Capital Metals Regulatory News (CMET)

- 1.5m @ 51.9% THM from 1.5m

- 1.1m @ 41.8% THM from 0m

- 2.5m @ 38.4% THM from 0m

- 2m @ 36.2% THM from 1.5m

- 2.5m @ 35.2% THM from 0.5m

Capital Metals plc

Michael Frayne (CEO)

James Mahony (CFO)

Via Vigo Consulting

Vigo Consulting (Investor Relations)

Ben Simons / Oliver Clark

+44 (0)20 7390 0234

capitalmetals@vigoconsulting.com

SPARK Advisory Partners (Nominated Adviser)

Neil Baldwin / James Keeshan

+44 (0)20 3368 3554

WH Ireland Limited (Joint Broker)

Harry Ansell / Katy Mitchell

+44 (0)20 7220 1666

Tavira Securities Limited (Joint Broker)

Jonathan Evans / Oliver Stansfield

+44 (0)20 7100 5100

Sampling techniques

Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling.

Hand auger drilling is executed by the GSMB field team using a manually operated enclosed-flight Spiral Auger (SP / SOS) system from Dormer Engineering in Queensland, Australia. Drilling proceeds to the water table, which is intersected at an average depth, for this dataset, of 1.5m from surface.

The first 0.5m advance is withdrawn and the contents of the auger removed onto a sheet and set aside for bagging. The subsequent samples are taken in the same manner at 1m intervals or until the hole is abandoned at the water table.

The whole sample is retained.

Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

All drilling is completed above the water table.

Drilling and sampling activities are supervised by a suitably qualified GSMB geologist who is present at all times. All drill samples are geologically logged by the geologist at the drill site.

Each sample is bagged at site and transferred to the GSMB laboratory. Samples are dried and weighed prior to analysis.

Aspects of the determination of mineralisation that are Material to the Public Report. In cases where 'industry standard' work has been done this would be relatively simple (e.g. 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases, more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.

All samples are dried and weighed. A riffle-split sub sample is then wet screened to determine slimes (-63 µm) and oversize material (+1mm). Approximately 100g of the resultant sand sample is then oven-dried and passed over a Franz Isodynamic Magnetic Separator to produce magnetic (M) and non-magnetic (NM) fractions. The NM fraction is then subjected to heavy liquid separation (HLS) using Lithium heteropolytungstate (LST) with a density of 2.82g/ml.

All fractions are weighed and reported as a percentage of the in-ground total sample weight.

Grain counting of heavy minerals is completed by mineralogist and mineral assemblage data is then reported as a percentage of the HM fraction.

Drilling techniques

Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc.).

All samples are generated by hand auger drilling utilising 75mm diameter enclosed-flight spiral auger.  Drill holes are oriented vertically by eye.

Drill sample recovery

Method of recording and assessing core and chip sample recoveries and results assessed.

Samples are assessed visually for recoveries. Samples are retrieved moist from the ground. The configuration of drilling and nature of materials encountered results in negligible sample loss.

Hand-auger drilling is ceased when recoveries become poor once the water table has been reached. Water table and recovery information is included in lithological logs.

Drill sample recovery, cont'd.

Measures taken to maximise sample recovery and ensure representative nature of the samples.

The GSMB's trained geologists supervise drilling on a 1 team 1 geologist basis and are responsible for monitoring all aspects of the drilling and sampling process.

Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

No relationship is believed to exist between grade and sample recovery. The moisture content and absence of hydraulic inflow above the water table results in a sample size that is well within the expected size range.

Logging

Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resources estimation, mining studies and metallurgical studies.

Qualitative logs of geological characteristics are collected in the field to allow a comprehensive geological interpretation to be carried out. Drill holes are characterised by their location within the beach-barrier sequence to assist with domaining each sequence unit in subsequent resource estimations.

Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography.

Logging of sand samples in the field is qualitative and includes description of sand colour, sorting and angularity. Estimates of black HM and garnet are recorded. A comments field is employed to allow further description of the location or sand sample.

The total length and percentage of the relevant intersections logged.

All drill holes are logged in full and all samples are assayed.

Sub-sampling techniques and sample preparation

If core, whether cut or sawn and whether quarter, half or all core taken.

All samples comprise unconsolidated sand.

If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry.

Samples are taken in their entirety. Drill samples are oven-dried and split for analysis.

For all sample types, the nature, quality and appropriateness of the sample preparation technique.

Sample preparation is recorded on a standard flow sheet and detailed QA/QC is undertaken on all samples. Sample preparation techniques and QA/QC protocols are appropriate for the magnetic separation and heavy mineral determinations.

Sub-sampling techniques and sample preparation, cont'd.

