CSIRO study models iron for Reedy Lagoon in WA

Reedy Lagoon Corporation Limited has received the final report from the CSIRO study conducted on the Burracoppin magnetite deposit in Western Australia. The study is the product of the Company's engagement with Australia's national science agency, CSIRO, which commenced in May 2021 (refer to ASX release 26 May 2021 ) . The study has contributed to the development of a new method for quantifying the iron content of deposits of magnetite, referred to as the "MagResource" method.

The MagResource method utilises the unique density and magnetic properties of magnetite (a mineral comprised predominantly of iron and oxygen), to establish a linear relationship with iron content that can then be used to convert a magnetic forward model or inversion into a volume of contained iron.

The study has included the acquisition of substantial new data from analysis of our drill core. Orientated samples ("rounds") were collected by boring our existing drill core. These rounds were then analysed to recover magnetic, density, geochemical, mineralogical and structural data. These data were used to constrain the modelling of the airborne magnetic data acquired in 2011 and reprocessed by CSIRO during the current study. The modelling of the airborne magnetic data has resulted in the generation of 3D shapes that represent potential magnetite mineralisation both in space and in content of magnetite.

The results of the study have been used by Reedy Lagoon to determine an Exploration Target of 240 to 300 million tonnes at 20 to 25 Wt% iron at Burracoppin.

The Exploration Target stated above is a product of research which, whilst based on robust physics, is conceptual in nature. There has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.

It is noted that the Exploration Target released on 12 February 2021 is determined for a restricted area of the Burracoppin magnetite deposit within which drilling is planned and described in its release (refer to ASX release 12 February 2021 ) .. This earlier Exploration Target is not being replaced.

The 3D nature and spatial geometry interpreted for the new Exploration Target allows for the planning of drillholes to test the accuracy of the method and potentially allow for the definition of Mineral Resources in a more efficient and timely manner than would otherwise be required. The initial planned holes are designed to test both Exploration Targets where there is an overlapping interpretation.

Current practice normally requires drilling hundreds of holes into a potential resource to determine metal content which is extrapolated between holes using statistical methods. By developing methods to quantify iron resources using 99% non-invasive technology we can minimise impacts for local communities and reduce the costs for the early stages of exploration, leading to faster resource definition and greater certainty for investors and stakeholders. This is the potential we see in the MagResource method that our collaboration with CSIRO is developing.

The Burracoppin magnetite deposit is part of Reedy Lagoon's Burracoppin Iron Project which plans to produce pig iron from locally sourced iron and carbon. The results of the CSIRO work support the potential of the Burracoppin magnetite deposit to be the source of iron for the project.

Further drilling at the Burracoppin magnetite deposit will not only seek to determine a Mineral Resource, but if successful also help pioneer a new resource determination tool - CSIRO's MagResource method.

The project was made possible by CSIRO Kick-Start, an initiative that provides funding and support for innovative Australian start- ups and small businesses to access CSIRO's research expertise and capabilities to help grow and develop their business.

Authorised for release on behalf of the Company.

Reedy Lagoon Corporation Limited P O Box 2236, Richmond VIC 3121

Illustrational images from the CSIRO MagResource Model (for the Burracoppin deposit).

Upper panel: 3-D rendering of the magnetic model relative to the magnetic anomaly.

Lower panel: 3-D rendering of the magnetic model relative to the first vertical derivative image. Both viewed from the south.

The information in this report that relates to Exploration Results is based on and fairly represents information compiled by Geof Fethers who is a member of the Australian Institute of Mining and Metallurgy (AusIMM). Geof Fethers is a director of the Company and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for the Reporting of Exploration Results, Mineral Resources and

Ore Reserves (the JORC Code). Geof Fethers consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

The Exploration Target is based on and fairly represents information compiled by Simon Tear who is a member of the Australian Institute of Mining and Metallurgy (AusIMM). Simon Tear consents to the form and context in which the Exploration Target described in the report appears. Simon Tear is an independent Consulting Geologist and Director of H & S Consultants Pty Ltd and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Cod e for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code).

Where Exploration Results have been reported in earlier RLC ASX releases referenced in this report, those releases are available to view on the INVESTORS page of reedylagoon.com.au. The Company confirms that it is not aware of any new information or data that materially affects the information included in those earlier releases. The Company confirms that the form and context in which the Competent Person's findi ngs are presented have not been materially

modified from the original market announcement.

