TIDMEEE
RNS Number : 1253I
Empire Metals Limited
10 December 2020
To view the announcement with the illustrative images and
diagrams please use the following link:
http://www.rns-pdf.londonstockexchange.com/rns/1253I_1-2020-12-9.pdf
Empire Metals Limited / AIM: EEE / Sector: Natural Resources
10 December 2020
Empire Metals Limited ('Empire' or the 'Company')
Further Positive Drilling Results & Completion of 75%
Acquisition of Eclipse Gold Project
Empire Metals Limited, the AIM-quoted resource exploration and
development company, is pleased to announce an update relating to
its Eclipse Gold Project, located 55km north-east of Kalgoorlie,
Western Australia ('Eclipse' or the 'Project').
Overview
-- Initial work programme completed at Eclipse has increased
confidence in the Project's potential to host a profitable
small-scale high-grade open pit gold mine
-- Further significant assay results received to date include:
o ECRC20_022: 14m @ 3.78 g/t gold ('Au') from 22m, including 1m
@ 21.4 g/t Au, and 1m @ 16.65 g/t Au - This hole includes three
different clusters of quartz veining mainly associated with the
higher grades, confirming there is more than one mineralised
structure
o ECRC20_027: 8m @ 2.27 g/t Au from 32m including 3m @ 5.27 g/t
Au
o ECRC20_032: 5m @ 6.50 g/t Au from 26m, including 3m @ 9.29 g/t
Au
o ECRC20_017: 3m @ 3.18 g/t Au from 49m including 1m @ 6.49 g/t
Au
o ECRC20_026: 1m @ 6.93 g/t Au at surface, and 1m @ 4.50 g/t Au
from 10m
o ECRC20_021: 14 m @ 1.70 g/t Au from 9m depth including 1m @
7.76 g/t Au at 9m and 4m @ 2.37 g/t Au from 19m
-- Additional work programme to commence before year end
including infill and extension drilling at Eclipse to better define
the near-surface potential resource and extensions at depth and
along strike, in addition to target testing at Houdini and others
defined from geochemistry
-- Completion of 75% acquisition of Eclipse through execution of
option agreement following fund raising completed on 24 November
2020
Mike Struthers, CEO, said: "We are pleased to have now exercised
our option to acquire a 75% interest in Eclipse which, coupled with
the Company's recent placing, allows us to push ahead with
developing the Project. These additional drill results in the
uppermost 50m of Eclipse are very encouraging and add further to
our confidence in the potential for a profitable small-scale and
high-grade open pit operation. This is very attractive, but the
fact that the Eclipse mineralisation is also open at depth is
particularly interesting and will be a key element of further work
as we continue to advance the Project.
"The Company is also expecting to receive a permit in the near
term for drilling further to the north-west along the strike of
Eclipse, in the vicinity of the other old workings of Jack's Dream
and Steinhobel. These lie 200-300m north-west of the Eclipse shaft,
on the same mineralised structure. Jack's Dream was worked in the
early 1900s and produced 197 tonnes @ 23.8 g/t Au and whilst there
are no records of the production at Steinhobel, old stopes are
visible at surface indicating that historically it produced
gold.
"We are now focusing our efforts on preparing for the next phase
of drilling and look forward to providing further updates on the
continued work at Eclipse over the coming weeks."
Further Details
The initial work programme at Eclipse is now completed. This
comprised soils geochemistry, a detailed ground magnetics
geophysics survey, and Reverse Circulation ('RC') drilling. A total
of 2,578 metres of RC drilling was completed at the Eclipse and
Houdini prospects during October and November 2020. 43 holes (for
2,086 metres) have been completed at Eclipse, with an additional
six holes at Houdini.
Figure 1: Oblique long section showing drill results to date,
historical drilling, and old workings - see PDF
The initial holes at Houdini intersected low grade
mineralisation but appeared to miss the main structure. This is not
surprising since these preliminary holes were only positioned using
soils geochemistry data, but Empire now has detailed geophysics
over the whole area which will allow it to target further drilling
much more accurately.
