TIDMEEE
RNS Number : 6259F
Empire Metals Limited
11 July 2023
Empire Metals Limited / LON : EEE / Sector: Natural
Resources
11 July 2023
Empire Metals Limited
("Empire " or "the Company")
Ilmenite Confirmed as Key Titanium Mineral at Pitfield
Significant Magnetics Anomaly extends to a depth of at least
6km
Empire Metals Limited (LON: EEE), the AIM-quoted resource
exploration and development company, is pleased to announce the
results of the first petrographic and mineralogical studies on the
high-grade titanium discovery at the Pitfield Project ('Pitfield'),
located in Western Australia, which confirm the presence of
ilmenite, an important economic titanium-iron oxide mineral.
Highlights
-- Pitfield represents a newly recognised type of stratabound
sedimentary rock-hosted titanium deposit, unlike the more common
beach sand and hard-rock types of titanium deposits found
globally.
-- Initial petrography work confirms the presence of ilmenite, a
titanium-iron oxide mineral, which is highly valued as a source for
titanium oxide ('TiO(2) ') and which accounts for over 85% of the
feedstock for the entire titanium industry.
-- The dominance of ilmenite and hematite within the samples
studied, along with only the minor presence of magnetite, is
considered highly beneficial from an economic perspective.
-- New 3D magnetics model demonstrates the extraordinary depth
of the previously announced 40km by 8km magnetics anomaly,
extending to at least 6km below surface.
-- Titanium minerals are regarded as a "critical" resource and
titanium is on the strategic "critical minerals list" in many
countries including the United States, the European Union, Japan
and Australia.
-- Future drill programmes currently funded, including both
diamond core and additional RC drilling, will be carried out along
the entire length of the magnetics anomaly to confirm the scale of
this giant, titanium-enriched mineral system.
Shaun Bunn, Managing Director, said: "It is very exciting to see
the results from our initial petrographic and mineralogical
studies, confirming the presence of ilmenite within this
exceptional titanium-rich mineral system. We have a magnetics
anomaly covering 40km by 8km, whose core is 30km long and extends
to a depth of at least 6km. This magnetics anomaly appears to be
coincidental with the currently known extent of the ilmenite
mineralisation.
"Our knowledge and understanding of this mineral system
continues to grow at pace. Since announcing the titanium discovery
on 30 May 2023 we have been able to demonstrate the scale of this
mineral system and confirm that the host sedimentary rocks have
been extensively replaced by titanium and iron minerals. This
distinguishes Pitfield from the typical titanium deposits which are
either much lower grade heavy mineral beach sand deposits or
hard-rock igneous deposits which are difficult to beneficiate. We
believe Pitfield is truly unique in its scale and character, and I
am confident that with further exploration success and studies we
can demonstrate that this is a world leading discovery of titanium
rich mineralisation which will have globally significant economic
value."
Mineralogical Assessment
As part of the petrographic study, an initial mineralogical
assessment report was carried out on samples of RC drilling chips
taken from four drill holes at Pitfield. Of these, three were
drilled at Mt Scratch in the northern part of the tenement and the
other hole was the most southern hole drilled on the Thomas
property (Figure 1).
Figure 1. Empire Elevated TiO(2) Soil Sample and Drill Collar Locations
The RC chip samples have all been interpreted to be weakly
metamorphosed sedimentary rocks (siltstones, sandstones and
conglomerates) containing quartz and feldspar as the dominant
components. All the samples contain various amounts of iron oxides,
iron-titanium oxides, chlorite, muscovite, epidote and carbonate
with minor to trace amounts of rutile, leucoxene, chalcopyrite,
apatite and tourmaline.
Importantly from an economic perspective, the dominant iron and
titanium oxide minerals, are hematite (Fe(2) O(3) ) and ilmenite
(FeTiO(3) ), with lesser rutile and leucoxene, also titanium oxide
minerals. Most importantly, only minor magnetite (Fe(3) O(4) ) was
identified within the samples. There is evidence of some trace
amounts of titanomagnetite, but the vast majority of the iron oxide
and iron-titanium oxide minerals are hematite and ilmenite
respectively. This has significant economic implications as
titanomagnetite can be very difficult to process, unlike
hemo-ilmenite which is currently processed by Rio Tinto at its
70-year-old RTIT Quebec Operations in Quebec, Canada. Additional
sampling and detailed mineralogical work is needed to determine if
hemo-ilmenite is an important mineral at Pitfield.
