Announcement PDF ASX Announcement ASX:DY6 17 October 2024 High-grade REE & P2O5 trench results returned from Tundulu to assist with metallurgy DY6 Metals Ltd (ASX: DY6, “DY6” or the “Company”) is pleased to report the results from its recent metallurgy sampling program at the Tundulu REE & Niobium carbonatite project in Malawi. Highlights: • A total of 63 metallurgical samples were collected from 37 sample locations along high-grade historic trench (TUTR10) at Tundulu • Sampling results returned up to a high of 3.35% TREO and 27.5% P2O5 over the sampled 83m length of trench TUTR10: o an exciting component of the sampling results is the average HREO, being 13% of the TREO basket o undetectable to very low levels of deleterious elements including mercury, lead and cadmium in the phosphorus (P) rich rocks confirms the exceptional grade quality of the phosphate at Tundulu; and o the sampling is representative of the mineralised Bastnaesite and Apatite carbonatite rock types exposed within the trench • Selected samples are being collected to form a 150kg composite to be sent for metallurgical analysis • 5 bioavailability composite samples were also taken across various historical trenches at Tundulu, targeting phosphate-rich rocks, to determine the solubility of phosphate in the samples and understand its potential for direct fertilization • Majority of samples showed excellent P solubility (using 2% citric acid) of over 40%, with one returning solubility of 81%. This is above the industry threshold of 9.4% P2O5 solubility using Citric Acid as the reagent in the acid leach process • 9 samples representing predominant lithologies at Tundulu have been collected and will also be sent to RSC Australia for petrographic examination to validate the historical mineralogical and rock composition • Samples from the Company’s recent reconnaissance soil and rock chip program at the Ngala Hill PGE, Cu & Ni Project have been submitted to SGS South Africa for analysis, with results expected towards the end of the month Registered Office Level 8, 99 St Georges Terrace Perth WA 6000 P: +61 8 9486 4036 E: info@dy6metals.com dy6metals.com Tundulu REE Project Tundulu is formed of several hills in a ring around a central vent called Nathace Hill where the majority of the historic surface sampling and drilling was undertaken. The predominant geology at Nathace Hill is REE apatite hosting carbonatites and feldspathic breccia and comprises a large inner agglomerate vent. Mineral rich carbonatite also occurs at Tundulu Hill east of Nathace and Makhanga Hill west of Nathace and is previously unexplored and prospective for REEs and niobium mineralisation. REE mineralisation remains open towards southern and western directions of Nathace Hill and potentially extends beyond the boundaries of the previously established mineralised area over Tundulu Hill. Initial indications of mineralisation appear to be high in valuable MREEs and low measurable radioactive uranium (U) and thorium (Th). This compares favourably to Lynas Rare Earths’ Mount Weld Central Lanthanide Deposit where Th and U concentrations in the ore are approximately 660 ppm and 25 ppm respectively. 1 Figure 1. Map of Tundulu license area (EL0731) 1 Mt Weld Rare Earths Project Mine Closure Plan March 2021, Appx G - Mine Closure Plan.pdf (epa.wa.gov.au) dy6metals.com | ASX:DY6 2 A total of 63 metallurgical samples were collected from 37 sample locations along high-grade historic trench (TUTR10) at Tundulu. Sampling results returned up to a high of 3.35% TREO and 27.5% P2O5 (average of 0.85% TREO and 8.26% P2O5) over the sampled 83m length of trench TUTR10. The average HREO component of the TREO basket was 13%, with high-value heavy rare earth elements Dy & Tb contributing 2.5%. Undetectable to very low levels of deleterious elements including mercury, lead and cadmium in the P-rich rocks confirms the exceptional grade quality of the phosphate at Tundulu. The sampling is representative of the mineralised Bastnaesite and Apatite carbonatite rock types exposed within the trench. Select samples are being collected to form a 150kg composite to be sent to for metallurgical analysis. 