Audalia Resources Limited updated on the Company's JORC (2012) compliant Mineral Resource estimate for the Medcalf Project using a 6% TiO2 grade cut off to be line with Company's updated pre-feasibility study study currently underway on a direct shipping ore (DSO) type product The updated PFS information that will include this latest mineral resource estimate will be provided to a mining consultant for reporting a JORC compliant Ore Reserve estimate. Audalia recently identified the possibility of producing a lump ore product to be used for blast furnace refractory liner protection. The proposed product is a DSO type product only requiring crushing and screening to specified size range. A preliminary review of the 2018 resource model has indicated through a series of optimisations, that high grade TiO2 ore could be mined from the existing mineral resource. Cube Consulting, the Company's independent geologist, who estimated the 2018 mineral resource using a 0.2% V2O5 cut off were appointed again to revisit the block model focussing on titanium as a cut-off grade and demonstrate reasonable prospects for economic extraction via assessment against an optimisation shell. Grade tonnage curves were developed for the reported Mineral Resources within each prospect area. A review of the grade tonnage curves demonstrates that the resource is sensitive to the applicable reporting cut-off, with resource tonnes consistently reducing at a material rate with increasing cut-off grades. The 6% cut-off titanium grade was found to be the optimal cut-off grade for tonnage and grade suitable for upgrading to an Ore Reserve. The geological interpretation has divided the Medcalf Project into three broad, spatially unique areas (Figure 1): Egmont located to the west of the project area. Kilimanjaro located to the southeast. Vesuvius in the central part of the project, which has been further sub-divided based on modelled fault boundaries. Vesuvius West; Vesuvius Central (including the Fuji prospect) and Vesuvius East (including the Pinatubo prospect).
Cube Consulting re-ran the 2018 resource block model using a 6% TiO2 grade cut off. Reasonable prospects for eventual economic extraction were determined with reference to the results of Whittle optimisation resource limiting shells. The extents of the selected open pit shell were used as an analogy to help limit the extents for reporting of the Mineral Resources associated with the Vesuvius, Egmont and Kilimanjaro prospect. The Medcalf resource has demonstrated sufficient geological and grade continuity to support the definition of a Mineral Resource and enable classification in accordance with the JORC Code (2012 edition) guidelines. The input drill data is considered representative of the V2O5 and TiO2 grade distribution and does not misrepresent the mineralisation. Knowledge of the geological controls on mineralisation has been used to develop the overall resource estimate. The Mineral Resource in Table 1 is reported above a lower cut-off grade of 6 % TiO2 based on preliminary economic considerations. The preliminary mining studies are based on open cut mining methods using conventional drill and blast mining. These studies have assisted with definition of an appropriate cut-off grade above which mineralisation has reasonable prospects for economic extraction.