1,767 ppm TREO from 4m, with 25.9% combined Nd/Pr and 1.8% Dy • KM3901, 3m @ 1,777 ppm TREO from 3m, with 21.1% combined Nd/Pr and 2.4% Dy – Section 2 • KM4097, 4m @ 1,958 ppm TREO from 5m, with 21.7% combined Nd/Pr and 2.5% Dy – Section 4 Acting Managing Director Rick Pobjoy said: “Advances to our project are coming at a very good time, we are highly encouraged by this weekend’s Australia-United States Joint Leaders’ Statement, and the signing of the Climate, Critical Minerals and Clean Energy Transformation Compact between Australia and the USA. Koppamurra is in the right place at the right time to take full advantage of this development.” “The evidence is mounting of the significant potential within Koppamurra to stand as a globally significant multigenerational resource. We look forward to working together with resource estimation consultants on the next JORC update of this growing ionic clay hosted rare earth mineral resource at Koppamurra.” “These initial assay results received from Bureau Veritas are very welcome. They support our expectation for extensions of the existing resource and of the regional extent of the Koppamurra mineralisation. Encouragingly, many of the mineralised intervals identified in the southern extension of the resource significantly exceed the average grade for the current Mineral Resource Estimate.” Drilling completed since February 1st on the extensions to the recently updated Mineral Resource Estimate (MRE) at Koppamurra (ASX: 3 April 2023) has included 698 drillholes for 7,363m with an average depth of just 10.5m. Approximately 5,000 additional assays have been collected as part of this drill campaign, of which the final 2,000 are expected to be received shortly. Once received these assays will provide a robust data set for a significant update to the current MRE scheduled for the next Quarter. As announced recently (ASX: 10 May 2023) regional drilling also continues on resource definition of the Northern most Exploration Target and with road verge drilling planned to be conducted on areas in between the existing Exploration Target areas in an effort to both extend the Exploration Target and to begin establishing a MRE for the Frances region. Section 1, Koppamurra Southern Resource Extension Section 2, Koppamurra Southern Resource Extension Section 3, Koppamurra Southern Resource Extension Section 4, Koppamurra Southern Resource Extension Figure 1, Drillhole and Section Location Plan. New drilling and Significant Intersection identified with larger circles than existing drilling and Significant Intersections overlaying the current resource outlines. The announcement has been authorised for release the by the Board of AR3 Limited. For further information please contact: AR3 Limited Rick Pobjoy Acting Managing Director T: 1 300 646 100 Media Enquiries Nicholas Read / Paul Armstrong Read Corporate T: 08 9388 1474 Competent Person Statement The information in this report that relates to Exploration results is based on information compiled by Australian Rare Earths Limited and reviewed by Mr Rick Pobjoy who is the Acting Managing Director of the Company and a member of the Australian Institute of Mining and Metallurgy (AusIMM). Mr Pobjoy has sufficient experience that is relevant to the style of mineralisation, the type of deposit under consideration and to the activities undertaken to qualify as a Competent person as defined in the 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Pobjoy consents to the inclusion in this report of the matters based on this information in the form and context in which it appears. About Australian Rare Earths Limited Australian Rare Earths is committed to the timely exploration and development of its 100% owned, flagship Koppamurra Project, located in South Australia and Victoria. Koppamurra is a prospective ionic clay hosted rare earth deposit, uniquely rich in all the elements required in the manufacture of rare earth permanent magnets which are essential components in electric vehicles, wind turbines and domestic appliances. The Company is focused on executing a growth strategy that will ensure AR3 is positioned to become an independent and sustainable source of rare earths, playing a pivotal role in the global transition to a green economy. Appendix 1 – JORC Tables Criteria Sampling techniques Section 1 Sampling Techniques and Data Explanation Comment Nature and quality of RC Aircore drilling methods were used obtain sampling (e.g., cut samples from the October-December 2021, channels, random chips, or February-April 2022, September-December 2022, specific specialised & February-May 2023 drilling programmes. industry standard The following information covers the sampling measurement tools process: appropriate to the • All air core samples were collected from the minerals under rotary splitter mounted at the bottom of the investigation, such as cyclone using a pre-numbered calico bag and down hole gamma sondes, plastic UV sample bag. The samples were or handheld XRF geologically logged at 1 m intervals using the instruments, etc). These marked calico sample which averaged ~1.5 examples should not be kg in