TIDMEEE
RNS Number : 6387J
Empire Metals Limited
25 August 2021
To view the announcement with the illustrative images please use
the following link:
http://www.rns-pdf.londonstockexchange.com/rns/6387J_1-2021-8-24.pdf
Empire Metals Limited / AIM: EEE / Sector: Natural Resources
25 August 2021
Empire Metals Limited ('Empire' or the 'Company')
Progress update for the Eclipse Gold Project
Empire Metals Limited, the AIM-quoted resource exploration and
development company, is pleased to announce a progress update on
the exploration and development activities currently being
undertaken at the Eclipse Gold Project ('Eclipse') located within
the Eastern Goldfields of Western Australia.
Highlights:
-- The Company has completed three exploratory drilling
programmes at Eclipse, consisting of 111 reverse circulation ('RC')
drill holes for a total of 9,121 metres and three diamond drill
holes for a total of 201 metres, over the past 12 months .
-- The drilling has delivered encouraging results that confirm
the existence of several parallel veins in addition to the main
Eclipse vein and indicates that the Eclipse lode itself remains
open at depth.
-- Results from the drilling indicate that gold mineralisation
has been remobilised to greater depths and this merits further
drilling to test the strike and depth extensions of multiple gold
structures at Eclipse for both high-grade primary lodes and
supergene enrichment near the base of weathering.
-- The Company will also expand the exploration and development
focus on the wider potential that is offered by combinations of the
Eclipse lode with the Jack's Dream extension and Twin Shaft lode
with the objective of delivering a larger mineralised inventory to
advance towards feasibility stage
Shaun Bunn, Managing Director, said: "The results from the
Company's drilling campaign has provided confidence in the
potential of the Eclipse Gold Project whilst continuing to add to
our understanding of the nature of the mineralised lodes. Equipped
with these results, we believe that the main gold mineralisation at
Eclipse is more prevalent at depth, and is perhaps orders of
magnitude larger than originally anticipated.
"Consequently the Company believes that the development of a
small-scale open pit operation is not the optimum path for
unlocking the value of Eclipse, and may ultimately lead to the
sterilisation of the higher value gold mineralisation within the
high-grade primary lodes and supergene enrichment near the base of
weathering. We will continue to build a resource base around the
existing high grade targets, both at depth and along strike, and
focus on the wider potential that is offered by combinations of the
Eclipse lode with the Jack's Dream extension and the Twin Shaft
lode. "
Eclipse Gold Project Regional and Local Geology
The Eclipse Gold Project is located 55km north-east of
Kalgoorlie and comprises of a single mining lease covering 305.6
hectares. Eclipse lies within the lightly-explored Gindalbie domain
of the Kurnalpi terrane (Figure 1). Within 3 km either side of the
site are north-south trending regional scale faults. The Gindalbie
domain is largely comprised of volcanic-clastic sequences. The
volcanic units include assemblages of welded tuffs and tuffaceous
lavas. Clastic assemblages include interbedded siltstone,
sandstone, shale, and thin-bedded conglomerates.
The Eclipse gold mine has had multiple owners since its
discovery in 1902. In the period from April 1905 to November 1910
the Eclipse shaft was developed to a depth of 258 feet and produced
954 tonnes @ 24.6 g/t Au for 754.25 oz Au (source: GSWA Mindex
database).
Recent RC and Diamond drill programmes at Eclipse
Since entering into the initial option agreement in August 2020
to acquire a 75% interest in Eclipse the Company has completed
three exploratory drilling programmes consisting of 111 RC drill
holes for a total of 9,121 metres and three diamond drill holes for
a total of 201 metres (Figure 2).
The key objectives of the Eclipse RC drilling programme to date
has been to:
-- confirm historic drilling data surrounding the main Eclipse shaft;
-- target known mineralisation at depth and better define the
mineralised lode in proximity to the Eclipse shaft;
-- test for a shallow laterite-hosted deposit;
-- characterise the mineralisation at the Jack's Dream, Steinhobel and other old workings;
-- test if the mineralised system at the Eclipse shaft continues
along strike to the west, towards Jack's Dream; and to
-- establish how the mineralisation exposed by the area known as
Twin Shafts links with the Eclipse gold system.
The primary purpose of the Eclipse diamond drilling programme
was to:
-- add confidence to the mineralisation model and the previous
RC drilling around the Eclipse shaft;
-- target the Eclipse mineralisation at various depths from
surface to characterise the vein-system hosting the gold
mineralisation; and to
-- enable geotechnical assessments ahead of mine design.