Quality control procedures adopted for all sub- sampling stages to maximise representivity of samples.

Quality assurance protocols include the application of trained geological staff and experienced samplers. Use of plastic sheets and sample bags to remove the potential of sample loss and cleaning of sample equipment between samples.

Competent person (CP) review of laboratory techniques and flowsheet is applied to ensure representative sample splitting. Inspection of laboratory procedure and equipment is completed to ensure appropriate technique, good housekeeping and application of accurate sample handling and sample management procedures.

Laboratory duplicate and standard sample geostatistical analysis is employed to manage sample precision and analysis accuracy. Twin drilling is applied to determine short range variability in grade and lithological character.

Measures taken to ensure that the sampling is representative of the in-situ material collected, including for instance results for field duplicate/second-half sampling.

Samples are taken in their entirety. Laboratory duplicates are generated for precision analysis at the sample splitting stage. Results indicate a high level of precision is achieved. 

Whether sample sizes are appropriate to the grain size of the material being sampled.

The sample size is considered adequate for a medium-grained sand.

Quality of assay data and laboratory tests.

The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

Sample preparation and analysis of drill samples is completed by the GSMB research laboratory in Colombo. Analysis is conducted on a split fraction of the total sample and the retains are labelled and stored.

Techniques employed conform to contemporary analysis methodology in the treatment of minerals separable by their physical properties. A CP audit of the facility was completed with no recommended improvements noted.

For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

 None used.

Quality of assay data and laboratory tests, cont'd.

Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.

Quality assurance is maintained by laboratory duplicate and standard sample assaying procedure. Standard samples are provided by Placer Consulting Pty Ltd and are submitted blind to the laboratory. As a total sample is generated by the drilling, a field duplicate is not generated. A laboratory duplicate is created at the sample splitting stage.

Standards and duplicates are submitted at a frequency of 1:20 samples. They are subjected to the complete sample preparation and assaying process.

Analysis of sample duplicates is undertaken by standard geostatistical methodologies (Scatter, Pair Difference and QQ Plots) to test for bias and to ensure that sample splitting is representative. Standards determine assay accuracy performance, monitored on control charts, where failure (beyond 3SD from the mean) triggers re-assay of the affected batch.

A high level of accuracy and precision are displayed in geostatistical analyses to date.

Verification of sampling and assaying

The verification of significant intersections by either independent or alternative company personnel.

Significant intersections are customary from hand auger and sonic core drilling at the Eastern Minerals Project. Results in excess of 20% THM are common and in some cases, substantially higher concentrations are intersected. Placer Consulting considers this to be reasonable and consistent with beach, berm and foredune accumulations in a highly-mineralised region. No audit analyses have been completed on these exploration results.

The use of twinned holes.

Twinned holes are drilled across a geographically-dispersed area to determine short-range geological and assay field variability. Twin drilling is applied at a frequency of 1:25 drill holes.

Geostatistical analysis of twin drilling data awaits the return of all assay results.

Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

Field logging data, photo's and maps are generated in the field by the GSMB geologist and provided to CMET staff in excel spreadsheet, pdf document and jpeg files. These data are stored in the master database at the Colombo office and on a secured cloud-storage facility that is accessible by invitation.

Discuss any adjustment to assay data.

Assay data adjustments are made to convert laboratory collected weights to assay field percentages and to account for moisture.

Location of data points

Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resources estimation.

These exploration results are located by GSMB staff using hand-held GPS. Mineral resources are not considered in this report.

Specification of the grid system used.

The Kandawala Sri Lanka Grid is used to locate the drill collars.

Location of data points, cont'd.

Quality and adequacy of topographic control.

Elevations are not recorded for these exploration results.

Data spacing and distribution

Data spacing for reporting of Exploration Results.

Drill spacing relates to the sequence stratigraphic unit and their extent. Drill holes are generally spaced at 5m-east intervals in the beach and tidal zones. The Berm zone is drilled at 15 - 50m east spacings dependent on their lateral extent.

Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resources and Ore Reserves estimation procedure(s) and classifications applied.

No mineral resource or ore reserve is considered in this report.

Whether sample compositing has been applied.

Samples are not composited. 

Orientation of data in relation to geological structure

Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

Sample orientation is vertical and approximately perpendicular to the dip and strike of the mineralization, which results in true thickness estimates. Drilling and sampling is consistent with the anisotropy of the mineralisation.

If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

There is no apparent bias arising from the orientation of the drill holes with respect to the strike and dip of the deposit.

Sample security

The measures taken to ensure sample security.

All samples are numbered, with sample splits, residues and HM sinks stored securely at the GSMB pending completion of the programme. Samples will be transferred for secured storage at CMET property upon completion.