mass. taken as limiting the broad • A handheld Olympus Vanta XFR Analyser meaning of sampling. was used to assess the geochemistry of the Include reference to air core samples in the field. The XRF measures taken to analysis provided a full suite of mineral ensure sample elements for characterising the lithological representivity and the units. appropriate calibration • XRF readings were downloaded from the of any measurement XRF Analyser at the end of each day and tools or systems used. uploaded to the Australian Rare Earths Aspects of the Azure Data Studio database. determination of mineralisation that are • Field duplicates were taken at a rate of Material to the Public 1:36 and inserted blindly into the sample Report. In cases where batches. ‘industry standard’ work • At the laboratory, the samples were oven has been done this would dried at 105 degrees for a minimum of 24 be relatively simple (e.g., hours and secondary crushed to 3 mm ‘reverse circulation drilling fraction and then pulverised to 90% passing was used to obtain 1 m 75 µm. Excess residue was maintained for samples from which 3 kg storage while the rest of the sample placed was pulverised to produce in 8x4 packets and sent to the central a 30 g charge for fire weighing laboratory. The samples were assay’). In other cases, submitted for analysis using XRF-ICP-MS more explanation may be method. required, such as where there is coarse gold that • A laboratory repeat was taken at ~ 1 in 21 has inherent sampling samples; problems. Unusual • Commercially obtained standards were commodities or inserted by the laboratory at a rate of ~ 1 mineralisation types (e.g., submarine nodules) may warrant disclosure of detailed information. Drilling techniques Drill type (e.g., core, reverse circulation, openhole 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). in 9 into the sample sequence. • • • • • Drill sample recovery 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. • • • • • • McLeod Drilling used a Toyota Land air core rig and support vehicle for the aircore drilling. Aircore drilling is a form of reverse circulation drilling where the sample is collected at the face and returned inside the inner tube. The drill cuttings are removed by injection of compressed air into the hole via the annular area between the inner tube and the drill rod. Aircore drill rods used were 3 m long. NQ diameter (76 mm) drill bits and rods were used. All aircore drill holes were vertical with depths varying between 2 m and 36 m. Drill sample recovery for aircore is monitored by recording sample condition descriptions where ‘Poor’ to ‘Very Poor’ were used to identify any samples recovered which were potentially not representative of the interval drilled. A comment was included where water injection was required to recover the sample from a particular interval. The use of water injection can potentially bias a sample and very little water injection was required during this drilling programme. No significant loses of samples were observed due to the shallow drilling depths (<36 m). The rotary splitter was set to an approximate 20% split, which produced approximately 1.5 kg sample for each meter interval. The 1.5 kg sample was collected in a prenumbered calico bags and the remaining 80% (5 kg to 8 kg) was collected in plastic UV bags labelled with the hole number and sample interval. At the end of each drill rod, the drill string is cleaned by blowing down with air to remove any clay and silt potentially built up in the sample pipes and cyclone. Logging Sub-sampling techniques and sample preparation 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. If core, whether cut or sawn and whether quarter, half or all cores 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 insitu material collected, including for instance results for field duplicate/second-half • No relationship exists between sample recovery and grade. • All aircore samples collected in calico bags were logged for lithology, colour, cement type, hardness, percentage rock estimate, sorting, and any relevant comments such as moisture, sample condition, or vegetation. Geological logging data for all drill holes was qualitatively logged onto Microsoft Excel spreadsheet using a Panasonic Toughbook with validation rules built into the spreadsheet including specific dropdown menus for each variable. The data was uploaded to the Australian Rare Earths Azure Data Studio database. • Every drill hole was logged in full and logging was undertaken with reference to a drilling template with codes prescribed and guidance to ensure consistent and systematic data collection • 1 m aircore sample interval were homogenised within the cyclone and the rotary splitter was set to an approximate 20% split producing around 1.5 kg sample for each metre interval. • The 1.5 kg sample was collected in a prenumbered calico bag and the 80% (5 kg to 8 kg) portion was collected in plastic UV bags labelled with hole identity and interval. • Duplicates were generally taken within the clay lithologies above the basement as this is the likely zone of REE enrichment. These duplicate samples were normally collected