NEWS RELEASE 2 August
2024
GREENX TO
ACQUIRE LARGE SCALE SEDIMENT-HOSTED COPPER PROJECT IN CENTRAL
GERMANY
GreenX Metals Limited ("GreenX" or "Company") is pleased to advise that it
has entered into an Earn-in Agreement through which GreenX can earn
a 90% interest in Group 11 Exploration GmbH, a private German
company which holds the Tannenberg exploration licence
("Project") and
is highly prospective for sediment-hosted
(Kupferschiefer type) copper deposits.
The Project
· The
Tannenberg exploration licence covers 272 km2 in the
State of Hesse in central Germany, encompassing the historical
"Richelsdorf" copper - silver mines.
· Prior
to closure in the 1950's, the Richelsdorf mines produced 416,500 t
of copper and 33.7 Moz of silver from Kupferschiefer type deposits.
These historic mines consisted of shallow underground workings
originally accessed from surface outcrops.
· The
Project also contains multiple drill intercepts over the high
priority 14 km-long Richelsdorf Dome target, including:
o 2.1
m at 2.7% Cu and 48g/t Ag from 365.48 m; 1.5 m at 3.7% Cu and 33
g/t Ag from 209.50 m; 2.5 m at 1.8% Cu and 19 g/t Ag from 339.5 m
in the southwest of the license area.
o 2.0
m at 1.6% Cu and 19 g/t Ag from 268 m in the north-east of the
license area.
Figure 1: The Project is
located in the industrial centre of Europe.
· Kupferschiefer style deposits are a well-known and prolific
subtype of sediment-hosted copper deposit that:
o are
the second most prevalent source of copper production and reserves
in the world; and
o have
been historically mined in Germany and are still mined in Poland
where KGHM produced 592 kt of electrolytic copper in
2023.
· Excellent potential for new discoveries of shallow (50 m to
500 m), large scale and high grade Kupferschiefer style copper and
silver mineralisation, with much of licence area remaining untested
by modern exploration whereby thicker sections of footwall/ hanging
wall mineralisation will be targeted.
· Modern
understanding of Kupferschiefer mineralisation from prolific mining
in Poland places new emphasis on hanging wall and footwall
mineralisation, structural controls and metal zonation.
o In
Polish Kupferschiefer mines, mineralisation typically forms within
the Kupferschiefer shale and in strata up to 60 m below and 30 m
above the shale. E.g., KGHM's Rudna Mine in Poland, where footwall
sandstone hosts 80% of the total copper resource, hanging wall
limestone hosts 15%, and Kupferschiefer shale hosts only
5%.
GERMANY & EU MINING INDUSTRY
· Germany has been a significant mining jurisdiction in the past
and continues its mining tradition, including:
o The
K+S potash mines which operate 4 km away from the license area and
are located in the State of Hesse.
o Anglo American are actively exploring the Löwenstern and
Leine-Kupfer copper projects nearby. Löwenstern is 25 km away to
the south in the German state of Thüringia, where drilling
targeting the Kupferschiefer commenced in 2023. Leine-Kupfer was
granted in January 2024 and is 60 km away to the north in the state
of Lower Saxony.
o AMG
Graphite operates a graphite mining and processing complex at
Kropfmühl near Passau, Bavaria
o Vulcan Energy is successfully permitting lithium brine and
geothermal power projects in the German states of Rheinland-Pfalz,
Baden-Württemberg, and Hesse.
· Copper
is a designated a Strategic Raw Material ("SRM") under the EU's Critical Raw
Material Act, that entered into force on 23 May 2024. The CRMA
signals the EU's political commitment to strengthen EU supply of
SRM's (including copper) by giving the European Commission the
power to designate Strategic Projects that will benefit from easier
access to financing, expedited permitting processes and matchmaking
with off-takers.
· The
manufacturing sector, including the automotive, mechanical
engineering, chemical and electrical industries, accounts for over
25% of Germany's economic output, and 18% of GDP; these figures are
significantly higher than in most other advanced
economies
o The
manufacturing sector provides 16% of national employment, some 8
million jobs, with mechanical engineering being the largest segment
and dominated by SMEs.
o The
automotive sector is a key industry and with around four million
automobiles produced in 2023. Electric Vehicles are being adopted
in Germany with numerous OEM's investing in new production
facilities and supply chains, such as Volkswagen's Battery and
Electric Drive production facilities and Tesla's Berlin
Gigafactory.
o Many
of these industries are reliant on critical raw materials such as
copper.
· German
government recently announced creation of a EUR 1.1 billion (A$1.8
billion) investment fund to fortify Germany's access to SRM's
(including copper) essential for high-tech and green projects. The
fund will be managed by the state-owned KfW Development
Bank.
GreenX Metals' Chief Executive Officer, Mr Ben Stoikovich,
commented:
"We are very excited to be adding the Tannenberg project
to our exploration portfolio. Kupferschiefer style
deposits are widely acknowledged as the most prolific source of
modern-day copper production, with copper mining from the Polish
Kupferschiefer deposits (KGHM) presently being Europe's largest
domestic source of strategic copper supply.
We believe that
Tanneberg has the potential to host large scale and high-grade
copper deposits located in the heartland of German industry in the
vicinity of major OEM's such as Volkswagen's Battery and Electric
Drive production facilities and Tesla's Berlin
Gigafactory.
Copper is officially recognised by the EU as a strategic raw
material for European industry and ongoing decarbonisation in
Europe. This acquisition comes at a time when the German government
and the EU have recently announced major policy initiatives to
enhance security of supply of strategic raw materials such as
copper by facilitating expedited permitting processes and access to
project development funding. Germany, and in particular the State
of Hesse, has a well-established mining industry with practical and
efficient mine permitting processes. Furthermore, we anticipate
increased political support for new copper projects in accordance
with Germany's Federal Ministry of Economic Affairs and Climate
Action critical raw materials policies and the EU's newly
introduced Critical Raw Material Act.
