Successful Infill Drill Program and Updated Interpretation Leads to a 69% Increase in Measured and Indicated Resources Plus a 20% Increase in Inferred Resources
(BUSINESS WIRE)--Lifezone Metals Limited (NYSE: LZM) is a modern metals company creating value across the battery metals supply chain from resource to metals production and recycling. Lifezone Metals’ Chief Executive Officer, Chris Showalter is pleased to announce the Mineral Resource Update for the Kabanga Nickel Project, located in north-west Tanzania. The November 2023 Mineral Resource Update reflects the results of Lifezone Metals’ 2021-2023 drilling programs and an updated mineralization interpretation, reconfirming the continuity of high-grade nickel mineralization at Kabanga.
The Kabanga Nickel Project is currently 69.7% owned by Lifezone Metals and all Mineral Resources are shown on an attributable to Lifezone Metals basis.
Mr. Showalter commented: “Kabanga continues to demonstrate its exceptional quality and world-scale. The significant increase in the Measured and Indicated Mineral Resources provides a solid foundation for the ongoing Definitive Feasibility Study, which is expected to be completed by the end of Q3 2024. We believe that Kabanga has the potential to become a low-cost, long-life and environmentally responsible producer of nickel, copper and cobalt, which are critical metals for the green energy transition. We look forward to advancing the Project in close coordination with the Government of Tanzania, who have been highly supportive of our efforts.”
Highlights of the November 2023 Mineral Resource Update:
- Attributable Measured and Indicated Resources total 43.6 million tonnes grading 2.02% nickel, 0.28% copper and 0.16% cobalt (2.57% nickel-equivalent).
- Plus, attributable Inferred Resources totaling 17.5 million tonnes grading 2.23% nickel, 0.31% copper and 0.16% cobalt (2.79% nickel-equivalent).
- Significantly, 71% of Kabanga’s Mineral Resource tonnage is now classified in the higher confidence Measured and Indicated categories relative to Inferred.
- Measured and Indicated Mineral Resource tonnages have increased by 69% relative to the February 2023 Mineral Resource Estimate. Nickel-equivalent metal contained in Measured and Indicated Resources has increased by 30%. Inferred Resources have also increased in tonnage by 20%, with contained nickel-equivalent metal increasing by 4%.
- The Mineral Resource cut-off grade has remained unchanged at 0.58% nickel-equivalent, as it was determined that the previous assumptions used remain current.
- A significant proportion of the additional Mineral Resource tonnage in the November 2023 Mineral Resource Update results from the inclusion of additional ultramafic mineralization. The change in the processing flowsheet, including the addition of a hydrometallurgical refinery, improves the prospects of economic extraction of the ultramafic material.
- The massive sulfide Mineral Resource has also increased across all categories, adding 10% more nickel-equivalent metal.
- Significant additional Mineral Resource tonnages have been achieved at the Tembo Zone, which is located 1.0 kilometer north-east of the North Zone. Tembo remains open along strike to the north-east towards the Safari Zone, in an area referred to as Safari Link.
- Other areas of Mineral Resource addition include at the North, Main and MNB zones, and the first reporting of a Mineral Resource at the Kima Zone.
The Kabanga Mineral Resource Update was independently prepared by Sharron Sylvester, Technical Director – Geology at OreWin Pty Ltd and in accordance with Regulation S-K subpart 1300 promulgated by the U.S. Securities Exchange Commission (S-K 1300). Mineral Resources are reported exclusive of Mineral Reserves. There are no Mineral Reserves to report.
Figure 1: Click to view the Kabanga Nickel Project mineral resources photo reel (https://vimeo.com/891896457/f4ed5bda1e?share=copy).
Table 1: Kabanga Nickel Project Mineral Resource Update shown on an attributable to Lifezone Metals basis (69.7%), as at November 30, 2023 – based on $9.50/lb nickel price, $4.00/lb copper price and $26.00/lb cobalt price. Detailed tables are included as an Appendix to this news release.
