• October 3, 2020

Technical Report for Lake Giles Magnetite Mineral Resource; Macarthur Minerals

Published on October 3rd, 2020

Macarthur Minerals is an iron ore development, gold and lithium exploration company that is focused on bringing to production its Western Australia iron ore projects.

Announcement Highlights

  • Macarthur Minerals files NI43-101 Technical Report for the magnetite Mineral Resource at its Lake Giles Iron Project
  • Measured Mineral Resources totaling 53.9 Mt and Indicated Mineral Resources of 218.7 Mt
  • Inferred Mineral Resource of 997.0 Mt
  • Macarthur now has sufficient Mineral Resources in the appropriate categories to progress its Feasibility Study Macarthur Minerals Limited (TSX-V: MMS) (ASX: MIO) (OTCQB: MMSDF) (the “Company” or “Macarthur”) is pleased to announce it has filed the technical report for the magnetite Mineral Resource update for its 100% owned Lake Giles Iron Project (”the Project”) in Western Australia.

The independent technical report, entitled “NI43-101 Technical Report, Magnetite Mineral Resource, Lake Giles Magnetite Project, Western Australia (“2020 Technical Report”) with an issue date of September 29, 2020 was prepared in accordance with the requirements of National Instrument 43-101 (“NI 43-101”). The 2020 Technical Report is filed under the Company’s profile on the System for Electronic Document Analysis and Retrieval (“SEDAR”) website at www.sedar.com (filing date: October 1, 2020) and on the Company’s website at www.macarthurminerals.com.

The Technical Report was completed by independent geological consultants CSA Global Pty Ltd (CSA Global). The previous Mineral Resource estimates presented to the market between 20091 and 20192 consisted entirely of Inferred resources, including 710 million tonnes (“Mt”) at the Moonshine deposits. During 2019 the Company completed a program of infill drilling across some of the Moonshine deposit to upgrade the Mineral Resource category to include Indicated and Measured resources. The Mineral Resource upgrade has delivered sufficient resources in the appropriate categories to underpin the current Lake Giles Iron Project Feasibility Study.

The updated Mineral Resource estimates incorporate the recent drill assays and has resulted in an increase in the size of the Moonshine mineral resources, including resource category upgrades to now include Measured and Indicated resources. Approximately 30% of the Moonshine resource is now classified as Indicated with approximately 7.5% classified in the Measured category.

Highlights of Mineral Resource estimates:

• Measured resources of 53.9 Mt at 30.8% Fe head grade and 66.0% Fe DTR concentrate grade
• Indicated resources of 218.7 Mt at 27.5% Fe head grade and 66.1% Fe DTR concentrate grade
• Inferred resources of 997.0 Mt at 28.4% Fe head grade and 64.6% Fe DTR concentrate grade

Mineral Resource Update

The Lake Giles Mineral Resource estimates have been updated by CSA Global and reported in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Definition Standards.

The Mineral Resource estimate includes recent infill drilling conducted at the Moonshine deposits as previously disclosed on May 5, 2020 (see full release here).

Figures 1 and 2 show the distribution of the Mineral Resource (see link below) categories within the domains hosting the Measured and Indicated Mineral Resources for the Moonshine deposits.

Macarthur’s infill drilling program concentrated on just a portion of the previously reported Mineral Resource2 to establish Measured and Indicated Mineral Resources to underpin the Feasibility Study of the Lake Giles Iron Project. Further drilling beyond the Measured Mineral Resource will be conducted as required however, the Company is confident it has established sufficient Mineral Resources to support its Feasibility Study.

The Inferred Mineral Resources in Moonshine North (western domains) are extended to beyond 200m below the depth of drilling, with geological continuity at these depths implied based upon results from aeromagnetic surveys.

The results from the aeromagnetic surveys covering Moonshine are less clear and there is therefore less confidence in the interpreted depth extension of the host Banded Iron Formation (BIF) unit where there is no drill hole support.

Read full Announcement

MACARTHUR MINERALS LIMITED | Preliminary Economic Assessment | Lake Giles Iron Project | Western Australia

SOURCE: Macarthur Minerals

DATE: 01 October, 2020

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