Golden Mile Resources Limited provided an update on the Stage 2 Metallurgical testwork on samples from the Company's Quicksilver Nickel-Cobalt Project. Stage 2 Metallurgical testwork has significantly developed the understanding of the unique saprolitic mineralisation at the Quicksilver Nickel-Cobalt Project. Positive results have demonstrated the potential to develop a low energy customised multi product beneficiation process; To date three potential products have been identified with work continuing on further upgrades and a possible fourth product & Learnings from characterisation of the various concentrates is providing an insight to the likely basement nickel and cobalt containing source rocks and so informing future exploration targeting.

The Quicksilver Nickel-Cobalt Project is approximately 50km2 in area and covers a belt of mafic-ultramafic rocks (greenstones) prospective for nickel sulphide and nickel laterite mineralisation. The Project is located near the town of Lake Grace (approximately 300km SE of Perth) on privately owned farmland in an area with excellent local infrastructure, including easy access to grid power, sealed roads, and a railway line connected to key ports The Stage 2 metallurgical testwork was carried out by Bureau Veritas Metallurgical Laboratory in Canningvale, Western Australia. The program was designed to better characterise the saprolitic nickel and cobalt mineralisation and evaluate beneficiation options for potential economic extraction.

Composite samples indicative of upper saprolite (US) and lower saprolite (LS) nickel mineralisation were tested, consistent with feed material used in prior metallurgical investigations. The Stage 2 program explored sample response to low energy scrubbing and size classification. Selected product size fractions then underwent mineralogical assessment, magnetic and gravity separation and flocculation testing.

The Stage 2 testwork has demonstrated that the saprolite nickel mineralisation at Quicksilver is unique and contains a range of minerals of variable nickel and cobalt content. The key learnings from this phase of investigation include: A silica rich and low nickel grade component of the saprolite material (0.2 to 0.4% Ni) can be rejected as coarse angular screen oversize (+1mm) after low energy scrubbing. Graded by size this stream has potential to be used as local construction aggregate.

A magnetic mineral of the iron ("Fe") chromium ("Cr") spinel group is evident within both the upper and lower saprolitic samples and is well liberated after scrubbing. This infers the nickel containing Cr-magnetite mineral appears to reasonably survive in the weathering profile and may well reflect a component of a primary nickel source rock. The testwork indicates that with a moderate regrind and a cleaning stage the Ni-Cr-magnetite concentrate can at least achieve a quality.

Potential uses for such a concentrate may include a blend component in iron ore sinter or pellet feed, a (Fe+Cr+Ni) feed additive for stainless steel production, a dense media, paint pigment or other use based on its high specific gravity, colour and sizing. Nickel is concentrated in the natural scrubbed slimes fraction (<11 micron) which mostly contains minerals of the smectite clay group. Scrub product slimes chemistry and represents 43 and 40% of the nickel in the upper saprolite and lower saprolite composite samples respectively.

Diagnostic investigation of the slimes indicates further potential may exist to upgrade nickel and cobalt by the physical rejection of quartz and goethite and removal of volatiles that would naturally occur in the case of pelletising this material. This stream has potential to be sold as a nickel concentrate (local or exported) or processed further onsite at least to a nickel intermediate product. Some elevated nickel and cobalt grades were returned in gravity tails streams and certain wet high intensity magnetic separations.

Observed particularly within the gravity table tails stream were significant amounts of a golden coloured mica like mineral. A sub sample of the mica removed by hand panning is now undergoing mineralogical evaluation. The mica mineral has been confirmed as vermiculite (Mg,Fe2+,Fe3+)3[(Al,Si)4O10](OH)2·4H2O, a hydrous phyllosilicate mineral.

Analysis results for the vermiculite rich sample and show high nickel grade (2.1%), lower iron and higher magnesium grades compared to the scrubbed slimes concentrate. Mineralogical investigations are continuing to better understand the form and association of nickel in the vermiculite concentrate and whether some form of cationic substitution in the weathering profile has occurred. The mica concentrate may have potential to be heap leached for the recovery of nickel and a saleable vermiculite mineral or sold directly as a potential 4th product stream.

Manganese and cobalt associations were high overall and was also more concentrated in some fractions.