The BFS Update covers total concentrate production of approximately 38,570 tonnes (50% WO3 content), an increase of 25% over the last BFS output. The Project implementation was split into two phases, with the Company having successfully completed Phase 1 Scope as per the initial BFS (December 2021). The BFS Update highlights that scope changes and cost updates have resulted in a positive net effect of approximately $2.9 million in total CAPEX savings. An additional $7.8m has been added to capital expenses to account for the doubling of plant capacity in 2025. The BFS Update had been prepared by independent lead study manager Turner & Townsend JukesTodd Pty Ltd. The full BFS report is available on the EQR webpage. Drilling & Discoveries During the quarter, drilling of 7 diamond holes for 1,646.30m was completed with the goal to extend the drill out of indicated resource for the western pit extension and to explore the extensions of the Iron Duke System to the North and the Western Extension High-Grade Zone. During April 2023, EQR brought a reverse circulation drill rig to site. In the coming weeks the rig will be used to define the daily mine blocks for each panel and is intended for use in continuous exploration drilling to extend on the target areas mentioned above. Both phases of the 2022 Drill Program were very successful with high-grade mineralisation adding resource and showing the deposit remained open in strike and depth. The figure below shows the location of the drilling this period relative to the proposed BFS designed open cut. Some of the highlights of the drilling include the following intercepts: − 2.36m @ 0.88% WO3 from 195.68m (EQ027) − 3.63m @ 0.40% WO3 from 233.18m, incl. 0.20m @ 6.01% WO3 from 233.18m (EQ028) − 9.76m @ 0.46% WO3 from 140.84m, incl. 2.25m @ 1.90% WO3 from 140.84m (EQ029) − 2.64m @ 0.76% WO3 from 218.50m (EQ029) − 2.48m @ 0.69% WO3 from 75.11m (EQ030) − 1.00m @ 1.90% WO3 from 213.42m (EQ030) − 18.24m @ 1.00% WO3 from 387.25m, incl. 5.51m @ 3.20% WO3 from 387.25m (EQ030) − 2.82m @ 1.81% WO3 from 140.10m, incl. 1.19m @ 3.89% WO3 from 140.84m (EQ031) Iron Duke Extension Two holes west of the pit, EQ027 and EQ028, confirmed the geological model identifying the most prospective target zone for tungsten enriched veining, which appears to be a roughly vertical zone below ‘200m Reduced Level (RL)’. A third hole, EQ029, confirmed a northern extension of the high-grade Iron Duke veining. resourcing the new economy for a better tomorrow Good mineralisation was located on the down dip extension of the high-grade surface exposures. Hole EQ029 holds good promise that high-grade mineralisation can be found across the entire Iron Duke Vein Package (Dazzler, Talis & Crown veins, shown in purple). The main Mine Pit Vein Package veins are the Iolanthe, Bluff & Johnson, shown in red. Figure 3 - Cross section of EQ029 confirming continuation of high-grade mineralisation in the Iron Duke Vein Package (shown in purple) Released on authority of the Board by: Further Enquiries: Kevin MacNeill Peter Taylor Chief Executive Officer Investor Relations 0412 036 231 peter@nwrcommunications.com.au 3m zone at surface >1% WO3 (Visual Result) 9.76m @ 0.46% WO3 incl. 2.25m @ 1.9% WO3 2.64m @ 0.76% WO3 2.0m @ 0.77% WO3 1.61m @ 0.6% WO3 BFS Pit South Wall Fault EQ029 South (A) North (A’) Figure 17 - Cross Section of EQ029 confirming continuation of high-grade mineralisation in the Iron Duke Vein Package (Purple). Operating and Financial Review continued 34 EQ Resources Limited Annual Report 2023
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