Newfield Resources : Exploration Update - Peyima Kimberlite

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ABN: 98 153 219 848

15 McCabe St

North Fremantle WA 6159

T: +08 9389 8880

www.newfieldresources.com.au

ASX Announcement

7 December 2021

Exploration Update: Peyima Kimberlite

Newfield Resources Limited (Newfield or Company) (ASX: NWF) is pleased to report encouraging results of its exploration programme on the Peyima Kimberlite located within its Tongo Mine concession area.

Highlights

• Peyima Kimberlite mapped over 2.2km
• Previous drilling has intersected the Kimberlite to 130m below surface
• 108 dry tonnes kimberlite bulk sample collected and processed
• 110.20 carats of diamonds recovered giving a grade of 102cpht (+1.2mm cut off)
• Largest stone weighs 5.07 carats with 74% of recovered diamonds categorised as gem/near-gem quality

Newfield Executive Director, Karl Smithson, commented:

"The Peyima Kimberlite is one of 11 known kimberlites on the Tongo Mine concessions, located some 5km to the southeast of the current mine development on the Kundu and Lando kimberlites. Earlier this year Newfield decided to undertake a bulk sample of the Peyima Kimberlite for a first assessment on the diamond grade and quality of the body. This initial evaluation programme was successfully completed through the collection and processing of a 108 dry tonne sample which yielded 110 carats of diamond, for an encouraging sample grade of 102 carats per hundred tonnes (cpht).

"This first assessment of the Peyima Kimberlite diamond grade and quality is highly encouraging and supports the further work which will include the processing and analysis of a 182kg microdiamond sample to better assess the grade potential of the kimberlite. Initial independent valuation of the recovered diamond sample confirmed diamond value consistent with the Kundu and Lando Kimberlites in the smaller sieve classes.

"The success of this sampling program is very exciting exploration progress which supports the Company's confidence that Peyima holds the potential to expand the global diamond resource at Tongo which currently stands at 8.3 million carats hosted in just 5 of the 11 kimberlites on the concession."

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Peyima Kimberlite

The Peyima Kimberlite is located in the south east of the Tongo mining concession, and has been mapped along surface over a distance of 2.24kms, primarily following historical artisanal mining (Figures 1 and 2). In 2010 a limited drilling programme was conducted whereby four holes were drilled, three of which intersected kimberlite with the deepest intersection being 130m from surface (vertical depth). In addition, a ground geophysical survey was conducted across the area of drilling interest. Petrographic studies of the drill core intersections identified the kimberlite as a medium grained, garnet macrocrystic, phlogopite hypabyssal kimberlite (Figure 3).

Figure 1: Mining Concessions and Location of Peyima Kimberlite

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Figure 2: Artisanal Diamond Mining along the Peyima Kimberlite

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Figure 3: Drill Core from the Peyima Kimberlite

Bulk Sample Collection

Historical reports identified the Peyima Kimberlite as being diamondiferous, which is supported by the fact that the upper parts of the dyke have been subjected to significant artisanal diamond mining over the years.

As previously reported, Newfield undertook a bulk sampling exercise from two separate but relatively proximal locations on the body. The one area was challenging in that the kimberlite and ground conditions were relatively decomposed, so the majority of the bulk sample was collected from an area where ground conditions were better and the kimberlite was hard and fresh (Figure 4).

Figure 4: Bulk Sampling of Peyima Kimberlite

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The sample was carefully measured and surveyed every metre to determine the volume extracted and the specific gravity and moisture content measured from kimberlite samples collected every 1m. Using these data it was calculated that a total of 108 dry tonnes of kimberlite was collected along a sample strike length of 40m.

In addition, at every 2m along the sample trench, samples of kimberlite were collected to give a composite weight of approximately 200kg. These samples will be consigned to the SRC Laboratory in Canada for microdiamond analysis, the results of which will assist in the evaluation of the kimberlite.

Bulk Sample Processing and Results

The kimberlite samples were trucked and stockpiled in a secure sample paddock next to the 5tph bulk sample plant located at the Tongo camp and plant site. The samples were processed at a bottom cut off of +1.2mm, with diamond recovery by X-Ray Flowsort machines. The diamonds were recovered from the heavy mineral concentrate by an experienced diamond sorter under strict security and in the presence of a Government observer

A total of 110.58 carats of diamond were recovered from the 108 dry tonnes processed, giving a recovered sample grade of 102.37cpht at a +1.2mm cut off. The diamonds are categorised as gem (49%), near-gem (25%) and industrial (26%) quality. The largest stone recovered was a 5.07 carat near-gem stone (Table 1 and Figure 5).

Table 1: Peyima Bulk Sample Result

					Average Stone	Grade cpht
	Dry Tonnes	Carats	Stones		Size	(+1.2mm)	Largest Stone
Peyima Kimberlite Bulk Sample	108.0		110.58	960	0.12	102.37	5.07 carats

Figure 5: Selection of Gem Diamonds Recovered from the Peyima Kimberlite Bulk Sample

(Sizes from Top Left to Right, 3Gr and 4Gr)

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