TIDMATN
RNS Number : 3432Q
Aterian PLC
20 February 2023
20 February 2023
Operational Update
Exploration, Trading and ESG in Rwanda
Mineralised pegmatite identified across 22 zones on southern
Rwandan projects
Mr. Godfrey Kamanzi recruited to lead Rwandan metal trading
business
Partnership negotiations underway with artisanal miners
Aterian Plc
(" Aterian " or the " Company")
Aterian Plc (LSE: ATN), the exploration and development company
advancing its portfolio of African-focused critical and strategic
metal assets, provides an operational update on its work streams in
the Republic of Rwanda.
Highlights:
-- 22 zones of potentially mineralised pegmatite have been
identified over the southern projects, confirming the presence of a
swarm of rare-metal hosting targets for future exploration and
evaluation.
o Fieldwork over the HCK-1 zone indicates a strike length of c
2,500 m with widths up to 100 m, in places.
o Multi-method geophysical survey currently underway in
preparation for the preliminary scout drilling programme to
commence in Q2 2023.
o Prospective HCK-1 targets include tantalum, niobium, tin,
tungsten, and lithium.
-- Mr. Godfrey Kamanzi has joined as head of Aterian's Rwandan
metal trading business. Mr Kamanzi has extensive experience in the
Rwandan minerals sector where he previously worked with RCS, the
RMB, and multiple mining companies managing tagging and
traceability programmes.
-- Partnership discussions have begun with several artisanal
mining parties to improve artisanal mining productivity through
mechanisation, and to provide material to the Company's metal
trading business.
-- 1Villager.com, an online stakeholder management tool, has
been engaged to support Whistleblower management, social license
reporting, and stakeholder engagement, as part of the ongoing
obligation by the Company to ethical supply chain management as a
member of the ITSCI Programme for Responsible Mineral Supply Chains
compliance
Charles Bray, Chairman of Aterian, commented:
"We are excited to have begun the geophysical survey work on the
HCK project in Rwanda with initial fieldwork having confirmed the
presence of 22 pegmatite zones across the southern projects. We
will look to progress the project with bulk sampling for initial
metallurgical test work and scout drilling on the HCK-1 prospect in
the near term.
Work is now well advanced building a metal trading business
based in Rwanda and aligned to Rwanda's long-term mining sector
objectives of improved mining and metal recovery efficiencies. Key
hires have been made to lead the business and to ensure
traceability compliance. ITSCI membership demonstrates our
compliance with internationally recognised standards of sustainable
supply chains. Working in partnership with existing artisanal
producers in Rwanda we expect to deliver substantial productivity
gains that will benefit local communities as well as deliver
increased material for our trading business.
Aterian is committed to its ESG responsibilities including
respecting human rights and the avoidance of making any
contribution to conflict through our mineral purchasing decisions
and practices. Utilising the OECD due diligence guidelines and
supported by our ITSCI membership our mineral trading business will
be compliant with international standards and work in synergy with
our exploration business. Our joint-venture relationships will
produce mineral ores and generate revenue that supports our
investment in exploration. A key strategic component of our Rwandan
strategy has been to build a critical metals business with
exploration options funded internally."
Projects Summary:
The Company's wholly owned Rwandan subsidiary, Eastinco Limited
("Eastinco"), is currently engaged in an initial 3 partnerships
within Rwanda with local entities to explore and develop tantalum,
niobium, tin, and lithium opportunities. Eastinco holds a Trading
Licence, which will also facilitate the trading of metal
concentrates within the region.
HCK and Dynasty Joint Ventures (collectively the "Southern
Projects")
Prospecting over the HCK licence has identified 18 zones of
potentially tantalum and niobium hosting pegmatite, frequently with
multiple pegmatite dykes observed at most locations. A total of 22
target pegmatite zones have now been discovered on the combined S
outhern Projects , making this a strong exploration play.