by using a second calico bag and placing it under the rotary splitter collecting a 20% split but due to the difficulties of placing a second calico bag under the rotary splitter during sample collection, some duplicates were collected by hand from the plastic UV bags which captured the other 80% of the material recovered from any particular interval. • The material in the plastic UV bags was mixed up and every attempt to take as • sampling. Whether sample sizes are appropriate to the grain size of the material being sampled. Quality of assay data and laboratory tests 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. representative sample of the material as possible by hand was made and then placed in a pre-numbered calico bag. • The 1.5 kg sample collected in the calico bag was logged by the geologist onsite. The logged samples were placed in polyweave bags and sent to Naracoorte base at the end of each day. The polyweave bags where then placed on pallets and dispatched to Bureau Veritas laboratory in Adelaide in Bulka Bags. • The remaining 80% split from the aircore interval was stored for future reference. • Field duplicates of all the samples were completed at a frequency of 1 in 38 samples. Field standards were inserted into the sample sequence at a frequency of 1:59. Standard reference Material (SRM) samples were inserted into the sample batches at a frequency rate of 1 per 10 samples by the laboratory and a repeat sample was taken at a rate of 1 per 21 samples. • A rig geologist oversaw the sampling and logging process while a second geologist selected samples for analysis based on the logging descriptions and Pxrf analysis. Clay rich sample and those adjacent to the limestone basement contact were selected for assay. REEs are known to be contained within the clay component of the sediment package based on analysis of XRF data and previous exploration work. • The detailed geological logging of samples provides lithology (clay component) and proximity to the limestone basement which is sufficient for the purpose of determining the mineralised zone. • The 1.5 kg aircore samples were assayed by Bureau Veritas laboratory in Wingfield, Adelaide, South Australia, which is considered the Primary laboratory. • The samples were initially oven dried at 105 degrees Celsius for 24 hours. Samples were secondary crushed to 3 mm fraction and the weight recorded. The sample was then pulverised to 90% passing 75 µm. Excess residue was maintained for storage while the rest of the sample placed in 8x4 packets 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. • • • • • • • Verification of sampling and assaying and sent to the central weighing laboratory. All weighed samples were then analysed using the Multiple Elements Fusion/Mixed Acid Digest analytical method; ICP Scan (Mixed Acid Digest – Lithium Borate Fusion) Samples are digested using a mixed acid digest and also fused with Lithium Borate to ensure all elements are brought into solution. The digests are then analysed for the following elements (detection Limits shown): Al (100) As (1) Ba (1) Be (0.5) Ca(100) Ce (0.1) Co (1) Cr (10) Dy (0.05) Er (0.05) Eu(0.05) Fe(100) Gd (0.2) Ho (0.02) K (100) La (0.5) Lu (0.02) Mg (100) Mn (2) Na (100) Nd (0.05) Ni (2) Pr (0.2) S (50) Sc (1) Si (100) Sm(0.05) Sr (0.5) Th (0.1) Ti (50) Tm (0.2) U (0.1) V (5) Y (0.1) Yb (0.05) Zr (1) Field duplicates were collected and submitted at a frequency of 1 per 36 samples. Bureau Veritas completed its own internal QA/QC checks that included a Laboratory repeat every 21st sample and a standard reference sample every 9th sample prior to the results being released. Analysis of QA/QC samples show the laboratory data to be of acceptable accuracy and precision; Australian Rare Earths submitted field standards at a frequency of 1:59 samples. Australian Rare Earths requested BV insert blank washes at a frequency of 1:40 samples. These blank washes were inserted in the sample sequence behind samples which were thought to be mineralized to ensure that no contamination from higher grade samples was occurring. Frequency of blank samples totaled 1 in 24 samples. The adopted QA/QC protocols are acceptable for this stage of test work. The sample preparation and assay techniques used are industry standard and provide a total analysis. The verification of • All results are checked by the company’s significant intersections by Technical Director. either independent or • Field based geological logging for drill 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. • • • • • • • holes was entered directly into an Excel spreadsheet format with validation rules built into the spreadsheet including specific drop-down menus for each variable. This digital data was then uploaded to the Australian Rare Earths Azure Data Studio database. Assay data was received in digital format from the laboratory and was uploaded Australian Rare Earths Azure Data Studio database. Field and laboratory duplicate data pairs of each batch are plotted to identify potential quality control issues. Standard Reference Material sample results are checked from each sample batch to ensure they are