Key findings from the drilling programmes at Eclipse
What is evident from the drilling to date is that there are a
number of near surface sub-parallel veins and structures that
coalesce at the Eclipse Shaft and that the broader, stockwork
system identified at Jack's Dream remains open along strike and at
depth. However there remains significant areas that require further
drilling, such as between Jack's Dream and Eclipse and along strike
of the new discovery at Twin Shaft, to test how these may be linked
to the Eclipse lode (Figure 3).
Of the 111 RC drilled, 40 intercepted significant gold
intercepts above a cut-off grade of 1.3 g/t Au (refer Table 2).
However, of these only eight holes reported significant gold
intercepts within the completely oxidised zone, lying within 30m of
surface. These intercepts were largely around the mine workings at
the Eclipse shaft and are partially impacted by old stopes. Near
surface drillling along strike from the Eclipse shaft, whilst in
many cases intercepting the quartz - carbonate lode has not
identified significant gold mineralisation. Diamond drillhole
ECDD21_003 intersected high-grade gold mineralisation associated
with strongly altered Eclipse shear zone associated with strong
pyrite-arsenopyrite mineralisation in thin quartz veins and altered
wallrock. Such sulphide-rich zones are known to be highly
susceptible to gold leaching in the weathered zone.
The gold depletion within the highly oxidised zone has meant
that much of the near-surface extensional drilling along strike of
the Eclipse lode has not added substantially to the mineralisation
previously identified. However, drilling at depth at Eclipse has
already demonstrated a continuation of the high-grade veins, and
further drilling at depth is warranted to confirm and grow the
extent of the primary mineralisation and to test for further signs
of supergene gold enrichment near the base of weathering. The
mineralisation is not adequately closed off in any direction. The
plethora of relatively deep artisanal mine shafts in the vicinity
of Eclipse supports the conclusion that mineralisation lodes will
most likely be found within the transitional and fresh rock domains
(Figure 4).
Scoping Studies
Geological modelling and mine design
BM Geological Services Pty Ltd (BMGS) were previously engaged by
Empire to build a geological block model for the Eclipse deposit in
March 2021 ('BMGS model').The estimate was carried out in Surpac
and used Inverse Distance ('ID') to interpolate gold grades.
The model is unclassified and is not compliant with the
reporting guidelines of JORC 2012. Further work including diamond
drill core twinning of historical holes and preliminary
metallurgical test work is required to allow a model to be
constructed utilising JORC 2012 guidelines for reporting. Whilst
these studies have now been completed the model has not yet been
updated and is only suitable for use in Scoping Studies.
Utilising the BMGS model the potential for a small scale open
pit at Eclipse was evaluated using Whittle strategic mine planning
software. Current WA goldfields contract mining and processing
costs were applied with high level estimates used for inputs such
as metallurgical recovery and pit wall angles. A base case gold
price of $2,300 AUD was used with gold prices from $1,650 to $3,000
AUD evaluated. Mine mobilisation and establishment costs were
allowed for but no allowance has been made for further infill
resource drilling or project development work.
The scoping study work and inputs are preliminary in nature and
further work is required to better define the inputs and
assumptions used before a decision on whether mining could
commence.
Metallurgical Testwork
During the May 2021 drill campaign, RC samples were collected
for metallurgical testwork. The metallurgical test programme was
managed by JT Metallurgical Services and was developed to
understand the key metallurgical attributes of the different
domains identified in the 2021 RC drilling programme. The key
findings of this testwork programme were:
-- All composites showed very low levels of all deleterious
elements such as arsenic, antinomy, bismuth, tellurides, copper,
lead and mercury.
-- All presented composites were highly amenable to gravity/cyanidation recovery.
-- Gravity recovery was considered excellent for the oxide and
fresh testwork composites, 54% and 57% respectively. The
transitional composites had a lower gravity recovery of 28%. It is
theorised that there is less gravity recoverable gold in the
transitional material.
-- Overall extraction for the tested composites ranged between
87.7% and 98.0% with an average of 94.7%.
-- Transitional and oxide composites exhibited excellent
leaching kinetics, with leaching being near/at completion in 8
hours. Both fresh composites had slower leach kinetics, with
leaching near/at completion in 24 hours.