Recent w ork has focussed on the HCK-1 prospect, which follows a
prominent northwest-trending ridgeline. A total of 67 vertical
exploration pits (with a cumulative depth of 422 m) have been
completed, to test the strike extension and obtain samples from
both the known areas of mineralisation and potential strike
extensions. 30 of these pits intersected pegmatite with 15 pits
abandoned when the ground encountered was too resistant to manually
excavate. 22 pits did not intersect pegmatite. Field observations
indicate the strike of the HCK-1 target extends for at least 2,500
m. The width of the target zone is uncertain but in several
locations along NE-SW orientated pit section profiles, pegmatite is
intersected over a horizontal distance of c.100 m. 32 rock chip
samples were collected and submitted to an external international
laboratory for geochemical analysis. Approximately 100 kg of
pegmatite was collected, when intersected in a pit, which was then
reduced in volume and weight by cone-and-quartering to produce a 3
kg sample for analysis.
A positive outcome from the pitting is that 800 m of the
identified pegmatite strike continuation occurs in a "greenfield"
environment to the southeast of the main ridgeline hosting HCK-1.
This can be described simply as an area where there are no observed
artisanal workings, pegmatite outcrop , or surface expressions. The
bodies remain blind to the surface covered by soil and regolith of
variable thickness up to 4.50 m. A drone survey has been flown over
HCK-1, covering an area of 360 hectares, to provide detailed
imagery with topographic data and a current view of the earlier
artisanal workings.
A detailed ground-based geophysical survey over HCK-1 is
currently in progress. The multi-method survey of Induced
Polarisation ("IP"), Electrical Resistivity Tomography ("ERT"), and
ground magnetics is designed to provide additional information that
will allow for a determination of the geological contacts of the
main pegmatite with the schistose country rock, controlling
geological structures and an approximation of the depth of
weathering. Scout drilling will be planned based on the outcome of
this work and will provide an opportunity to test the fresh bedrock
for the lithium potential. It is inferred that lithium has been
leached out of the upper weathered, kaolinised portions of the
pegmatite and may occur within the deeper, fresh bedrock.
Musasa Project
Recent work on the project has been limited to geological
reconnaissance and the completion of the Kassava prospect
exploration pitting programme. Kassava is one of the five
identified mineralized pegmatite targets occurring on the project
and follows a southeast-trending ridge. H istoric artisanal miners
have excavated a 20 m x 30 m wide cut in the ridge to a depth of c.
13 m, close to the centre of the prospect.
66 shallow vertical pits have been manually excavated, for a
cumulative depth of 337 m, to define the contacts of the pegmatite,
with 41 of the pits intersecting pegmatite with samples collected
and shipped to an external international laboratory for geochemical
analysis. Field observations indicate Kassava to be a lens-shaped
body, with a maximum horizontal width of 80 m, with the pits
covering a strike length of 250 m.
The licence application to extend and secure the long-term
tenure at Musasa over an area of c. 400 hectares remains pending
with the Government of Rwanda. We will be working closely with the
Rwanda Mines and Petroleum Board ("RMB") to accelerate the grant of
the licence. This application may entail a change in the working
relationship with our partner, Kuaka Cooperative. No further
improvements to the wash plant and metallurgical testing are
anticipated until the new licence application is granted.
Metal Trading
The trading business is being developed, under the supervision
of Mr. Luke Rogers (Aterian COO) and is built on local partnerships
aligned with Rwanda's long-term mining development goals. Rwanda
exports approximately 16% of the global tantalum market, with
Kigali a central hub for tin, tungsten & tantalum (the "3Ts")
trade within the region. Establishing a trading division will
provide for additional value to be earned by Aterian from the 3Ts
within the Great Lakes Region.
Aterian, through Eastinco, holds a Rwandan metal Trading License
allowing it to purchase concentrates from third parties and export
directly to refiners or sell to other international trading houses.
The Company is negotiating a trade finance partnership and credit
facility, to support the growth of this part of the business and
which involves no dilution to shareholders. It is also in advanced
discussions with a major metal refinery to process concentrates. A
process is well underway to recruit additional team members with
trading, traceability, and technical experience.
