TIDMEEE
RNS Number : 6803Z
Empire Metals Limited
26 January 2022
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Empire Metals Limited / AIM: EEE / Sector: Natural Resources
26 January 2022
Empire Metals Limited ('Empire' or the 'Company')
Consolidation of Mineralised Footprint Around Eclipse Project
through Tribute Agreement to Access the Highly Prospective
Gindalbie Gold Project
Empire Metals Limited, the AIM-quoted resource exploration and
development company, is pleased to announce that it has agreed
Heads of Terms to enter into a Tribute Agreement ('Heads of Terms')
with Maher Mining Contractors Pty Ltd ('Maher Mining'), giving
Empire the right to explore, develop and mine within a granted area
on Maher Mining's 100% owned mining lease M27/158 ('Gindalbie Gold
Project'), located near historic gold mining town of Gindalbie, and
adjacent to Empire's Eclipse Gold Project ('Eclipse').
Highlights:
-- Tribute Agreement would increase Empire's mineralised
footprint around its flagship Eclipse Project by over 200% to a
total of 943ha.
-- The Gindalbie Gold Project (the granted area contained within
mining lease M27/158) sits adjacent to the eastern border of the
Eclipse licence area and will extend the current area for
exploration targets a further 2km along the Eclipse lodes trend,
plus 1km to the north and 3km to the south.
-- The "granted" area covers 643ha of highly prospective ground
containing a number of historical mines located along a series of
northwest-southeast striking mineralised trends.
-- The main trend containing the Eclipse and Jack's Dream
deposits aligns with several of the old workings to the south
including the Golden Puzzle, and Bulletin mines. Three other,
sub-parallel north-west - south-east striking trends have been
identified which combined with the Eclipse trend provides an
exploration target extending over a strike length of 8 km.
-- The licence area has been subject to significant exploration
in the past, with a number of significant gold intercepts from
historical RAB and RC drilling, plus extensive soils and
geochemistry surveys.
-- The cost to enter into the Tribute Agreement is A$250,000 for
an initial 6-month exploration term. An additional A$250,000 is
payable if Empire elects to extend the exploration period by a
further 18 months. Minimum expenditure commitments during the two
stages of exploration are A$250,000 for each period.
-- There can be no certainty that the Tribute Agreement well be
entered into or that the terms of the Tribute Agreement will be
materially the same as the Heads of Terms.
Shaun Bunn, Managing Director, said: "We are very pleased to
reach an understanding with our neighbour at Eclipse, Maher Mining,
which allows us to explore and if successful, develop a mine within
their mining lease. Extending our exploration into this new area,
in parallel with further phases of drilling into the primary
mineralisation at Eclipse, offers the potential to develop a
significant increase in the scale of mineralisation in the field.
This is an exciting opportunity, significantly expanding our
exploration camp in the Gindalbie goldfields and opens the door for
further development and acquisitions in this region."
Key Terms of the Tribute Agreement
Empire has entered into a Heads of Terms with Maher Mining for a
Tribute Agreement giving Empire the right to explore, develop and
mine within a granted area on Maher Mining's 100% owned mining
lease M27/158, subject to the following key terms:
Ø In consideration of Empire paying an amount of A$250,000
within 14 days of signing a detailed legally binding Tribute
Agreement, Empire shall have an initial period of six months to
explore within the 'Granted Area' of the tenement and will commit
to an expenditure of not less than A$250,000 during that period
(the 'Exploration Period').
Ø Empire can elect to extend the Exploration Period by a further
18 months (the ' Extended Period ') to carry out further
exploration and complete mining studies, subject to paying Maher
Mining A$250,000 and committing to a further expenditure of not
less than A$250,000 during the Extended Period.
Ø If, within the Extended Period, an economically mineable
resource is established, as determined by a Pre-Feasibility Study
(as that term is defined in the JORC Code 2012), then Empire may
elect to mine the relevant part or parts of the Granted Area upon
the terms and conditions set out in the Tribute Agreement.
Ø If, at the end of the Extended Period, further exploration and
mining studies are required to complete a Pre-Feasibility Study
then Empire has the option to extend the Extended Period by up to
12 months, subject to paying Maher Mining the amount of
A$250,000.