-- The Weir Slump Ring Rheological testwork concluded all tested
transitional and oxide composites were pumpable at solid densities
at or below 50% solids. The Rheometer tests found that the tested
composites were amenable to mixing at or below 50% solids and
screening at or below 40% solids at a pH of 9.3.
-- The oxide composites presented the worst rheological
performance. It was recommended that the oxide ore be blended with
the transitional and fresh domain ores.
Geotechnical Studies
The preliminary open pit design assumes a shallow open pit mine,
adjacent to the Eclipse shaft, some 50 metres deep. The pit design
contains only the oxide and transitional material, with the base of
complete oxidation (BOCO) approximately 25 metres below the surface
and the fresh rock domain lying well below the pit floor. The
overall angles for all walls were between 46.5deg - 47.5deg and the
waste to ore strip ratio was 31. The primary constraint on the pit
depth is the depletion of gold in the uppermost 30 metres of the
pit shell, and the consequent high strip ratio.
During the May 2021 drill campaign three diamond drill holes
were undertaken and the core was submitted for geotechnical
assessment. The resultant report concluded that the overall risk of
kinematic instability on the walls at the Eclipse open pit is
moderate. From the analysis, the most likely kinematic failure
mechanisms are flexural toppling and planar sliding which will be
more likely to occur in the transitional material. Potential exists
for wedges to form but this is considered low likelihood given the
orientation of the identified defect sets.
Further work planned
One of the key risks highlighted from the various studies is the
ability for Empire to gain access to a processing facility during
this boom period and the consequent high transportation costs for
toll processing. This, along with the higher open pit strip ratios
due to the depletion seen near surface has increased the financial
risk profile of a small-scale open pit centred on only the Eclipse
Shaft area. The Company does not currently believe that pursuing
this strategy is the best use of funds and will instead look to
build a resource base of scale by continuing to drill the
higher-grade targets below the base of oxidation and test the links
between Jack's Dream and the main Eclipse ore lode. Further
drilling is also warranted around the new discovery at Twin Shaft.
Once the extents of these other mineralisation targets are better
defined the scope for open pit operations can be revisited.
Table 1 . Significant intercepts of the RC drill programme at
Eclipse (reported above 1.3 ppm Au).
Hole_id Depth From Depth Interval Au (g/t) Target
(metres) To (metres)
(metres)
Phase 1 Drilling Programme - October 2020
ECRC20_005 42 50 8 2.14 Eclipse
----------- ---------- ---------- --------- -----------------------
ECRC20_009 45 48 3 21.96 Eclipse
----------- ---------- ---------- --------- -----------------------
ECRC20_017 49 52 3 3.18 Eclipse
----------- ---------- ---------- --------- -----------------------
ECRC20_021 9 10 1 7.76 Eclipse
----------- ---------- ---------- --------- -----------------------
ECRC20_021 13 23 10 1.49 Eclipse
----------- ---------- ---------- --------- -----------------------
ECRC20_022 22 36 14 3.78 Eclipse
----------- ---------- ---------- --------- -----------------------
ECRC20_026 0 1 1 6.93 Eclipse
----------- ---------- ---------- --------- -----------------------
ECRC20_026 10 11 1 4.51 Eclipse
----------- ---------- ---------- --------- -----------------------
ECRC20_027 33 36 3 5.37 Eclipse
----------- ---------- ---------- --------- -----------------------
ECRC20_031 15 16 1 1.51 Eclipse
----------- ---------- ---------- --------- -----------------------
ECRC20_032 26 30 4 4.58 Eclipse
----------- ---------- ---------- --------- -----------------------
ECRC20_036 30 31 1 1.58 Eclipse
----------- ---------- ---------- --------- -----------------------
ECRC20_037 133 141 8 3.20 Eclipse
----------- ---------- ---------- --------- -----------------------
ECRC20_039 94 105 11 3.04 Eclipse
----------- ---------- ---------- --------- -----------------------
ECRC20_040 77 78 1 2.46 Eclipse
----------- ---------- ---------- --------- -----------------------
Phase 2 Drilling Programme - January 2021
ECRC21_002 91 94 3 2.45 Eclipse
----------- ---------- ---------- --------- -----------------------
ECRC21_003 118 126 8 2.83 Eclipse
----------- ---------- ---------- --------- -----------------------
ECRC21_004 134 137 3 2.61 Eclipse
----------- ---------- ---------- --------- -----------------------
ECRC21_005 138 146 8 1.86 Eclipse