Table 1. Burracoppin Magnetite project - JORC 2012 sampling techniques and data. Table 2. Burracoppin Magnetite project - JORC 2012 reporting of exploration results.

Table 3. Burracoppin Magnetite project - JORC 2012 estimation and reporting of Mineral Resources.

JORC Code, 2012 Edition - Table 1 Burracoppin Magnetite Project

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Drilling techniques Drill sample recovery

• Nature and quality of sampling (eg 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 (eg '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 (eg submarine nodules) may warrant disclosure of detailed information.

• Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg 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).

• 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.

• Sampling method comprises 3 diamond drillholes for 995.7m.

• Drillholes were completed by Cliffs Asia Pacific Iron Ore Pty Ltd ("Cliffs") in 2012.

• 1m sawn quarter core samples (849 samples) were sent to a commercial laboratory for sample prep and analysis by standard industry XRF techniques.

• Sample compositing to generally 4m but occasionally higher was completed after the initial sampling and assaying to allow for further analytical testwork on particle liberation and recovered magnetic fraction ("DTR") for magnetite. This work was completed at a second commercial laboratory.

• Drill holes achieved a high angle of intersection to the mineralisation

• Mineralisation comprises a 265m thick package of rocks with relatively coarse grained stratabound magnetite in bands ranging in thickness between 13 to 70m. The stratabound mineralisation generates a strong and discrete airborne magnetic anomaly which provides a clear measure of geological continuity and magnetite grade intensity.

• The sampling technique is considered appropriate for the deposit type

• Cliffs used a Hanjin Powerstar 7000 track mounted diamond drill rig

• NQ2 diamond drilling (DD) was the preferred sampling technique as it offered substantial geological information at an early stage of the exploration process and the best chance of full sample recovery for a maiden drilling programme.

• Sample recoveries for DD were recorded by field technicians after measuring the length of core recovered in metres divided by the length of each individual core run.

• Minor core loss was recorded with the top of hole but otherwise averaged 99%

• No studies were undertaken to specifically examine possible biases between core loss and recovered magnetic fraction as there was minimal core loss associated with the mineralisation.

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 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

• Geological and geotechnical logging was completed by contract geologists and field staff supplied by BM Geological Services ( " BMGS " ), in conjunction with the Cliffs exploration team.

• The preparation of core samples was handled by BMGS at their facility in Kalgoorlie, completing the measurement and recording of core orientation and RQD, sawing and sampling of the core.

• Every DD hole was geologically logged but no details of the method used has been supplied. Fields recorded include colour, weathering, regolith, lithology, grain size, foliation, texture, min%, min. style, alteration, alteration intensity, alteration style, vein min, vein%, vein style, sulphide% and description being recorded. Data was supplied to H&SC as a series of Excel files and loaded into an MSAccess database.

• Logging used a mixture of qualitative and quantitative codes

• Down-hole geophysical surveying was carried out by Kalgoorlie-based ABIM Solutions with down-hole directional surveys conducted using the SPT 007 42 North Seeking Gyroscope and down-hole magnetic susceptibility surveys conducted using the Geovista Magnetic Susceptibility tool. Potential issues have been reported for the mag sus data so its use has been quantitative. The SATMAGAN magnetic susceptibility method completed as part of the lab analysis has performed much better.

• Digital core photographs exist for all three holes.

• All relevant mineralised intersections were logged.

• Geological logging and multi-element assays were of sufficient detail to allow for the creation of a geological model to support the design of an Exploration Target.

• Throughout the interval of magnetite-bearing iron formation, 1m intervals of ¼ core, were prepared for analysis of head XRF and Satmagan measurement.

• Sample prep and analysis was conducted by UltraTrace Laboratories in Perth.

• The samples were sorted, dried and weighed. Primary preparation was by crushing the whole sample. The samples were then split with a riffle splitter to obtain a sub-fraction which was then pulverised in a vibrating pulveriser.

• Upon receipt by Cliffs of the Satmagan results, longer composite intervals of generally 4m were assembled from the remaining ¼ core for Liberation Index ( " LIS " ) analysis including measuring DTR.

• Bureau Veritas' Amdel Laboratory , Perth, were contracted to conduct the LIS analysis on the magnetite BIF samples. The procedure was designed to

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Reedy Lagoon Corporation Limited published this content on 29 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 April 2022 04:31:03 UTC.