Tannenberg is complementary to our Arctic Rift Copper project
in Greenland and provides GreenX shareholders with enhanced
exposure to strategic raw materials that are now a policy priority
in both Germany and the wider EU. We are looking forward to
updating shareholders over the coming months as we commence our
exploration activities in Germany."
Classification: 2.2 Inside
Information
2.5 Total number of voting rights and
capital
ENQUIRIES
Ben Stoikovich
Chief Executive Officer
+44 207 478 3900
|
Sapan Ghai
Business Development
+44 207 478 3900
|
SUMMARY OF TERMS
GreenX has entered into an Earn-in
Agreement ("Agreement")
through which GreenX can earn a 90% interest in Group 11
Exploration GmbH ("Group
11"). Key terms of the Agreement are as follows:
· GreenX
to issue the vendor 500,000 fully paid ordinary shares
("Shares")
upfront.
· GreenX
will fund a Work Program up to EUR 500,000 by 31 December 2025
("Minimum Commitment"). The
Work Program will be sufficient to satisfy requirements for the
grant of an extension of the exploration license.
· Once
the Minimum Commitment has been discharged, GreenX can elect to
acquire 90% of the fully diluted share capital of Group 11 on or
before 31 December 2025 in return for:
o GreenX paying A$3,000,000 to the vendor in Shares (based on
the higher of the 10-day VWAP or A$0.30 per Share).
o The
vendors' 10% interest in Group 11 will then be free carried until
completion of a feasibility study by Group 11 or GreenX.
o The
Agreement also includes usual drag along and tag along rights, and
an Area of Influence provision.
o Once
GreenX has earned its 90% interest, the vendor may elect to
exchange their remaining 10% interest in return for a 0.5% Net
Smelter Royalty.
· If a
Scoping Study is published by GreenX on the ASX regarding the
license area or any area within the Area of Influence within 5
years of execution of the Agreement, GreenX will issue the vendor 5
million Shares on the completion of the first such Scoping
Study.
· GreenX
will act as the project manager.
Project Geology
Historical drilling and mine
workings confirm the widespread presence of the crucial
Kupferschiefer sequence within the Tannenberg licence (Figure 2).
The sedimentary sequence forms a broad dome that outcrops near the
centre of the licence area and extends down to approximately 500 m
at the periphery (Figure 3). Regional and small-scale faults cut
the licence area with the dominant orientation trending
northwest-southeast, perpendicular to the Variscan Orogen. Zones of
copper enrichment within the licence area correspond to fault
intersections. Structure is a key targeting consideration at the
Project.
Figure 2: The Kupferschiefer is
gently folded to form the Richelsdorf Dome that extends from
surface down to 500 m depth within the licence area. Historical
mining around Richelsdorf exploited mineralisation near the
surface. Historical drilling intercepted mineralised Kupferschiefer
down to 436 m. Much of the Kupferschiefer between 50 to 500 m
remains untested.
Figure 3: Interpreted
cross-section through Tannenberg exploration licence with
simplified stratigraphy. The historical Richelsdorf District is
located at the apex of a large-scale anticline, the Richelsdorf
Dome. The approximate extent of historical mining is shown. The
cross-section passes between drill holes Ro23 and Ro45.
In the south of the licence area
near the town of Ronshausen, drill holes intersected mineralised
Kupferschiefer sequence at depths ranging from 211 to 368 m below
the surface (e.g., Ro18 and Ro23). Near the town of Nentershausen
in the north, an isolated drill hole intersected 2 m at 1.6% Cu
(Ro45).
Table 1:
Selected Drill
Holes.
Locality
|
Hole ID
|
Intersect
(m)
|
Cu (%)
|
|
|
From
|
To
|
Interval
|
|
Ronshausen
|
Ro23
|
365.48
|
367.58
|
2.10
|
2.7
|
Ro18
|
209.50
|
211.00
|
1.50
|
3.7
|
Ro19
|
339.50
|
342.00
|
2.50
|
1.7
|
Ro15
|
285.86
|
289.31
|
3.45
|
1.0
|
Nentershausen
|
Ro45
|
268.00
|
269.63
|
2.00
|
1.6
|
Historical exploration and sampling
might have been too focussed on the Kupferschiefer shale horizon.
For example, in Ro45, the isolated drill hit near Nentershausen,
the last sample from the footwall assayed at 1% Cu (Figure 4). In
bothRo45 and Ro23 shown in Figure 4, the historical sampling only
covers one mineralised interval. Drilling at the Rudna Mining in
Poland shows that copper mineralisation can occur in multiple
intervals, above and below the Kupferschiefer
shale.
Figure 4: Selected historical
drill results from the Richelsdorf Dome target with comparison to
drilling at the Rudna Mine, Poland. Sample coverage did not
typically extend much above or below the shale
unit.
Kupferschiefer copper deposits
feature a distinct metal zonation pattern. The zonation transitions
from iron, to copper, lead then zinc (Figure 5). Adjacent to every
known copper deposit is the iron rich zone known as "Rote Fäule",
or "red rot" in English. Within the Tannenberg licence, a distinct
zone of red rot has been identified in the south near Ronshausen.
As well as the copper, historical drill core was also assayed for
lead and zinc. This data will allow the Company to identify
important metal zonations in the Project
area.
