Khukh Tag Graphite

Overview

Khukh Tag graphite project, 100% owned by Asian Battery Minerals is located in Undurshil soum, Dundgobi province, Mongolia. The project has mineral resource of 12.2Mt @ 12.3% TGC with excellent potential to define additional resources through further exploration. In terms of accessibility, Khukh Tag is located 320 km southeast of Ulaanbaatar capital city, 35 km from paved road and state power grids, and 80 km southwest of Airag rail station, which has rail loading facilities on the main railway line to the border crossing into China at Erenhot.

Geology and exploration works:

Graphite mineralisation at Khukh Tag occurs as massive and banded forms, which are intercalated with schist and limestone units. Mineralisation tends to pinch and swell and occurs in folded schist units, which can be located by high conductivity (low resistivity) and high chargeability anomalies.
Massive to banded graphite schist occurs throughout the Khukh Tag property in lenses ranging from a few meters of length and a few centimeters of width to hundreds of meters length and tens of meters width.
229 surface samples collected from graphitic zones across the property, grades range from about 1% to over 20% TGC, and average 7.05% TGC.
First drilling at Khukh Tag was carried out by Innova in 2019 and additional drilling was completed in the subsequent year in order to delineate additional shallow mineralisation at the deposit. A total of 57 diamond drill holes for 3,348 m had been completed by end of February 2023
Exploratory flotation test of IMO in Western Australia in 2011, which showed that a +94% TGC product could be produced total carbon recovery of 94%
A number of mineralisation zones were based on single drill hole intersections but were guided by surface geology maps as well as surface sampling and likely have better continuity than currently interpreted. They have been retained in the model but classified as Exploration target. The exploration target estimate is 13.6 Mt to 84.3 Mt at 5.2% to 9.1 % TGC.
The mineralisation is open in all directions.

Mineralization and result:

Exploration programs carried out over several years led to the discovery of graphite mineralisation in five areas within the Khukh Tag property.

Mineral resource in accordance with JORC 2012
	Tonnes / Mt	TGC %	Cont. Graphite (Kt)
INDICATED (Central)	1.4	13.9	197.7
INFERRED (Central + North + Discovery)	10.8	12.1	1301.1
TOTAL MINERAL RESOURCE	12.2	12.3	1498.8
A DRILL SUPPORTED EXPLORATION TARGET	3.5- 4.0	6.0 - 12.0	210 - 480
EXPLORATION TARGET	13.6 - 84.3	5.2 - 9.1	710 - 7600