Mt Thirsty Mineral Resource Increases By Over 145%

Greenstone Resources Limited (ASX:GSR) (Greenstone or the Company) is pleased to report a 146% increase to the Mineral Resource Estimate (MRE) for the Mt Thirsty Co-Ni-Mn-Sc project (50% Greenstone Resources, 50% Conico Limited) (the Project). The Project is located just 16 kilometres North-Northwest of Norseman, Western Australia and is supported by a network of existing infrastructure (road, rail, port & power).

• Mineral Resource Estimate (Indicated & Inferred) at Mt Thirsty Cobalt-Nickel project increases by 146%¹, for:
  
  • 66.2 million tonnes @ 0.06% cobalt; 0.43% nickel and 0.45% manganese
• Deposit hosts the second highest Co-Ni ratio for similar predevelopment Co-Ni projects in Australia²
  
• Deposit uniquely positioned to potentially produce pCAM, containing all three elements (Co, Ni & Mn)
• Precursor Cathode Active Material (pCAM) is a high-value product made of cobalt, nickel & manganese
• Scoping Study already underway leveraging of materially larger resource to support a longer life operation
• Scoping Study to access the adoption of HPAL³ & production of pCAM⁴ (expected early-July 2023)
  
• Addition of HPAL and pCAM to the Mt Thirsty project could potentially transform project economics
  • Comparable HPAL projects typically receive Co and Ni recoveries of 90% and 92%, respectively⁵
    
  • pCAM typically receives a ~50% pricing premium over intermediatory products (MHP / MSP)⁶
    
• Ability to provide a sustainable source of low-cost & ethical critical minerals outside of DRC, PRC & RF⁷
  
• Updated Scoping Study to provide foundation for future studies & potential consolidation to support an IPO

Importantly, large areas of the resource remain open at depth (Figure 3), and Scandium has not been included in current resource estimation, both of which will be assessed post the completion of the Scoping Study which is expected in early-July 2023.

Managing Director and CEO, Chris Hansen, commented: “Previously the Mt Thirsty project had principally been viewed as a cobalt only project, with little attention given to the thick and continuous zones of overlying and outcropping nickel-manganese mineralisation. However, following the recent adoption of high-pressure acid leaching (HPAL), and the expected improvements in metal recoveries, the inclusion of this outcropping mineralisation in the Mineral Resource Estimate has the potential to transform the Mt Thirsty project into a long-life and low-cost operation.

Following the rapid adoption of electric vehicles over the past five years there has been a fundamental shift not only in underlying commodity demand, but also in the specific product requirements demanded by end-users, which has signalled a shift away from lower-value intermediary projects (e.g. mixed hydroxide precipitate) to higher-value refined products (e.g. pCAM). The Mt Thirsty project is uniquely positioned to take advantage of this fundamental shift, containing all three of the necessary elements (Co, Ni & Mn) to potentially produce a cathode precursor product on site and importantly capture these improved pricing premiums, with cathode precursors typically receiving a ~50% pricing premium over intermediatory products (Figure 4).

More recently this unprecedented demand for critical minerals has served to highlight the geopolitical and ethical risks associated with establishing sustainable supply chains capable of meeting emission reduction targets. With Australia now positioning itself as a battery manufacturing powerhouse, we believe that Mt Thirsty can play a key role in supplying a low-cost, ethical and sustainable source of cobalt and nickel outside of the Democratic Republic of the Congo and Russia, who currently dominate global supply.”

Figure 1: Australian hosted laterite deposits >50Mt; Measured, Indicated & Inferred resource grade. See below for tonnes and grades.

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