Ø If Empire elects to commence mining operations and subject to
all statutory approvals being met, then Empire will:
-- pay Maher Mining the amount of A$500,000 within ninety (90)
days of the granting of a mining permit;
-- grant Maher Mining a 2% net smelter royalty on all gold and other commodities produced;
-- guarantee to pay Maher Mining an additional 2% NSR for any
gold production sold between A$2,400/oz and A$2,799/oz, increasing
to 3% NSR for any gold production sold at A$2,800/oz or above;
and
-- guarantee to spend not less than A$250,000 on exploration per
annum on the Granted Area over the subsequent four (4) years;
in consideration for the rights to all ores mined during the
granted term of the mining licence, due to expire 3 November
2034.
Ø Empire will be the manager of the Granted Area from
commencement of the Tribute Agreement and will have the sole right
to undertake exploration, development and mining activities on the
Granted Area.
Ø There can be no certainty that the Tribute Agreement well be
entered into or that the terms of the Tribute Agreement will be
materially the same as the Heads of Terms.
Gindalbie Gold Project
The Gindalbie Gold Project lies adjacent to Empire's high-grade
Eclipse Gold Project, a 303 ha mining lease located near the
historic gold mining town of Gindalbie, situated 55 km north-east
of Kalgoorlie (refer Figure 1). Empire Metals currently holds a 75%
interest in the Eclipse Gold Project, together with an option to
acquire the remaining 25% interest.
Figure 1. Location Map - Location of Eclipse Gold Project (red),
which contains the old Gindalbie townsite, and mining lease ML
27/158 (blue) which contains the Gindalbie Gold Project.
Gindalbie was an active gold mining centre around the turn of
the last century with most gold production being in the period 1887
to 1913, with some in the late 1930s to early 1940s. Total recorded
production up to the end of 1913 was 44,622 tonnes of ore for
40,643 oz Au (at an average grade of 28.33 g/t Au). The majority of
the production came from the South Gippsland leases, some five
leases in total which included the South Gippsland #3 mine and the
South Gippsland mine (also referred to as #4 mine and the Gippsland
Deep), which produced a combined total of 35,415 tonnes for 32,522
oz Au. Other key producing leases were United (2710 tonnes for 2274
oz Au) and Eclipse (954 tonnes for 754 oz Au).
The Gindalbie Gold Project consists of the granted area
contained within mining lease M27/158, which sits adjacent to the
eastern border of the Eclipse licence area, and extends the
exploration targets an additional 2km along the Eclipse lodes
trend, plus a further 1km to the north and 3km to the south (refer
Figure 2). The "granted" area covers 643 ha of highly prospective
ground containing a number of the previously mentioned historic
gold mines located along a series of northwest-southeast striking
mineralised trends.
The main trend containing the Eclipse and Jack's Dream deposits
aligns with several of the old workings to the south-east including
Golden Puzzle and Bulletin. The Eclipse trend represents an
exploration target of over 4km in strike length across the two
licences M27/153 and M27158.
The Gippsland and United trends run sub-parallel to the Eclipse
Trend, some 500m and 1000m respectively to the east. The Gippsland
trend contains the original South Gippsland leases which produced
the majority of the gold from the historic Gindalbie goldfields.
Both of these trends extend through the granted area providing an
additional exploration target of over 4km in strike length.
Finally, there appears to be a fourth sub-parallel trend lying
500m to the south-west of the Eclipse trend which contains the old
Bulletin and Laurel mines and a recently developed shallow open pit
at Bud's Find.
Figure 2. Granted area within ML27/158 showing major mineralised
sub-parallel trends running north-west and south-east
Previous Exploration 1980s - Current
During the period mid-1983 to mid-1985, exploration of the
present area was carried out by BP Minerals Australia Pty Ltd in a
Joint Venture with the then tenement holders (Messrs Tonkin, Tonkin
and Dale). Work carried out included aerial photography, dump
sampling, geophysics and RAB (approximately 20,000m) and RC
drilling (approximately 1150m). The majority of this work was
conducted around the South Gippsland/United area of the mining
licence, which lies outside the granted area. This area is
currently being worked by Maher Mining who are redeveloping the old
shaft at South Gippsland #4 and looking to build a small ore
treatment facility within this area.