Figure 5: Metal zonation
pattern associated with Kupferschiefer type copper deposits. The
zonation cuts across stratigraphy and progresses from iron to
copper, lead, then zinc. Note: hem = hematite, cc = chalcocite, bo
= bornite, cpy = chalcopyrite, ga = galena, sph = sphalerite, py =
pyrite. Modified from Borg, 2017.
|
GreenX's exploration hypothesis for
the Project is that historical exploration was mainly based on an
outdated deposit model that focussed on the 30-60 cm-thick
Kupferschiefer shale horizon. Modern understanding of the
Kupferschiefer deposit model now shows that up to 95% of mineable
copper can be hosted in the footwall sandstone and hanging wall
limestone.
Project History
Pre-industrial mining in central
Germany dates back to the 12th Century. Copper was
exploited from the Kupferschiefer in the Mansfield, Sangerhausen,
and Richelsdorf mining districts. Most of the historical copper
mining in central Germany was prior to the Industrial Revolution
and well-before mechanised mining technology was widely available.
Once surface accessible deposits were depleted, adits and shallow
shafts were used to access deeper underground Kupferschiefer copper
ores (Figure 6).
In the Richelsdorf district,
historical production is estimated at 416,500 t of copper and 1,050
t (33.7 Moz) of silver. Production commenced in the 13th
Century and ceased in 1955.
The Project area remains ostensibly
undeveloped, comprised predominantly of small-holding farmland and
woodland, since it was located in the Cold-War border zone between
West and East Germany. During the Cold War (1947-1991), the
Richelsdorf district sat within the strategically-important Fulda
Gap. The Fulda Gap hosts two lowland corridors through which NATO
military planners believed the Soviet Union could launch a land
attack. The US military observation post "Romeo" was active at the
Hesse-Thuringia border in the vicinity of the Project area during
the Cold War and was only disbanded in 1991.
Between 1980 and 1987, St Joes
Exploration GmbH ("St Joes
Exploration") were active in the region. St Joes
Exploration's drilling campaigns identified Kupferschiefer
mineralisation near the towns of Ronshausen and Nentershausen
(Appendix 1, Table 2).
The major mining activity in Hesse
is potash mining operated by K+S Group, an international fertiliser
company with production sites in Europe and North America. The
major potash mining complex "Werra" has been operating for over 100
years and produces some 19 Mtpa of crude salt from underground
workings between 700 - 1000m depth. K+S Group's Werra plant is
recognised as an important pillar for the economic and demographic
development of the region.
In 2021, Anglo American's 'Kupfer
Copper Germany GmbH' ("Anglo") began exploration activities in
Thuringia, 25 km from the Tannenberg licence. There, historical
drilling intercepted 0.5 m at 1.4% Cu from 761.9 m. Anglo initiated
seismic, gravity, and magnetic surveys in 2021 and exploratory
drilling in 2023.
Figure 6: Left: Underground
extraction of the Kupferschiefer shale at the Wolfsberg mine in
1954. Miners laid on their sides to excavate the ore-bearing
material. Right: Schematic
of pre-industrial underground mining in Germany.
Modified from Zientek et al.,
2015.
EU CrITICAl RAW MATERIAL ACT
On 23 May 2024, the EU's Critical
Raw Materials Act ("CRMA"),
published as Regulation (EU) 2024/1252, entered into force
following its adoption by the Council of the EU and European
Parliament. The main objective of the CRMA is to maintain and
establish a secure and sustainable supply of Critical Raw Materials
to the EU. The CRMA lists Strategic Raw Materials (SRM's), which
are those most crucial for strategic technologies used for the
green, digital, defence and aerospace applications. Copper is a
designated a Strategic Raw Material (SRM's) under the
act
The CRMA sets benchmarks for
domestic capacities along the strategic raw material supply chain
and for diversifying EU supply by 2030:
· EU
extraction capacity of at least 10% of the EU's annual consumption
of strategic raw materials;
· EU
processing capacity of at least 40% of the EU's annual consumption
of strategic raw materials;
· EU
recycling capacity of at least 25% of the EU's annual consumption
of strategic raw materials; and
· Not
more than 65% of the Union's annual consumption of each strategic
raw material relies on a single third country for any relevant
stage of the value chain.
The CRMA further demonstrates the
EU's political commitment to strengthening supply of SRM's
(including copper) by giving the European Commission the power to
designate Strategic Projects that will benefit from easier access
to financing, expedited permitting processes and matchmaking with
off-takers.
In terms of permitting processes,
under the CRMA EU Member States will be required to give priority
to Strategic Projects in their administrative processes. The Act
sets clear timelines for decisions to be taken on permitting
applications linked to Strategic Projects. i.e., for Strategic
Projects, the total duration of the permit granting process should
not exceed 27 months for extraction projects or 15 months for
processing and recycling projects.
To help companies through
permitting, Member States are also required to designate single
points of contact for critical raw materials projects. The single
point of contact will provide guidance to project promoters on
administrative issues and will serve as the sole contact point
throughout the permit granting process.
Exploration Targeting Model
The Project is prospective for
Kupferschiefer style copper-silver mineralisation. Kupferschiefer
is a subtype of the sediment-hosted copper deposit model.
Mineralisation typically forms around the Kupferschiefer shale, but
is known to occur up to 60 m below and 30 m above the shale in
Poland (Figure 7). In KGHM's Rudna Mine in Poland, footwall
sandstone hosts 80% of the total resource, hanging wall limestone
hosts 15%, and Kupferschiefer shale hosts only 5%. Modern insights
from mining the Kupferschiefer in Poland will be applied to our
exploration strategy in Germany.
Figure 7: Comparison of
current-day Kupferschiefer mining in Poland with historical mining
in Germany.
Note: Modified from Zientek et al.,
2015.