5 bioavailability composite samples were also taken across various historical trenches at Tundulu, targeting phosphate rich rocks. ‘Bioavailability’ is used for analysis on phosphorous rock sources to determine the solubility of phosphate in soils. This analysis is useful in determining whether a particular phosphate rock type is suitable for direct fertiliser applications where the phosphate would be applied directly to the soil for uptake. The analysis has been undertaken at Nagrom metallurgical and analytical laboratory in Kelmscott, Western Australia under standard atmospheric conditions using 2% citric acid. The majority of samples showed excellent phosphorus (P) solubility of over 40%, with one returning solubility of 81%. The exceptional quality of the phosphate-rich rocks at Tundulu is manifested by their undetectable to very low levels of deleterious elements including mercury, lead and cadmium. The metallurgical test work will aim to evaluate historical studies undertaken at Tundulu and assess the findings from a 2017 metallurgical report, completed by the previous operators of the licence. The test work will initially focus on validating the beneficiation results achieved by the previous laboratory. Conducting test work at this early stage enables the Company to ascertain the preliminary viability of producing two product streams: namely a REE commercially saleable concentrate and a mixed phosphate concentrate containing rare earths. Ngala Hill PGE, Ni & Cu Project Samples taken from the Company’s recent reconnaissance soil and rock chip program at the Ngala Hill PGE, Cu & Ni Project have been submitted to SGS South Africa for analysis. The Company expects to release results from this program towards the end of the month. dy6metals.com | ASX:DY6 3 Figure 2. Weighing and collection of samples from Trench 10 (TUTR10) -ENDSThis announcement has been authorised by the Board of DY6. dy6metals.com | ASX:DY6 4 Abbreviations  TREO = Total Rare Earth Oxides – La2O3, CeO2, Pr6O11, Nd2O3, Sm2O3, Eu2O3, Gd2O3, Tb4O7, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3, Y2O3  HREO = Heavy Rare Earth Oxides –Tb4O7, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3, Y2O3  HREO% = HREO/TREO * 100  DyTb:TREO = (Dy2O3 + Tb4O7)/TREO * 100  MREE=Nd, Pr, Dy, Tb  P = Phosphorus  P2O5 = Phosphorus pentoxide More information Mr Daniel Smith Mr John Kay Mr Luke Forrestal Chairman Director & Company Secretary Investor Relations dan.smith@dy6metals.com john.kay@dy6metals.com +61 411 479 144 Competent Persons Statement The Information in this announcement that relates to exploration results, mineral resources or ore reserves is based on information compiled by Mr Allan Younger, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Younger is a consultant of the Company. Mr Younger has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the `Australian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves’ (the JORC Code). Mr Younger consents to the inclusion of this information in the form and context in which it appears in this announcement. Mr Younger holds shares in the Company. dy6metals.com | ASX:DY6 5 Table 1: DY6 Rock Chip Sample Results – Tundulu Project Sample ID Easting Northing La (ppm) Ce (ppm) Dy (ppm) Eu (ppm) Nb (ppm) Nd (ppm) Pr (ppm) Sm (ppm) Tb (ppm) Y (ppm) P2O5 wt% TREO (ppm) PHA0006 801329 8280169 1464 1949 26.76 14.68 1298 735 248 69.2 6.17 110 2.72 5,610 PHA0007 801331 8280169 91.1 167 4.56 2.45 244 68 19.96 9 0.9 24.6 0.72 477 PHA0008 801333 8280168 1661 2355 150 47.52 595 890 284 161 27.82 622 11.96 7,753 PHA0009 801335 8280168 4143 5087 196 54.34 4037 1529 543 196 33.89 852 17.03 15,539 PHA0010 801337 8280167 1290 2013 173 54.06 658 868 258 175 31.53 735 12.29 7,057 PHA0011 801338 8280167 1325 1746 244 65.54 785 847 237 199 43.43 1009 16.34 7,299 PHA0012 801340 8280166 675 881 41.7 11 276 237 78.03 38.1 7 191 3.83 2,673 PHA0013 801342 8280166 820 1135 91.86 30.46 504 533 151 102 16.89 386 5.94 4,099 PHA0014 801344 8280165 1069 1664 162 50.07 388 752 214 160 29.62 653 10.17 6,044 PHA0015 801346 8280165 436 682 53.17 14.82 262 242 68.37 47.8 9.42 223 3.66 2,237 PHA0016 801348 8280164 690 1204 172 45.87 854 508 132 136 30.01 704 