E-Tech Resources Inc. Provides a Project Update on Its 100% Owned Eureka Rare Earths Project in Namibia

Halifax, Nova Scotia–(Newsfile Corp. – February 1, 2022) – E-Tech Resources Inc. (TSXV: REE) (FSE: K2i) (“E-Tech” or the “Corporation”) is pleased to provide an update on its exploration work on E-Tech’s Eureka Rare Earth Elements (REE) Project. This fully funded exploration program will support further resource definition as well as mineralogical and metallurgical test work.

The Project has sound project fundamentals because of its favorable geology, simplistic ore beneficiation and proximity to infrastructure. The Project is situated in the heart of the Erongo Region of Namibia, the “mining corridor of Namibia”, and is favorably located within 2km of the Trans-Kalahari tarmac highway, which provides tarred road links between the Namibian port of Walvis Bay on the Atlantic coast and Namibia’s capital city Windhoek. Neighboring mines include Rossing Uranium and Navachab Gold.

The corporation’s exploration program is geared towards fast-tracking exploration and development study work leading to the publication of an updated NI 43-101 compliant mineral resource estimate (MRE).

Elbert Loois, CEO of E-Tech Resources Inc., commented:

“We are pleased with advancing he Eureka Project and have a unique opportunity to build value at Eureka through further exploration and development work during an exciting time in the REE market. The Corporation is well poised to execute on its work plans with a strong technical team supported by strong management and our experienced Board.”

EXPLORATION HIGHLIGHTS OF THE LAST QUARTER

The corporation has continued to make significant strides in advancing the Eureka Project since 2020, with the exploration program designed to expand the current MRE (Independent Technical Report, Eureka Rare Earth Project, Namibia effective as of 2 August 2021 and released on 15 September 2021). In the first exploration campaign, a total of 2,450 meters of trenching, 3,306 meters of Reverse Circulation drilling (“RC”) and 5,761 meters of Diamond Drilling (“DD”) has been completed.

Assay results of the first 7 out of 20 DD holes were released on 10 November 2021, which highlighted the intersection of monazite bearing dykes up to 160 meters below surface and importantly more than 100 meters below the current MRE. Highlighted intersections are shown in Figure 1.

RC assay results, released on 1 December 2021, further confirmed the increased depth and lateral extent of the project’s surface footprint in Zones 1 and 3 towards the south and to the west, as depicted in Figure 2.

The complete set of DD assay results from the first drilling campaign is expected within the next weeks, dependent on lab processing time.

FIGURE 2: Plan view of drill hole positions at Eureka illustrating all assay results received to date, as of the press release dated 1 December 2021. The red dots are RC drill holes completed in 2017, while the purple areas represent the current 2021 Mineral Resource Estimate (MRE). The blue dots refer to the RC assay results received from the first drilling campaign in 2021.

To view an enhanced version of Figure 2, please visit:
https://orders.newsfilecorp.com/files/6102/112303_cec4d244b41d1bea_002full.jpg

The second 5000m of RC and DD exploration in Zones 1, 2, 3 and 4 started in December 2021 and is planned to run until end February 2022 as announced in the company’s press release dated December 2, 2021.

The program consists of:

• 12 DD holes totaling 2,000 meters, across Zones 1, 2 and 3
• 34 RC holes totaling 3,000 meters, across Zones 1, 2, 3; and Zone 4 for the first time
• Further trenching of the wider exploration area.

This second campaign has been designed to confirm areas with monazite mineralization and further increase the project’s surface expression along strike and to depth. The DD pattern has been focused on delivering proof of resource mineralization at depth. The RC drilling and trenching are aimed at extending the current known surface trends.

The assay results of the DD and RC holes from the second exploration campaign are expected towards the end of Q1 2022, dependent on lab processing time.

The targets across Zones 1 to 4 are presented in Figure 3 with these drill targets prioritized according to surface geophysical, trenching, RC and DD exploration results.

The corporation has engaged LightDeepEarths (Pty) Ltd, South Africa, to conduct further mineralogical test work for assessing the optimal beneficiation route to provide a monazite concentrate. Earlier beneficiation test work, based on outcrop material, as performed by SGS Mineral Services in Q4 2016, has shown an optimum liberation of the monazite at a coarse fraction, with a 65% recovery of monazite by gravity separation alone. The concentrate was further upgraded by removal of magnetite by low intensity magnetic separation (“LIMS”) to a grade of 59.2% Total Rare Earth Oxide (TREO).

The geological and resource block modeling as a basis for the following MRE update are expected to be accomplished during H1 2022.

Eureka Technical Disclosure

The Corporation produced its current Mineral Resource Estimate (“MRE”) for the Eureka Project with an effective date of 2 August 2021. The MRE was prepared by SRK Consulting (UK) (“SRK”). An Independent Technical Report titled: “Independent Technical Report: Eureka, Rare Earth Project, Namibia” was released on the 15 September 2021 prepared by SRK, supporting the disclosure of the MRE, and is available on SEDAR and the Corporation’s website.

Quality Assurance / Quality Control

All E-Tech sample assay results have been independently monitored through a quality assurance / quality control (“QA/QC”) program including the insertion of certified standards, blanks and duplicate samples. QA/QC samples make up 10% of all samples submitted. Drill core is sawn in half on site and half drill-core samples are securely transported to Activation Laboratories Ltd. sample preparation facility in Windhoek, Namibia. The core is dried, crushed to 90% passing 2 mm, riffle splitting a 250 g sub-sample and pulverizing to 95% passing 105 µm. Sample pulps are sent to Activation Laboratories Ltd. in Ontario, Canada for analysis. REE analysis is by method 8-REE. The sample is milled to 95% -200 mesh. To ensure complete fusion of resistate minerals; lithium metaborate/tetraborate fusion is used with analysis by ICP-OES and ICP-MS. Mass balance is calculated as an additional quality control technique to ensure complete analysis.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/112303