Maiden Exploration Target for Ilmenite at Dundas

23 September 2024

80 Mile PLC / Ticker: 80M / Market: AIM / Sector: Mining

Maiden Exploration Target for Hard Rock Ilmenite at Dundas

80 Mile plc ('80 Mile' or the 'Company'), the AIM, FSE listed and Pink-Market traded exploration and development company with projects in Greenland and Finland, is pleased to announce its independent maiden JORC Exploration Target ('Exploration Target') for ilmenite-bearing hard rock sills at the Dundas Ilmenite Project in Northwest Greenland ('Dundas' or the 'Project'). The generation of an Exploration Target is an important milestone and a significant first step towards the development of a Mineral Resource Estimate for the hard rock component of the Dundas Ilmenite Project.

Highlights:

·      SRK Exploration Ltd ('SRK EX'), a leading UK-based mineral resources consulting group, completed the data review and geological modelling required to develop the JORC Exploration Target for the ilmenite-bearing hard rock sills.

·      This Exploration Target is in addition to the previously disclosed and existing 2019 Mineral Resource Estimate ('MRE') at Dundas. With this update for the hard rock material, when combined with the existing MRE, Dundas represents a truly unique opportunity for the exploitation of ilmenite-bearing material.*

·      The integration of multiple exploration datasets that include sonic drilling data from 2017 and 2018, trenching results, diamond drilling data from 2022, and surface sampling data has enabled SRK EX to deliver a robust estimation of the Exploration Target.

·      The Exploration Target estimates a potential 170 to 540 million tonnes of ilmenite-bearing material with a TiO₂ grade range of 4.7 to 5.5%. These estimates provide a strong foundation for further exploration efforts and the development of the maiden hard rock MRE at the Dundas Ilmenite Project.

·      The Exploration Target is limited to 80 Mile's existing Mining Licence (Moriusaq West Beach, Moriusaq East Beach, Iterlak West Sill 1, Iterlak West Sill 2, and Iterlak East Beach) and relates to the potential for hard rock ilmenite mining beneath and adjacent to the raised beaches.

·      Future exploration and development plans will advance the Exploration Target towards a defined Mineral Resource Estimate.

Eric Sondergaard, Managing Director of 80 Mile, commented:

"This independently produced Exploration Target continues to enhance the potential of the Dundas Ilmenite Project. The data compiled and analysed by SRK EX underscores the significant potential of the hard rock ilmenite-bearing sills within our mining license area and represents a major step forward in understanding the full scale of the Dundas ilmenite resource.

Moving forward, we are committed to advancing our exploration efforts to further develop the potential resource and assess the feasibility of incorporating hard rock mining into our existing operational plans. The possibility of leveraging existing infrastructure from the planned beach sand mining operations to exploit the hard rock resource presents a unique opportunity to maximize the value of the Dundas Ilmenite Project, and we look forward to providing further updates as we continue our work."

*For further details, see RNS 'Dundas Ilmenite Resource Update', dated 16 April 2024.

Competent Person Statement

The technical information in this report that relates to the Exploration Target for the Dundas Project has been compiled by Mr. William Kellaway, a Fellow of the Australian Institute of Mining and Metallurgy and an employee of SRK Exploration Ltd. Mr. Kellaway has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources, and Ore Reserves'. Mr. Kellaway consents to the inclusion in this release of the matters based on his information in the form and context in which it appears. Mr. Kellaway has no affiliations with any 80 Mile plc employee and has never been employed by 80 Mile plc.

Market Abuse Regulation (MAR) Disclosure

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR') which has been incorporated into UK law by the European Union (Withdrawal) Act 2018.