Historical mining and exploration in
Germany mainly focussed on the Kupferschiefer shale unit (Figure 6
& 7). The Company's exploration hypothesis is that as in
Poland, significant footwall and hanging wall accumulations of
Kupferschiefer copper are potentially present at the
Project.
The historical thinking about
Kupferschiefer deposits in Germany was that mineralisation was
syngenetic with the sediments. Meaning that the copper was
deposited at the same time as the shale. Accordingly, historical
mining and exploration was highly focussed on the shale. Modern
mining and research challenges the historical deposit model. In
Poland, copper is being mined up to 60 m below and 30 m above the
Kupferschiefer shale.
The modern understanding of
Kupferschiefer mineralisation recognises epigenetic deposition.
This means that the copper mineralisation came after the sediments
were deposited (Figure 8). Modern Kupferschiefer mining recognises
the importance of structures, metal zonation patterns, and footwall
and hanging wall host rocks.
Figure 8: Deposit model of
Kupferschiefer mineralisation and alteration. Note: Compared to
pre-industrial times, copper mineralisation is now known to extend
from the hanging wall limestone, through the Kupferschiefer shale,
and well into the footwall sandstone. Source: Zientek et al.,
2015.
Regional Geological Setting
The Project is hosted in the
Southern Permian Basin ("SPB") of Europe. The SPB is an
intracontinental basin that developed on the northern foreland of
the Variscan Orogen. Two Groups make up the SPB, the Rotliegend and
the Zechstein (Figure 9). The Lower Rotliegend Group marks the
boundary between the Permian and Carboniferous and is comprised of
bi-modal volcanics with interbedded sedimentary rocks. After a 20-
to 30-million-year-long- hiatus, the Upper Rotliegend Group was
deposited towards the end of the Permian. The Upper Rotliegend
Group strata transitions from terrestrial to a shallow marine
environment.
The Zechstein Group formed in the
late Permian when the Barents Sea flooded the continental SPB. The
organic-rich reduced Kupferschiefer shale marks the base of the
Zechstein Group. "Kupferschiefer" is German for "Copper Shale" and
is also called "T1" by geologists. The shale is typically 30-60 cm
thick but can also be missing from the stratigraphy.
Very high-grade copper
mineralisation is generally associated with the Kupferschiefer
shale unit. However, minable copper mineralisation also occurs in
the footwall sandstone and hanging wall limestone units in Poland.
Mineralisation can also be offset from the shale by up to 30 m
above and 60 m below. Pre-industrial mining in Germany focussed on
the high-grade but thin shale. Modern mining in Poland extracts
copper from the footwall sandstone, shale, and hanging wall
limestone. Mining intervals at the Rudna mine is 3 m on average but
reach over 12 m in places.
Figure 9: Generalised
Kupferschiefer stratigraphic sequence from Germany and Poland.
Mineralisation can extend below and above the T1 shale. Source:
Borg, 2017.
In Poland, copper deposits are
hosted in the Fore-Sudetic Monocline, a sub-basin of the SPB.
KGHM's current mining operations take place over multiple adjacent
deposits at depths ranging from 844 m to 1,385 m below ground. In
2023, KGHM's Polish operations produced 592 kt of electrolytic
copper and 1,403 t of silver (45.8 Moz).
Upcoming Work Programs
Future work programs at the Project
will aid drill targeting. Initially, an in-country search for
additional historical drilling and mining records will be
undertaken. Geophysical methods such as seismic and magnetic
surveys will be evaluated for their effectiveness in delineating
subsurface structures at the high-priority Richelsdorf Dome target.
Historical drill assays will be used to identify metal zonation
patterns useful for exploration targeting. The area of primary
interest covers 14 km-long stretch of the Richelsdorf Dome where
Kupferschiefer strata outcrop at surface in the centre and extend
down to approximately 500 m at the periphery.
A European based technical team will
be assembled to manage exploration activities at the
Project.
Risk Factors
Whilst GreenX has undertaken a due
diligence process (including title and other risks) with respect to
the Project, it should be noted that the usual risks associated
with companies undertaking exploration and development activities
of projects in Germany will remain at completion of the
acquisition.
A number of additional risk factors
specific to the Project and associated activities have also been
identified, including, but not limited to:
(a) The Project is
located in Germany, and as such, the operations of the Company will
be exposed to related risks and uncertainties associated with the
country, regional and local jurisdictions. Opposition to the
Project, or changes in local community support for the Project,
along with any changes in mining or investment policies or in
political attitude in Germany and, in particular to the mining,
processing or use of copper, may adversely affect the operations,
delay or impact the approval process or conditions imposed,
increase exploration and development costs, or reduce profitability
of the Company.
(b) The Company's
exploration and any future mining activities are dependent upon the
grant, maintenance and/or renewal from time to time of the
appropriate title interests, licences, concessions, leases, claims,
permits and regulatory consents which may be withdrawn or made
subject to new limitations. Maintaining title interests or
obtaining renewals of or getting the grant of title interests often
depends on the Company being successful in obtaining and
maintaining required statutory approvals for its proposed
activities (including a licence for mining operations) and that the
title interests, licences, concessions leases, claims, permits or
regulatory consents it holds will be maintained and when required
renewed.
There is no assurance that such
title interests, licences, concessions, leases, claims, permits or
regulatory consents will be granted, or even if granted, not be
revoked, significantly altered or granted on terms or with
conditions not acceptable to the Company, or not renewed to the
detriment of the Company or that the renewals thereof will be
successful.
Shareholders should note that some
of the risks may be mitigated by the use of appropriate safeguards
and systems, whilst others are outside the control of the Company
and cannot be mitigated. Should any of the risks eventuate, then it
may have a material adverse impact on the financial performance of
the Project, the Company and the value of the Company's
securities.
