Zephyr Heavy Mineral Program

Location: Heavy Mineral Sands Exploration Licenses E69/3583 and E69/3701 are situated in the southeastern part of Western Australia, approximately 300 kilometers north of the town of Eucla. The total area covers approximately 69 square kilometers.

Project Highlights:

• The project has an estimated inferred total resource of 105-106 million tonnes (JORC 2004) at a grade of 1.5% HM (cut-off at 1% HM). The total heavy mineral resources are approximately 1.5 million tonnes, covering half of the tenement area.

• Using a cut-off grade of 0.5% HM, the total resource is 257 million tonnes at an average grade of 0.99%. Using a cut-off grade of 1.0% HM, the total resource is 99 million tonnes at an average grade of 1.26%.

• Based on mining information from the nearby Cyclone project, the mining plan is to extract 9 million tonnes per year with a processing capacity of 1,250 tonnes per hour. The mine's expected lifespan is approximately 10 years. With the market price of heavy mineral sands in 2023 at $1630 USD/ton, the total revenue is projected to exceed $250 million USD per year.

• Zircon prices have experienced an average annual increase of 17% since 2017. In 2021, there was a significant surge, with prices rising from $1215 USD/ton at the beginning of the year to $2325 USD/ton, representing a more than 90% increase within the year.

Technical Report:

2MB

Heavy Mineral 2022_01.pdf

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