within tolerance (<3SD) and that there is no bias. The field and laboratory data was exported and imported into Datamine by IHC Robbins which is appropriate for this stage in the program. Data validation criteria are included to check for overlapping sample intervals, end of hole match between ‘Lithology’, ‘Sample’, ‘Survey’ files and other common errors. Assay data yielding elemental concentrations for rare earths (REE) within the sample are converted to their stoichiometric oxides (REO) in a calculation performed within the database using the conversion factors in the below table. Rare earth oxide is the industry accepted form for reporting rare earths. The following calculations have been used for reporting throughout this report: Note that Y2O3 is included in the TREO, HREO and CREO calculation. TREO = La2O3 + CeO2 + Pr6O11 + Nd2O3 + Sm2O3+ Eu2O3 + Gd2O3 + Tb4O7 + Dy2O3 + Ho2O3 + Er2O3 + Tm2O3 + Yb2O3 + Lu2O3+ Y2O3 CREO = Nd2O3 + Eu2O3 + Tb4O7 + Dy2O3 + Y2O3 LREO = La2O3 + CeO2 + Pr6O11 + Nd2O3 HREO = Sm2O3 + Eu2O3 + Gd2O3 + Tb4O7 + Dy2O3 + Ho2O3 + Er2O3 + Tm2O3 + Yb2O3+ Lu2O3 + Y2O3 NdPr = Nd2O3 + Pr6O11 TREO-Ce = TREO - CeO2 NdPr = Nd + Pr Element Oxide CeO2 Dy2O3 Er2O3 Eu2O3 Gd2O3 Ho2O3 La2O3 Lu2O3 Nd2O3 Pr6O11 Sc2O3 Sm2O3 Tb4O7 ThO2 Tm2O3 U3O8 Y2O3 Yb2O3 Location of data points Accuracy and quality of surveys used to locate drill holes (collar and downhole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. Specification of the grid system used. Quality and adequacy of topographic control. Oxide Factor 1.2284 1.1477 1.1435 1.1579 1.1526 1.1455 1.1728 1.1371 1.1664 1.2082 1.5338 1.1596 1.1762 1.1379 1.1421 1.1793 1.2699 1.1387 • Down hole surveys for shallow vertical aircore drill holes are not required. • The drill hole collars were located using a GPS unit to identify the positions of the drill holes in the field. The handheld GPS has an accuracy of +/-5m in the horizontal. • The datum used is GDA2020/MGA Zone 54. • Topographic data over the southern area of the resource (including all Inferred/Indicated/Measured resource areas) is derived from a fixed wing LiDAR survey flown in May 2022 by Aerometrex using their RIEGL VQ-780ii sensor. The LiDAR survey data was captured at a minimum 25 points per meter and flown at a height of 591m to ensure ~10cm vertical • • Data spacing and distribution Orientation of data in relation to geological structure accuracy. Topographic DTM surface over the northern area of the resource (Frances Exploration Target area) is derived from DGPS drill collar positions at this stage of exploration and the RL has been corrected using An Australian wide SRTM. The 1 second SRTM Level 2 Derived Smoothed Digital Elevation Model (DEM-S) is derived from the 2000 SRTM. The DEM-S has a ~30m grid which has been adaptively smoothed to improve the representation of the surface shape and is the preferred method for shape and vertical accuracy from STRM products.The smoothing process estimated typical improvements in the order of 2-3 m. This would make the DEM-S accuracy to be of approximately 5 m. The accuracy of the locations is sufficient for this stage of exploration. The holes were largely drilled at between 100 m and 400 m spacings along accessible road verges. Drill spacing within paddocks and forested areas was largely completed at 100 m to 120 m spacings, with a small portion of holes drilled at 60 m spacings. The drilling of aircore holes was conducted to determine the regional prospectivity of the wider Koppamurra Project area and for the purposes of generating a mineral resource estimate. No sample compositing has been applied. 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. Whether the orientation of • The Koppamurra mineralisation is sampling achieves interpreted to be hosted in flay lying clays unbiased sampling of that are horizontal. possible structures and the • All drill holes are vertical which is extent to which this is appropriate for horizontal bedding and known, considering the regolith profile. deposit type. • The Koppamurra drilling was oriented If the relationship between perpendicular to the strike of the drilling orientation and mineralisation defined by previous the orientation of key exploration and current geological mineralised structures is interpretation. considered to have introduced a sampling bias, this should be assessed and reported if material. Sample security Audits or reviews The measures taken to ensure sample security. The results of any audits or reviews of sampling techniques and data. The strike of the mineralisation is north south, and the high grades follow a northwest-southeast trend. • All drill holes were vertical, and the orientation of the mineralisation is relatively horizontal. • The orientation of the drilling is considered appropriate for testing the lateral and vertical extent of mineralisation without any bias. • After logging, the samples in calico bags were tied and placed into polyweave bags, labelled with the drill hole and sample numbers contained within the polyweave and transported to the base of operations, Naracoorte, at the end of each day. • • The samples were then placed on pallets