Rekovac Project

Project Overview

The project is located within the Vardar Zone an emerging Tier 1 Lithium jurisdiction. The Rekovac project exhibits a very similar geological setting to the Jadar Basin, which is host to Rio Tinto’s world-class Jadarite discovery = one of the world’s largest lithium deposits (Resource of 135.7 Mt @ 1.86% Li2O and 15.4% B2O3 now in PFS)1.

Project Highlights

On 20 May 2020, Jadar Resources announced the results from the first round reconnaissance drilling program included two diamond drill holes REK_001 drilled to a depth of 600.1m and REK_002 drilled to a depth of 638m, totaling 1,238.1m.
The drilling program was designed totest the gravity low indicated Neogene basin which previous sampling results suggest was prospective for deposits related to the emanation of lithium-boron enriched fluids and their precipitates.

Figure 1 – Rekovac Project – Drill hole location plan over geology and gravity base

Drilling intersected numerous sequences that contained high concentrations of boron. These were contained in the sodium borosilicate mineral tentatively identified as searlesite (up to 60,858 ppm B2O3), as well as lithium clay mineral (up to 969 ppm Li2O).

Drill hole REK_001 encountered two sequences with preserved mineralisation represented by searlesite in the form of irregular veinlets and mm-sized radial crystals constrained into the parallel layers from 515.9m and over 195m of elevated borate geochemistry from 405m.

REK-001 resulted in 2.5m with over 12,000 ppm of B2O3 and up to 484 ppm Li2O from 515.9m.

Drill hole REK_002 located 1.8km south of REK_001 encountered five mineralised sequences represented by searlesite as a dominated and major mineral in the form of irregular veinlets, patches, layers in the upper stratigraphic sequence from 35m and mm-sized scattered searlesite nodules in lower stratigraphic sequence from 98.8m.

REK-002 intercepted over 171m with over 10,000 ppm of B2O3 and up to 969 ppm Li2O from 35m including 49.6m with over 20,000 ppm of B2O3 and up to 624 ppm Li2O from 51.5m.

Figure 2 – Rekovac project – cross-section (looking westerly)

Considering the downhole distribution of both boron and lithium as well as the thickness of preserved mineralisation and the thickness of lacustrine boratiferous sequence, the targets for B-Li mineralisation remain open to the east, west and south as well as at depth. One thickness is a conjectural thickening of mineralised beds laterally within the “pelitic section” and the other is the potential for an earlier mineralising event (lower stratigraphy).

Geology

The Rekovac project is located within the Vardar Zone which represents the suture from the subducted closure of the Tethys Sea. A series of inter-mountaine basins were formed in Miocene time that in the early stages of basin formation were marked by lacustrine sedimentation including tuffs from fractionated contemporaneous calc-alkaline volcanic rocks. Growth faults are believed to have channeled mineral rich brines to the host strata during basin formation. Cyclic variation of paleo climate from very hot and humid to long-lasting arid conditions further enhanced evaporitic conditions within the region. The borate +/- lithium target occurs as laterally extensive (3-5km2) stratabound mineralization formed as a result of diagenetic processes in Miocene Age evaporate sequences in buried salt lakes. The host rocks are typically pelitic, tuffaceous and dolomitic and have a strong analcime component reflecting the breakdown of volcanic glass. The Vardar zone having roughly 75 percent of global boron and 10 percent of lithium resources.

Figure 3 – Rekovac Project location map

The Rekovac exploration license covers Neogene age basins containing continental sediments mapped as early and middle Miocene. The basin is elongated in shape and roughly limited by two deep-seated parallel faults forming a NE-SW trending shallow sag-basin, gradually filled with lower Miocene aged lacustrine and middle Miocene marine sediments. The basement rocks consist of ophiolites, older metasedimentary sequences and cretaceous flysch sediments. The early Miocene boratiferous strata concordantly overly basement formation and have good surface exposures in the southern and central part of the project area. A dominated sedimentary section comprised of mostly laminated to poorly bedded dolomitic claystone, siltstone, marlstone accompanied by ash-fall tuffs and tuffaceous sandstones. Fine pelitic sediments are frequently associated with dolomite and analcime. The drilling indicates several broad zones of borate-bearing sediments, an upper zone characterised by irregular crystalline aggregates, patches and veinlets of searlesite and a lower zone by disseminated searlesite grains. The early Miocene formation extends to the north as well asto the south where it’s hidden under younger marine fossiliferous sediments composed of siltstone, sandstone, and coarse clastic sequences. The Eastern portion of the license area is over clastic formations composed of conglomerates and debris flow.

Location

The project area is located in central Serbia near the cities of Jagodina and Kragujevac and 110 km away from Belgrade the capital of Serbia. The project is with easy access to the E75 European motorway and modernized rail corridor 10 and thus well connected to Central and Western Europe.