TENEMENT INFORMATION
Table 2:
Tenement
information.
Licence Name
|
Commodities
|
Area
(km2)
|
Issue Date
|
Expiry Date
|
Tannenberg
|
1copper, silver
2antimony, arsenic, lead, gallium, germanium, gold, indium,
cadmium, cobalt, molybdenum, nickel, palladium, platinum, rhodium,
selenium, thallium, vanadium, bismuth, and zinc
|
271.92
|
07.06.2022
|
07.06.2025
|
Notes
1 Target commodities
2 Commodities included in the licence
ISSUE OF SHARES
GreenX Metals Limited has today
issued 600,000 Shares in relation to the Agreement.
An application will be made for
admission of the Shares to the standard listing segment of the
Official List of the FCA (Official
List) and to trading on the main market of the London Stock
Exchange for listed securities (LSE Admission). LSE Admission is
expected to take place on or before 9
August 2024.
For the purposes of the Financial
Conduct Authority's Disclosure Guidance and Transparency Rules
(DTRs), following LSE
Admission, the Company's issued ordinary share capital will be
279,501,032 ordinary shares. The above figure of 279,501,032 may be used by shareholders as
the denominator for the calculations by which they can determine if
they are required to notify their interest in, or a change to their
interest in, the Company following LSE Admission
Following the issue of Shares,
GreenX has the following securities on issue:
· 279,501,032 ordinary fully paid
shares;
· 4,775,000 unlisted options exercisable at A$0.45 each on or
before 30 November 2025;
· 5,525,000 unlisted options exercisable at A$0.55 each on or
before 30 November 2026; and
· 11,000,000 performance rights that have an expiry date 8
October 2026.
-ENDS-
Competent Persons Statement
Information in this announcement that relates to Exploration
Results is based on information compiled by Mr Thomas Woolrych, a
Competent Person who is a Member of the Australian Institute of
Mining and Metallurgy. Mr Woolrych is a Director Group 11
Exploration GmbH and will hold an indirect interest in GreenX
shares and deferred consideration for the Project. Mr Woolrych 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
Woolrych consents to the inclusion in this announcement of the
matters based on his information in the form and context in which
it appears.
Forward Looking Statements
This release may include forward-looking statements, which may
be identified by words such as "expects", "anticipates",
"believes", "projects", "plans", and similar expressions. These
forward-looking statements are based on GreenX's expectations and
beliefs concerning future events. Forward looking statements are
necessarily subject to risks, uncertainties and other factors, many
of which are outside the control of GreenX, which could cause
actual results to differ materially from such statements. There can
be no assurance that forward-looking statements will prove to be
correct. GreenX makes no undertaking to subsequently update or
revise the forward-looking statements made in this release, to
reflect the circumstances or events after the date of that
release.
The information contained within this announcement is deemed
by the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 as it forms part of
UK domestic law by virtue of the European Union (Withdrawal) Act
2018 ('MAR'). Upon the publication of this announcement via
Regulatory Information Service ('RIS'), this inside information is
now considered to be in the public domain
1 Production
numbers sourced from Zientek et al., 2015, Table 4.
Appendix 1: Exploration Results and JORC
Tables
Table 1: Historical drill hole
information
Hole ID
|
Easting
|
Northing
|
Elevation
(m MSL)
|
Dip (°)
|
Depth (m)
|
Assay
available
|
Bebra-1
|
4346428
|
5649690
|
n/a
|
90
|
n/a
|
No
|
C/77-B10
|
4353728
|
5660165
|
235
|
90
|
68.2
|
No
|
Cornberg
|
4349990
|
5658105
|
302
|
90
|
151.6
|
No
|
Iba-1
|
4349160
|
5650548
|
n/a
|
90
|
n/a
|
No
|
Iba-3
|
4349120
|
5649684
|
n/a
|
90
|
n/a
|
No
|
Iba-4
|
4348366
|
5649523
|
n/a
|
90
|
n/a
|
No
|
KB1
|
4356129
|
5659867
|
288.83
|
90
|
15
|
No
|
Nesselroeden-1
|
4368324
|
5655767
|
252
|
90
|
193.7
|
No
|
Obergude
|
4339370
|
5662062
|
308.88
|
90
|
200.2
|
Yes
|
Ro1
|
4349714
|
5649065
|
n/a
|
90
|
n/a
|
No
|
Ro3
|
4348224
|
5648740
|
n/a
|
90
|
n/a
|
No
|
Ro6
|
4348997
|
5648337
|
n/a
|
90
|
n/a
|
No
|
Ro8
|
4348234
|
5648558
|
n/a
|
90
|
n/a
|
No
|
Ro10
|
4347033
|
5647996
|
n/a
|
90
|
n/a
|
No
|
Ro15
|
4348595
|
5647200
|
255
|
90
|
351
|
Yes
|
Ro18
|
4348389
|
5647549
|
235
|
90
|
227
|
Yes
|
Ro19
|
4349107
|
5647350
|
280
|
90
|
360.5
|
Yes
|
Ro21
|
4348105
|
5647941
|
203
|
90
|
211
|
Yes
|
Ro23
|
4347684
|
5647433
|
300
|
90
|
380
|
Yes
|
Ro26
|
4347272
|
5647775
|
270
|
90
|
400
|
Yes
|
Ro27
|
4346047
|
5649652
|
215
|
90
|
432
|
Yes
|
Ro30
|
4347604
|
5647936
|
240
|
90
|
292.3
|
Yes
|
Ro31
|
4346844
|
5651396
|
217
|
90
|
159.2
|
Yes
|
Ro33
|
4347521
|
5648340
|
205
|
90
|
251.9
|
Yes
|
Ro34
|
4347363
|
5651850
|
220
|
90
|
244.75
|
Yes
|
Ro36
|
4347359
|
5650524
|
310
|
90
|
320.45
|
Yes
|
Ro39
|
4358152
|
5656842
|
200
|
90
|
197.2
|
Yes
|
Ro41
|
4346982
|
5647411
|
250
|
90
|
426.2
|
Yes
|
Ro42
|
4348170
|
5647070
|
249
|
90
|
307
|
Yes
|
Ro45
|
4356946
|
5656716
|
407
|
90
|
289
|
Yes
|
Ro46
|
4358278
|
5658088
|
200
|
90
|
228
|
No
|
Note: Coordinates are DHDN /
3-degree Gauss-Kruger zone 4.
