Trigg Mining: June 2022 Quarterly Activity Report and Appendix 5B

Quarterly activity report for the period ended June 30, 2022

The 2022 field exploration season begins at the Throssell Lake SOP project as the pre-feasibility study progresses and a successful evaporation test is completed.

Global supply chain dislocation continues to support high SOP prices

Strong points

Throssell Lake Sulphate of Potash (SOP) Project

Exploring and defining resources

• Heritage depollution survey carried out with the Ngaanyatjarra community.
• Field crews mobilized to site after the end of the quarter and began site access work for planned drill programs beginning later in Q3.

Pre-feasibility study (PFS)

• Two new applications for occupation north of Lake Throssell have been submitted targeting potential sources of groundwater supply.
• A successful sight evaporation test has been completed, with the results to be used in the early stages of the Pre-feasibility study to estimate the areas and layout of the basins required.
• A bulk evaporation trial will begin in the third quarter to produce mixed potassium salts for processing trial work and produce a export quality SOP sample for purchase discussions.

Project approvals

• An additional fall study of flora and vegetation was carried out. Yeo Lake SOP Project
• Trigg received an allocation of up to $180,000 under the Western Australian government co-funded exploration program for up to 50% of the original project. air drilling program, subject to conditions.

Macro environment and SOP market

• Sulphate of potash prices remained stable throughout the quarter at over US$1,100/t, approximately double the the long-term price assumption in the Throssell Lake exploratory study which assumed a price of US$550/t. This is due to the continued dislocation of global supply chains.

Company

• Cash at the end of the quarter was $4.8 million.

Trigg Mining Managing Director Keren Paterson commented: “The June quarter was another busy and successful period for Trigg, with substantial progress being made at the project level.

“The completion of the Heritage Clearance Study paves the way for our 2022 field season activities, including establishing new access routes in preparation for air and water drilling, with the results of these programs to support the estimate of the project’s initial ore reserve.

“The successful trial work program completed during the quarter paves the way for a bulk evaporation trial and the first sample of sulphate of potash to be produced from the project to determine the design of the processing plant and for discussions and analyzes with potential levy partners.

“At the macro level, the outlook for the SOP sector has never been stronger. Given the current and potential geopolitical disruptions to global fertilizer supply chains, the opportunity for Trigg to develop a new sustainable and environmentally friendly SOP production center in Western Australia, and plays a central role in help meet the challenges of global food security, has never seemed more compelling. »

Figure 1: Location of Trigg Mining Sulphate of Potash Projects

showing established infrastructure and project locations

Throssell Lake Sulphate of Potash Project

100% trigger

The Throssell Lake SOP project (Figure 1) covers an area of ​​1085 km2 approximately 170 km east of Laverton, Western Australia. The project contains a total Drainable Mineral Resource (MRE) estimate of 14.4 Mt of SOP, plus an additional exploration target. The October 2021 scoping study outlined an initial mine life of 21 years with an expected production of 245,000 tpa of SOP in the lowest cost quartile, which would position Trigg as one of the top 10 potential global producers of SOPs.

Exploring and defining resources

During the quarter, a heritage decontamination survey was carried out with the community of Ngaanyatjarra. The study authorized fieldwork planned for 2022, including the establishment of new access tracks, air and water drilling programs and a temporary exploration camp. The survey also covered the proposed geotechnical studies to be undertaken as part of the pre-feasibility study.

A Deed of Understanding for Mineral Exploration and Land Access with Yilka Talintji (Aboriginal Corporation) RNTBC has been signed for E38/3544. This agreement allows for an extension of exploration activities on the southwestern part of Throssell Lake and complements the access agreements for the mineral resource and exploration target areas of Throssell Lake.

After the end of the quarter, field crews mobilized to the site and began establishing access tracks (Figure 2) in preparation for air drilling, which will refine locations for production test drilling and provide additional geological and chemical data on the brine.

Water well drilling will also provide the project’s first production test drilling, with data gathered from pumping tests to support an initial estimate of ore reserves.

Figure 2: Establishment of pavements for the 2022 drilling campaign

Pre-feasibility study

Process water

Desk assessments have indicated potential areas for groundwater supply needed in the refining process after evaporation and crystallization of potassium-rich feed salts. During the quarter, two exploration concession applications (E38/2745-6) were submitted to target potential groundwater supply sources (Figure 3).

Figure 3: Water Exploration Concession Applications

Process Flowchart

A successful evaporation test (Figures 4, 5 and 6) was undertaken on a representative brine sample and reported after the end of the quarter (ASX announcement July 18, 2022).

The results of the trial will aid in the design of a bulk evaporation trial which will begin in the third quarter. The test work also provides the baseline data for an initial dynamic mass balance pond model that will be used in the early stages of PFS engineering to generate a preliminary mass balance, estimate required pond areas , as well as the number and arrangement required. ponds.

The bulk trial aims to produce multiple Mixed Potassium Salt (KTMS) samples for processing test work to produce an export-grade SOP product to engage with and analyze by potential purchasing partners.

This next phase will also evaluate the possibility of producing other salt precipitates from brine such as magnesium sulphate.

Figure 6: Recovered potassium salts

Alternative Treatment Sheets

Trigg observed the go-live delays and scale-up challenges faced by early players in Australia’s nascent SOP industry. Some of these difficulties have been observed in managing the final stages of the evaporation process to produce sufficient quantities and feed quality of potassium salts or “ore” for the processing plant.