The Company has secured premises in the heart of Kigali's
mineral trading district and Mr. Godfrey Kamanzi has been recruited
to lead the local trading business. Godfrey has extensive
experience in the Rwandan minerals sector where he has previously
worked with RCS, the RMB, and multiple mining companies managing
tagging and traceability programmes. His extensive knowledge of
mineral producers in the region and experience in OECD-compliant
mineral supply chains makes him an excellent addition to the
team.
The Company will begin to move its laboratory and upgrading
equipment to the new site in Kigali in March and procurement has
started for the materials and additional equipment required for
substantial trading and export activities. Current pricing is
attractive with Ta(2) O(5) prices in Kigali reported at c$220,000
per tonne. Typically concentrates grade 25% Ta(2) O(5) resulting in
concentrates valued at c$55,000 per tonne, at today's prices.
Potential New Projects
Following multiple mine site visits and a review of business
opportunities concluded in December 2022 and January 2023, the
Company's focus is on the potential for upskilling of local
technicians and the opportunity of selected small-scale capital
investments in partners' operations to drive significant
improvement in mineral extraction in Rwanda.
ESG
As part of the Company's expanding ESG programme, in January we
delivered the construction materials for a water supply project at
the Rugarama Primary School adjacent to our HCK project. The team
is now on site and the installation project is expected to be
completed during the first week of March. The water tank was
requested by the school to capture fresh rainwater which will be
used in the school kitchen.
Additionally, the Company has recently engaged with 1Villager
(www.1villager.com). 1Villager offers a science and AI-driven SaaS
platform providing for business Whistleblower management and social
license reporting and stakeholder engagement. 1Villager's mission
is to help companies prevent headline risks, achieve ESG
compliance, and improve stakeholder welfare.
The Company has recently hosted a party of students from the
Department of Geology at the University of Rwanda on the HCK
project to observe and study the geophysical survey, which is
currently in progress.
These projects demonstrate our ongoing commitment to working
with local communities to develop projects which improve the lives
of people in that community, and specifically our commitment to
investing in education. We aim to work with our local communities
to help drive long-term improvements in the lives of people living
around the Company's operations.
Illustrations
The following images have been prepared by Aterian and relate to
the disclosures in this announcement.
Qualified Person
The technical disclosure in this regulatory announcement has
been approved by Simon Rollason, Chief Executive Officer of Aterian
Plc. A graduate of the University of the Witwatersrand in Geology
(Hons). He is a Member of the Institute of Materials, Minerals and
Mining, with over 30 years of experience in mineral exploration and
mining.
-S -
This announcement contains information which, prior to its
disclosure, was inside information as stipulated under Regulation
11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310
(as amended).
For further information, please visit the Company's website:
www.aterianplc.com or contact:
Aterian Plc:
Charles Bray, Executive Chairman -
charles.bray@aterianplc.com
Simon Rollason, Director - simon.rollason@aterianplc.com
Financial Adviser and Broker:
Novum Securities Limited
David Coffman / George Duxberry
Colin Rowbury
Tel: +44 (0)207 399 9400
Financial PR:
Yellow Jersey PR - aterian@yellowjerseypr.com
Tom Randell / Bessie Elliot
Tel: +44 (0)20 3004 9512
Notes to Editors:
About Aterian plc
www.aterianplc.com
Aterian plc is an exploration and development company with a
diversified portfolio in Africa of critical and strategic metals
projects.
Aterian plc is actively seeking to acquire and develop new
critical and strategic metal resources to strengthen its existing
asset base, whilst supporting ethical and sustainable supply
chains. The supply of these metals is vital for the development of
the renewable energy, automotive, and electronic manufacturing
sectors that are playing an increasing role in reducing carbon
emissions and meeting climate ambitions globally.
The Company currently has three partnerships in Rwanda where it
is exploring and developing small-scale tantalum-niobium-tin mining
opportunities and recently acquired Aterian Resources Ltd, a wholly
owned and battery metals-focused subsidiary of Elemental Altus
Royalties Corp (formerly Altus Strategies plc). Aterian owns a
portfolio of 15 copper and silver projects with a project area of
762 km(2) in the Kingdom of Morocco.