|
Mineral Resource Classification
|
Attributable Tonnage
(Mt)
|
Grades
|
Recovery
|
|
NiEq23
(%)
|
Nickel
(%)
|
Copper
(%)
|
Cobalt
(%)
|
Nickel
(%)
|
Copper
(%)
|
Cobalt
(%)
|
|
OVERALL MINERAL RESOURCE – All Mineralization Types
|
|
Measured
|
14.1
|
2.61
|
2.03
|
0.28
|
0.17
|
87.2
|
85.1
|
88.1
|
|
Indicated
|
29.5
|
2.55
|
2.02
|
0.28
|
0.15
|
87.2
|
85.1
|
88.1
|
|
Measured + Indicated
|
43.6
|
2.57
|
2.02
|
0.28
|
0.16
|
87.2
|
85.1
|
88.1
|
|
Inferred
|
17.5
|
2.79
|
2.23
|
0.31
|
0.16
|
87.2
|
85.1
|
88.1
|
|
|
|
|
|
|
Mineral Resource Classification
|
Attributable Tonnage
(Mt)
|
Grades
|
Attributable Contained Metals
|
|
NiEq23
(%)
|
Nickel
(%)
|
Copper
(%)
|
Cobalt
(%)
|
NiEq23
(kt)
|
Nickel
(kt)
|
Copper
(kt)
|
Cobalt
(kt)
|
|
OVERALL MINERAL RESOURCE – All Mineralization Types
|
|
Measured
|
14.1
|
2.61
|
2.03
|
0.28
|
0.17
|
368
|
286
|
39
|
24
|
|
Indicated
|
29.5
|
2.55
|
2.02
|
0.28
|
0.15
|
753
|
595
|
83
|
45
|
|
Measured + Indicated
|
43.6
|
2.57
|
2.02
|
0.28
|
0.16
|
1,121
|
881
|
122
|
69
|
|
Inferred
|
17.5
|
2.79
|
2.23
|
0.31
|
0.16
|
489
|
391
|
54
|
27
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
1.
|
|
This table reports the Mineral Resources for the combined massive sulfide and ultramafic mineralization types.
|
|
2.
|
|
Mineral Resources are reported exclusive of Mineral Reserves. There are no Mineral Reserves to report.
|
|
3.
|
|
Mineral Resources are reported showing only the Lifezone Metals attributable tonnage portion, which is 69.713% of the total.
|
|
4.
|
|
Cut-off uses the NiEq23 using a nickel price of $9.50/lb, copper price of $4.00/lb and cobalt price of $26.00/lb with allowances for recoveries, payability, deductions, transport and royalties.
NiEq23% = Ni% + Cu% x 0.411 + Co% x 2.765.
|
|
5.
|
|
The Mineral Resource metallurgical recovery assumptions are: nickel 87.2%, copper 85.1% and cobalt 88.1%.
|
|
6.
|
|
The point of reference for Mineral Resources is the point of feed into a processing facility.
|
|
7.
|
|
All Mineral Resources in the November 2023 Mineral Resource Update were assessed for reasonable prospects for eventual economic extraction by reporting only material above a cut-off grade of 0.58% NiEq23.
|
|
8.
|
|
Totals may vary due to rounding.
|
Kabanga currently comprises of six identified distinct mineralized zones, namely (from south-west to north-east) the Main, MNB, Kima, North, Tembo and Safari zones, which occur over a strike length exceeding 7.5 kilometers. The five mineralized zones that contribute to the Mineral Resource Update are: Main, MNB, Kima, North and Tembo, which extend over a total strike length of 6.0 kilometers and to a depth of up to 1.7 kilometers below surface.
Figure 2: Oblique long section showing mineralized zones and intercepts greater than 0.58% nickel-equivalent (looking north-west).
Please refer to Figure 2 in the Press Release on our website here.
Figure 3: Kabanga Nickel Project Mineral Resource Update shown by zones on an attributable to Lifezone Metals basis.
Please refer to Figure 2 in the Press Release on our website here.
|
Note: refer to the metals’ prices, recoveries and other assumptions as shown in Table 1 and the provided notes.
|
The North Zone remains the largest of the currently identified mineralized zones at Kabanga with attributable Measured and Indicated Resources totaling 20.6 million tonnes grading 2.53% nickel, 0.34% copper and 0.18% cobalt (3.18% nickel-equivalent) and attributable Inferred Mineral Resources totaling 12.2 million tonnes grading 2.60% nickel, 0.35% copper and 0.18% cobalt (3.24% nickel-equivalent).
The Tembo Zone is the second largest zone, and all Mineral Resources at Tembo are classified as Measured or Indicated, with combined total attributable 13.8 million tonnes grading 1.80% nickel, 0.25% copper and 0.15% cobalt (2.32% nickel-equivalent).
Within the North and Tembo zones, which form the bulk of contained Mineral Resources at Kabanga, 74% of the Mineral Resources are classified as higher confidence Measured and Indicated (71% across all zones at Kabanga) relative to Inferred. For comparison, the North and Tembo zones combined had 63% classified as Measured and Indicated Resources in the February 2023 Mineral Resource Estimate.