For further information please visit http://www.80mile.com or contact:

Exploration Target

The Exploration Target for the Dundas Ilmenite Project was developed by SRK Exploration Ltd ('SRK EX'), part of the SRK Group, a leading international mining consultancy renowned for its expertise in mineral exploration and resource estimation, in accordance with the 2012 JORC Code. This Exploration Target is primarily based on exploration results obtained to date, with the exception of the Iterlak West sills, for which data is limited to mapping and visual observation. Their inclusion is contingent on further exploration being conducted in the foreseeable future, as outlined in the exploration recommendations. The primary rationale for establishing this Exploration Target is to utilize planned infrastructure and equipment intended for the future extraction of Ti-rich mineral sands, to potentially support ilmenite extraction from the underlying hard rock sills. The modelled volumes of potentially mineralised material have been evaluated with consideration of Reasonable Prospects for Eventual Economic Extraction (RPEEE).

The Exploration Target relates to potential ilmenite mineralisation within the hard rock sills underlying and adjacent to the Moriusaq and Iterlak areas. This target incorporates ilmenite-bearing sills identified through a comprehensive exploration approach, including sonic drilling, trenching, and geological mapping. These methods have been supported by various surface sampling programs.

Table 1. Summary of Parameters used in the Exploration Target

The Exploration Target is defined by several distinct areas with varying sill thicknesses and lateral extents, identified as Moriusaq West Beach, Moriusaq East Beach, Iterlak West Sill 1, Iterlak West Sill 2, and Iterlak East Beach. The total area considered spans approximately 11.08 to 11.94 km², with estimated sill thicknesses ranging from 5 to 25 meters. The model has been constrained using geological data obtained from drilling and surface mapping, ensuring that the tonnage estimates reflect the potential mineralisation.

Based on the geological data available, including density measurements and TiO₂ assay results, the estimated range of potential ilmenite mineralisation for the combined Exploration Target is between 170 and 540 million tonnes, grading between 4.7% and 5.5% TiO₂. The potential quantity and grade of the Exploration Target are conceptual in nature. There has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the Exploration Target being delineated as a Mineral Resource. Further investigation into the lateral continuity and thickness variability of the sills, particularly below the raised beaches, is necessary to refine these estimates.

Figure 1. Areas Included in the Exploration Target

Exploration Data and Techniques

The definition of the Exploration Target has been supported by data collected through various exploration programs, including:

2017 Sonic Drilling Data

§ The 2017 sonic drilling data provided depths to basement levels with "bedrock confidence" attributes, indicating how confident on-site geologists were that bedrock had indeed been intercepted.

§ Where possible, the drilling logs identified bedrock lithologies such as sills, mudstone, and amphibolite. If the lithology was not logged or bedrock was not intercepted, the logs contained "unspecified" data entries.

2018 Sonic Drilling and Trenching Data

§ In 2018, excavator trenches were used to twin sonic drill holes, providing additional indications of the depth to bedrock and information on bedrock lithology.

§ Downhole lithology logs from the 2018 campaign helped define the Iterlak East beach target, giving insights into the subsurface geological structure.

2022 Drilling Data

§ The 2022 drilling data involved several drilling methods; however, the data quality is questionable due to various problems encountered during the drill programme.

§ Despite these issues, the 2022 drilling produced more bedrock samples than earlier programmes, which were later assayed by 80 Mile in 2024.

Surface Sampling Data (Various Years)

§ Surface sampling involved a limited amount of ad hoc grab sampling on outcrops during various site visits. 80 Mile has since assayed these grab samples to gain insights into surface mineralisation.

Geological Setting and Mineralisation

The Dundas Project is located within the Thule Black Sand Province in Northwest Greenland, an area characterized by significant deposits of heavy mineral sands derived from the erosion of high-TiO₂ and P₂O₅ tholeiitic basalt dykes and sills. These magmatic intrusive units are part of the Thule Dyke Swarm, which comprises a series of D2 dykes and S1 sills that have been mapped extensively in the hinterland and below the raised beach deposits.

The ilmenite-bearing sills are primarily composed of high-TiO₂ tholeiitic basalt and are interbedded with sedimentary sequences, including black-grey shales, siltstones, fine-grained sandstones, and thin dolomitic units.

