Draft ASX announcement re financial close




29 January 2016


Level 1, 672 Murray Street West Perth WA 6005

Locked Bag 8

West Perth WA 6872

t. +61 8 9322 1182

f. +61 8 9321 0556

info@neometals.com.au neometals.com.au

Neometals Ltd ABN 89 099 116 631


Expansion drilling at Mt Marion Lithium Project yields positive results


Neometals Ltd (ASX: NMT) ("Neometals") refers to Mineral Resources Limited (ASX: MIN) ("MIN") Quarterly Activities report announced 29 September 2015 containing drill results for the first 46 RC drill holes of a 335‐hole resource infill and extension program at the Mt Marion Lithium Project in the Goldfields region of Western Australia.

During the December Quarter, 46 RC holes were drilled at the No.6 Deposit, for a total of 2,324 metres and 9 (83mm‐PQ) Diamond holes were drilled for a total of 693.2 metres on Deposits 1,2 and 2West. A typical cross section is below and a summary of significant intercepts is below.



The infill and extension drilling program has prioritised the near surface mineralisation. The drilling to date has identified that the mineralisation is laterally wider to the east, open to the north and east and possibly faulted off to the west. Generally the ore horizon is thicker than previously reported by Mineral Resources.



All the right elements

The first phase of the resource infill and extension project is targeted at extending the size and increasing the classification of the existing resources at Deposits 1,2,2West and 6, and newly acquired lithium, rights on part of Hampton Location 53 (see plan below). Mt Marion's current total Indicated and Inferred Mineral Resources are 23.24Mt at 1.39% Li2O and 1.43% Fe2O3, at a cut‐off grade of 0% Li2O (Appendix A).

A 30‐hole diamond drilling program for metallurgical and geotechnical purposes has been completed in January and the RC drill program continues with completion expected around the end of the March. New mineral resource and ore reserve estimates are planned for completion in the June and September Quarters respectively.


Figure 2. Drill Plan over tenure Significant Intercepts



Hole_ID

MGA94Z51_Easting (m)

MGA94Z51_Northing (m)

AHD_RL

(m)

From (m)

To (m)

Apparent Thicknes s (m)

Li2O (%)


Lithology

MMRC0001

354367

6559436

385

45

63

18

1.76

Pegmatite


MMRC0002


354398


6559461


385

21


31

27


42

6


11

0.85


1.87

Pegmatite


Pegmatite


MMRC0003


354421


6559488


385

25


35

31


52

6


17

1.39


1.69

Pegmatite


Pegmatite

MMRC0004

354449

6559522

385

21

42

21

1.76

Pegmatite

MMRC0005

354478

6559552

384

10

28

18

1.24

Pegmatite

MMRC0006

354505

6559577

383

7

15

8

0.55

Pegmatite

MMRC0007

354365

6559488

386

54

73

19

1.69

Pegmatite


MMRC0008


354394


6559517


387

3


42

7


60

4


18

0.44


1.74

Pegmatite


Pegmatite

MMRC0009

354424

6559548

386

34

51

17

1.49

Pegmatite

MMRC0011

354476

6559604

385

10

18

8

1.22

Pegmatite

MMRC0012

354394

6559519

387

78

96

18

1.47

Pegmatite

MMRC0013

354365

6559545

389

62

78

16

1.29

Pegmatite

MMRC0014

354393

6559573

387

47

66

19

1.42

Pegmatite

MMRC0015

354422

6559375

383

0

27

27

0.92

Pegmatite


MMRC0016


354452


6559407


383

6


26

24


40

18


14

1.78


1.55

Pegmatite


Pegmatite

MMRC0017

354481

6559438

383

0

30

30

1.43

Pegmatite

MMRC0018

354506

6559467

383

0

24

24

1.10

Pegmatite

MMRC0019

354535

6559497

382

0

9

9

0.81

Pegmatite

MMRC0021

354424

6559324

382

4

31

27

1.60

Pegmatite

MMRC0022

354451

6559354

383

0

27

27

0.27

Pegmatite

MMRC0023

354480

6559375

382

0

15

15

0.15

Pegmatite

MMRC0024

354505

6559409

381

1

23

22

0.08

Pegmatite

MMRC0026

354456

6559296

381

0

20

20

0.83

Pegmatite

MMRC0027

354484

6559323

381

0

19

19

0.18

Pegmatite


MMRC0028


354509


6559355


381

0


22

11


30

11


8

0.09


1.06

Pegmatite


Pegmatite

MMRC0029

354538

6559382

380

1

12

11

0.05

Pegmatite

MMRC0038

354336

6559582

390

72

89

17

1.70

Pegmatite


MMRC0039


354305


6559545


389

5


39

18


56

13


17

1.12


1.18

Pegmatite


Pegmatite


MMRC0040


354370


6559606


389

28


58

35


75

7


17

0.67


1.84

Pegmatite Pegmatite



Hole_ID

MGA94Z51_Easting (m)

MGA94Z51_Northing (m)

AHD_RL

(m)

From (m)

To (m)

Apparent Thicknes s (m)

Li2O (%)


Lithology

MMRC0041

354393

6559629

389

44

64

20

1.33

Pegmatite

MMRC0042

354417

6559663

388

30

42

12

1.32

Pegmatite

MMRC0043

354422

6559605

387

36

51

15

1.40

Pegmatite

MMRC0044

354447

6559640

386

22

32

10

1.39

Pegmatite


MMRC0045


354309


6559612


391

38


68

47


83

9


15

1.51


0.75

Pegmatite


Pegmatite


MMRC0046


354333


6559636


391

32


79

40


97

8


18

0.50


1.61

Pegmatite


Pegmatite

*Significant intercept: Interval of continuous pegmatite >= 4m

**Li2O grades: Weighted average using assay interval length


ENDS

For further information, please contact:

Chris Reed Media

Managing Director Richard Glass / Michael Weir

Neometals Ltd Citadel‐MAGNUS

T: +61 8 9322 1182 T: +61 8 6160 4900

E: info@neometals.com.au


COMPETENT PERSON'S STATEMENT

The information in this report that relates to Exploration Results is based on information compiled by Derrick Kettlewell, who is a full time employee of Mineral Resources Limited, operator of the Mt Marion Lithium Project. Mr Kettlewell is a Member of The Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Persons as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. The Competent Person consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.


APPENDIX B: MINERAL RESOURCE ESTIMATES


Mt Marion Resource Table for 0% Li2O cut‐offCategory (JORC, 2012)

Tonnage (Mt)

Li2O (%)

Fe2O3 (%)

Indicated

10.05

1.45

1.33

Inferred

13.19

1.34

1.5

Total

23.24

1.39

1.43

Neometals Ltd. issued this content on 01 February 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 31 January 2016 22:40:27 UTC

Original Document: http://www.neometals.com.au/reports/643-MM290116.pdf