Taruga Minerals Limited advised that the second batch of key assays have been returned for the rare earth focussed drilling program. Exceptional clay-hosted REE grades of up to 9,082ppm (0.91%) TREO1 with multiple holes
mineralised from surface and to end of hole (EOH). New assays extend mineralised strike by 300%, from 1.4km to 4.3km (open). Very high basket average of 34% MREO2 (Nd + Pr + Dy + Tb), which is significantly higher
than the peer average of 25% MREO, with high levels of Dysprosium and Terbium. The mineralised rare earth clays assayed contain low deleterious elements, including low cerium, low thorium and uranium, low calcium, and low aluminium. Metallurgical proxy testwork produced high MREO and TREO recoveries3, indicating high REE solubility in a weak acid environment and therefore potential for a simple and low-cost metallurgical flowsheet, consistent with ionic and colloidal REE mineralisation. Australian Nuclear Science and Technology Organisation (ANSTO), world leaders in ionic adsorption clay metallurgy, have been engaged to conduct advanced ionic leach testwork on Morgans Creek REE clay samples with initial results expected late November. Mineralisation is concentrated primarily within weathered Yednalue formation which has a continuous strike of over 5.5km at Morgans Creek with exposures over 300m wide. Drill include: MCRB044 (Hydrothermal Hill): 43m @ 1,687ppm TREO from surface to EOH (40% MREO) including: 5m @ 3,343ppm (0.33%) TREO from 12m, with 1m @ 9,082ppm (0.91%) TREO from 13m (44% MREO); 14m @ 2,979ppm (0.30%) TREO from 29m to EOH, with 2m @ 7,052ppm (0.71%) TREO from 29m (42% MREO). MCRB045 (Hydrothermal Hill): 40m @ 1,582ppm TREO from surface to EOH (41% MREO) including: 17m @ 2,636 (0.26%) TREO from 11m, including. 5m @ 4,930ppm (0.49%) TREO from 19m with 1m @ 6,234ppm (0.62%) TREO from 21m; MCRB053 (Hydrothermal Hill): 31m @ 1,444ppm TREO from surface to EOH (44% MREO) including: 2m @ 2,656ppm (0.27%) TREO from 16m, and 6m @ 3,903ppm (0.39%) TREO from 22m with 2m @ 5,760ppm (0.58%) TREO from 24m. MCRB040 (Hydrothermal Hill): 55m @ 678ppm TREO from surface to EOH (25% MREO;) including: 14m @ 1,230ppm TREO from 41m to EOH with 4m @ 2,190ppm (0.22%) TREO from 45m. Strike Extension Drilling ¡ 2.7km south of Hydrothermal Hill "Hydro Hill South" MCRB057 (Hydro Hill South): 45m @ 726ppm TREO from surface (34% MREO), including; 5m @ 1855ppm (0.19%) TREO from 17m (37% MREO). In addition to having a high proportion of high-value magnet rare earths, the clay-hosted REE mineralisation at Morgans Creek contains low levels of deleterious elements including cerium, thorium and uranium, aluminium and calcium. Having low levels of the radioactive elements uranium and thorium is highly beneficial for downstream processing of rare earth element concentrates. Low cerium levels also provide significant processing benefits and mean that there are higher concentrations of the high-value REEs in the basket. High levels of CaCO3 increase the acid consumption requirements when leaching and therefore increase processing costs. High aluminium can create challenges when trying to separate the rare earth oxides once a concentrate has been produced, as the alumina tends to follow the REEs down the process flow sheet.