Renascor Resources : Siviour Drill Assays Highest Grade Graphite to Date

For personal use only

6 July 2022

Latest Siviour Drill Assays Amongst Thickest and

Highest-Grade Graphite to Date

Results support anticipated expansion in Siviour Resource and improved

mining schedule in updated Battery Anode Material Study

• New drill assays from recent drilling at Renascor's Siviour Graphite Deposit in South Australia have confirmed intersections within the project area that are amongst the thickest and highest grade to date, with results including:
• • 45 metres at 9.4% Total Graphitic Carbon (TGC) from 23 metres and 10 metres at 6.6% TGC from 8 metres (SIVRC264),
  • 25 metres at 13.7% TGC from 17 metres (SIVRC266),
  • 20 metres at 7.5% TGC from 7 metres (SIVRC267), and
  • 17 metres at 7.6% TGC from 48 metres (SIVRC273).
• These near-surface, thick and high-grade intercepts are primarily from areas to the immediate west of the existing pit design and Siviour Inferred Resource, suggesting strong potential to both improve the mine schedule and increase the scale and confidence level of the Siviour Resource.
• Siviour is currently the second largest reported Proven Graphite Reserve in the world and the largest Graphite Reserve outside Africa1, supporting a 40 year mine life with production of Graphite Concentrates of up to 150,000 tonne per annum2.
• The drill results will be incorporated into a revised pit design and mining schedule as part of Renascor's optimised Battery Anode Material Study3 (BAM Study), with the potential to reduce mining costs and increase the volume of graphitic ore mined.
• The results will also permit the calculation of revised Mineral Resource Estimate, expected to be completed in the current quarter.

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For personal use only

ASX Release: Renascor Resources

6/07/2022

Renascor Resources Limited (ASX: RNU) (Renascor) is pleased to report on final assays from recent drilling at its 100%-owned Siviour Graphite Deposit in South Australia.

Commenting on the drill results, Renascor Managing Director David Christensen stated:

"These results include near-surface intersections of some of the thickest and highest grade graphite drilled to date, underscoring Siviour's global significance and advantages in both scale and geometry.

We expect these results to support both an improved and accelerated mining schedule, as well as an expansion to the Siviour Resource to meet the increasing demand for Purified Spherical Graphite for lithium-ion battery anodes."

Discussion

Renascor is currently undertaking an updated, optimised Battery Anode Materials Study4 (BAM Study), assessing its planned vertically integrated mine and advanced manufacturing operation in South Australia.

The optimised BAM Study is assessing an increase to the previously planned Purified Spherical Graphite (PSG) production capacity of 28,000tpa, as well as additional staged expansions to both the planned Graphite Concentrate and PSG operations in order to meet projected demand.

In support of this objective, Renascor recently completed a 2,873 metre (38 hole) reverse circulation drill program at Siviour, with a primary aim of increasing the confidence and scale of the Siviour Resource.

Preliminary drill results confirmed several thick intersections of high-grade graphite within the eastern portion of the Inferred Resource zone. See Renascor ASX announcement dated 16 June 2022.

As shown in Figure 1 below, the remaining results, which concentrated on areas within and to the west of the western-most portion of the current pit design, have similarly confirmed thick, high-grade graphite intersections both within and outside the existing Siviour Resource.

Figure 1. Siviour, showing the location of the Inferred Resource zones targeted in the recent drill program

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ASX Release: Renascor Resources

6/07/2022

Assays from the remaining drill holes include some of the thickest and highest grade intersections to date within the project area, with results including:

• 45 metres at 9.4% Total Graphitic Carbon (TGC) from 23 metres and 10 metres at 6.6% TGC from 8 metres (SIVRC264),
• 25 metres at 13.7% TGC from 17 metres (SIVRC266),
• 20 metres at 7.5% TGC from 7 metres (SIVRC267), and
• 17 metres at 7.6% TGC from 48 metres (SIVRC273).