The petrographic study clearly supports field evidence
indicating that the iron-titanium mineralisation at Pitfield is
hydrothermal in origin and hosted by altered, clastic sedimentary
rocks, and so is neither a palaeoplacer Heavy Mineral ('HM') Sands
type deposit nor an igneous intrusive-hosted "hard-rock" type
titanium deposit. Pitfield appears to belong to a new class of soft
sedimentary rock type titanium deposits that are stratabound and
hosted within a layered succession of clastic sedimentary beds.
3D Magnetics Model
A 3-Dimensional Magnetic Susceptibility Inversion ("MSI") model
has been created utilising the data from the regional magnetics
survey carried out historically by the Geological Survey of Western
Australia (GSWA). A threshold magnetic susceptibility value of
0.005 SI was used to create the MSI isoshell shown in red in
Figures 2 and 3, which encapsulates magnetic susceptibility values
ranging up to 6.6552 SI. The model highlights the depth extent and
continuity of the 30km long core body of this massive regional
magnetics anomaly at Pitfield, mapping the depth to at least 6km
below surface, the extent to which the data has been modelled.
Figure 2. Magnetics Susceptibility Inversion Model - Plan View
Figure 3. Magnetics Susceptibility Inversion Model - Long Section
From a geological viewpoint the magnetics model closely matches
the interpreted structure and stratigraphy at Pitfield, where deep,
northwest striking, sub-vertical structures define the sharp,
western margin of the Yandanooka Basin and 50-80deg easterly
dipping strata define the eastern side of the Basin,
Historical surface sediment sampling (stream sediments, soil and
auger samples) by Conzinc Riotinto of Australia ('CRA') shows
TiO(2) enrichment (greater than 1% TiO(2) ) over virtually the
entire 40km length of the regional magnetics anomaly (announced 3
July 2023). The area of potential high-grade TiO(2) mineralisation,
confirmed by drilling in the immediate vicinity of Mt Scratch, has
been extended from 3km(2) to more than 50km(2) . There is also,
potentially, a similar high-grade area (covering 50km(2) ) to the
east of the historical Baxter's Mine, lying 20km south of Mt
Scratch. These large TiO(2) enriched areas are both completely open
to other parts of the 40km by 8km magnetics anomaly (refer Figure
1).
Mineral Sands History in the Region
Whilst the Pitfield titanium discovery is not a palaeoplacer HM
Sands deposit, there are multiple known HM Sands resources within
the Eneabba Region of the Perth Basin, some lying alongside the
Western margin of the Yandanooka Basin.
In August 2011, Sheffield Resources ("Sheffield") announced a
maiden Resource estimate for the Yandanooka HM Sands project, which
lies a few kilometres west of the Pitfield tenements, of 1.84
million tonnes of contained heavy mineral (71.75Mt @ 2.6% HM in
Indicated and Inferred categories).
The Yandanooka deposit was previously explored by RGC Ltd during
the late 1980s and by Iluka Resources Ltd between 2003 and 2006.
Both companies completed broadly spaced drill traverses across the
deposit.
The deposit is 5km long by 1.7km wide, between 2m and 20m thick,
and is interpreted to be a dunal-style HM Sands deposit situated
along an Eocene palaeo-shoreline.
Given the HM deposit's close proximity there is considerable
likelihood that the titanium bearing minerals, specifically the
ilmenite and rutile, were sourced through westward erosion of the
primary stratabound titanium deposit at Pitfield. Previous mineral
assemblage work carried out initially by Iluka Resources and
subsequently by Sheffield, identified high-quality ilmenite
(>55% TiO(2) ) and rutile (>95% TiO(2) ) which augurs well
for the quality of the titanium mineralisation at Pitfield.
Future Work
The maiden drill campaign consisted of only 21 RC drill holes
totalling 3,206 metres, with the first 18 holes focused near the
old Mt Scratch workings to the north and the final three holes
spread evenly across a 30km distance to the south. Future drill
programmes, including both diamond core and additional RC drilling,
will be carried out along the entire length of the magnetics
anomaly to confirm the scale of this giant, titanium-enriched
mineral system and to also understand the distribution of key
factors better, such as grade, mineralogy, thickness and extent of
mineralised beds and controls on high-grade TiO(2)
mineralisation.
