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Lithic Metals and Energy Ltd 

('Lithic' or 'the Company')

Initial 12.25 M tonnes Independent Nickel Resource: Mt Kpoté, Togo

Lithic Metals and Energy ltd (AIM:LMY) today announces its maiden independent JORC - compliant Inferred Resource of surface nickel mineralisation at its Mount Kpoté Prospect, Haito Project, Togo.

Highlights

• Initial Inferred Resource (JORC) of 12.25 M tonnes @ 0.83% Ni, 0.045% Co using 0.5% Ni cut-off grade*

• 101,100 tonnes contained nickel in transitional and saprolite material

• Significant resource upside at depth and along strike

  • Zone of >1% Ni at the base of test pits over 1.1km x 500m

  • Over 30km potential strike length within licences

• Deposit located adjacent to sealed road and rail infrastructure, 150km from modern port facilities and natural gas hub of capital city Lome

*Resource calculation based on test pitting to maximum 12m depth (No drilling)

Lithic's initial assessment of the Kpoté prospect has revealed a significant accumulation of nickel mineralisation at surface.  

Kpoté is prominent hill situated within a 30km long ophiolite complex of ultramafic lithology highly prospective for nickel mineralisation associated with the formation of tropical laterite.  The combined nickel, cobalt, magnesium and iron values indicate that pitting at Kpoté tested the lower limonite - transition zone of a tropical laterite profile. In normal tropical laterite profiles, weathering transitions from a limonite zone into saprolite, the latter typified by the presence of minerals such as garnierite (a hydrous Ni - Mg silicate) and nickel values in the 1 - 3% range.  

Testing of the deposit through shallow pitting has been confined to the top 12m but results from over half the test pits ended in nickel grades greater than 0.5% with a significant proportion ending in grades over 1% in saprolite material. Garnierite was observed in several test pits with nickel grades up to 6.38% Ni.

The Kpoté deposit is open at depth and the interpretation of geophysical magnetic imaging shows a likely continuation of favourable geology immediately to the north and south of the deposit. These possible extensions are located under the laterite and soil cover that surrounds the base of the Kpoté hill.  Lithic's regional reconnaissance of the 30 strike km of prospective ophiolite complex has encountered numerous locations of >1% nickel in rock chips and test pits, which provides evidence of additional prospective nickel resources within the existing licence areas. 

Of particular importance to future developments at Kpoté is its proximity to rail and road infrastructure, allowing ease of access to port facilities at the capital city Lomé, located just 150km from the project. Lomé boasts a modern port with bulk loading capacity that is adjacent to the Togo terminus and metering station of the West African Gas Pipeline, with obvious beneficial implications for any future project development

This Inferred Resource calculation is based on nickel mineralisation encountered in shallow test pitting of saprolite material over the Kpoté prospect.  A total of 117 test pits comprising 771 sample intervals averaging 1m in length, excluding QAQC field duplicates, standards and blank samples were included in the resource estimation.  The extent of nickel mineralisation between test pits was wire-framed on a sectional basis with grade estimation on a parent block model cell size of 100mE x 50mN x 5m RL using Inverse Distance Squared methodology.

In Situ Inferred Mineral Resource by Ni cut-off
Cut-off Ni ppm	Tonnes*	Ni ppm	Co ppm	Mg%	Fe2O3 %	Contained Ni (t)
0	16,881,000	6,946	424	6.32	19.16	117,000
3000	16,127,000	7,198	440	6.50	19.79	116,000
5000	12,248,000	8,255	452	7.34	20.08	101,100
7000	7,205,000	9,923	525	7.16	21.91	71,500
10000	2,842,000	12,620	645	6.8	23.86	35,900

* Tonnes determined using a fixed specific gravity of 1.7 t/m³, which is considered appropriate to the material estimated in the resource calculation.

Commenting on these results, Lithic MD Jim Kerr stated; 'The results from this early stage exploration activity are very encouraging. Establishing a JORC Inferred Resource with an extensive high grade core is significantly in advance of what we initially expected from this test pitting programme. We shall now consider the next appropriate phase of development for the prospect. However, given the immediate proximity to road and rail hubs, 150 km from a major port with natural gas, a potential mine at Mt Kpoté is extremely interesting.'  

A glossary of terminology can be found at http://www.lithicme.com/glossary.asp

For more detailed information, please visit our website www.lithicme.com

Or contact

Jim Kerr, Lithic Metals & Energy	Tel: +61 8 9322 5804
Katy Mitchell, WH Ireland Limited	Tel: +44 (0)161 832 2714
Laurence Read / Beth Harris, Threadneedle Communications	Tel: +44 (0)20 7653 9850

Competent Persons Statement

The information in this report that relates to Resource Estimations is based on information compiled by Mr Peter Ball (BSc, MAusIMM) of independent consulting group Datageo Geological Consultants and Mr Jim Kerr (BSc Geol, MSc Min Econ, MAusIMM, MSEG), Managing Director of Lithic Metals and Energy Ltd. Mr Ball and Mr Kerr are Competent Persons as defined in the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, have sufficient experience in mineral resource estimation relevant to the style of mineralisation and type of deposit under consideration and consent to the circulation and inclusion in the report of the matters based on the information in the form and context in which it appears.

 

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