ready for transport and remained in a secure compound until transport had been arranged. Pallets were labelled and then ‘shrink-wrapped’ by the transport contractor prior to departure from the Naracoorte base to the analytical laboratory. • Samples for analysis were logged against pallet identifiers and a chain of custody form created. • Transport to the analytical laboratory was undertaken by an agent for the TOLL Logistics Group, and consignment numbers were logged against the chain of custody forms. • The laboratory inspected the packages and did not report tampering of the samples and provided a sample reconciliation report for each sample dispatch. Internal reviews were undertaken by AR3’s Exploration Manager and Technical Director during the drilling, sampling, and geological logging process and throughout the sample collection and dispatch process to ensure AR3’s protocols were followed. A review of the database was also undertaken by Wallbridge Gilbert Aztec (WGA) – Consulting Engineers. • • Criteria Mineral tenement and land tenure status Section 2 Reporting of Exploration Results Explanation Comment Type, reference Koppamurra Project comprises of a name/number, location granted South Australian Exploration and ownership including Licences (EL), EL6509, EL6613, EL6690 and agreements or material EL6691, along with Victorian EL007254 issues with third parties and EL7719 covering a combined area of such as joint ventures, ~4,000 km2 which is in good standing. partnerships, overriding EL6509 is within 100m of a Glen Roy royalties, native title Conservation Park and the Naracoorte interests, historical sites, Caves National Park, the latter of which is wilderness or national excised from the tenement. The License park and environmental area contains several small Extractive settings. Mineral Leases (EML) held by others, The security of the tenure Native Vegetation Heritage Agreement held at the time of areas, as well as the Deadman’s Swamp reporting along with any Wetlands which are wetlands of national known impediments to importance. obtaining a licence to operate in the area. A Native Title Claim by the First Nations of the South East #1 has been registered but is yet to be determined. The claim area includes the areas covered by EL’s 6509, 6613, 6690 and 6691. The exploration work was completed on the tenements (EL 6509 and EL6613) in South Australia and EL007254 and EL7719 which are 100% owned by the company Australian Rare Earths Ltd. The Exploration License EL6509 original date of grant was 15/09/2020 with an expiry date of 14/09/2028. The Exploration License EL6613 original date of grant was 07/07/2021 with an expiry date of 05/07/2027. The Exploration License EL007254 original date of grant was 29/04/2021 with an expiry date of 28/04/2028. The Exploration License EL007719 original date of grant was 29/08/2022 with an expiry date of 29/08/2027. Details regarding royalties are discussed in chapter 3.4 of Australian Rare Earths Prospectus dated 7 May 2021. Exploration done by other parties Acknowledgment and appraisal of exploration by other parties. Exploration activities by other exploration companies in the area have not previously targeted or identified REE mineralisation. Historical exploration activities in the vicinity of Koppamurra include investigations for coal, gold and base metals, uranium, and heavy mineral sands. 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: - easting and northing of the drill hole collar - elevation or RL (Reduced Level – Historical exploration by other parties is detailed in Chapter 7 of Australian Rare Earths Prospectus dated 7 May 2021. The ionic clay hosted REE mineralisation at Koppamurra is hosted by clayey sediments interpreted to have been deposited onto a limestone base (Gambier Limestone) and accumulated in an interdunal, lagoonal or estuarine environment which has been extensively mapped east of the Kanawinka fault in SE SA. A dedicated post-doctoral research program investigating the source of the REE at Koppamurra is ongoing, with no definitive source of the REE confirmed to date although preliminary results of this study have ruled out the alkali volcanics in south-eastern Australia which was originally considered. Mineralogical test work conducted on clay samples from the project area established that the dominant clay minerals are smectite and kaolin, and that the few REE-rich minerals detected during the scanning electron microscope (SEM) investigation were not considered inconsistent with the suggestion that a significant proportion of REE are distributed in the material as adsorbed elements on clay and iron oxide surfaces. The material information for drill holes relating to this report are contained within Appendices of this release. elevation above sea level in metres) of the drill hole collar - dip and azimuth of the hole - down hole length and interception depth - hole length. Data aggregation methods Relationship between mineralisatio If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case. In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg 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