Audits or reviews

The results of any audits or reviews of sampling techniques and data.

The Competent Person completed an audit of the GSMB laboratory. Personnel, equipment and procedures represent best practice and no recommended improvements were forwarded. Data are monitored by CMET staff and reviewed by the CP as they are returned.

Mineral tenement and land tenure status

Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

The exploration results are coincident with the granted Exploration Licence EL2017/199 wholly owned by CMET JV partner Damsila Exports (Pvt) Ltd.   

A f.o.b. royalty of 7% is payable to the government.

The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

There are no known impediments to the security of tenure over the area containing the reported exploration results.

Exploration done by other parties

Acknowledgment and appraisal of exploration by other parties.

CMET and partners have completed the only systematic exploration of this region of the Eastern Minerals Project. The reported results offer support to previous drilling and in some cases, higher HM grades and greater lateral extent.

Geology

Deposit type, geological setting and style of mineralisation.

Exploration results are indicative of modern, low slimes tidal, beach and berm detrital heavy mineral sand deposits. Holocene dunes are truncated by the modern marine successions and are also heavily mineralised. Heavy minerals are derived originally from the neighbouring Precambrian metamorphic terrane and from Pleistocene dune deposits. Two monsoon seasons provide ample winnowing action on HM deposits and generate both northerly and southerly long-shore drift.

Drill hole Information

A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:

· easting and northing of the drill hole collar

· elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar

· dip and azimuth of the hole

· down hole length and interception depth

· hole length.

If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

An intercept table is listed in the report.

Results support previous releases on exploration results and mineral resources. 

Data aggregation methods

In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated.

Mineral intersections are reported at a 5% HM bottom cut, as is customary for the Eastern Minerals Project resources. No top cut is applied.

Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

No data aggregation is required.

Data aggregation methods, cont'd.

The assumptions used for any reporting of metal equivalent values should be clearly stated.

No metal equivalents are used for reporting of exploration results.

Relationship between mineralisation widths and intercept lengths

These relationships are particularly important in the reporting of Exploration Results.

All drill holes are vertical and perpendicular to the dip and strike of mineralisation.

If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

Mineral deposits typically approximate a horizontal to shoreward dipping accumulation. intercepts are approximately true thickness

If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. 'down hole length, true width not known').

Diagrams

Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

Refer to main body of the report.

Balanced reporting

Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

Reporting of results is restricted to results returned subsequent to the 4th April 2022 from the 2021 GSMB drilling in the Komari Region of the Eastern Minerals Project. Intercepts are disclosed in an unambiguous way at >5% THM.

Other substantive exploration data

Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

No additional, substantive information has returned from the drill sample analyses included in this report.

Further work

The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling).

Mineralogical results are anticipated from the total sample set.

Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

Refer to main body of report.

