Cannon Resources Limited Announces Maiden Nickel Resource At Sabre Delivers Increase in Total Fisher East Resources to 116.3 Kt Contained Nickel
Diamond (DD) and Reverse Circulation (RC) drilling rigs were used. The RC hole diameter was 140mm with a face sampling hammer used. Hole depths ranged from 121m to 256m. Diamond holes were drilled with predominantly NQ2 diameter (although also some PQ and HQ size pre-collars and upper hole portions) with all core recovered. Hole depths ranged from 204.1m to 475m. Pre-collars for diamond holes were drilled using a roller bit and reamed to HW casing size. Where possible, the core was oriented using Camtech and Reflex Act III orientation tools. Diamond core was reconstructed into continuous sample runs on an angle iron used for orientation marking. Depths were measured and checked against marked depths on the core blocks. Diamond drill core recoveries were logged and recorded in the database. Overall recoveries were >95%, and there were no significant core loss or recovery problems. RC samples were visually checked for recovery, moisture and contamination and notes made in the logs. RC drill recoveries were very good; almost all samples were dry. Samples used for the Mineral Resource estimate came from both RC and DD drilling, both of which had high recoveries. There is no observable relationship between recovery and grade, and therefore no sample bias. DD core was subsampled over lengths ranging from 0.1m to 1.2m Core was sawn longitudinally using a diamond core saw and half-core taken. All subsamples were collected from the same side of the core and core has been sampled to geological boundaries. RC samples were collected on the drill rig using a cone splitter on a 1 metre per sample basis. Most samples were collected dry with very few of the mineralised samples were collected wet, and these were noted in the drill logs and database. Sample preparation of DD core and RC samples occurred at Intertek in Kalgoorlie and Perth and involved oven drying (4-6 hrs at 95C), coarse crushing in a jaw-crusher to 100% passing 10 mm, then pulverisation of the entire crushed sample in LM5 grinding mills to a particle size distribution of 85% passing 75 microns and collection of a 200 gram sub-sample. Laboratory assaying techniques were fire assay for Au, Pt & Pd; and 4 acid digest followed by
ICP/OES or ICP/MS analysis for remaining multi-elements. The four acid digest involved hydrofluoric, nitric, perchloric and hydrochloric acids. Both techniques are considered a total digest. Mineral Resources where the sample spacing was 50 m or less were classified as Indicated Resource while Mineral Resources where sample spacing was up to 100 m were classified as Inferred Resources. All other material was not classified. A reporting cut-off grade of 0.9% Ni was used to report the Mineral Resource. This was based on parameters from a previous scoping study on the Camelwood and Musket deposits in 2015 by CSA Global and updating of the parameters as
appropriate by Cannon. Key parameters were a nickel price of AUD 21,500 per tonne, processing costs of AUD 42.51, mining costs of AUD 65.40, dilution of 10% and payability of 70%. A total of five mineralised zones were modelled using Seequent Leapfrog software; three zones for massive/semi-massive mineralisation and two zones for disseminated mineralisation. The mineralisation at Sabre extends over a 700 m strike length, starting at about 90-110 m below ground surface and has been drilled to approximately 300 m depth. The interpretation of the mineralised zones was based predominantly on lithological logging with assay results used to confirm the intersections. Samples were composited to 1m lengths and top cuts were applied to remove high grade outliers which was necessary only for As, Co and Cr.