Vital Metals’ June 2023 Quarterly Report

31 July 2023

(July 31, 2023) Vital Metals Limited (ASX: VML l OTCQB: VTMXF) (“Vital”, “Vital Metals” or “the Company”) is pleased to report on its activities during the June 2023 quarter, including at its 100%-owned Nechalacho Rare Earth Project in Yellowknife, Northwest Territories, Canada.

Highlights

  • Resource definition drilling at Tardiff deposit returns large intersections of total rare earth oxides (TREO) from initial results of 74-hole, 6,664m resource definition drilling program.
  • First 17 infill drillholes return 35+ intervals greater than 1% TREO, confirming strong REO mineralisation in the drilling area.
  • Initial results include:
    • 14.0m at 2.8% TREO from 76m;
    • 20.45m at 2.2% from 6.25m; and
    • 38.25m at 1.7% TREO from 21.35m.
      • Drilling aimed to increase confidence of the Tardiff Zone 1 and 3 resource areas from Inferred to Measured and Indicated Mineral Resources.
      • Assay results from the remaining 57 holes are expected in Q3 CY2023.
      • Vital is focused on developing the large-scale Tardiff deposit, one of the largest single rare earths deposits in the western World, estimated to contain 416,000 tonnes of permanent magnet minerals neodymium and praseodymium (NdPr)1.
      • Strategic Review of Saskatoon Rare Earth Processing Facility commenced and largely completed.

Nechalacho Rare Earths Project, Northwest Territories, Canada

In May, Vital announced positive initial results for the first 17 drill holes from its 2023 resource definition drilling program completed at the Tardiff deposit at Nechalacho2.

Nechalacho’s Tardiff Deposit boasts an impressive light rare earth oxides (LREO) resource of 119 million tonnes at 1.4% TREO1 in the measured, indicated and inferred JORC 2012 categories and the 2023 drilling program aimed to assist development of this world-class light rare earth deposit.

Vital’s successful drill program consisted of 74 drillholes for 6,664m (Figure 1), expanding on drilling completed in 2021 and 2022. The 2023 program aimed to increase the Measured and Indicated components of the 2023 Mineral Resource Estimate, focusing on the Tardiff Upper Mineralised Zone above the 150RL which is held by Vital. Vital’s 2023 resource definition drilling program was drilled on a nominal 50m by 50m grid to infill areas previously drilled by Avalon Advanced Materials Inc on nominal 100m to 200m drill spacing.

Vital received assay results for 17 drillholes (1,534m) (Figure 2), confirming previous geological interpretations of mineralisation in the Inferred resource areas and a better understanding of the rare earth mineralisation at Tardiff. More …

Saskatoon Rare Earth Processing Facility, Canada

With the pause in construction announced in April, demobilisation of contractors and consultants took place during the quarter. Filter presses and centrifuge installation was finalised. Those items of plant and equipment that had been ordered and substantially paid for at the beginning of the quarter, had their remaining amounts paid and items received, contributing to the significant cash depletion during the Quarter. Engineering and construction turnover packages were provided.

Upon full demobilization, the Saskatoon team took care of cleaning and securing the site, preserving the assets and advancing plans for an orderly project restart.

Current Project status is:

Engineering    80% complete

Procurement  85% complete

Construction  50% complete

The Company aims to provide an update on the strategic review process to investigate potential pathways for the long-term future and viability of Vital’s rare earth processing facility early in Q3.

Upcoming Catalysts

Assay results from the 2023 drilling campaign             Q3 CY2023

Update to Tardiff Mineral Resource Estimate              Q4 CY2023

Tardiff Scoping Study    By Q1 CY2024

Other Projects

Vital did not complete any activities at its projects in Tanzania, Burkina Faso or Germany during the quarter.

Corporate

The Company continues to conduct an international search for a new CEO with experience that can drive the strategy, and is currently working with a short list of potential appointees.

Mr Eben Visser has resigned as Chief Operations Officer. With the focus of the group on the development of the Tardiff Deposit, it is anticipated that a replacement will not be sought.

Cash position

As of 30 June 2023, the Company held approximately $3.3m in cash.

View Details