The dump samples collected ranged up to 130g/t Au. RAB drilling
at South Gippsland was on an 80m by 20m spacing, and elsewhere on a
160m by 40m spacing. All holes were drilled on east--west lines
drilled either to the east or more commonly west. Many of the RAB
holes were drilled parallel to the dip of the mineralisation as
seen in the old workings. Most of the drillholes failed to reach
relatively fresh bedrock, which was more than 80m vertical depth in
places.
Samples were collected over 2 metre intervals and composited
over 8 metres. Zones of interest were re--sampled over two metres.
The assay procedures used appear by today's standards to be
inadequate. The 8m samples were assayed for gold via a 3-gram
charge by the aqua regia/AAS method. The 2m resamples were on a
30-gram charge, also by aqua regia/AAS. The extremely poor
repeatability of some resamples may be in part due to errors in
sample collection but more likely due to the assay procedures.
A reconnaissance IP and resistivity geophysical survey was
carried out in the South Gippsland/United area. Subsequent RC/open
hole percussion drilling showed that the targets generated were
attributable to pyritic volcanic rocks.
Several significant intersections were obtained by the RAB
drilling. The RC and open hole drilling was largely ineffectual due
to intersecting stopes etc. The following table lists the better
results from the RAB drilling that was conducted within the South
Gippsland/United area of the licence.
Table 1. Significant RAB Drill Hole Intersections - BPMA
Hole Northing Easting From (m) To (m) Interval g/t Au
(m)
BPB72 14320 10260 0 8 8 3.72
--------- -------- --------- ------- --------- -------
BPB74 14320 10300 8 16 8 8.48
--------- -------- --------- ------- --------- -------
BPB76 14320 10340 72 76 4 7.44
--------- -------- --------- ------- --------- -------
BPB86 14240 10280 48 60 12 9.20
--------- -------- --------- ------- --------- -------
Following the withdrawal of BP in 1986, Messrs Tonkin, Tonkin
and Dale entered into a Joint Venture with Auralia Resources NL
from mid-1986 to late 1987. Work undertaken included geological
mapping, dump sampling, reconnaissance RAB drilling, underground
mapping and sampling, and geophysics. A total of 67 samples were
taken in the present area of M27/158 mainly from old dumps but also
from a few pits and a stope. The highest gold results were obtained
from South Gippsland being 23.05g/t Au. RAB drilling was carried
out in 1986/87 at South Gippsland, Golden Puzzle, Bulletin, South
Gippsland No 3, and also other targets now outside the current
tenement. A total of 61 RAB holes were drilled with a best result
of 3 metres at 2.97g/t Au from the Bulletin prospect.
An underground mapping and sampling programme was carried out in
1987. Old workings were entered and channel sampled at South
Gippsland, United and South Gippsland No 3 as well as other old
workings outside the present area.
A total of 824 samples were taken, though not all from the
current area. Significant results of higher than 1 g/t Au were
obtained from samples at all the old workings, including 2.8m @
7.66 g/t Au from South Gippsland, 7.0m @ 4.24 g/t Au from United,
and 1.3m @ 16.02 g/t Au from South Gippsland No 3. The underground
sampling outlined some high--grade ore shoots and provided
information on the structure of the deposits.
An aeromagnetic survey was flown over an area which included the
present M27/158. Flight lines were 150 metres spaced, sample
interval 12 metres and ground clearance 60 metres. The data was
never fully interpreted, however a preliminary examination showed
there was a major linear feature crossing the tenement with a
north-westerly strike. This was interpreted as a steep east dipping
fault zone. A number of splays from the fault were also considered
to be present. The known mineralisation did not appear to be
related to this faulting.
The Project changed hands in the late 1980s/early 1990s. The new
owners, Cullimore Management Pty Ltd, entered into a Joint Venture
with Mining Corporation of Australia Ltd ("MCA"). MCA initially
undertook a shallow soil geochemical survey over the entire Project
area. A total of 1542 samples were collected which generated
anomalies, but at the time these were considered to be related to
contamination from past exploration and mining activities.
The difficulty in assessing this programme lies in the shallow
nature of the sampling and the presence of large areas of tailings,
waste rock and other disturbance from the past mining activities.
Generally, the 10ppb Au contour defines the anomalies (against a
background of 1--7ppb). Isolated areas within the 10ppb contour
range up to more than 2g/t Au.