Future mapping, geophysics (including airborne gravity and
additional IP/resistivity) and geochemical sampling will focus on
defining the structural and stratigraphic architecture of the
Yandanooka Basin and which parts of this giant mineral system are
most prospective for follow up drill testing.
TiO2 Industry and Market Demand
Titanium minerals are highly valued as a source for titanium
oxide ("TiO(2) "), a high growth commodity used primarily as an
input into the process of the manufacture of pigments which are
used in the production of paints, paper and plastics. Titanium as a
metal alloy is known for its properties of low density (light
weight), high strength and rust-resistance, making it a key
component for the automotive industry with the rapid growth in
demand for light weight, fuel efficient vehicles.
Use in pigment manufacture accounts for approximately 90% of
total global demand for titanium feedstocks. Titanium metal and
welding flux cord wire jointly account for the remaining 10%
demand.
TiO(2) is generally mined as ilmenite, typically either from
hard rock deposits or from beach sand operations. Titanium dioxide
feedstocks are graded by their titanium dioxide content, which
ranges from approximately 50% (sulphate ilmenite) to 95% (natural
rutile). These feedstocks are sold as either "unprocessed"
(chloride or sulphate ilmenite) or as "processed" (sulphate or
chloride slag) where the source material (ilmenite) has been
upgraded to increase the concentration of TiO(2) in the
feedstock.
A schematic of the titanium market is laid out in Figure 4
below.
Figure 4. Titanium Market Products and Feedstocks.(1)
Pigments are essential to the manufacture of a wide range of
consumer products. Pigments are found in products with high quality
finishes, in plastics and paper and in foods and pharmaceuticals.
As disposable incomes have increased the demand for these consumer
products has increased.
The global titanium market size has been estimated to be worth
circa USD 26 billion in 2022 and is forecast to reach USD 36
billion by 2028, with a CAGR of 5.5% during the period of
review.(2)
Titanium minerals are regarded as a "critical" resource and
titanium is on the strategic "critical minerals list" in many
countries including the United States, the European Union, Japan
and Australia.
1. Source Iluka Resources Ltd website
2. Source www.marketwatch.com/press-release/titanium-market-insights-2030-2023-06-19
Competent Person Statement
The technical information in this report that relates to the
Pitfield Project has been compiled by Mr Andrew Faragher, an
employee of Eclipse Exploration Pty Ltd, a wholly owned subsidiary
of Empire. Mr Faragher is a Member of the Australian Institute of
Mining and Metallurgy. Mr Faragher 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 Faragher 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:
Empire Metals Ltd
Shaun Bunn / Greg Kuenzel Tel: 020 4583 1440
S. P. Angel Corporate Finance LLP Tel: 020 3470 0470
(Nomad & Broker)
Ewan Leggat / Adam Cowl
---------------------
Shard Capital Partners LLP (Joint Tel: 020 7186 9950
Broker)
Damon Heath
---------------------
St Brides Partners Ltd (Financial Tel: 020 7236 1177
PR)
Susie Geliher / Ana Ribeiro
---------------------
About Empire Metals Limited
Empire Metals is an AIM-listed (LON: EEE) exploration and
resource development company with a project portfolio comprising
copper, titanium and gold interests in Australia and Austria.
The Company's strategy is to develop a pipeline of projects at
different stages in the development curve. Its current focus is on
the Pitfield Project in Western Australia, which has demonstrated
strong potential to be a new "Giant" mineral-rich system. The
Company is also advancing the Eclipse-Gindalbie Project in Western
Australia, which is prospective for high-grade gold and also
kaolin, which is used extensively in a number of industries and is
considered to be a desirable feedstock for the production of
high-purity alumina - an essential component in lithium-ion
batteries.
The Company also has two further exploration projects in
Australia; the Walton Project in Western Australia, and the Stavely
Project in the Stavely Arc region of Victoria, in addition to three
precious metals projects located in a historically high-grade gold
production region in central-southern Austria.
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