CARLOW CASTLE Au-Cu-Co METALLURGICAL UPDATE

-          Objective of programme was to determine amenability of Carlow Castle Au-Cu-Co Project to conventional gravity, leach and flotation processes

-          Results confirm effective separation and high recoveries of Gold, Copper and Cobalt via conventional process routes

-          Preliminary test work on two composite samples indicates:

• Total recovered gold of 98-99% - with significant coarse, gravity recoverable gold up to 48%
• Total recovered copper of 77-85% - with flotation producing premium grade concentrates of ≈30% Cu
• Total recovered cobalt of 73-79% - with flotation producing concentrates of 2.3 – 5.3% Co
• Gold not recovered via flotation amenable to cyanide leach process

-          Results provide a strong basis for further flowsheet optimisation and geometallurgical test work

Artemis Resources Limited (“Artemis” or “the Company”) (ASX:ARV, Frankfurt: ATY, US OTCQB: ARTTF) is pleased to provide this metallurgical update on the company’s Carlow Castle Au-Cu-Co Project in the Pilbara region of Western Australia.

Laboratory scale gravity gold, cyanide leach and flotation processes were adopted with a view to gain an insight into the metallurgical behaviour and recoverability of gold, copper and cobalt. Two drill hole composites were generated and tested at ALS Metallurgy in Western Australia. Table 1 summarises metallurgical results from optimised tests from a 50-test suite.

Table 1: Carlow Castle Au-Cu-Co Project – Summary of Optimised Results

Artemis Chief Executive Officer Wayne Bramwell commented;

“Artemis is encouraged by the amenability of the deposit to conventional processing options and the excellent recoveries of the three key minerals. Gold and high-grade copper concentrates will be the primary value drivers at Carlow Castle with cobalt representing a third and valuable product stream that should appeal to many potential off-take partners.”

DETAILS OF THE METALLURGICAL TEST WORK PROGRAMME

Artemis has completed preliminary metallurgical test work on the Carlow Castle Au-Cu-Co Project at ALS Metallurgy in Western Australia. The programme focussed on metallurgical amenability on selected samples from the Carlow Castle deposit employing conventional gravity gold, cyanide leach and flotation processes. Outcomes specific to the metallurgical response and recovery for three target commodities (gold, copper and cobalt) are proposed to be used for further project development evaluations.

Sample Selection

Two 100 kg HQ diamond core metallurgical composites, sampled from drill holes CCAD001 to CCAD012 (refer ASX release 15 October 2018 and Figure 1), were used for this programme.

Figure 1 – Drill Hole locations at Carlow Castle sampled for COM-01 and COM-02

Table 2 summarises the composite head grades with COM-01 selected as a high-grade sample to more readily discern its metallurgical characteristics.

Table 2 – Carlow Castle Metallurgical Composite Samples – Head Grade

Scope of Test work

-          The metallurgical test work scope was focused on recovery of:

-          Gold – from both gravity recovery and cyanide leaching processes to produce a gold product suitable for on-site smelting and production of gold dore; and

-          Copper and Cobalt – via conventional flotation to produce separate copper and cobalt concentrates.

The metallurgical test flowsheet utilises typical processing pathways for precious and base metal ores.

Each composite was crushed and ground with coarse gold removed using conventional gravity devices. The ground-gravity tailing is then subjected to a series of sulphide flotation stages. The flotation stages employ mineral specific reagents to selectively recover copper and cobalt minerals. Copper flotation is performed first with the tailings sent for selective cobalt flotation.

Copper and Cobalt mineral rougher concentrates may require a light regrind to release any locked minerals and improve the final grades of the respective cleaned concentrates.

Tailings from the flotation process containing fine or non-floating gold is subjected to conventional cyanide leach and carbon adsorption processes.

Figure 2 presents the test work flowsheet and forms the basis of results presented.

Figure 2: Carlow Castle Au-Cu-Co Project metallurgical test work flowsheet

Test Results

More than 50 metallurgical tests have been conducted at ALS Metallurgy to date with encouraging metallurgical response and reproducibility for all commodities. The collective metallurgical response for the two composites tested to date is presented in Table 3.

Test results present indicative metallurgical behaviour for both composites and comprise the following tests:

-          Optimised gravity gold and copper flotation results from ALS Test 4407 and 4406 (COM-01 and COM-02 respectively);

-          Cobalt flotation results from ALS Test 4403 and 4406 (COM-01 and COM-02 respectively); and

-          Cyanide leach results from ALS Test 1574 and 1575 (COM-01 and COM-02 respectively).

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Table 3: Carlow Castle Au-Cu-Co Project – Summary of Optimised Results

20190210_CC Met Update_v0 final_PRCOM.003

The results to date confirm amenability for gold, copper and cobalt processing with excellent recoveries. Analysis of the metallurgical results indicate:

Gold

-          Significant gravity recoverable gold component - ranging up to 48% and suitable for on-site processing into gold doré;

-          The balance of the non-gravity gold is expected to be recovered into flotation concentrates - as a by-product credit or recovered by a cyanide leach process; and

-          Cyanide leach test work confirms amenability to conventional low-cost gold recovery processes - with exceptional final tailings grades 0.03 to 0.10 g/t.

Copper

-          Fast floating copper minerals produce high-grade, premium copper concentrate – of approximately 30% Cu;

-          Key deleterious elements including arsenic are easily managed with a light polishing regrind or blend control - COM-01 is considered a high-grade sample and therefore comes with elevated arsenic linked to the cobalt mineral; arsenic levels are expected to return in line with COM-02 (0.3% As) and as such, will be well below smelter penalty limits of circa 0.5% As; and

-          Recoveries in line with mineralogy realising 77–85% copper recovery - unrecovered copper minerals are predominantly represented by non-floating silicates or secondary copper minerals.