D2 Dykes and S1 Sills:

§ The D2 dykes, dated between 675-630 Ma, are the volumetrically dominant magmatic units in the area. These dykes are primarily oriented WNW-ESE and are mostly vertical or sub-vertical, dipping steeply at 75° either north or south. Their alignment is largely parallel to the regional structural grain, particularly the faults associated with the Thule half-graben system. These dykes, composed of high-TiO₂ tholeiitic basalt, have been identified as a key source of ilmenite-bearing sands found in the raised beach deposits.

§ Regionally, the S1 sills vary considerably in thickness, ranging from a few meters to approximately 100 meters, with most sills estimated by historical work to be between 20 and 50 meters thick (Dawes, 2006). These sills are described as deeply weathered, especially in flat tableland areas where the upper chilled margins have been eroded away, leaving behind gabbroic cores that have disintegrated into coarse sand. These sills are notably rich in opaque minerals, with ilmenite concentrations reaching up to 15% by volume. The sills in the project area vary in thickness from a few meters to over 30 meters and display lateral continuity up to several kilometres. However, the extent of these bodies is not fully understood and requires further investigation.

Historical mapping and sampling conducted by Dawes (1991, 2006) provide important baseline data on the compositional characteristics of these intrusions. Analysis of seven samples of D2 dykes and S1 sills indicated TiO₂ content ranging from 3.68 to 5.25 wt.% and P₂O₅ content from 1.21 to 2.63 wt.%.

Mineralisation Style and Distribution

The heavy mineral sands of the Thule Black Sand Province are believed to originate from the mechanical erosion of these D2 dykes and S1 sills. The erosion process liberated high concentrations of ilmenite, which were subsequently transported and deposited within the raised beach environments of the Thule Black Sand Province.

The greatest cumulative thickness and most significant concentration of the S1 sills occurs within the Moriusaq half-graben, where clastic sedimentary strata host approximately 15 master sills that comprise between 30% and 40% of the local stratigraphy (Dawes, 2006). The sedimentary sequence in this region is dominated by black-grey, locally pyritic shales, interbedded with siltstones, fine-grained sandstones, and occasional thin dolomitic layers (Stensgaard et al., 2015). This stratigraphic setting, combined with the presence of high-TiO₂ sills, creates a favourable environment for the accumulation of ilmenite-rich mineral sands.

Further studies by Nielsen et al. (2017) suggest that within the Dundas Formation, the sills account for approximately 31% of the total stratigraphic volume, within a total estimated stratigraphic thickness of 900 meters around the Moriusaq area. This makes the Dundas Formation a highly prospective zone for further exploration, particularly for ilmenite mineralization.

A schematic cross-section of the area north of Moriusaq, as provided by Nielsen et al. (2017), illustrates the complex interplay between the dykes and sills within the Dundas Formation (Figure 3). The cross-section reveals the distribution of multiple stacked sills, some of which reach up to 50 meters in thickness, contributing significantly to the overall potential of the ilmenite resource in this region.

Figure 2. Regional Geological Map of the Dundas Project Area

Figure 3.GEUS- constructed Schematic Cross Section from A1-A2 with Stacked Sill Section

Methodology to Determine Tonnage and Grade Range for the Exploration Target

Tonnage Estimation

Area Calculation

SRK EX utilized GIS software to model 2D shapefiles representing the outlines of the ilmenite-bearing sills included in the Exploration Target. Each shapefile corresponds to a sill located either beneath the Moriusaq raised beaches within 80 Mile's mining licence or sills exposed above the beaches in areas assumed to be accessible. For sills beneath the raised beach deposits, 2D outlines of wireframes used in the 2019 Mineral Resource Estimate (MRE) were selected as the initial sill area. A 50-meter-wide buffer zone from the Moriusaq coastline was applied to prevent seawater ingress into the mine pit.

