Chikundo Cu-Pb-Zn VHMS Prospect

Highlights

Chikundo is a recently identified Copper (Cu)-Lead(Pb)-Zinc(Zn) prospect, Chikundo, within the Chilalo Graphite Project tenements:

• Recent field work has identified shallow artisanal workings located less than 4.5km SW of the planned Chilalo plant site, showing evidence of malachite as well as possible chalcopyrite mineralisation.

• A detailed geochemical analysis of historical soil samples, collected by IMX Resources between 2011 and 2014, has confirmed the area as an encouraging Volcanic Hosted Massive Sulphide (VHMS) style Cu-Pb-Zn prospect, with values up to 5,800ppm Cu at surface.

• The Chikundo prospect is currently over 1.5km long and the geochemical anomaly demonstrates the classic criteria for a VHMS deposit.

• Associated Pathfinder elements indicate that the anomaly may be still open to the southwest.

Next Steps

• Geological mapping, soil sampling, and trenching programs to both infill and potentially extend the current Cu-Pb-Zn anomalies.

• Geophysical modelling of ground Fixed Loop Electromagnetic (FLEM) or airborne VTEM conductors, with the aim of identifying VHMS targets hidden by graphite conductors.

• Targeted Reverse Circulation (RC) drilling to test the extent, depth and continuity of the mineralisation.

Evolution Energy Minerals Limited (Evolution or the Company) (ASX: EV1, FSE: P77) is pleased to announce the identification of Copper-Lead-Zinc mineralisation, named the Chikundo VHMS prospect, within the Chilalo Graphite Project area (the Project) in southeast Tanzania.

The discovery followed the identification of copper minerals in artisanal workings, where local miners have been chasing the copper mineral malachite. These workings are located approx. 4.5km southwest of the proposed Chilalo plant site and have been developed by locals to about 8-10m depth.

There is clear evidence of copper mineralisation (malachite staining – Photo 1) within the walls of the artisanal workings and as well as possible chalcopyrite and covellite in rock chips collected. The Company has recently collected some face samples from these working and they have been sent to SGS laboratories in Mwanza for analysis. The results are currently pending.

Following this discovery, detailed geochemical analyses of historical soil samples was conducted. The Company has an extensive soil sample database with multi-element analysis, and also high resolution. Fixed Loop Electromagnetic (FLEM) data and Airborne Electromagnetic (AEM) data. All of these datasets will facilitate the rapid exploration of the new Chikundo VHMS prospect.

The key results from the geochemical analyses included:

• Of the 1,769 soils samples collected over the Project area, 626 samples had been assayed using the 4-acid digest – ICPMS plus Fire Assay method for multi-element analysis. Only these 626 samples have been used in these analyses.

• Lithogeochemical analysis (i.e. rock type derived from chemistry) identified up to five different source rocks including two basalts, an ultramafic, a reduced sediment (graphite) and a chemical sediment (exhalate). Allthese rock types are consistent with the geological host environment for a VHMS deposit.

• The analysis indicated a clear contact boundary between a metamorphosed (meta)-sediment and meta-basalt, trending in a north-westerly direction.

• The anomalous Cu, Pb and Zn values were able to be verified as true anomalies related to a sulphide source, rather than concentrations due to supergene weathering effects.

• The Cu and Pb anomalies are hosted in the meta-basalt, and the Zn is hosted in the metasediment. There is also a Barite layer overlaying the basalt, which in turn is overlain by the reduced sediments. This is typical of classical VHMS system.

• Bismuth (Bi) and Telurium (Te) are directly associated with the Cu-Pb-Zn mineralisation in high concentrations (up to 70ppm Te and 82.5ppm Bi). As these elements are not mobile in acidic weathering environments, unlike the base metals, they can be used as effective pathfinder elements, even where the base metals themselves have been remobilised.

• Bismuth is shown as an example of a pathfinder anomaly. The pathfinder elements indicate that the mineralisation may extend further to the southwest than indicated by copper / lead anomalism.

• The soils show a very strong trend towards Chlorite + Sericite +/- Pyrite alteration, which is a key indicator of a VHMS system.

• Two other anomalies, one Cu-Pb-Zn and the other predominantly Pb-Zn, both located to the northeast of the Chilalo graphite project, are also evident in soils data and will be progressively explored.

Given its proximity to Chilalo, the Company will progress exploration activities with the aim of defining a mineral resource. This will include:

• Geological mapping, soil sampling, and trenching programs to both infill and potentially extend the current anomalies.

• Geophysical modelling of ground Fixed Loop Electromagnetic (FLEM) or AEM conductors, with the aim of identifying VHMS targets hidden by graphite conductors.

• Targeted Reverse Circulation (RC) drilling to test the extent, depth and continuity of the mineralisation.

Evolution’s Chairman, Robin Birchall, commented: “I am delighted to be able to announce this exciting new Copper discovery, as an allied battery metal on our tenements. A significant amount of geological work had been done on this ground as part of the exploration stage, that informs our initial work programme at very little cost. This anomaly may allow us to diversify the company’s asset portfolio while also accelerating progress of the Chilalo graphite asset.

For media enquiries, please contact:

Matthew Lister
Head: Investor Relations
Email: mlister@archempartners.com
Mobile: +44 7780 049 074