12.04 4,681 PHA0017 801350 8280164 1418 2925 235 77.96 2151 1511 416 275 41.82 1129 18.43 10,151 PHA0018 801352 8280163 1610 3119 419 111 2005 1595 440 335 73.52 1645 27.53 11,961 PHA0019 801354 8280163 1617 2450 202 55.94 2610 1098 330 183 35.22 740 11.81 8,406 PHA0021 801356 8280162 657 1225 185 43.71 196 510 135 126 31.79 702 10.71 4,655 PHA0022 801358 8280162 1528 2061 224 54.88 591 899 265 171 37.94 840 12.6 7,671 PHA0023 801360 8280161 526 976 86.92 24.25 408 372 106 73.8 16 350 4.98 3,198 PHA0024 801362 8280161 644 1171 119 29.34 542 424 123 86 21.25 435 6.55 3,871 PHA0025 801364 8280160 190 394 19.03 5.07 218 117 35.71 17.5 3.15 81.2 1.6 1,075 PHA0026 801366 8280160 232 504 98.44 23.13 361 195 50.49 57.5 17.74 368 5.62 2,029 PHA0027 801367 8280159 1815 3442 106 51.24 270 1530 460 205 22.05 410 6.01 9,891 PHA0028 801369 8280159 3268 4446 98.94 40.92 295 1329 476 154 20.33 377 5.99 12,461 dy6metals.com | ASX:DY6 6 Sample ID Easting Northing La (ppm) Ce (ppm) Dy (ppm) Eu (ppm) Nb (ppm) Nd (ppm) Pr (ppm) Sm (ppm) Tb (ppm) Y (ppm) P2O5 wt% TREO (ppm) PHA0029 801371 8280158 1834 2970 137 52.83 397 1252 387 186 26.91 490 8.37 9,079 PHA0030 801373 8280158 1831 3481 133 55.41 404 1414 450 206 26.31 496 7.8 10,003 PHA0031 801375 8280157 1845 3554 87.29 53.56 2514 1629 479 230 18.76 301 4.8 10,052 PHA0032 801377 8280157 1854 2766 135 57.63 216 1311 371 222 26.86 465 7.17 8,924 PHA0033 801383 8280155 4853 5614 122 64.83 77 1699 583 249 25.56 415 5.87 16,603 PHA0034 801385 8280154 7949 8553 96.58 56.8 77 2091 812 225 20.98 336 4.58 24,355 PHA0035 801387 8280154 827 1358 48.75 18.58 22 427 133 65.7 9.11 182 2.92 3,782 PHA0036 801389 8280153 1246 2062 85.89 30.61 94 673 204 107 16.28 319 6.82 5,867 PHA0037 801391 8280153 1014 1640 42.55 17.59 69 515 160 69.5 8.29 167 7.6 4,455 PHA0039 801393 8280152 1289 2006 60.57 24.45 92 571 182 85.3 11.99 218 6.29 5,469 PHA0040 801394 8280152 1491 2523 61.89 25.4 98 737 234 96.8 12.04 245 7.02 6,649 PHA0041 801396 8280151 10000 10000 211 147 109 4985 1000 628 51.45 647 7.17 33,597 PHA0042 801398 8280151 2429 3828 123 62.06 194 1769 523 259 24.6 435 5.62 11,601 PHA0043 801400 8280150 2614 3933 153 61.01 243 1635 504 242 28.41 534 9.41 11,944 PHA0044 801402 8280150 2514 3814 130 58.81 261 1671 504 240 25.66 441 5.83 11,540 dy6metals.com | ASX:DY6 7 Table 2: DY6 Bioavailability Sample Results – Tundulu Project SAMPLE ID Easting Northing Mass (kg) Moisture (%) Ce (ppm) Y (ppm) U (ppm) Th (ppm) P2O5 (%) P Extraction (%) CaO (%) Al2O3 (%) Fe2O3 (%) MgO (%) SiO2 (%) S (%) F (ppm) Cl (%) Cd (ppm) Pb (%) Hg (ppm) PHA001 801356.01 8280200.36 0.252 2.16 816 274 9.5 70.0 4.906 41.49 6.80 7.96 18.49 0.13 41.40 3.465 2800 <0.01 2 0.030 <0.01 PHA002 801342.83 8280193.89 0.253 3.64 1330 547 6.0 114.5 10.543 16.26 10.50 0.67 27.38 0.07 26.68 5.239 4400 0.01 <1 0.043 <0.01 PHA003 801356.37 8280203.35 0.253 0.78 1141 68 7.5 73.5 2.400 71.45 5.42 12.51 7.33 0.18 51.78 0.540 600 0.01 2 0.006 <0.01 PHA004 801313.88 8280131.15 0.248 0.71 888 53 5.5 48.5 1.272 80.50 2.61 14.22 5.60 0.26 58.16 0.044 <200 <0.01 1 0.004 0.03 PHA005 801311.69 8280087.32 0.254 0.78 1044 79 8.0 67.0 1.086 61.30 1.30 11.59 7.16 0.09 64.31 0.007 400 <0.01 2 0.002 0.01 dy6metals.com | ASX:DY6 8 Annexure A: JORC Code, 2012 Edition – Table 1 report Section 1 Sampling Techniques and Data (Criteria in this section apply to all succeeding sections.) Criteria JORC Code explanation Commentary 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. Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. 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 pulverized 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. • 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, facesampling bit or other type, whether core is oriented and if so, by what method, etc). Drill sample recovery • Method of recording and assessing core and chip sample recoveries and results assessed. Measures taken to maximise sample recovery and ensure representative nature of the samples. 