Exploration for DSO Phosphate and REEs

• Belt scale project targeting phosphate and REEs within or above the Beetle Creek Formation

• The presence of REEs in phosphorites has been documented at Corella Bore

• Extensive areas of shallow cover and limited drilling

• Modern and focused strategy to assess two target types:

  • Target A: Phosphate = near surface DSO phosphate within the Beetle Creek Formation

  • Target B: REEs = high-grade REEs along faults within the weathering profile above areas of interpreted Beetle Creek Formation

• Strong evidence of high-grade REE’s:

  • Recent unpublished results from Valetich and Grigorescu1 show strong REE concentrations of up to 2,000ppm TREEY within the Beetle Creek Formation at both Ardmore and Phosphate Hill

  • Weathering at Ardmore produces a further upgrade, apparently through residual enrichment concentrated along faults1, giving TREEY values in weathered phosphorite of 6,000ppm – 17,000ppm TREEY

The Value Proposition

Phosphate and REEs are interpreted to occur in both near surface Beetle Creek Formation and in weathered zones above the Beetle Creek Formation. This presents an opportunity to rapidly drill test a potential concurrent phosphate and REE bearing orebody with shallow (<75m) Aircore or RC drillholes.

We estimate both Projects could be drill tested for under A$3M within 2 years, with a potential DSO Phosphate + REEs Mineral Resource defined.

Once defined, because of the shallow nature of any potential orebody, the transition to developer could then be made within a relatively short timeframe. Furthermore, recovery of REEs from phosphorites using known leaching methods in the USA has shown that nearly 100% of their total REE content can be extracted using dilute H2SO4 and HCl. Therefore, extraction of REEs from phosphorites at Phobos & Deimos could be dramatically cheaper than other REE orebody types

Phobos: Iron-Oxide-Copper-Gold (IOCG) Target

Treo has identified an IOCG target that was first noted by Wells Fargo in 1993. The target sits on a strong magnetic anomaly along strike from Carnaby Resources – Nil Desperandum Cu discovery 110km to the north & Cooper Metals Brumby discovery.

The IOCG target sits at the southern apex of two regional large-scale faults providing possible pathways for hydrothermal fluid flow.

Importantly, the target is undrilled with a depth to basement estimated to be less than 100m.

Recent exploration in the Mt Isa-Cloncurry region shows that exploration for ‘blind’ deposits by drilling magnetic and EM anomalies along north/south trending faults is a successful and valid technique. e.g.

• Cooper Metals (ASX:CPM) Brumby Ridge Copper Discovery

• Carnaby Resources (ASX:CNB) Nil Desperandum Copper Discovery