MRC - SIGNIFICANT INCREASE IN TORMIN INLAND STRANDS MINERAL RESOURCES

Published: 2021-12-08 11:21:09 ET MRC.AX

The Inland Strands are located within Prospecting Right 10262PR (WC 30/5/1/1/2/10262PR) owned by the Company's 50% owned South African subsidiary, Mineral Sands Resources (Pty) Ltd ('MSR')

Mineral Commodities Ltd ('MRC' or 'the Company') and its empowerment partner, Blue Bantry Investments 255 (Pty) Ltd, are pleased to announce an updated Mineral Resource Estimate for the Western Strandline and a maiden Mineral Resource Estimate for the Eastern Strandline, both forming part of the Tormin Inland Strands deposit. The Inland Strands are located within Prospecting Right 10262PR (WC 30/5/1/1/2/10262PR) owned by the Company's 50% owned South African subsidiary, Mineral Sands Resources (Pty) Ltd ('MSR')

Chief Executive Officer Jacob Deysel said, 'This is a very significant milestone for growing our mineral sands business in the Western Cape region of South Africa. The Tormin Western Strandline is a world class mineral sands deposit, and the Eastern Strandline presents an additional resource to further expand MSR's conventional mineral sands resources. The Strandlines are open along strike to the north and south of our Prospecting Right 10262PR, both areas over which MSR has prospecting rights under application. We look forward to delivering a maiden Ore Reserve in the next quarter and further drilling thereafter in line with our development and growth plans for our mineral sands business'.

Background

The Tormin operation is located approximately 370km north of Cape Town and approximately 30km from the township of Lutzville in the Republic of South Africa.

The Inland Strands comprise multiple discrete palaeo strandlines running semi-parallel to the coastline and within the MSR-owned Geelwal Karoo Farm 262. Two palaeo-marine strandlines have been identified, consisting of a Western Strandline (35-40m above mean sea level) and an Eastern Strandline (86m above mean sea level). Aeromagnetic data indicates that the Inland Strands run continuously along the coastline of MSR's tenure portfolio, including 10240PR to the south and its application for 10348PR to the north. In January 20202, MSR was granted Prospecting Right 10262PR covering an area of 1,741 hectares and some 12km in length.

The first phase of the resource drilling (7,000 metres) focused on the Expanded Mining Right area (162&163EM) and commenced in mid-February 2020. In August 20203, MRC reported a maiden JORC Code (2012) compliant resource of 106 million tonnes at 12.4% THM in the category of Measured, Indicated and Inferred using a 2% cut-off. The second phase of the resource drilling campaign commenced in the first half of December 2020 and was completed in May 2021, with a total of 9,831m drilled on the Inland Strands, including resource definition drilling at Eastern Strandline and extensional and infill drilling of the known mineralised zones on the Western Strandline

Contact:

Tel: +61 8 6373 8900

About Mineral Commodities Ltd

Mineral Commodities Ltd (ASX: MRC) is a global mining and development company with a primary focus on the development of high-grade mineral deposits within the mineral sands and battery minerals sectors. The Company is a leading producer of zircon, rutile, garnet, and ilmenite concentrates through its Tormin Mineral Sands Operation, located on the Western Cape of South Africa. In October 2019, the Company completed the acquisition of Skaland Graphite AS, the owner of the world's highest-grade operating flake graphite mine and one of the only producers in Europe. The planned development of the Munglinup Graphite Project, located in Western Australia, builds on the Skaland acquisition and is a further step toward an integrated, downstream value-adding strategy which aims to capitalise on the fast-growing demand for sustainably manufactured lithium-ion batteries

About Ascent Graphite

On 5 October 2021, the Company announced the results of a strategic review process6 , to optimise the Company's corporate and capital structure to fund future growth and accelerate shareholder value, targeting the development of anode production from a dedicated Active Anode Materials Plant ('AAMP') in Norway. MRC announced plans to separate its Norwegian Graphite Assets and its environmentally sustainable purification process into a newly incorporated Norwegian entity branded Ascent Graphite with a Norway/European facing, independent Board and operating structure to provide an optimal platform to attract funding and increase value