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. • • • Field rock chip samples of outcrop were taken by field staff from outcrops utilising a geo-pick and hand tool. Samples are photographed and stored in labelled clear plastic bags for transport to the lab for analysis. Results are attached. Samples were selected more on the basis of understanding lithotypes rather than being fully representative of mineralisation. No recent drilling is utilised on this program or reported in this announcement. Previous exploration included 2874m of diamond drilling and 6172m of RC drilling. Not recorded in historic data. Further review needs to be undertaken by the Company. dy6metals.com | ASX:DY6 9 Logging Criteria Sub-sampling techniques and sample preparation • Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate JORC Code explanation • • • • • • • Quality of assay data and laboratory tests • • • • Qualitative geological logging of rock chips and outcrops is completed in the field. Commentary Mineral Resource estimation, mining studies and metallurgical • studies. Whether logging is qualitative or quantitative in nature. Core (or • costean, channel, etc) photography. The total length and percentage of the relevant intersections logged. If core, whether cut or sawn and whether quarter, half or all core taken. If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. For all sample types, the nature, quality and appropriateness of the sample preparation technique. Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. 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. Whether sample sizes are appropriate to the grain size of the material being sampled. The nature, quality and appropriateness of the assaying and • laboratory procedures used and whether the technique is considered partial or total. 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. Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established. The sampling technique used to obtain rock chip samples from outcrops manually is in line with industry standards and standard exploration practices. Rock chip sample data is not for use in resource in resource estimation. Recent assays reported in this announcement were completed as a four-acid digest with MS determination approaching a total digest and is an appropriate exploration approach. Historical analyses are defined only as being ICP; digestion methods are not specified in available data. Additional research is required. dy6metals.com | ASX:DY6 10 Verification of sampling and assaying Location of data points • The verification of significant intersections by either independent or alternative company personnel. • The use of twinned holes. • Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. • Discuss any adjustment to assay data. • Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. Criteria • • • Orientation of • data in relation to geological structure • Sample security Audits or reviews Field data is collated and sent back to DY6 geological staff and/or contractors where it is checked and verified. • No recent drilling is utilised on this program or reported in this announcement. DY6 sample points were located using handheld GPS. • JORC Code explanation • Data spacing and distribution • • Specification of the grid system used. Quality and adequacy of topographic control. Data spacing for reporting of Exploration Results. Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. Whether sample compositing has been applied. Commentary • No recent drilling is utilised on this program or reported in this announcement Whether the orientation of sampling achieves unbiased • sampling of possible structures and the extent to which this is known, considering the deposit type. 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. Not recorded. Core is reportedly available for inspection at Malawi Geological Survey Head Office in Zomba. The measures taken to ensure sample security. • • Company staff collected all laboratory samples. Contractors affiliated to the laboratory were used for the transport of the samples to the lab. • The results of any audits or reviews of sampling techniques and data. • No audit of data has been completed to date. dy6metals.com | ASX:DY6 11 Criteria JORC Code explanation Mineral tenement and land tenure status • • Exploration done by other parties Commentary 