CANEGRASS PROJECT

Location and Surrounds

The Canegrass tenement package is located approximately 60km south-east of Mt Magnet and 15km south-west of Atlantic Limited’s Windimurra Vanadium Project, in the emerging Mid-West Iron Ore Province of Western Australia. The tenement package comprises six granted exploration licences.

History

Prior to Flinders holding tenure at Canegrass, the tenements were part of a Joint Venture from 2001, between Windimurra Resources Ltd, Apex Minerals NL and Mark Creasy, and comprised the Windimurra Complex Project (combined reporting number C29/2003). Maximus Resources Ltd joined the JV 2005 and subsequently purchased all rights in 2007.
In May 2009, Flinders reached an agreement with Maximus Resources Ltd (Maximus) to purchase the Canegrass Project, with Maximus retaining a 2% net smelter royalty. Flinders carried out due diligence on the area and determined that it is prospective for gabbro hosted magnetite iron ore deposits as iron was the favourable commodity at that time.

Subsequent Flinders history:

1.Fe-Ti-V: On 10 August 2011, FMS announced a maiden Inferred Resource of 107 Mt @ 0.62% V2O5, calculated based on drilling conducted in 2008 on two zones on E58/232 and E58/282 – View our ASX Announcement

2. Au: Two areas within the current tenement area were the focus of exploration looking for quartz-vein associated Au hosted in prominent approximately north-south trending fault structures that crosscut and offset the magnetic stratigraphy of the WIC. These two prospect areas were Boulder and Honeypot, as announced to the ASX by FMS on 22 May 2015

On 30th January 2018 Flinders re-estimated the Canegrass Project Vanadium Mineral Resource Estimate and announcement to the ASX. Flinders also announced the results of an exploration program that was completed at the Canegrass Project in November 2017. The program comprised 2 reverse circulation (RC) drill holes and 31 air core holes which aimed to test various soil and rock chip anomalies. The intersection of Vanadium Titanium Magnetite (VTM) mineralisation within drill hole RC282-01 is of interest and compares favourably with the updated (JORC 2012) Canegrass Vanadium Mineral Resource estimate. The mineralisation graded 0.72% V2O5 7.29% TiO2 and 32.8% Fe over a 51 m interval from 21 m downhole.

Mineral Resources

The current Canegrass Project Mineral Resource Estimate was released to the ASX on the 30th January 2018 – for comprehensive understanding please refer to the announcement.

Completed RC drillholes and the Fold Nose and Kinks Resource areas, Canegrass Project, Western Australia

Competent Person Statement

The information in this report that relates to Exploration Results is based on. And fairly reflects, information compiled by Mr Mark Pudovskis. Mr Mark Pudovskis, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Pudovskis is a consultant to FMS, employed by CSA Global Pty Ltd, independent mining industry consultants. Mr Pudovskis has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as Competent Person as defined in the 2012 Edition of the Australasian Code for the Reporting of Exploration Results, Mineral Resources, and Ore Reserves (JORC Code). Mr Pudovskis consents to the disclosure of the information in this report in the form and context in which it appears.

The information in this report that relates to Mineral Resources is based on, and fairly reflects, information compiled by Mr Aaron Meakin, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Meakin is a consultant to FMS, employed by CSA Global Pty Ltd, independent mining industry consultants. Mr Meakin has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as Competent Person as defined in the 2012 edition of the Australasian Code for the Reporting of Exploration Results, Mineral Resources, and Ore Reserves (JORC Code). Mr Meakin consents to the disclosure of the information in this report in the form and context in which it appears