An RC drilling programme was carried out at South Gippsland # 3
around the same time and a RAB programme was undertaken to test
anomalies resulting from previous work. This RC programme comprised
19 holes for a total of 773 metres with holes being drilled on a 20
metre by 10 metre grid. Declinations were at 60(o) towards a local
grid east. The RAB drilling programme comprised 36 holes for 1,982
metres.
In 1994--95 further drilling was carried out. A RAB programme of
74 holes for 3,981 metres was completed, with holes drilled 60(o)
east. An eleven-hole RC programme for 880 metres was carried out to
test the Homeward Bound Prospect, where reconnaissance RAB drilling
had located some highly anomalous values. One hole was drilled at
Bulletin. Some significant RAB and RC intersections from this
drilling are listed in the table below.
Table 2. Significant Drill Hole Intersections - MCA Drilling
Hole Northing Easting From (m) To (m) Interval g/t Au
(m)
GDP011 13487 10640 27 32 5 14.46
--------- -------- --------- ------- --------- -------
GDP019 12918 9542 18 21 3 4.79
--------- -------- --------- ------- --------- -------
GDC002 15318 9622 15 16 1 17.10
--------- -------- --------- ------- --------- -------
GDC021 13545 10655 56 57 1 6.18
--------- -------- --------- ------- --------- -------
GDC021 13545 10655 68 70 2 8.91
--------- -------- --------- ------- --------- -------
Cullimore later sold the project to Roper River Gold NL, who
incorporated it into their float in 1997. Roper carried out a
programme of ground magnetics and sampling of the tailings
dumps.
More recently the project has had all the previous exploration
and mining data compiled into a digital data base for ease of use.
Since acquiring the mining lease in 2002, Maher Mining has focused
mainly on the South Gippsland #4 and United mines with the
objective of bringing these back into production. A RC drilling
programme of 1,100m (32 holes) was completed in the United area in
2011. The results are shown in Table 3 below. The mineralised zone
remains open at depth and along strike.
Table 3. Significant RC Drilling Results - United Prospect
Hole No rthing E asting From To (m) I nterval g/t Au
(m) ( m)
UN/RC05 6644219 381735 38 42 4 4.08
---------- ---------- ----- ------- ---------- -------
including 41 42 1 9.69
---------- ---------- ----- ------- ---------- -------
UN/RC07 6644236 381727 32 33 1 4.20
---------- ---------- ----- ------- ---------- -------
UN/RC12 6644277 381712 35 36 1 1.05
---------- ---------- ----- ------- ---------- -------
UN/RC13 6644277 381693 68.5 70 1.5 Stope
---------- ---------- ----- ------- ---------- -------
UN/RC14 6644273 381673 100 102 2 9.31
---------- ---------- ----- ------- ---------- -------
including 100 101 1 14.50
---------- ---------- ----- ------- ---------- -------
UN/RC17 6644313 381709 32 33 1 Stope
---------- ---------- ----- ------- ---------- -------
and 42 43 1 Stope
---------- ---------- ----- ------- ---------- -------
UN/RC18 6644317 381691 54 55 1 Stope
---------- ---------- ----- ------- ---------- -------
and 68 69 1 1.14
---------- ---------- ----- ------- ---------- -------
And 69 70 1 Stope
---------- ---------- ----- ------- ---------- -------
UN/RC19A 6644321 381671 73 74 1 Stope
---------- ---------- ----- ------- ---------- -------
UN/RC19A 96 97 1 2.07
---------- ---------- ----- ------- ---------- -------
and 99 100 1 10.90
---------- ---------- ----- ------- ---------- -------
and 39 43 4 1.73
---------- ---------- ----- ------- ---------- -------
UN/RC20 6644338 381688 69 73 4 5.86
---------- ---------- ----- ------- ---------- -------
including 69 70 1 16.60
---------- ---------- ----- ------- ---------- -------
UN/RC21 6644357 381709 8 9 1 Stope
---------- ---------- ----- ------- ---------- -------
Competent Person Statement
The technical information in this report that relates to the
Gindalbie Gold Project has been compiled by Mr Matthew Sullivan, an
employee of Great Boulder Consultants Pty Ltd. Mr Sullivan is a
Member of the Australian Institute of Mining and Metallurgy. Mr
Sullivan has been engaged as a consultant by Maher Mining
Contractor's Pty Ltd. Mr Sullivan 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 Sullivan 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
Greg Kuenzel 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 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 in 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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