DRILLING CONFIRMS THIRD REE PROSPECT AT BARTELS, EYRE PENINSULA KAOLIN REE PROJECT

DETAILS:

The aim of the initial phase of drilling was to test the potential for ion adsorption clay (IAC) REE mineralisation at the Bartels Prospect on the Eyre Peninsula in South Australia. iTech has confirmed, from recently received drill results, that significant intersections of REEs occur within the weathered horizon at Bartels and have the potential to form IAC REE style mineralisation. Metallurgical work on mineralised samples will be required to test the extent to which the REEs are easily leachable.

Discussion

In January this year, iTech announced it had identified a new zone of REE mineralisation in a weathered, clay rich horizon at the Bartels Prospect, in the southernmost part of the Eyre Peninsula tenement package (Fig. 1). In 2012, Archer Materials drilled 3 reverse circulation drill holes targeting gold mineralisation in epithermal systems. One drill hole, EPIRC12_003, intersected significant rare earth elements in what is described as kaolinised coarse grained felsic, this hole was drilled to identify strike extensions to gold mineralisation.

• EPIRC12_003 intersected 21m @ 2298 ppm TREO from 55-76m 

o including 9 m @ 3054 ppm TREO from 55-64m
o and 7 m @ 2626 ppm TREO from 69-76m

EPIRC12_001 and EPIRC12_002 intersected alteration and significant gold mineralisation but didn’t intersect the kaolinitic felsic unit identified in EPIRC12_003.

iTech has now completed first pass drilling over the prospect and has identified a large area of approximately 1.3 km by 1 km with significant REEs close to the historical “discovery” hole EPIRC12_003 (Fig. 2). Mineralisation appears to be in the weathered horizon close to surface and relatively thick with intersections up to 17 metres. Importantly, the mineralisation is open in multiple directions and has the potential to expand with further drilling. An additional zone of mineralisation was identified, in three drill holes, approximately 2 km to the north-west. Further drilling is required to establish continuity and extent of mineralisation at this location.

Next Steps

Discussions have been held with ANSTO to determine the best sample size, location, and leaching conditions to undertake a comprehensive program of metallurgical optimisation. Options include varying a range of conditions including varying pH and leach times, multiple leach stages and the additional washing steps.

Having received positive drilling results from Bartels, iTech is eagerly waiting on results from the recently completed drilling programs at Ethiopia and Burtons. Once results have been received and announced, the Company will select representative samples from all three prospects to undergo a program of metallurgical optimisation. Samples will be selected to broadly assess metallurgical performance of mineralisation from differing geological characteristics such as regolith zones and varying depths from surface