----------- ---------- ---------- --------- -----------------------
ECRC21_006 93 97 4 1.44 Eclipse
----------- ---------- ---------- --------- -----------------------
ECRC21_007 144 147 3 2.38 Eclipse
----------- ---------- ---------- --------- -----------------------
ECRC21_008 99 100 1 1.86 Eclipse
----------- ---------- ---------- --------- -----------------------
ECRC21_009 62 67 5 1.59 Eclipse
----------- ---------- ---------- --------- -----------------------
ECRC21_010 52 53 1 2.50 Eclipse
----------- ---------- ---------- --------- -----------------------
ECRC21_015 50 52 2 1.32 Steinhobel
----------- ---------- ---------- --------- -----------------------
ECRC21_017 70 78 8 2.32 Eclipse
----------- ---------- ---------- --------- -----------------------
ECRC21_020 46 70 24 1.44 Jack's Dream
----------- ---------- ---------- --------- -----------------------
ECRC21_020 82 85 3 2.51 Jack's Dream
----------- ---------- ---------- --------- -----------------------
ECRC21_024 38 39 1 2.10 Twin Shaft
----------- ---------- ---------- --------- -----------------------
ECRC21_024 45 48 3 2.07 Twin Shaft
----------- ---------- ---------- --------- -----------------------
ECRC21_027 33 39 6 5.52 Eclipse
----------- ---------- ---------- --------- -----------------------
ECRC21_029 33 37 4 2.80 Eclipse
----------- ---------- ---------- --------- -----------------------
ECRC21_030 49 54 5 4.77 Eclipse
----------- ---------- ---------- --------- -----------------------
ECRC21_032 55 56 1 1.46 Eclipse
----------- ---------- ---------- --------- -----------------------
ECRC21_033 49 54 5 1.42 Eclipse
----------- ---------- ---------- --------- -----------------------
ECRC21_034 75 78 3 2.40 Eclipse
----------- ---------- ---------- --------- -----------------------
ECRC21_035 47 49 2 2.22 Steinhobel
----------- ---------- ---------- --------- -----------------------
Phase 3 Drill Programme - April 2021
ECRC21_045 126 131 5 3.54 Jack's Dream
----------- ---------- ---------- --------- -----------------------
ECRC21_046 50 56 6 2.39 Jack's Dream
----------- ---------- ---------- --------- -----------------------
ECRC21_053 40 42 2 1.68 Eclipse - NW extension
----------- ---------- ---------- --------- -----------------------
ECRC21_053 51 54 3 2.08 Eclipse - NW extension
----------- ---------- ---------- --------- -----------------------
ECRC21_054 66 70 4 4.78 Twin Shaft
----------- ---------- ---------- --------- -----------------------
ECRC21_059 75 77 2 1.75 Eclipse
----------- ---------- ---------- --------- -----------------------
ECRC21_060 53 55 2 3.65 Eclipse
----------- ---------- ---------- --------- -----------------------
ECRC21_062 0 1 1 4.08 Eclipse
----------- ---------- ---------- --------- -----------------------
Competent Person Statement
The technical information in this report that relates to the
Eclipse Gold Project has been compiled by Mr Andrew Bewsher, a
full-time employee of BM Geological Services. Mr Bewsher is a
Member of the Australian Institute of Geoscientists. Mr Bewsher has
been engaged as a consultant by Empire Metals Limited. Mr Bewsher
has sufficient experience that is relevant to the style of
mineralisation and type of deposit under consideration and to the
activity being undertaken 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'. Mr
Bewsher consents to the inclusion in this release 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, as incorporated into UK law by the
European Union (Withdrawal) Act 2018, until the release of this
announcement.
**ENDS**
For further information please visit www.empiremetals.co.uk or
contact:
Shaun Bunn Empire Metals Ltd Company Tel: 020 7907
9327
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
Selina Lovell St Brides Partners Ltd PR Tel: 020 7236
1177
About Empire Metals Limited
Empire Metals is an AIM-listed (LON: EEE) exploration and
resource development company with a project portfolio comprising
gold interests in Australia and Austria.
The Company strategy is to develop a pipeline of projects at
different stages in the development curve. Its current focus is on
the high-grade Eclipse Gold Project and the Central Menzies Gold
Project in Western Australia, with the goal to expand through the
addition of further projects in the region to develop a viable and
compelling portfolio of precious metals assets.
Empire also holds a portfolio of three precious metals projects
located an historically high-grade gold production region
comprising the Rotgulden, Schonberg and Walchen prospects in
central-southern Austria.
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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