BHID

INTERCEPT

K44BM1

1.5m @ 51.9% THM from 1.5m

K43T

0.4m @ 48.4% THM from 0.5m

K43TE

1.1m @ 41.8% THM from 0m

K44TE

1m @ 41.3% THM from 0.5m

K41TE

0.5m @ 39.2% THM from 0m

K66TE

1.5m @ 39.0% THM from 0m

K41BE1

2.5m @ 38.4% THM from 0m

K65TE

1.3m @ 37.9% THM from 0.5m

K45T

0.3m @ 37.5% THM from 0m

K45BM1

1.5m @ 36.7% THM from 0m

K43BE1

2m @ 36.2% THM from 1.5m

K46BE1

2.5m @ 35.2% THM from 0.5m

K43BM1

1.5m @ 35.0% THM from 0.5m

K42BE1

2.5m @ 35.0% THM from 0.5m

K46T

0.3m @ 34.2% THM from 0.5m

K48BM1

2.3m @ 33.4% THM from 0.5m

K47BM1

2.5m @ 33.3% THM from 0m

K45TE

1.5m @ 30.8% THM from 0m

K44BE1

2.5m @ 30.2% THM from 0.5m

K67TE

1.3m @ 29.5% THM from 0m

K46TE

1m @ 29.2% THM from 0m

K65T

0.3m @ 27.2% THM from 0m

K42TE

1m @ 27.1% THM from 0.5m

K48TE

0.7m @ 24.4% THM from 0m

K67BE1

1.5m @ 24.0% THM from 0m

K43BM2

1.5m @ 23.4% THM from 0m

K41BM2

1.5m @ 21.9% THM from 0m

K47TE

0.8m @ 21.5% THM from 0.5m

K64BE1

1m @ 21.1% THM from 0m

K63BE1

0.9m @ 20.9% THM from 0.5m

K67T

0.3m @ 20.6% THM from 0m

K62BM2

2.2m @ 20.4% THM from 0m

K42BM3

1.5m @ 20.3% THM from 0m

K44BM2

1.5m @ 19.7% THM from 0.5m

K41BM1

1.5m @ 18.4% THM from 0m

K48BE1

1m @ 18.3% THM from 0m

K46BM1

1.5m @ 18.2% THM from 0m

K66T

0.3m @ 18.1% THM from 0m

K61BM2

1.7m @ 18.0% THM from 1.5m

K63TE

1m @ 17.7% THM from 0m

K42BM1

1.5m @ 17.7% THM from 0m

K42BM2

1.5m @ 16.9% THM from 0.5m

K57TE

0.9m @ 16.1% THM from 0.5m

K49BM1

2.5m @ 15.9% THM from 0.5m

K64TE

1.1m @ 15.6% THM from 0m

K50BM1

2.5m @ 15.6% THM from 0m

K66BE1

1.5m @ 15.5% THM from 0m

K49TE

1.2m @ 15.3% THM from 1.5m

K50TE

1.1m @ 15.2% THM from 0m

K47BE1

1.1m @ 15.1% THM from 0m

K58TE

1m @ 15.1% THM from 0m

K64T

0.3m @ 14.6% THM from 0m

K59TE

1m @ 14.5% THM from 0m

K66BM1

2.2m @ 14.4% THM from 0m

K65BE1

1.5m @ 13.5% THM from 0m

K60TE

1.1m @ 13.1% THM from 0m

K66BM2

2.3m @ 12.9% THM from 0m

K56BE1

1.5m @ 12.8% THM from 0.5m

K49T

0.4m @ 12.8% THM from 0m

K57BE1

1.1m @ 12.6% THM from 0m

K61BM3

2.3m @ 12.5% THM from 0m

K61BM1

1.8m @ 12.1% THM from 0m

K62BM3

2.3m @ 12.0% THM from 0m

K68T

0.3m @ 11.8% THM from 0.5m

K55BE1

1.3m @ 11.8% THM from 0m

K50BM2

1.5m @ 11.4% THM from 0m

K58BE1

1.2m @ 11.4% THM from 0.5m

K62BM1

2.2m @ 11.0% THM from 0m

K42T

0.3m @ 11.0% THM from 0m

K60BE1

1.3m @ 10.8% THM from 0m

K54BM1

2.5m @ 10.5% THM from 0m

K53BM1

2.5m @ 10.4% THM from 0m

K48T

0.3m @ 10.1% THM from 0.5m

K49BM2

1.5m @ 9.85% THM from 0m

K63T

0.2m @ 9.82% THM from 0m

K54BE1

1.2m @ 9.72% THM from 0m

K62TE

1m @ 9.44% THM from 0m

K59BE1

1.2m @ 9.05% THM from 0m

K50T

0.4m @ 9.05% THM from 0m

K60BM1

2.5m @ 8.46% THM from 0m

K56TE

0.9m @ 8.23% THM from 0m

K58T

0.3m @ 8.01% THM from 0m

K61T

0.5m @ 7.89% THM from 0m

K47T

0.4m @ 7.87% THM from 0.5m

K52BE1

1.5m @ 7.24% THM from 0m

K49BE1

1.5m @ 7.08% THM from 0m

K50BE1

1.5m @ 7.05% THM from 0m

K51BE1

1.5m @ 6.98% THM from 0m

K61BE1

1.3m @ 6.98% THM from 0m

K53BE1

1.2m @ 6.92% THM from 0m

K57T

0.4m @ 6.43% THM from 0m

K62BE1

1.3m @ 6.05% THM from 0m

K62T

0.4m @ 5.43% THM from 0m

K53TE

0.9m @ 5.42% THM from 0.5m

K60T

0.4m @ 5.29% THM from 0.5m

K61TE

1m @ 5.25% THM from 0m

K55TE

1m @ 4.96% THM from 0m

K68TE

0.7m @ 4.89% THM from 0.5m

K54TE

1.1m @ 4.82% THM from 0m

K53T

0.3m @ 4.60% THM from 0m

K55T

0.3m @ 4.34% THM from 0.5m

K54T

0.3m @ 4.17% THM from 1.5m

K51T

0.3m @ 3.80% THM from 0m

K59T

0.3m @ 3.70% THM from 0.5m

K56T

0.3m @ 3.33% THM from 0m

K51TE

1m @ 2.91% THM from 0m

K52T

0.3m @ 2.80% THM from 0m

K52TE

1.1m @ 2.34% THM from 0m

K68BE1

1m @ 1.59% THM from 0m