Anax Metals Limited provided an update on the progress of the Whim Creek Project (Project) Definitive Feasibility Study (DFS), which includes the Mons Cupri, Whim Creek, Evelyn and Salt Creek deposits. The Project is 80% owned by Anax with the remaining 20% owned by Develop Global Limited. In November 2022, the Company announced that its DFS would be expanded to include the satellite deposits, Evelyn and Salt Creek.

The massive sulphide Evelyn deposit is located 25km south of the proposed Whim Creek processing facility along the Croydon-Whim Creek Road. In 2022, Anax completed two diamond holes at the Evelyn deposit, targeting representative high-grade copper and zinc domains. Both holes successfully intersected significant mineralisation, including near- surface zones of well-mineralised copper (as chalcopyrite), zinc (as sphalerite) and lead (as galena) in the form of semi-massive to massive sulphides.

The massive sulphide lens is zoned with zinc (as sphalerite) dominant in the upper portions and copper (in the form of chalcopyrite) increasing with depth. Hole 22AED003 initially underwent continuous XRF scanning using the Minalyzer CS system in Perth. The core was subsequently cut, and half core was submitted for geochemical assay analysis at a commercial assay laboratory in Perth.

The remaining holes drilled at Evelyn were also scanned using the Minalyzer CS unit, with assay results from 22AED003 used to calibrate results. Minalyzer CS is unable to provide accurate analyses for gold and silver and as a result the Company was unable to provide results for these elements for 22AED004A. Core from 22AED004A was selected for metallurgical test work, which consisted of comminution and flotation.

The results compare well with the Minalyzer scanning results and returned significant precious metals in addition to copper and zinc mineralisation previously identified through continuous XRF scanning. No previous comminution test work had been completed at Evelyn. Samples from the Evelyn bulk composite were subjected to comminution test work, which consisted of standard Crushing Work indices (CWi) and Bond Ball Mill work indices (BBWi) completed at Bureau Veritas in Perth.

Test work results confirm that the Evelyn massive sulphide sample is soft and easily crushed and grindable with CWi of 3.7 kWh/tonne and BBWi of 9.3 kWh/tonne. Feed preparation, head assay and standard comminution testing was carried out at Bureau Veritas in Perth, while the flotation test work was carried out by Auralia Metallurgy in Perth. The flotation test work for Evelyn prioritised the production of separate saleable copper and zinc concentrates.

It was deemed preferable (after two initial tests seeking to produce separate copper, lead and zinc concentrates) to target a combined lead zinc concentrate in the second stage of the float rather than potentially compromise copper and zinc recoveries by aiming to produce a separate lead concentrate from a relatively low (<1%) lead head grade in the feed. It was found that a finer primary grind of 38µm was beneficial to increase recoveries, combined with regrind of concentrates in the copper circuit and the zinc/lead circuit. Due to the soft nature of the high- grade massive sulphide Evelyn ore composite sample (BBWi = 9.3), a finer grind should be readily achieved when treating Evelyn ore in the proposed Whim Creek concentrator ball mill circuit.

While further optimisation work is continuing, recent flotation test work has produced highly encouraging results with up to 90% copper recovered to the copper concentrate and 86% zinc recovered to the zinc concentrate. Significant recovery of precious metals to the copper concentrate have also been achieved, that would deliver high payabilities and significant by-product credits. A Scoping Study completed in January 20223 identified a production target of approximately 250 Kt of high-grade copper-zinc-silver-gold ore that could be mined at Evelyn and trucked to Whim Creek for processing.

Open pit studies completed in August 2022 as part of the DFS produced similar results. In October 2022, Anax announced the results from exploration drilling completed at Evelyn in late July 2022 where 22AER005B intersected 13 m @ 4.46% Cu, 3.10% Zn, 45 g/t Ag and 1.61 g/t Au from 204 m. The intersection extended the Evelyn resource down-plunge resulting in a 24% increase in contained copper, a 19% increase in contained zinc, a 30% increase in contained gold and a 26% increase in contained silver. The resource remains open down plunge.

The Evelyn massive sulphide orebody is a steeply dipping tabular body. Depth extensions are highly unlikely to be mined through open pit techniques due to high strip ratios. As a result, Anax initiated further studies in early November 2022 to evaluate the economics of mining Evelyn through underground mining techniques.

ABGM mining consultants were appointed to undertake the Evelyn underground mining study, which has now been completed. Evelyn is proposed to be mined at 20 m level spacings using long hole open stopping with backfill. Backfill will consist of development waste (from Evelyn), ore sorting rejects and/or heap leach material that will be transported to Evelyn by backloading ore haulage trucks.

The study has confirmed that underground mining would provide a superior outcome compared to open pit mining. Underground development is proposed to extend to the current base of the resource, indicating that further down-plunge exploration success would very likely translate into an increased production target and further enhance the economics of the Evelyn deposit. In November 2022, Anax commissioned mining consultants, Orelogy, to complete an updated underground mining desktop assessment for the Salt Creek deposit.

The rationale for updating the assessment was: a) the completion of a geotechnical assessment that indicated more favourable underground geotechnical conditions than what had previously been assumed, and b) an updated Resource Estimate for Salt Creek that delivered a 99% increase in contained copper and a 22% increase in contained zinc.