Castile Resources : OUTSTANDING RECOVERIES OF GOLD, COPPER AND COBALT AT ROVER 1

Table 2: Total Recoveries from Rover 1 Ore (METS Engineering)

only	4 March 2022
ASX Announcement

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OUTSTANDING RECOVERIES OF GOLD, COPPER AND COBALT AT ROVER 1

Castile Resources Limited (ASX:CST) ("Castile" or "the Company") is pleased to report that extremely high gold, copper and cobalt individual metal recovery rates have been achieved from downstream processing of the bulk flotation concentrate. Previously, Castile had reported Rover 1 recovery rates of all the metals reporting to a single bulk concentrate (see ASX: CST 3 September 2021). The downstream processing enables the production of direct metal at site with the tabulated recovery rates from the bulk concentrate as follows:

use	Table 1: Individual Metal Recoveries From Bulk Concentrate
	Metal	Recovery Rate
personal		Gold	98.0%
	Copper	99.4%
	Cobalt	99.1%
GOLD

Tracking the primary metal products through the process route shows an estimated 21.4% of the gold reports to simple gravity recovery. Of the remaining gold, 72.4% reports to the bulk concentrate. Recovery of gold from the bulk concentrate is 98.0% resulting in an overall total gold recovery of 92.8%.

COPPER

With regard to copper, 97.8% of the copper contained in Rover 1 ore reports to the bulk flotation concentrate. Downstream proceeding of the concentrate converts 99.4% of the copper to solution. Electrowinning then recovers 98% of the copper in solution resulting in an overall total copper recovery of 95.3%.

For	COMMODITY	Gold	Copper	Cobalt
Gravity Recovery	21.4%
Bulk Flotation	72.4%	97.8%	88.0%
Recovery
Recovery from Bulk	98.0%	99.4%	99.1%
	Concentrate
	Solution Recovery		98.0%	95.0%
	TOTAL RECOVERY	92.8%	95.3%	82.8%

only"Our goal of finding the best method of extracting maximum value from each tonne that we mine has been achieved. As pposed to the traditional route of concentrate sales to overseas markets, the boutique scale of the project enables the

ASX Announcement4 March 2022

Mark Hepburn, Managing Director of Castile Resources commented:

application of site-based downstream processing to produce primary metals. This results in the maximisation of recovery of key metals and fast turnaround times in cashflows for the financial modelling in the Pre-Feasibility Study.

useThis is a clear winner in the pathway to future development at Rover 1. Castile will produce a gold bullion and the critical

"clean energy" sector metals of copper and cobalt. These are required products for the rapidly expanding power storage and low carbon industrialisation sectors including the power storage and motor vehicle electrification industry.

A major benefit of the downstream processing route is the increased recovery of pure cobalt metal. This makes the project a key source of ethically mined cobalt and one of the very few in the western-world.

Another huge bonus for the project is the anticipated fourth revenue stream from the magnetite extracted from the

personalp ant tail product. We are not simply producing a raw material for steel manufacture; this magnetite will be processed to For

produce a higher value product (95%+ magnetite) for use as a density modifying industrial mineral. Production of this m gnetite will also significantly minimise the environmental footprint of the operation by reducing waste and tailings storage requirements (See ASX:CST 19 November 2021)."

Figure 1 Indicative Processing Flow Sheet for Rover 1

only	4 March 2022
ASX Announcement

The recoveries of these four key elements into high purity forms reduces the environmental footprint from subsequent transport and provides key products for future use within Australia. This methodology aligns with the NT Governments' push for value-add industry and production. Work is underway for the design and costing of a processing plant to support the mining studies.

Bismuth recoveries were low, and as a consequence that metal will no longer be pursued in the flowsheet as a by- product.

useKEY OUTCOMES OF RECENT METALLURGICAL TESTWORK

These recovery result build on the information presented in "Outstanding Metallurgical Results from Rover 1" (3 September 2021), building on the recovery of the Gravity Gold and Bulk Flotation. The test work results presented above in Tables 2 and 3were carried out at 180OC, 1,702kPa. Two other tests were carried out at 200OC and 2,254kPa and 220OC and 3,018kPa. All tests were carried out for 120 minutes. The full set of results from the test work are shown below in Table 3:

Table 3 - Recovery of Rover 1 Concentrate (METS Engineering)

	Commodity	Temperature	Pressure	Gold	Copper	Cobalt
		(OC)	(kPa)
	Test 1	180	1,702	98.0%	99.4%	99.1%
	Test 2	200	2,254	97.1%	99.5%	98.9%
personal	Test 3	220	3,018	99.7%	99.6%	99.6%
Total Gold Recovery 93%

Early stage gravity separation recovers an estimated 21.4% of the gold. Downstream processing enables a further 76.6% of the gold is recoverable by a small scale carbon in leach (CIL) process enabling with an overall 98.0% of contained gold to be produced as a gold dore bar.

