Terms Agreed Over The Horden Lake Copper-Nickel-PGM Deposit In Quebec, Canada

Rafaella Resources Limited (ASX:RFR) (‘Rafaella’ or the ‘Company’) announces that terms have been agreed for the acquisition of the impressive Horden Lake polymetallic/battery metals deposit in north-western Quebec, Canada.

The Company, through its 100% owned subsidiary 9426-9198 Québec Inc., (‘RFR Quebec’) has signed a binding agreement with Gestion Ora-Mirage Ltée to acquire the Horden Lake polymetallic deposit (‘Horden Lake’, or the ‘Project’). Horden Lake is an advanced project located approximately 140 km north of the mining town of Matagami, and 300km north of the Company’s wholly owned Belleterre-Angliers Cu-Ni-PGM project, also in Quebec. The Horden Lake deposit is centrally located within the 815-hectare tenement package being acquired and is comprised of 18 separate claims, all in good standing (see Fig. 2).

Highlights

• Rafaella to acquire 100% of the Horden Lake battery metals project for C$4m.
• Acquisition financing is secured for up to A$2m (at RFR’s discretion) in binding commitments, with other significant late-stage discussions ongoing. An upfront deposit of C$400k has been paid from existing cash resources.
• NI43-101 (2009) compliant resource of 16.55Mt comprising 8.76Mt of Indicated @ 0.88% Cu, 0.21% Ni, and 7.79Mt of Inferred at 0.87% Cu, 0.25% Ni.
• Metallurgical studies by the International Nickel Company of Canada (‘INCO’) yielded excellent recoveries.
• In-fill drilling is planned to better quantify the known Co, Pd, Pt, Au and Ag contents and upgrade Inferred resource categories to Indicated in advance of a PFS.
• Close to infrastructure, notably a new road and power line connecting the mining town of Matagami to the La Grande hydroelectric power dam (see Fig.1).
• The Horden Lake project is complementary to the Company’s existing Belleterre- Angliers exploration project, also held by RFR Quebec, which now holds a substantial battery metals portfolio in a Tier 1 mining jurisdiction.

The estimates of Mineral Resources are not reported in accordance with the JORC Code 2012; a Competent Person has not done sufficient work to classify the estimates of Mineral Resources or Ore Reserves in accordance with the JORC Code 2012. It is possible that following evaluation and/or further exploration work the currently reported estimates may materially change and hence will need to be reported afresh under and in accordance with the JORC Code 2012. Nothing has come to the attention of the Company that causes it to question the accuracy or reliability of the former owner’s estimates, but the acquirer has not independently validated the former owners’ estimates and therefore is not to be regarded as reporting, adopting or endorsing those estimates. Please refer to Appendix B.

Managing Director, Steven Turner said: “The acquisition of the Horden Lake deposit will be, once completed, truly and immediately transformative for the Company. It adds an outstanding battery metals flagship with a substantial Cu-Ni deposit to the current Canadian battery metal property portfolio. The acquisition substantially boosts Rafaella’s battery metals position in Canada.

The Horden Lake property offers significant short-term upside through a program to update the resource estimate with immediate in-fill drilling that will also quantify the additional high-value precious metals and cobalt credits available. The resource will be re-assessed in relation to the higher commodity price environment that is reflective of the growing demand for these battery metals. The Horden Lake deposit is now located close to upgraded and improved infrastructure (both road and power) and benefits from having a significant amount of known resource tonnage located close to surface.

The recent acquisition by Archer Exploration (announced 13 July 2022) of the nearby Le Grasset Cu-Ni deposit (see Fig.1) for C$53.6m is an example of the potential value of these high-grade battery metal deposits in Quebec.”

Background and Opportunity

The Horden Lake deposit was discovered by INCO in the 1960s. Between 1962 and 1969, INCO completed geophysics and 157 holes for a total of 32,229m. At the time the project was remote with access only possible via float plane or helicopter. INCO focused solely on the nickel and copper content, without assaying for other metals, and given the difficult access, metal prices, and its primary focus on the Sudbury region, did not proceed.

In 2008, Southampton Ventures Inc. conducted geophysics and drilling (18,136m over 73 holes) and assayed some holes for metals other than copper and nickel. A 43-101 compliant mineral resource estimate was prepared by Caracle Creek International Consulting Inc. dated 15 April 2009. This was followed by a further 2,037m drilled over 12 holes by El Condor Minerals Inc. in 2012(3), of which all 12 were assayed for Co, Pd, Pt, Au and Ag as potential by-products.

Fundamental changes in the world economies as they transition to renewable energy, has seen commodity prices of battery metals rise. Previous owners have not focused on the range of by-product credits available, with cobalt and PGMs, in particular, being overlooked. With the construction in the 1980s of the Route Billy-Diamond Highway, a major road linking Matagami and the Le Grande Hydroelectric Power Dam to the north, along with associated power lines, the deposit now benefits from key infrastructure passing within 18km of the property. These developments have transformed the Horden Lake deposit into a valuable project at a time that both the Canadian and Quebec governments are actively promoting the development of such critical deposits.

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