Significant Increase in Tonnage and Contained Metal When Compared to the Previous February 2023 Mineral Resource Estimate
Overall Measured and Indicated Mineral Resources have increased by 69% and Inferred Mineral Resources have increased 20% at the Kabanga Nickel Project when compared to the previous February 2023 Mineral Resource Estimate. This reflects the results of Lifezone Metals’ 2021-2023 drilling programs and an updated mineralization interpretation.
Lifezone Metals conducted multiple drill programs between 2021 to 2023 at the Kabanga project and the results have been included into the Mineral Resource database (up to September 17, 2023; with the exception of holes that have yet to be surveyed or with outstanding assay results). A breakdown of Lifezone Metals’ drill programs is as follows:
- December 2021 to May 2022: 4,163 meters of drilling in 14 holes to provide 2,727 kilograms of metallurgical sample (in three bulk samples) from the North and Tembo zones for flotation and hydrometallurgical test work in Perth, Australia.
- May 2022 to December 31, 2022: 7,186 meters of infill drilling in 19 holes at Tembo North to increase confidence in this Zone over a 700-meter strike length and to provide an additional bulk sample (464 kilograms) for flotation and hydrometallurgical test work in Perth, Australia. An additional 768 meters in one drillhole was completed at the Safari Zone.
- January 2023 to September 17, 2023: 9,274 meters of infill drilling in five holes at North to increase confidence over a 500-meter strike length, 16,727 meters of infill drilling in 23 holes at Tembo to increase confidence along the entire strike length of the deposit and 3,555 meters in six holes at Tembo for geotechnical purposes.
The KNL drilling up to September 17, 2023 has been incorporated into the Mineral Resource database with the exception of holes yet to be surveyed or with outstanding assay results.
Figure 4: Comparison of overall attributable tonnes and grade between the February 2023 Mineral Resource Estimate and the November 2023 Mineral Resource Update.
Please refer to Figure 2 in the Press Release on our website here.
|
Note: refer to the metals’ prices, recoveries and other assumptions as shown in Table 1 and the provided notes.
|
A significant proportion of the additional Mineral Resource tonnage in the November 2023 Mineral Resource Update results from the inclusion of ultramafic mineralization that was previously omitted from the interpreted ultramafic boundaries at the North and Tembo zones based on notional cut-off grades. The change in the processing flowsheet, by adding a hydrometallurgical refinery, improves the prospects of economic extraction of the ultramafic material, and the ultramafic mineralization has been interpreted and had grade estimation for the November 2023 Mineral Resource Update.
The Mineral Resource cut-off grade has remained unchanged at 0.58% nickel-equivalent, which allows for a direct comparison between the February 2023 Mineral Resource Estimate and the November 2023 Mineral Resource Update. Metal price assumptions used for cut-off grade determination were $9.50/lb for nickel, $4.00/lb for copper and $26.00/lb for cobalt.
Figure 5: Overall attributable tonnes and grade shown by mineralization type for the November 2023 Mineral Resource Update.
Please refer to Figure 2 in the Press Release on our website here.
|
Note: refer to the metals’ prices, recoveries and other assumptions as shown in Table 1 and the provided notes.
|
Figure 6: Significant additions made at the Tembo Zone between the February 2023 Mineral Resource Estimate and the November 2023 Mineral Resource Update.
Please refer to Figure 2 in the Press Release on our website here.
|
Note: refer to the metals’ prices, recoveries and other assumptions as shown in Table 1 and the provided notes.
|
Definitive Feasibility Study for a Small Surface Footprint, Low-Impact Underground Mine Expected by the End of Q3 2024
Specific work is focused on completing geotechnical studies, underground mine design, placement of surface infrastructure and positioning of the tailings storage facility. Water monitoring bores are informing onsite hydrology studies and metallurgical testing is also underway with variability samples drilled and collected. Underground mining is expected to have a small surface footprint with a low environmental impact relative to open pit mining.
In anticipation of an increase in Mineral Resources at Kabanga, Lifezone Metals ceased exploration drilling programs in November 2023. With the completion of the November 2023 Mineral Resource Update and the significant conversion of Inferred Mineral Resources into the Measured and Indicated categories, Lifezone Metals decided that there are now sufficient Mineral Resources to support the Definitive Feasibility Study. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that the Definitive Feasibility Study will result in Mineral Reserves.
Eleven exploration diamond drill holes have been completed at Safari Link, and results will be reported when assays are received. Lifezone Metals’ geologists have said that the Safari Link area represents the best opportunity for future resource addition.