Cobalt

-          Cobalt recoveries ranging 73-79% - considered exceptional for the preliminary nature of the current metallurgical test work programme;

-          Cobalt concentrate grades ranging 2.3–5.3% Co are saleable – with circa 3% Co concentrates being typical smelter feed and >5% Co being considered high grade – it should be noted that concentrate grades as high as 19% Co were achieved in several tests conducted. Mineralogy conducted on cobalt concentrates from COM-01 and COM-02 indicate well liberated minerals (cobaltite and gangue) and are amenable to significant further upgrade. Test work continues to improve cobalt concentrate grades and ultimately aims to maintain optimal recovery and reduce shipping / smelter treatment charges; and

-          Cobaltite (CoAsS) is the dominant cobalt bearing mineral - and is therefore intrinsically linked to arsenic. Targeting lower specification Co concentrates will minimise processing capital and if high specification Co concentrates are targeted a higher capital, hydrometallurgical flowsheet will be required. As such and with a view to optimising returns, a trade-off study of capital and operating expense versus revenue from differing grade product streams will be evaluated prior to final flowsheet selection.

LOOKING FORWARD

The Carlow Castle Au-Cu-Co process flowsheet currently targets conventional, low cost processes with the copper and gold process routes essentially proven. Options exist to refine the cobalt concentrate quality with the next phase of the geometallurgical programme to support the optimal process scale and flowsheet selection.

The results of the metallurgical test work programme and forthcoming resource update will provide Artemis with a basis to plan and advance project development activities including:

-          Resource and pit optimisation;

-          Structural and geotechnical drilling;

-          Generation of a representative metallurgical master composites;

-          Continue to metallurgically characterise existing and alternative low-cost process flowsheets including:

• Expanding knowledge of cobalt flotation chemistry and optimisation,
• Maximising gold recovered via cyanide leach (i.e. to Dore);

-          Engage smelters and offtake partners;

-          Detailed geo-metallurgical test programme;

-          Engineering trade-off studies to attain the optimal process flowsheet and major equipment selections;

-          Project economics and project viability; and

-          Engineering and Feasibility Studies.

A detailed development timeline for Carlow Castle is being currently reviewed.

For further information on this announcement or the Company generally, please visit our website at www.artemisresources.com.au or contact:

Wayne Bramwell                                                                       

Chief Executive Officer                                                                                     

wayne.bramwell@artemisresources.com.au                                                         

T: +61 417 953 073                                             

David Tasker

Chapter One – Media Advisors

dtasker@chapteroneadvisors.com.au

T: +61 433 112 936

BACKGROUND INFORMATION ON ARTEMIS RESOURCES

Artemis Resources Limited is an exploration and development company focussed on its large (~2,400 km2) and prospective base, battery and precious metals assets in the Pilbara region of Western Australia. Artemis owns 100% of the 500,000 tpa Radio Hill processing plant and infrastructure, located approximately 35 km south of the city of Karratha. 

The Company is evaluating 2004 and 2012 JORC Code compliant resources of gold, nickel, copper-cobalt, PGE’s and zinc, all situated within a 40 km radius of the Radio Hill plant. 

Artemis have signed Definitive Agreements with Novo Resources Corp. (“Novo”), which is listed on Canada’s TSX Venture Exchange (TSXV:NVO), and pursuant to the Definitive Agreements, Novo has satisfied its expenditure commitment, and earned 50% of gold (and other minerals necessarily mined with gold) in conglomerate and/or paleoplacer style mineralization in Artemis’ tenements within 100 km of the City of Karratha, including at Purdy’s Reward (“the Gold Rights”).  The Gold Rights do not include:

(i)                  gold disclosed in Artemis’ existing (at 18 May 2017) JORC Code Compliant Resources and Reserves; or

(ii)                 gold which is not within conglomerate and/or paleoplacer style mineralization; or

(iii)               minerals other than gold.

Artemis’ Mt Oscar tenement is excluded from the Definitive Agreements.  The Definitive Agreements cover 34 tenements / tenement applications that are 100% owned by Artemis.

Pursuant to Novo’s successful earn-in, two 50:50 joint ventures have been formed between Novo’s subsidiary, Karratha Gold Pty Ltd (“Karratha Gold”) and two subsidiaries of Artemis (KML No 2 Pty Ltd and Fox Radio Hill Pty Ltd).  The joint ventures are managed as one by Karratha Gold with Artemis and Novo contributing to further exploration and any mining of the Gold Rights on a 50:50 basis.

FORWARD LOOKING STATEMENTS AND IMPORTANT NOTICE

This report contains forecasts, projections and forward-looking information.  Although the Company believes that its expectations, estimates and forecast outcomes are based on reasonable assumptions it can give no assurance that these will be achieved.  Expectations and estimates and projections and information provided by the Company are not a guarantee of future performance and involve unknown risks and uncertainties, many of which are out of Artemis’ control.

Actual results and developments will almost certainly differ materially from those expressed or implied.  Artemis has not audited or investigated the accuracy or completeness of the information, statements and opinions contained in this announcement.  To the maximum extent permitted by applicable laws, Artemis makes no representation and can give no assurance, guarantee or warranty, express or implied, as to, and takes no responsibility and assumes no liability for the authenticity, validity, accuracy, suitability or completeness of, or any errors in or omission from, any information, statement or opinion contained in this report and without prejudice, to the generality of the foregoing, the achievement or accuracy of any forecasts, projections or other forward looking information contained or referred to in this report.

Investors should make and rely upon their own enquiries before deciding to acquire or deal in the Company’s securities.

JORC Code, 2012 Edition – Table 1 (extracted from AM&A resource estimate report)

SECTION 1 SAMPLING TECHNIQUES AND DATA