The next phase of drilling will focus on three main
elements:
(i) Infill and extension drilling at Eclipse to better define
the near-surface potential resource for a small-scale high-grade
open pit operation, and resource extensions at depth and along
strike
(ii) Drilling along strike from the Eclipse shaft to target the
extension of the resources towards and beyond the other old
workings
(iii) Additional target testing at Houdini and the other new
targets defined from the soils programme (refer RNS, 5 October
2020).
The Company will also look to complete some limited diamond
drilling at Eclipse for geotechnical and metallurgical studies.
Exercise of Option
Empire Metals has exercised its Option to acquire a 75% interest
in the Eclipse Gold Project from Philips Exploration Pty Ltd. The
Company will pay AUD$1,000,000 (approximately GBP550,000) in cash,
AUD$500,000 (GBP277,750) to be settled via the issue of 7,095,510
new ordinary shares of no-par value at a price of 3.91p (calculated
by reference to the 30-day VWAP) and the issue of 7,095,510
warrants exercisable at 4.70p (a 20% premium to the 30-day VWAP)
for two years. In addition, a finder's fee will be paid to an
unrelated party of AUD$500,000 (GBP277,750) to be settled via the
issue of 7,095,510 new ordinary shares of no-par value at a price
of 3.91p (calculated by reference to the 30-day VWAP) and the issue
of 7,095,510 warrants exercisable at 4.70p (a 20% premium to the
30-day VWAP) for two years.
The Company will continue to have an option to acquire the
remaining 25% of the Project at a price determined by an
independent valuer.
Completion of the acquisition, and issue of the option exercise
shares, is subject to the receipt of Ministerial Consent for the
transfer of the licence and Foreign Investment Review Board
approval. These approvals are both expected to be received in due
course.
Competent Person Statement
The information in this announcement that relates to drilling
results is based on information reviewed by Mr. Mike Struthers, who
is a Member of the Institute of Mining, Metallurgy and Materials
(IOM3), a Chartered Engineer with the IOM3, and a Member of the
Australian Institute of Mining and Metallurgy.
Mr. Struthers is an employee of Empire Metals Ltd. He 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 a Competent Person as defined in the
2012 Edition of the 'Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves' and as a qualified
person as defined in the Note for Mining and Oil & Gas
Companies which form part of the AIM Rules for Companies. Mike
Struthers has reviewed this announcement and consents to the
inclusion in the announcement of the matters based on his
information in the form and context in which it appears.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
**S**
For further information please visit www.empiremetals.co.uk or
contact:
Mike Struthers Empire Metals Ltd Company Tel: 020 7907
9327
Ewan Leggat S. P. Angel Corporate Nomad & Broker Tel: 020 3470
Finance LLP 0470
Adam Cowl S. P. Angel Corporate Nomad & Broker Tel: 020 3470
Finance LLP 0470
Damon Heath Shard Capital Partners Joint Broker Tel: 020 7186
LLP 9950
Susie Geliher St Brides Partners Ltd PR Tel: 020 7236
1177
Beth Melluish St Brides Partners Ltd PR Tel: 020 7236
1177
About Empire Metals Limited
Empire Metals' primary focus is on the Eclipse Gold Project in
Western Australia which produced 954 tonnes @ 24.6 g/t Au for
754.25 oz Au from the Eclipse shaft which operated up to 1910. In
addition to the known mineralisation at and surrounding the Eclipse
old workings, recent geophysics and geochemistry work has
highlighted further potential mineralisation at two additional
targets north-west of Eclipse, the Houdini and Easy prospects.
The Company also has a 50% joint venture in Georgia which covers
an area of over 860 sq km and has a 30-year mining licence. The
joint venture covers a variety of targets and projects ranging from
greenfield exploration / target definition phase through
intermediate target-testing phases to more advanced projects
including Kvemo Bolnisi East which is due to advance to Feasibility
Study.
The Board continues to evaluate opportunities through which to
realise the value of its wider portfolio and reviews further assets
which meet the Company's investment criteria.
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