Appendix: Kabanga Nickel Project Mineral Resource Update by zone on an attributable to Lifezone Metals basis (69.7%), as at November 30, 2023 – based on $9.50/lb nickel price, $4.00/lb copper price and $26.00/lb cobalt price.
|
Mineral Resource Classification
|
Attributable Tonnage
(Mt)
|
Grades
|
Recovery
|
|
NiEq23
|
Nickel
|
Copper
|
Cobalt
|
Nickel
|
Copper
|
Cobalt
|
|
(%)
|
(%)
|
(%)
|
(%)
|
(%)
|
(%)
|
(%)
|
|
MAIN ZONE - All Mineralization Types
|
|
Measured
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Indicated
|
9.3
|
1.60
|
1.22
|
0.20
|
0.10
|
87.2
|
85.1
|
88.1
|
|
Measured + Indicated
|
9.3
|
1.60
|
1.22
|
0.20
|
0.10
|
87.2
|
85.1
|
88.1
|
|
Inferred
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
MNB ZONE - All Mineralization Types
|
|
Measured
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Indicated
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Measured + Indicated
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Inferred
|
1.9
|
1.47
|
1.14
|
0.17
|
0.09
|
87.2
|
85.1
|
88.1
|
|
KIMA ZONE - All Mineralization Types
|
|
Measured
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Indicated
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Measured + Indicated
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Inferred
|
3.4
|
1.95
|
1.53
|
0.25
|
0.11
|
87.2
|
85.1
|
88.1
|
|
NORTH ZONE - All Mineralization Types
|
|
Measured
|
6.1
|
2.99
|
2.34
|
0.32
|
0.19
|
87.2
|
85.1
|
88.1
|
|
Indicated
|
14.5
|
3.26
|
2.61
|
0.35
|
0.18
|
87.2
|
85.1
|
88.1
|
|
Measured + Indicated
|
20.6
|
3.18
|
2.53
|
0.34
|
0.18
|
87.2
|
85.1
|
88.1
|
|
Inferred
|
12.2
|
3.24
|
2.60
|
0.35
|
0.18
|
87.2
|
85.1
|
88.1
|
|
TEMBO ZONE - All Mineralization Types
|
|
Measured
|
8.0
|
2.33
|
1.80
|
0.25
|
0.16
|
87.2
|
85.1
|
88.1
|
|
Indicated
|
5.8
|
2.30
|
1.79
|
0.24
|
0.15
|
87.2
|
85.1
|
88.1
|
|
Measured + Indicated
|
13.8
|
2.32
|
1.80
|
0.25
|
0.15
|
87.2
|
85.1
|
88.1
|
|
Inferred
|
-
|
-
|
-
|
-
|
-
|
87.2
|
85.1
|
88.1
|
|
|
|
Measured
|
14.1
|
2.61
|
2.03
|
0.28
|
0.17
|
87.2
|
85.1
|
88.1
|
|
Indicated
|
29.5
|
2.55
|
2.02
|
0.28
|
0.15
|
87.2
|
85.1
|
88.1
|
|
Measured + Indicated
|
43.6
|
2.57
|
2.02
|
0.28
|
0.16
|
87.2
|
85.1
|
88.1
|
|
Inferred
|
17.5
|
2.79
|
2.23
|
0.31
|
0.16
|
87.2
|
85.1
|
88.1
|
|
1.
|
|
This table reports the Mineral Resources for the combined massive sulfide and ultramafic mineralization types.
|
|
2.
|
|
Mineral Resources are reported exclusive of Mineral Reserves. There are no Mineral Reserves to report.
|
|
3.
|
|
Mineral Resources are reported showing only the Lifezone Metals attributable tonnage portion, which is 69.713% of the total.
|
|
4.
|
|
Cut-off uses the NiEq23 using a nickel price of $9.50/lb, copper price of $4.00/lb and cobalt price of $26.00/lb with allowances for recoveries, payability, deductions, transport and royalties.
NiEq23% = Ni% + Cu% x 0.411 + Co% x 2.765.
|
|
5.
|
|
The Mineral Resource metallurgical recovery assumptions are: nickel 87.2%, copper 85.1% and cobalt 88.1%
|
|
6.
|
|
The point of reference for Mineral Resources is the point of feed into a processing facility.
|
|
7.
|
|
All Mineral Resources in the 2023MRU were assessed for reasonable prospects for eventual economic extraction by reporting only material above a cut-off grade of 0.58% NiEq23.
|
|
8.
|
|
Totals may vary due to rounding.
|
Appendix: Kabanga Nickel Project Mineral Resource Update by zone on an attributable to Lifezone Metals basis (69.7%), as at November 30, 2023 – based on $9.50/lb nickel price, $4.00/lb copper price and $26.00/lb cobalt price.
