ANNUAL Report June 2022 Notes to the Consolidated Financial Statements 40 This study focused on the open pit development with high-grade ore from the Company’s 100% owned Andy White Open Pit, supplemented with the processing of the 12 million tonne Low-Grade Stockpile which is a 50:50 joint venture between EQ Resources Limited and Cronimet Australia Pty Ltd (“JV”) (refer ASX announcement “Mt Carbine BFS Delivers Strong Early Cash Flow” dated 13 December 2022. ▪ Continued increases in production and concentrate sales from the Company’s JV with CRONIMET Australia Pty Ltd as a direct result of capital improvements to existing infrastructure as well as the successful completion and commissioning of the Mt Carbine Early Works Program. ▪ APT (Ammonium Paratungstate; as the underlying price reference for tungsten concentrate) price continued to appreciate from $285/mtu a year ago to approximately US$340/mtu as at the end of July 2022. ▪ The release of an updated resource statement for the Mt Carbine Tungsten Project which added ~85% contained metal (in WO3) to Indicated resources (refer ASX Announcement “Increased Tungsten in Updated Mt Carbine Mineral Resource” dated 4 August 2022). ▪ The Company’s wholly owned subsidiary, Mt Carbine Quarrying Operations Pty Ltd, continues to dedicate resources to the development of its ‘green aggregates’ business to enable the repurposed Mt Carbine aggregates to be classified as a recycled product. This will open additional opportunities in both the local and regional markets with the potential to increase future sales as regional industries demand more recycled products. The Company continues to submit tenders for substantial civil projects in the Quarry’s operational area, all of which are dependent upon either Federal or State funding. ▪ The Company continues to hold: o Two (2) gold prospects in NSW and has entered into Farm-In and Joint Venture Agreement (the “Agreement”) executed with Sozo Resources Pty Ltd (“Sozo”) whereby Sozo can earn up to an 80% interest in EQR’s Panama Hat and Crow Mountain Projects (EL’s 6648 and 8024) by completing expenditure of A$1.6M over 4 years (refer ASX announcement ‘EQR Farms-Out NSW Projects to Focus On Mt Carbine Tungsten Mine’ dated 25 November 2021). o Three (3) tungsten focused Exploration Permits being as EPM 27394, EPM 14871 and EPM 14872 located at Mt Carbine, North Queensland. EPM 14872 contains both the Iron Duke and Petersen’s Lode prospects whilst EPM 14871 features the Mt Holmes tin-tungsten prospect. EPM 14872 holds significant exploration upside given that the tungsten grades indicated in the sampling of the Iron Duke and Petersen’s Lode are extensively higher than the estimated global average grade in the present open-pit resource within the Mt Carbine Mining Leases. These unencumbered, greenfield sites also offer the added advantage of having minimal environmental legacy issues. Based on the above, Directors’ have assessed there to be no indication of impairment in the current financial year. EQ Resources Limited Annual Report 2022 71
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