Table 2: Historical drill hole
assays
Hole
ID
|
Intersect
(m)
|
Cu
(%)
|
Ag
(ppm)
|
From
|
To
|
Interval
|
Ro15
|
285.857
|
286.018
|
0.161
|
0.532
|
10
|
Ro15
|
286.018
|
286.068
|
0.05
|
0.846
|
15
|
Ro15
|
286.068
|
286.243
|
0.175
|
0.72
|
13
|
Ro15
|
286.243
|
286.288
|
0.045
|
0.919
|
16
|
Ro15
|
286.288
|
286.388
|
0.1
|
0.638
|
12
|
Ro15
|
286.388
|
286.438
|
0.05
|
0.681
|
13
|
Ro15
|
286.438
|
286.532
|
0.094
|
0.59
|
12
|
Ro15
|
286.532
|
286.619
|
0.087
|
0.562
|
11
|
Ro15
|
286.619
|
286.695
|
0.076
|
0.64
|
12
|
Ro15
|
286.695
|
286.812
|
0.117
|
0.707
|
13
|
Ro15
|
286.812
|
286.942
|
0.13
|
0.811
|
13
|
Ro15
|
286.942
|
287.043
|
0.101
|
0.737
|
11
|
Ro15
|
287.043
|
287.17
|
0.127
|
1.6
|
21
|
Ro15
|
287.17
|
287.272
|
0.102
|
1.437
|
19
|
Ro15
|
287.272
|
287.372
|
0.1
|
0.835
|
13
|
Ro15
|
287.372
|
287.463
|
0.091
|
0.499
|
11
|
Ro15
|
288.021
|
288.093
|
0.072
|
0.313
|
4
|
Ro15
|
288.151
|
288.206
|
0.055
|
0.441
|
5
|
Ro15
|
288.206
|
288.261
|
0.055
|
0.651
|
5
|
Ro15
|
288.261
|
288.281
|
0.02
|
0.506
|
5
|
Ro15
|
288.281
|
288.323
|
0.042
|
0.642
|
6
|
Ro15
|
288.323
|
288.388
|
0.065
|
1.573
|
12
|
Ro15
|
288.388
|
288.472
|
0.084
|
4.708
|
28
|
Ro15
|
288.472
|
288.51
|
0.038
|
3.837
|
24
|
Ro15
|
288.559
|
288.588
|
0.029
|
8.823
|
57
|
Ro15
|
288.588
|
288.623
|
0.035
|
4.774
|
30
|
Ro15
|
288.623
|
288.651
|
0.028
|
4.382
|
32
|
Ro15
|
288.651
|
288.721
|
0.07
|
3.554
|
98
|
Ro15
|
288.721
|
288.763
|
0.042
|
3.511
|
32
|
Ro15
|
288.763
|
288.793
|
0.03
|
2.814
|
28
|
Ro15
|
288.793
|
288.823
|
0.03
|
1.573
|
11
|
Ro15
|
288.823
|
288.865
|
0.042
|
2.313
|
17
|
Ro15
|
288.865
|
288.883
|
0.018
|
0.567
|
7
|
Ro15
|
288.883
|
288.901
|
0.018
|
0.469
|
7
|
Ro15
|
288.901
|
288.972
|
0.071
|
0.645
|
10
|
Ro15
|
288.972
|
289.004
|
0.032
|
0.617
|
8
|
Ro15
|
289.004
|
289.057
|
0.053
|
0.641
|
9
|
Ro15
|
289.057
|
289.117
|
0.06
|
0.523
|
9
|
Ro15
|
289.117
|
289.129
|
0.012
|
0.349
|
0
|
Ro15
|
289.151
|
289.159
|
0.008
|
1.033
|
18
|
Ro15
|
289.159
|
289.169
|
0.01
|
0.641
|
14
|
Ro15
|
289.169
|
289.179
|
0.01
|
0.477
|
15
|
Ro15
|
289.179
|
289.235
|
0.056
|
0.817
|
10
|
Ro15
|
289.235
|
289.257
|
0.022
|
0.312
|
4
|
Ro15
|
289.257
|
289.312
|
0.055
|
0.321
|
4
|
Ro18
|
209.5
|
210
|
0.5
|
0.9
|
20
|
Ro18
|
210
|
210.25
|
0.25
|
7.2
|
70
|
Ro18
|
210.25
|
210.53
|
0.28
|
8.6
|
50
|
Ro18
|
210.53
|
210.76
|
0.23
|
3.3
|
35
|
Ro18
|
210.76
|
211
|
0.24
|
0.3
|
-2
|
Ro19
|
339.5
|
339.71
|
0.21
|
7.6
|
80
|
Ro19
|
339.71
|
340
|
0.29
|
2.5
|
30
|
Ro19
|
340
|
340.5
|
0.5
|
1.5
|
15
|
Ro19
|
340.5
|
341
|
0.5
|
1
|
10
|
Ro19
|
341
|
341.5
|
0.5
|
1.3
|
10
|
Ro19
|
341.5
|
342
|
0.5
|
0.43
|
10
|
Ro21
|
199
|
199.18
|
0.18
|
0.94
|
10
|
Ro21
|
199.18
|
199.4
|
0.22
|
0.49
|
6
|
Ro23
|
365.48
|
366
|
0.52
|
2
|
21
|
Ro23
|
366
|
366.45
|
0.45
|
0.88
|
17
|
Ro23
|
366.45
|
367
|
0.55
|
3.2
|
78
|
Ro23
|
367
|
367.49
|
0.49
|
5
|
80
|
Ro23
|
367.49
|
367.58
|
0.09
|
0.97
|
12
|
Ro26
|
388.3
|
388.48
|
0.18
|
2.1
|
|
Ro26
|
388.48
|
388.72
|
0.24
|
0.88
|
|
Ro26
|
388.72
|
389
|
0.28
|
0.74
|
|
Ro33
|
242.5
|
243.1
|
0.6
|
1.2
|
35
|
Ro33
|
243.1
|
243.5
|
0.4
|
0.31
|
10
|
Ro34
|
196.75
|
197
|
0.25
|
0.45
|
10
|
Ro41
|
414.35
|
414.85
|
0.5
|
0.45
|
10
|
Ro45
|
268
|
268.5
|
0.5
|
0.35
|
2
|
Ro45
|
268.5
|
269
|
0.5
|
2.3
|
25
|
Ro45
|
269
|
269.28
|
0.28
|
4.8
|
75
|
Ro45
|
269.28
|
269.63
|
0.35
|
0.59
|
3
|
Ro45
|
269.63
|
270
|
0.37
|
1
|
5
|
Note: Only assay results equal to or
greater than 0.3% copper are reported.