Total Copper Recovery 95%

Copper is contained within the bulk sulphide float (97.8% recovered), then oxidised and dissolved into solution. At

180OC and 1,702kPa, 99.4% of the copper contained within the concentrate is dissolved into the solution. This solution Forthen passes through a small scale electrowinning process (SX-EW) to extract the contained copper, producing copper

plate.

T tal Cobalt Recovery 83%

The bulk sulphide float contains 88% of the Cobalt. The downstream processing recovers 99.1% of the contained cobalt to be converted to cobalt metal by an electrowinning process.

Total Magnetite Recovery 68%

The magnetite which occurs as one of the primary gangue minerals of the ore, will be separated via magnetic separation prior to the sulphide float. This will allow the production of the high grade magnetite as previously announced in "ASX:CST 19 November 2021 New Environmentally Sustainable Product at Rover". On the test work that was completed for this announcement, 67.7% of the contained magnetite was able to be separated into the P9553μm product containing 96.4% magnetite which Castile has now had certified to Australian Standard.

only	4 March 2022
ASX Announcement

SUPPLEMENTARY INFORMATION

Samples used for the metallurgical test work were taken from holes 20CRD001 and 20CRD002. Please see announcements "Stunning Gold Intercepts from Rover 1 - Amended" (14 October 2020) and "Castile receives Significant Copper Results from Rover 1" (20 October 2020) for the results of 20CRD001 and "Rover 1 Drilling Program Delivers more significant Copper Gold Intercepts" (2 November 2020) for the results of 20CRD002.

useTh se two holes were logged and assayed by Castile Resources Geologists. Ten intervals were selected for the Metallurgical Test work to provide a representative sample of the ore body and delivered to the ALS Laboratory in Perth, providing sufficient mass for the test work which is being managed by METS Engineering. A single composite was created from these intervals to represent the ore body, weighing approximately 350kg. From hole 20CRD001 intervals 479.95m - 492m, 493m - 508.75m, 509.45 - 511.4m, 518.0 - 520.15m,521.0 - 522.5m and 527.0 - 536.0m were selected. From hole 20CRD002, intervals 541.6m - 563.08m, 564.0m - 566.0m, 567.0m - 573.0m and 578.8m - 588.0m were selected. The location of holes 20CRD001 and 20CRD002 are shown below. (See Figure 3).

For personal

Figure 2: Long projection of Rover 1

Grind establishment to determine the P80 106μm targeted grind size. Mineralogy Test work via QEMSCAN

Determine the Head Assays of the composite

Determine the size fraction of the valuable minerals (gold, copper, cobalt, bismuth, and magnetite) Sighter and sequential floatation test work.

Previous Test work Completed

only	4 March 2022
ASX Announcement

All material for the test work were recovered from these diamond holes in Figure 2. The holes were drilled at HQ size to e able sufficient material to be gathered for the test work. This material was stage crushed and rotary split five ways. The five splits were used in the following fashion:

•

use•

•

•

•

Three stages of test work have been conducted prior to the oxidation work:

• Preliminary work to understand the rock mass, including comminution, strength and bond work analysis. The results of these tests are contained in "Outstanding Metallurgical Test Results from Rover 1" (20 September 2021).
• Sighter tests were then carried out for the bulk sulphide float, followed by a bulk sulphide float. The results of this test work are summarised below:

Table 4 Bulk Floatation Test Results

	Test Number		Lime Addition for	Lime Addition for	MIBC (Ro 1, 2, 3 &	Mass Contained	Mass Contained
				Rougher Stage	Scavenger Stage	Scav)	in Ro Conc		in Tail
				(g)	(g)	(Drops)	(g)		(g)
	BF1991		10.59		2.11		26, 40, 20 & 10	11,263.3		48,736.7
	BF1992		9.22		3.64		50, 25, 5 & 4		11,251.4		48,748.6
	BF1993		10.93		3.83		50, 25, 6 & 4		11,000.5		48,999.5
personal
	BF1994		9.45		3.89		55, 25, 10 & 25	10,706.6		49,293.4
	BF1995		9.30		5.62		51, 25, 20 & 15	11,122.1		48,877.9
	Table 5 summarises the results obtained from the Bulk Floatation Test work.
For	Table 5: Recoveries from Bulk Flotation Testing of Rover 1 Ore (METS Engineering)
			Commodity		Gold		Copper		Cobalt	Bismuth
			Gravity Recovery		21.4%
		Bulk Flotation Recovery		72.4%		97.8%		88.0%	89.7%
			TOTAL RECOVERY		93.8%		97.8%		88.0%	89.7%