The Company's strategy is to seek new exploration and production
opportunities across the African continent and to develop new
sources of strategic and critical mineral assets for exploration,
development, and trading.
Summary information on Rwandan Projects
HCK Joint Venture
Eastinco has a Joint Venture Agreement and Operating Agreement
("Agreement") with HCK Mining Limited, a private non-related Rwanda
registered entity and the holder of a 2,750-hectare exploration
licence in southern Rwanda. Eastinco will fund and manage the
exploration activities over the project and will retain a 70% share
in the net operating profits with the right to purchase 100% of the
Ta-Nb-Sn from any future production.
Dynasty Construction Joint Venture
Eastinco entered a Joint Venture Agreement and Operating
Agreement ("Agreement") with Dynasty Construction Ltd, a private
non-related Rwanda registered entity and the holder of a
400-hectare exploration licence in the Huye District of southern
Rwanda. A renewal of the exploration licence is pending approval
with the Rwanda Government. Eastinco holds a 50% interest in the
proposed joint venture company, with Eastinco and Dynasty to
provide future capital expenditure in proportion with their
shareholding at the time of any potential future mine build.
Musasa Joint Venture
A Joint Venture and Operating Agreement ("Agreement") with the
Kuaka Cooperative ("Kuaka"), the holder of a small-scale mining
licence in western Rwanda. An application for a new, larger
400-hectare mining licence, in the name of the joint venture
company, Musasa Mining Limited, is pending approval with the Rwanda
Government. Eastinco will retain an 85% interest in the joint
venture company holding the new licence, with the right to purchase
100% of the Ta-Nb-Sn from any future production.
Glossary of Terms
The following is a glossary of technical terms:
"3Ts" means Tin (cassiterite), Tungsten (wolframite),
and Tantalum (coltan)
"Coltan" means a metallic ore from which the elements niobium
and tantalum are extracted
"Dyke" means a sheet of rock that is formed in a fracture
of a pre-existing rock body
"ERT" means Electrical Resistivity Tomography. A geophysical
method for imaging sub-surface structures
from electrical resistivity measurements
made on the surface
"Grades" means the quantity of ore or metal in a specified
quantity of rock
"Gradient array" means geophysical mapping tool providing information
about the subsurface, in the interval from
a particular depth to the surface. The results
are typically maps of the apparent resistivity
and chargeability
"IP" means Induced Polarisation
"IP Survey" means a geophysical survey technique where electrodes
induce and measure a potential field in the
ground. From this data, the soil chargeability
and apparent resistivity can be measured
"km" means kilometers
"Ma" means Mega-annum which is equal to one million
years
" Magnetic survey" means a survey mapping the magnetism of the underlying
rock and is used to understand the general
structure of these rocks
"mm" means millimeters
"Mt" means millions of tonnes
"NI 43-01" means National Instrument 43-101 Standards of Disclosure
of Mineral Projects of the Canadian Securities
Administrators
"Niobium" means a chemical element with the chemical symbol
Nb, that is very resistant to corrosion due
to a layer of oxide on its surface. Niobium
is used in alloys including stainless steel
"Outcrop" means a rock formation that is visible on the surface
"Pegmatite" means an igneous rock showing a very coarse texture,
with large interlocking crystals usually
greater in size than 1 cm (0.4 in) and sometimes
greater than 1 meter (3 ft). Most pegmatites
are composed of quartz, feldspar, and mica,
having a similar silicic composition to granite
"ppm" means Parts per million (equivalent to g/t)
"Prospect" means an area that is a potential site of mineral
deposits, based on preliminary exploration
"Schist" means a medium-grained strongly foliated crystalline
metamorphic rock
"Sn" means tin
"Tantalum" means a chemical element with the symbol Ta, typically
found in the ore columbite-tantalite (usually
referred to as coltan) and characterised
by its high density. One of the main uses
of tantalum is in the production of electronic
components
"QA/QC" means Quality Assurance/Quality Control
"Qualified Person" means a person that has the education, skills,
and professional credentials to act as a
qualified person under NI 43-101
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