JORC Code, 2012 Edition - Table 1
Report
Section 1 Sampling Techniques and
Data
(Criteria in this section apply to
all succeeding sections.)
Criteria
|
JORC
Code explanation
|
Commentary
|
Sampling
techniques
|
Nature and quality of sampling (eg cut channels, random chips,
or specific specialised industry standard measurement tools
appropriate to the minerals under investigation, such as down hole
gamma sondes, or handheld XRF instruments, etc). These examples
should not be taken as limiting the broad meaning of
sampling.
|
Due to the historic nature of the
drilling results reported herein, it is not possible to comment on
the quality of the sampling used to produce the results described.
It is known from historic reports that the drill core was
sawn. Sampling of ¼ core was conducted
during multiple exploration phases between 1980 and 1987 within the
licence area by St Joes Exploration GmbH ("St Joes Exploration"). The information
shown here was collated from scans of hard copy reports from that
era and a State Survey Database. Assays, geological logging and
gamma ray logs were conducted by St Joes Exploration.
|
|
Include reference to measures taken to ensure sample
representivity and the appropriate calibration of any measurement
tools or systems used.
|
No QAQC was reported.
|
|
Aspects of the determination of mineralisation that are
Material to the Public Report. In cases where 'industry standard'
work has been done this would be relatively simple (eg 'reverse
circulation drilling was used to obtain 1 m samples from which 3 kg
was pulverised to produce a 30 g charge for fire assay'). In other
cases more explanation may be required, such as where there is
coarse gold that has inherent sampling problems. Unusual
commodities or mineralisation types (eg submarine nodules) may
warrant disclosure of detailed information.
|
Work was not conducted to modern
industry standards.
|
Drilling
techniques
|
Drill type (eg core, reverse circulation, open-hole hammer,
rotary air blast, auger, Bangka, sonic, etc) and details (eg core
diameter, triple or standard tube, depth of diamond tails,
face-sampling bit or other type, whether core is oriented and if
so, by what method, etc).
|
St
Joes Exploration
·
10 cm drill cores were collected, further
specifications are not known.
State Survey Database
·
Unknown drilling techniques.
|
Drill sample
recovery
|
Method of recording and assessing core and chip sample
recoveries and results assessed.
|
Due to the historic nature of the
drilling results reported herein, it is not possible to comment on
the recoveries achieved at the time.
|
|
Measures taken to maximise sample recovery and ensure
representative nature of the samples.
|
Not reported.
|
|
Whether a relationship exists between sample recovery and
grade and whether sample bias may have occurred due to preferential
loss/gain of fine/coarse material.
|
Not reported.
|
Logging
|
Whether core and chip samples have been geologically and
geotechnically logged to a level of detail to support appropriate
Mineral Resource estimation, mining studies and metallurgical
studies.
|
Information available is not
appropriate for a Mineral Resource estimate.
|
|
Whether logging is qualitative or quantitative in nature. Core
(or costean, channel, etc) photography.
|
Available logs are qualitative
only.
|
|
The
total length and percentage of the relevant intersections
logged.
|
The entire hole was logged, the
target zone is typically 2 m thick.
|
Sub-sampling
techniques
|
If
core, whether cut or sawn and whether quarter, half or all core
taken.
|
A reference to ¼ core is reported by
St Joes Exploration however this is not specific to every
hole/phase.
|
and sample
preparation
|
If
non-core, whether riffled, tube sampled, rotary split, etc and
whether sampled wet or dry.
|
N/A
|
|
For
all sample types, the nature, quality and appropriateness of the
sample preparation technique.
|
N/A
|
|
Quality control procedures adopted for all sub-sampling stages
to maximise representivity of samples.
|
N/A
|
|
Measures taken to ensure that the sampling is representative
of the in situ material collected, including for instance results
for field duplicate/second-half sampling.
|
N/A
|
|
Whether sample sizes are appropriate to the grain size of the
material being sampled.
|
N/A
|
Quality of assay data and
laboratory tests
|
The
nature, quality and appropriateness of the assaying and laboratory
procedures used and whether the technique is considered partial or
total.