Results of remaining assays are below in Table 1, with complete details included in Appendix 1 and Appendix 2 of this announcement.

Table 1. Final assay results from the recent RC drilling program undertaken at Siviour (see Renascor ASX announcement dated 16 June 2022 for results from previously released assays).

	Hole			Collar			Collar			From			To			Interval			TGC%
			(MGAE)			(MGAN)			(metres)			(metres)			(metres)
	22SIVRC258*	633097		6245796		0		0		0		0
	22SIVRC259*	633095		6245899		0		0		0		0
									15		16		1		6.75
	22SIVRC260	630683		6246102		19		26		7		9.00
									28		32		4		5.76
	22SIVRC261	630773		6246090		24		25		1		6.25
			29		35		6		7.16
									63		65		2		5.35
	22SIVRC262	630828		6245993		70		86		16		6.27
									89		94		5		8.74
	22SIVRC263*	630809		6245898		0		0		0		0
	22SIVRC264	630598		6245811		8		18		10		6.60
			23		68		45		9.41
	22SIVRC265*	630468		6245840		0		0		0		0
	22SIVRC266	632698		6245804		17		42		25		13.69
			45		47		2		4.40
	22SIVRC267	630653		6245900		7		27		20		7.45
	22SIVRC268	630467		6245947		6		11		5		5.89
	22SIVRC269	630551		6245833		5		10		5		7.50
	22SIVRC270	630601		6246002		8		17		9		7.58
	22SIVRC271*	631876		6244531		0		0		0		0
	22SIVRC272*	631877		6244643		0		0		0		0
	22SIVRC273	631678		6244645		48		65		17		7.58

• Hole not completed to target depth
• Unless otherwise indicated, TGC based on a 3% cut-off, with maximum intervals of 1m internal waste

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ASX Release: Renascor Resources

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The drilling results have confirmed the continuity of high-grade graphite within the western Inferred Resource zone (see Figure 1) and continuing west along-strike into areas that are not included in the current Mineral Resource Estimate.

The most significant assay results from the recent drill program include some of the thickest and highest grade intersections to date in the project area to date5.

These results are located to the west of the western-most portion of the current pit design, suggesting potential to extend the pit in a revised pit design and mining schedule as part of Renascor's optimised BAM Study, with the potential to reduce mining costs and increase the volume of graphitic ore mined.

The drill results also suggest the potential to increase the Siviour Mineral Resource Estimate, as several significant graphitic intersections occur in areas outside the current Resource zone. This includes several significant assay results to the immediate west of the western-most portion of the Inferred Resource (e.g., holes SIVRC264 and SIVRC266), as well as areas extending to the south of the Resource zone (hole SIVRC273). See Figure 2 below.

The drill results also suggest further potential to extend the Siviour Resource into areas that have not been identified as high conductivity zones from previous electro-magnetic (EM) surveys. In Renascor's previous drilling, the conductivity boundaries were considered as representing the extent of mineralisation. However, in this most recent drilling, several of the most significant intercepts are located on the margin of EM conductivity zones. See Figure 2. This suggests that, although EM conductivity provides a general guide to mineralisation, it is not a definitive tool in defining the limits of thick high grade mineralised zones. Accordingly, in addition to extending into areas that present as high conductivity zones from EM surveys, there is additional potential to extend the Siviour Resource into areas outside these zones.

Figure 2 Drill results and resource outlines over airborne EM conductivity image showing interpreted trends.

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Next steps

The results from the recent drill program will be used to prepare a revised mining schedule to be incorporated in the updated BAM Study.

The results will also permit the calculation of revised Mineral Resource Estimate expected to be completed later this quarter.

This ASX announcement has been approved by Renascor's Board of Directors and authorised for release by Renascor's Managing Director David Christensen.

For further information, please contact:
Company Contact	Media Enquiries Contact
David Christensen	James Moses
Managing Director	Mandate Corporate
[phone]	[phone]
[e-mail]	[e-mail]

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