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 security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area. • Acknowledgment and appraisal of exploration by other parties. The Tundulu tenure is pending grant with the relevant government authorities and there are no known impediments to operation in the project area. • • • • Historical exploration is known to have been conducted by JICA (Japanese International Cooperation Agency) from 1988-91. Full details are being researched. The Tundulu licence area was explored for REE during 2014/15. Most of the known exploration data has been obtained by DY6 however further review and investigation will be required. Small scale phosphate mining was also undertaken by unknown parties in 2014. A full literature search continues to be undertaken by DY6 staff to acquire all relevant data. Section 2 Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section.) Criteria JORC Code explanation Commentary Geology • Deposit type, geological setting and style of mineralisation. • Tundulu is a carbonatite ring complex forming part of the Chilwa Alkaline Province in southern Malawi. The geological structure of the Tundulu Ring Complex comprises of three igneous centres. The first comprises a circular aureole of fenitization about a 2 km diameter plug of syenite. The second carbonatite ring structure centred on Nathace Hill has a diameter of 500600m. Wrench faulting prior to emplacement of the third centre displaced the western half of the Nathace Hill ring structure 250m to the north. The third centre comprises small plugs and thin sheets of meta-nephelinite and beforsite. dy6metals.com | ASX:DY6 12 • No recent drilling has been undertaken on the project since 2014 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: o easting and northing of the drill hole collar o elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o 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. Data aggregation methods In reporting Exploration Results, weighting averaging • No aggregation methods were used and no metal equivalents are techniques, maximum and/or minimum grade truncations reported. (eg cutting of high grades) and cut-off grades are usually Material and should be stated. 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. The assumptions used for any reporting of metal equivalent values should be clearly stated. Relationship between mineralisation widths and intercept lengths These relationships are particularly important in the • No new mineralisation widths are being reported. Historical results reporting of Exploration Results. are included for context. If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. as reported in this announcement. dy6metals.com | ASX:DY6 13 Criteria JORC Code explanation Commentary • If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘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. • Please see maps and diagrams included in the announcement text, that provide locations for the claims and their location relative to other projects in the area, with known geology from government mapping. 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. • The release is considered to be balanced and is based on current available data for the project area Other substantive exploration data • Other exploration data, if meaningful and material, should be • The historical data currently available to the Company is known to reported including (but not limited to): geological be incomplete and requires further investigation. observations; geophysical survey results; geochemical • Attempts will be made to obtain and collate the full historical survey results; bulk samples – size and method of exploration data. treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances. Further work The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or largescale step-out drilling). Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive. • The Company intends to continue explore the tenements initially with a comprehensive grid-controlled rock chip sampling program and resampling of accessible old trenches. • Historical data will be integrated after validation. dy6metals.com | ASX:DY6 14