Marula Mining PLC (AQSE: MARU) Quarterly Activities Update

Marula Mining (AQSE: MARU) (“Marula”), is pleased to update the market and shareholders on the quarterly activities of the Company for the three-month period ending 30 September 2022 (the “Quarter”).

Highlights for the Quarter

  • Blesberg Lithium Sampling and Metallurgical Test work Completed

Work programs commenced at the Blesberg Lithium and Tantalum Project in South Africa (“Blesberg”) during the Quarter. This included a major bulk sampling program on the approx. 280,000 tonnes of existing lithium and spodumene stockpiles.

The Company’s South African based mineral processing and mining consultants and plant operators, Southern Metal Processing Pty Limited (“SMP”) undertook this work, which included taking 3 one-tonne samples and seventy-five 40 kilogram (“kg”) additional samples.

Samples were taken for metallurgical test work, to allow SMP to update the extensive historical test work already completed at the Blesberg Project and to enable the Company and SMP to finalise the plant design and optimise the process flow sheet for the production of a spodumene concentrate for the export markets and the potential upgrading to a high value lithium carbonate at SMP’s facilities in Johannesburg, South Africa.

  • High-Grade Assay Results Obtained from Blesberg Sampling work

Results from the initial sampling, metallurgical test work and flowsheet work were received toward the end of the Quarter.

Average grades of 6.10% Li2O were reported from the initial test work completed on the initial one tonne of material assayed.

Lithium grades of 6.25% Li2O were also reported in the first 520kg bulk sample and grades of between 1.5% Li2O and 5.8% Li2O reported in an additional 486kg sample taken and initially sampled

The results demonstrated that high-grade lithium was contained within the spodumene mineralisation and that high value lithium can potentially be recovered from the existing stockpiles without incurring high capital, mining, and processing costs.

Following the receipt of the results, the Board approved an accelerated program to fast-track the treatment of the high-grade lithium identified in the spodumene and position Blesberg as a producer and seller of lithium product.

  • Blesberg site works commenced

To round off the Quarter, the Company announced that SMP had completed a detailed site visit, assessment and review of the Blesberg Project area to enable them to finalise the design and develop a long-term sustainable mining and associated operations plan for the planned mining and processing operation. Completion of this review allowed the Board to make the decision to commence site establishment work in line with the requirements of the Department of Mineral Resources.

During the Quarter, SMP commenced the initial site works, which included submitting a proposal for the retreatment of the existing stockpiles and preliminary design work for a longer term hard-rock mine, together with exploration plans and budgets, mine health and safety plan, and detailed capital and operating cost estimates and the standard operating procedures for the lithium mining and processing operation in line with the Company’s ESG and CSR corporate policies.

As part of the initial site works, SMP are now commencing improvements to the local site infrastructure, submitting applications for two five hectare mining permits extending over the initial areas to reprocess the stockpiles and a waste management license and will also work with the Company’s geological consultants in preparing an updated resource statement of the existing stockpiles of material including the identified lithium bearing spodumene.

  • Nkombwa Hill Site Visit

A comprehensive site visit was completed during the Quarter at the Nkombwa Hill Niobium and Tantalum, Rare Earth Elements and Phosphate Project in Zambia (“Nkombwa”). The site visit was conducted by the Company’s representatives and technical consultants and the other Nkombwa shareholders.

The site visit was undertaken to allow the Company and its technical consultants to better plan and prepare the proposed exploration and development programs at Nkombwa over the next 12 months.

Previous exploration has defined a JORC 2012 Compliant Total Indicated and Inferred Mineral Resource of 21.8 million tonnes (“Mt”) at a grade of 7.06% P2O5 and 1.17% Total Rare Earth Oxides (“TREOs”) at a 3.0% P2O  cut-off,  and with a high grade subset of the Total Mineral Resource, of 2.78Mt at a grade of 2.76% TREO and 6.43% P2O5 at a 1.0% TREO cut-off grade also defined. The reported Total Mineral Resource was defined on an area of less than 5% of the Nkombwa Project.

During the site visit, the majority of the diamond drill boreholes, completed as part of the previous resource definition programme, were located and the differing styles of niobium and tantalum mineralisation were observed along with the phosphate and rare earth element mineralisation identified during previous drill works.

A sampling programme of the niobium and tantalum mineralisation in the major alluvial zone at the Southern side of Nkombwa was undertaken during the visit. These samples are currently in Johannesburg, South Africa undergoing metallurgical analysis. Results of the analysis will be used to optimise and finalise the design of the process flow sheet for on-site concentration and off-site extraction or refining.

Post Quarter Highlights

  • Investment in High-Grade Copper Mining Project in Tanzania

Post the Quarter end, the Company entered into a binding heads of agreement with Takela Mining Tanzania Limited (“Takela”) to secure a 49% commercial interest in the Kinusi Copper Project comprising of 10 copper mining licences in Tanzania.

Under the terms of the agreement with Takela, the Company will now advance funds to complete additional exploration, expansion, and mine development work.

A site visit by the Company’s CEO and management during the Quarter identified a potential high grade and shallow copper ore body extending for over a kilometre. Copper mineralisation was widely observed and samples taken and copper grades of 7.28%, 19.12% and 31.32% were reported.

Further exploration and mine development work is to commence at the Kinusi Copper Project during the current quarter.

The addition of these licences has further broadened the Company’s portfolio of assets to include another key component in the supply chain of critical minerals essential towards the drive to the green transition.

Jason Brewer, Marula Mining PLC CEO said;

“The Company has made significant progress at Blesberg during the Quarter making significant strides towards becoming a producer in the short-term, and providing value for shareholders. The team’s efforts have led to the identification of high-grade lithium mineralisation and the potential of Blesberg to produce at low cost and potentially generate cashflow in the near term.

“I am particularly happy with the progress at Blesberg which has not gone unnoticed by many commodity trading groups and investors who are looking to secure long-term and sustainable supplies of lithium concentrate to meet the record levels of demand.

“The successful site visit to Nkombwa Hill has allowed the Company to focus its exploration and development activities over the coming 12 months. The sampling programme undertaken during the visit will be analysed and used to progress works for onsite concentration of niobium and tantalum and off-site extraction or refining. This will further allow plans for broader exploration with the aim of identifying new phosphate and rare earth elements mineral resources.

“We’re excited about the potential of the Kinusi Copper project and adding this already proven high grade copper project to our portfolio will further strengthen Marula’s strategy of investing and developing mining assets with near-term potential.

“I would like to thank shareholders and the Marula team for their continual support and look forward to updating the market with ongoing activities.”

The Directors of Marula Mining Plc are responsible for the contents of this announcement.

For enquiries contact:

Marula Mining PLC

Jason Brewer
Chief Executive Officer

Email: [email protected]

Email: [email protected]

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