SANTA COMBA PROJECT

Santa Comba is a brownfield project with a 5.1Mt JORC 2012 compliant near-surface Inferred Resources at 0.203% WO3 and 0.014% Sn and an underground Inferred Resource of 234kt at 0.95% WO3 and 0.28% Sn.

The project is located 60km from the nearest deep-water port by sealed road and has significant infrastructure already in place, including grid power, a partially completed processing plant, workshops and offices, and a tailings dam. The project enjoys considerable industry support, having received an offer from HC Starck for the offtake of tungsten concentrate, a pre-approved German government funding guarantee (subject to a positive feasibility study) and logistical and offtake support from Transamine Trading, the world’s oldest independent commodity trader.

With the mine fully permitted for underground mining and partially permitted for open pit out to 2068, the project is well-placed for fast-tracking through to production. Rafaella recently announced the appointment of a local drilling contractor and feasibility study manager to conduct the work required to finalise the debt arrangements and execute the HC Starck offtake agreement.

RESOURCE

The Project is fully permitted for underground and partial open pit mining. Following the acquisition of GTT in May 2019, Rafaella completed additional drilling at the project which resulted in a significant upgrade to the MRE. The updated MRE is based on 64 diamond drillhole (8,209m; 2,496 samples) and 24 reverse circulation (RC) drillholes (2,908m; 877 samples) and includes the 2016 drilling which consisted of 23 drill holes (2,219m).

The reported in-situ MRE is reported at a cut-off of 0.05% WO3, which corresponds to an APT price of US$240/mtu and US$19,200/t Sn price, along with reasonable assumptions for processing costs, including ROM feed going into an ore sorter.

TABLE 1

Total Mineral Resource Estimate for the Santa Comba Project –30 June 2020

* 0.05% WO3 cut-off for near-surface resources; 0.53% WO3 cut-off for underground resources; 2016 underground Inferred MRE remains unchanged.

TABLE 2

Near-surface Inferred Mineral Resource reported at range of cut-off grades.

TABLE 3

Inferred Mineral Resource Estimate (JORC, 2012) – underground veins. Refer to Appendix 1 for further detail on the MRE.

* Cut-off = 0.53% WO3 (10kg/m2); maximum extrapolation distance = 100m

TABLE 4

Santa Comba near-surface Exploration Target.

The near-surface JORC Inferred MRE estimated for Santa Comba is inclusive to the Exploration target.
These grades stem from an evaluation done at a cut-off of 0.05% WO3.