Blue Lagoon - Source to Sink

Understanding the Geological Story Behind Blue Lagoon's Source-to-Sink Rare Earth Model

The Blue Lagoon Rare Earth Project is rapidly evolving beyond an early-stage sediment discovery as Dalaroo continues to develop a comprehensive geological understanding of the mineral system through its source-to-sink exploration model.

The model links fertile alkaline intrusive rocks, identified through ongoing geological mapping, with extensive eastern drainage systems that transport weathered rare earth-bearing minerals into the Blue Lagoon basin. Once transported, natural coastal and lagoon processes are interpreted to concentrate heavy mineral sands along beaches and within lagoon sediments, creating laterally extensive zones enriched in rare earth and critical minerals.

Current exploration activities are specifically designed to test every component of this geological model. Detailed mapping, hard-rock sampling, lagoon sediment sampling, Ground Penetrating Radar (GPR), hand auger drilling, mineralogical investigations and preliminary metallurgical studies are all providing independent datasets that improve the Company's understanding of the system.

By integrating these datasets, Dalaroo is progressively identifying the source rocks responsible for the mineralisation, defining the pathways through which minerals are transported, and understanding where natural geological processes have concentrated valuable heavy minerals.

This work provides an increasingly robust technical framework for future drill targeting and represents an important step in advancing Blue Lagoon from an exciting exploration discovery toward a well-defined rare earth project.