Page 2 pany is now in a position to model a larger pit to expand from the current 4 year BFS pit as per the BFS Economic Update of November 2022. The high-grade mineralisation recently intersected still open further to the west, north and to depth and the Company flags it will continue to drill this year to xpand this world-class tungsten resource. get has always been a long life open pit operation followed by, or in sequence to, a long life und operation. The Company’s immediate priority is to put this additional resource into our financial plan a larger pit and extend open pit mine life’’, Mr MacNeill adds. ted MRE is reported in accordance with the 2012 JORC Code and summarised as follows: Orebody Resource Classification Tonnes (Mt) Grade (%WO3) WO3 (mtu) Low-Grade Stockpile Indicated 10.126 0.075 759,450 Indicated 2.75 0.07 178,517 Inferred 0.83 0.06 53,789 Subtotal 13.71 0.07 991,756 In-Situ Indicated 18.06 0.30 5,405,901 Inferred 10.68 0.30 3,217,311 Subtotal 28.74 0.30 8,623,212 All Total 42.45 9,614,968 Notes: 1. Total Estimates are rounded to reflect confidence and resource categorisation 2. Classification of Mineral Resources incorporates the terms and definitions from the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code, 2012) published by the Joint Ore Reserve Committee (JORC) 3. No uppercut was applied to individual assays for this resource; lower cuts of 0.05% & 0.08% WO3 were applied to the resource and reported as Low Grade Insitu and In Situ respectively. These cuts are where mineralisation forms distinct vein zones. 4. Drilling used in this methodology was all diamond drilling with 1/2 core sent acoording to geological intervals to ALS for XRF-15b analysis 5. Resource estiamtation was completed using the Kriging Variable Orientation Estimation Methodology 6. Indicated spacing is approximatley 30 x30m inferred is approximatley 60 x 60m. 7. The deposit is sheeted vein system with subparrallel zones of quartz tungsten mineralisation that extends for >1.2km in length and remains open to the west and north. At depth the South Wall Fault cuts the Iolanthe to Johnson's veins but the Iron Duke zones remain open to depth. Figure 1 - Mt Carbine Mineral Resource Estimate as of April 2023 pany remodelled this MRE with a similar set of parameters as defined by the Measured Group when g the June 2021 and August 2022 Resource Statements with only minor modifications (for details ex 1 - Mineral Resource Statement’). The calculation used a ‘Kriged Variable Orientated Estimation’ ogy for the model. It was found the single variogram applied in previous estimations was not suitable estern extensions where changes in vein orientations were observed. The strike changes of the veins ea moved from grid east-west to grid south-west and was recorded from surface mapping of the veins s reflected in the recent orientated drill core. ated MRE uses the same 0.05% WO3 cut-off as defined in our previous Resources and Reserves nts (see November 2022 Updated Bankable Feasibility Study). The lower grade portion of these es is designated for storage into the Company’s low-grade stockpiles which are currently being mined e of 0.075% WO3, whilst the >0.08% WO3 portion is marked into the Company’s In-situ Resources . Figure 11 - Mt Carbine Mineral Resources Estimate as of April 2023. The Company’s remodelled MRE used a similar set of parameters as defined by its contractor, Measured Group, when calculating the June 2021 and August 2022 Resource Statements with only minor modifications (for details see the Technical Reports section of the EQR website). The calculation used a ‘Kriged Variable Orientated Estimation’ methodology for the model. It was found the single variogram applied in previous estimations was not suitable for the western extensions where changes in veins orientations were observed. The strike changes of the veins in this area moved from grid east-west to grid south-west and was recorded from surface mapping of the veins as well as reflected in the recent orientated drill core. The updated MRE uses the same 0.05% WO3 cut-off as defined in EQR’s previous Resources and Reserves Statements (refer Mt Carbine Expansion Project – Bankable Feasibility Study 2022 Economic Update). The lower grade portion of these Resources is designated for storage into the Company’s Low-grade Stockpiles which are currently being mined at a grade of 0.075% WO3, whilst the >0.08% WO3 portion is marked into the Company’s In-situ Resources. The updated resources allowed the Company to model a larger pit to expand from the current 4-year BFS pit as per the revised BFS Economic Update of November 2022. The high-grade mineralisation recently intersected still remains open further to the west, north and to depth. The Company flags it will continue to drill this year to further expand its world class tungsten resource. Operating and Financial Review continued 30 EQ Resources Limited Annual Report 2023
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