Moriusaq Beach Area (West of Iterlak Delta)

Sonic drilling data suggest that bedrock contacts are predominantly at depths less than 10 meters, with most intervals logged as igneous sills. However, areas where bedrock has been logged as mudstone or amphibolite have been excluded from the Exploration Target. In areas where drilling data is sparse, sill presence is inferred based on nearby exposed sills and geological indicators.

Iterlak Area (East of Iterlak Delta)

Sonic drilling from 2018 indicates the presence of bedrock sill contacts or clay-silt glacial till deposits. The sill has been modelled only where consistently intercepted by drilling.

Iterlak West Sills

Two exposed sills on high ground west of the Iterlak Delta (Iterlak West 1 and Iterlak West 2) have been included in the Exploration Target based on their visibility and potential accessibility for mining.

Thickness and Lateral Continuity

Dolerite sills across the Moriusaq region have a tabular morphology and are laterally discontinuous. Based on geological mapping, imagery, and field observations, the sills generally extend up to 5 km in one direction and taper in thickness towards the edges. A conservative average sill thickness of 20 meters was estimated by GEUS for the Moriusaq area (Nielsen et al., 2017).  Thickness estimates applied by SRK EX for the Exploration Target range from 5 meters to 10 meters for the one-sill model to account for lateral and vertical discontinuity.

Moriusaq Beach Target

A minimum sill thickness of 5 meters and a maximum of 10 meters were applied to modelled sill volumes beneath the raised beach deposits.

Iterlak West Target

Sills are assumed to have a minimum thickness of 5 meters and a maximum of 25 meters.

Iterlak East Target

Assumed sill thickness parameters are the same as those for Moriusaq beaches: a minimum of 5 meters and a maximum of 10 meters.

Density

Density data for the sills were obtained from the 2022 sonic drilling program, where 19 samples of bedrock sill material were selected for specific gravity measurements in 2024. The mean specific gravity is 3.07, with a low standard deviation of 0.04, indicating minimal internal differentiation. This value has been applied to both minimum and maximum tonnage estimates.

Table 2. Density Data from 2024 Bedrock Assays

Additional Modifying Factors

Several modifying factors, such as the sills' consistent dip to the south-southeast and potential variations in thickness due to erosion, have been considered. However, these factors require further investigation and are not included in the current tonnage estimates.

TiO₂ Grade Estimation

TiO₂ grades for the Moriusaq sills were derived from sonic drilling, trenching, and surface grab sampling conducted between 2018 and 2022. In total, 13 samples from 2018 and 74 samples from 2022 were analysed. The mean TiO₂ grade is 5.2 wt.%, with values ranging between 4.7 wt.% and 6.0 wt.%.

Table 3. TiO₂ Data from 2018-2022 Sampling Programmes

For the Exploration Target, SRK EX assumed a minimum TiO₂ grade of 4.7 wt.% and a maximum of 5.5 wt.%. The maximum grade was adjusted down from the upper quartile to account for internal differentiation and TiO₂ mineral deportment.

TiO₂ Mineral Deportment

TiO₂ is hosted in ilmenite and titanomagnetite phases within the Steensby Land Complex sills. Alteration processes have transformed titanomagnetite into ilmenite, upgrading the resource. An ilmenite to titanomagnetite ratio of 1±0.4 and a maximum ilmenite content of 9 wt.% were estimated. For TiO₂ extraction, the total in-situ TiO₂ must be downgraded by 10-20% to account for TiO₂ locked in titanomagnetite.

Future Exploration and Development Plans

The proposed exploration activities are aimed at advancing from the current Exploration Target to a Mineral Resource Estimate. These activities will include the following:

§ Conduct detailed mapping to verify the extent and thickness of the exposed sills at Iterlak West included in the Exploration Target. Document the thickness where sill contacts are exposed.

§ Perform outcrop sampling of exposed sills to collect grade data. This may involve channel sampling along vertical profiles on exposed sill margins to evaluate grade variability.