|
Mineral Resource Classification
|
Attributable Tonnage
(Mt)
|
Grades
|
Attributable Contained Metals
|
|
NiEq23
|
Nickel
|
Copper
|
Cobalt
|
NiEq23
|
Nickel
|
Copper
|
Cobalt
|
|
(%)
|
(%)
|
(%)
|
(%)
|
(kt)
|
(kt)
|
(kt)
|
(kt)
|
|
MAIN ZONE – All Mineralization Types
|
|
Measured
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Indicated
|
9.3
|
1.60
|
1.22
|
0.20
|
0.10
|
148
|
113
|
19
|
10
|
|
Measured + Indicated
|
9.3
|
1.60
|
1.22
|
0.20
|
0.10
|
148
|
113
|
19
|
10
|
|
Inferred
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
MNB ZONE – All Mineralization Types
|
|
Measured
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Indicated
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Measured + Indicated
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Inferred
|
1.9
|
1.47
|
1.14
|
0.17
|
0.09
|
28
|
22
|
3
|
2
|
|
KIMA ZONE – All Mineralization Types
|
|
Measured
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Indicated
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Measured + Indicated
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Inferred
|
3.4
|
1.95
|
1.53
|
0.25
|
0.11
|
67
|
53
|
8
|
4
|
|
NORTH ZONE – All Mineralization Types
|
|
Measured
|
6.1
|
2.99
|
2.34
|
0.32
|
0.19
|
182
|
142
|
19
|
11
|
|
Indicated
|
14.5
|
3.26
|
2.61
|
0.35
|
0.18
|
472
|
378
|
50
|
26
|
|
Measured + Indicated
|
20.6
|
3.18
|
2.53
|
0.34
|
0.18
|
654
|
521
|
70
|
38
|
|
Inferred
|
12.2
|
3.24
|
2.60
|
0.35
|
0.18
|
394
|
316
|
43
|
22
|
|
TEMBO ZONE – All Mineralization Types
|
|
Measured
|
8.0
|
2.33
|
1.80
|
0.25
|
0.16
|
186
|
144
|
20
|
12
|
|
Indicated
|
5.8
|
2.30
|
1.79
|
0.24
|
0.15
|
132
|
103
|
14
|
8
|
|
Measured + Indicated
|
13.8
|
2.32
|
1.80
|
0.25
|
0.15
|
319
|
247
|
34
|
21
|
|
Inferred
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
OVERALL MINERAL RESOURCE – All Mineralization Types
|
|
Measured
|
14.1
|
2.61
|
2.03
|
0.28
|
0.17
|
368
|
286
|
39
|
24
|
|
Indicated
|
29.5
|
2.55
|
2.02
|
0.28
|
0.15
|
753
|
595
|
83
|
45
|
|
Measured + Indicated
|
43.6
|
2.57
|
2.02
|
0.28
|
0.16
|
1,121
|
881
|
122
|
69
|
|
Inferred
|
17.5
|
2.79
|
2.23
|
0.31
|
0.16
|
489
|
391
|
54
|
27
|
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1.
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This table reports the Mineral Resources for the combined massive sulfide and ultramafic mineralization types.
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2.
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Mineral Resources are reported exclusive of Mineral Reserves. There are no Mineral Reserves to report.
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3.
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Mineral Resources are reported showing only the Lifezone Metals attributable tonnage portion, which is 69.713% of the total.
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4.
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Cut-off uses the NiEq23 using a nickel price of $9.50/lb, copper price of $4.00/lb and cobalt price of $26.00/lb with allowances for recoveries, payability, deductions, transport and royalties.
NiEq23% = Ni% + Cu% x 0.411 + Co% x 2.765.
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5.
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The Mineral Resource metallurgical recovery assumptions are: nickel 87.2%, copper 85.1% and cobalt 88.1%
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6.
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The point of reference for Mineral Resources is the point of feed into a processing facility.
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7.
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All Mineral Resources in the 2023MRU were assessed for reasonable prospects for eventual economic extraction by reporting only material above a cut-off grade of 0.58% NiEq23.
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8.
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Totals may vary due to rounding.
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Contacts
Investor Relations – North America
Evan Young
SVP: Investor Relations & Capital Markets
evan.young@lifezonemetals.com
Investor Relations – Europe
Ingo Hofmaier
Chief Financial Officer
ingo.hofmaier@lifezonemetals.com
Media Enquiries
David Petrie
Corporate Communications Manager
david.petrie@lifezonemetals.com
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