§ Undertake diamond drilling to confirm the presence, thickness, and variability of sills beneath the raised beaches. Obtain samples for assay, density measurements, geotechnical parameters, and processing test work. Some drilling should target areas outside the current Exploration Target to validate previous logging indicating the absence of sills.

§ Carry out drilling on exposed sills to obtain additional data for the same purposes as the drilling beneath the raised beaches.

§ Initiate preliminary test work to determine if a marketable ilmenite concentrate can be produced from the sills. This should also verify assumptions regarding titanium deportment from previous studies. Share results with the mineral sands process plant design team to identify any additional requirements.

§ Reassess existing hydrological, hydrogeological, and mine waste management studies related to mineral sands mining. Evaluate necessary modifications to accommodate hard rock mining.

§ Review current permits and mineral licences to determine if amendments are required to allow for hard rock mining activities.

JORC Code, Table 1: Section 1: Sampling Techniques and Data

JORC Code, Table 1: Section 2: Reporting of Exploration Results

About 80 Mile Plc:

80 Mile Plc, listed on the London AIM market, Frankfurt Stock Exchange, and the U.S. Pink Market, is an exploration and development company focused on high-grade critical metals in Tier 1 jurisdictions. With a diversified portfolio in Greenland and Finland, 80 Mile's strategy is centred on advancing key projects while creating value through partnerships and strategic acquisitions.

The Disko-Nuussuaq nickel-copper-cobalt-PGE project in Greenland is a primary focus for 80 Mile, developed in partnership with KoBold Metals. 80 Mile, through its wholly owned subsidiary Disko Exploration Ltd., has a definitive Joint Venture Agreement with KoBold Metals to guide and fund exploration efforts. The JV has completed intensive analysis and interpretation of the extensive geochemical, geophysical, and geological data collected during the previous exploration campaigns. Leveraging KoBold's proprietary artificial intelligence and machine learning platforms, this comprehensive analysis has resulted in the identification of seven initial priority targets within the project area. These seven priority targets exhibit spatial characteristics indicative of potential deposits on a scale comparable to renowned mining operations such as Norilsk, Voisey's Bay, and Jinchuan. The JV is now planning a focused ground-loop electromagnetic survey to refine and prioritize each locality appropriately.

In Finland, 80 Mile currently holds three large scale multi-metal projects through its wholly owned subsidiary FinnAust Mining Finland Oy. 80 Mile's Finland portfolio includes the Outokumpu project, where the discovery of industrial gases like helium and hydrogen adds significant economic potential to the already prospective copper-nickel-cobalt-zinc-gold-silver targets. 80 Mile is conducting further exploration to fully assess these resources.

80 Mile's recent acquisition of White Flame Energy expands its portfolio into the energy sector, adding large-scale licenses for industrial gas, natural gas, and liquid hydrocarbons in East Greenland. Approved by shareholders in July 2024, this acquisition diversifies the Company's assets and aligns with its strategy to contribute to sustainable energy solutions, while also exploring conventional energy resources.

The Dundas Ilmenite Project, 80 Mile's most advanced asset in northwest Greenland, is fully permitted and progressing towards near-term production. With a JORC-compliant Mineral Resource of 117 Mt at 6.1% ilmenite and an offshore Exploration Target of up to 530 Mt, Dundas is poised to become a major supplier of high-quality ilmenite. Recent discoveries of hard rock titanium mineralization, with bedrock samples showing nearly double the ilmenite content of previous estimates, further enhance the project's world-class potential. 80 Mile owns 100% of the Dundas Ilmenite Project under its subsidiary Dundas Titanium A/S in Greenland.

The Thule Copper Project is a significant component of 80 Mile's portfolio in northwest Greenland, focused on exploring and developing high-grade copper deposits within the Thule Basin in northwest Greenland. Leveraging existing infrastructure and exploration credits, the project is strategically positioned in an underexplored region with substantial mineral potential. 80 Mile's established basecamp at Moriusaq will support cost-effective exploration, aligning with the Company's broader strategy to secure high-quality copper and industrial gas projects.