|
A St Joes Exploration reference
reports that geochemical analysis was carried out by Robertson
Research Ltd, Wales, however it is not specified if this was for
each hole/phase.
|
|
For
geophysical tools, spectrometers, handheld XRF instruments, etc,
the parameters used in determining the analysis including
instrument make and model, reading times, calibrations factors
applied and their derivation, etc.
|
N/A
|
|
Nature of quality control procedures adopted (eg standards,
blanks, duplicates, external laboratory checks) and whether
acceptable levels of accuracy (ie lack of bias) and precision have
been established.
|
N/A
|
Verification of sampling and
assaying
|
The
verification of significant intersections by either independent or
alternative company personnel.
|
No verification carried
out.
|
|
The
use of twinned holes.
|
No twinned holes.
|
|
Documentation of primary data, data entry procedures, data
verification, data storage (physical and electronic)
protocols.
|
Limited data is available via hard
copy reports. Data was digitised by Group 11 Exploration and merged
with State/Federal databases.
|
|
Discuss any adjustment to assay data.
|
N/A
|
Location of data
points
|
Accuracy and quality of surveys used to locate drill holes
(collar and down-hole surveys), trenches, mine workings and other
locations used in Mineral Resource estimation.
|
Location accuracy is unknown. The
location of holes drilled by St Joes Exploration comes from collar
tables in historical reports. All other collar locations come
from State/Federal databases.
|
|
Specification of the grid system used.
|
Latitude and Longitude in degree,
minutes and seconds were provided by St Joes Exploration. All drill
collar coordinates are reported here in the DHDN / 3-degree
Gauss-Kruger zone 4 grid system.
|
|
Quality and adequacy of topographic control.
|
N/A
|
Data spacing and
distribution
|
Data spacing for reporting of Exploration
Results.
|
Drillholes within the Ronshausen
mineralised area are spaced between 400 - 700m. Outside of this
area the drilling is sparce.
|
|
Whether the data spacing and distribution is sufficient to
establish the degree of geological and grade continuity appropriate
for the Mineral Resource and Ore Reserve estimation procedure(s)
and classifications applied.
|
Not sufficient for the establishment
of a JORC compliant resource.
|
|
Whether sample compositing has been applied.
|
N/A
|
Orientation of data in
relation to geological structure
|
Whether the orientation of sampling achieves unbiased sampling
of possible structures and the extent to which this is known,
considering the deposit type.
|
The target Kupferschiefer layer is
flat to slightly dipping, vertical drilling therefore intercepts at
right angles and is appropriate.
|
|
If
the relationship between the drilling orientation and the
orientation of key mineralised structures is considered to have
introduced a sampling bias, this should be assessed and reported if
material.
|
No sampling bias.
|
Sample
security
|
The
measures taken to ensure sample security.
|
N/A
|
Audits or
reviews
|
The
results of any audits or reviews of sampling techniques and
data.
|
N/A
|
Section 2 Reporting of Exploration
Results
(Criteria in the preceding section
also apply to this section.)
Criteria
|
JORC
Code explanation
|
Commentary
|
Mineral tenement and land
tenure status
|
Type, reference name/number, location and ownership including
agreements or material issues with third parties such as joint
ventures, partnerships, overriding royalties, native title
interests, historical sites, wilderness or national park and
environmental settings.
|
The "Tannenberg" exploration licence
is held 100% by Group 11 Exploration GmbH. The licence was granted
on the 7th of June 2022 and is valid for 3 years. The
licence is free from overriding royalties and native titles
interests. There are historical mine workings within the licence
area, but no known historical sites of cultural significance
outside of mining.
Within and surrounding the licence
area, there are environmental protections zones with differing
levels of protections. There are small areas identified as Natura
2000 Fauna Flora Habitat Areas and Bird Sanctuaries. Other
environmental protection designated areas include Nature Reserves,
National Natural Monuments, Landscape Protection Area, and Natural
Parks. Based on due diligence and discussions with various
stakeholders and consultants, the presence of environmental
protection areas does not preclude exploration or eventual mining
if conducted in accordance with applicable standards and
regulations.
The landform across the license area
comprises mostly of farmland, forested areas, and small towns and
villages.
|
|
The
security of the tenure held at the time of reporting along with any
known impediments to obtaining a licence to operate in the
area.
|
The licence is in good
standing.
|
Exploration done by other
parties
|
Acknowledgment and appraisal of exploration by other
parties.
|
Exploration was carried out by St
Joes Exploration (in JV with the Broken Hill Pty Co Ltd later
BHP-Utah) between 1980 and 1987. Two projects were undertaken. The
Richelsdorf project within the licence area as well as the
Spessart-Rhoen project 85 km to the south. Hole IDs starting with
'Ro' were drilled by St Joes Exploration.
All other drill holes come from State
Survey databases with unknown history.
Historical mining took place within
the licence area. Mining activities ceased in the 1950's.
Comprehensive records of all mine workings are not available to the
Company (and may not exist).
|
Geology
|
Deposit type, geological setting and style of
mineralisation.
|
Mineralisation is of the classic
Kupferschiefer type (copper slate) within the Permian Zechstein
Basin of Germany and Poland.
The Zechstein Basin is hosted within
the Southern Permian Basin ("SPB") of Europe. The SPB is an
intracontinental basin that developed on the northern foreland of
the Variscan Orogen.
Very high-grade copper mineralisation
is generally associated with the Kupferschiefer shale unit.
However, minable copper mineralisation also occurs in the footwall
sandstone and hanging wall limestone units in Poland.
Mineralisation can be offset from the shale by up to 30 m above and
60 m below.
|
Drill hole
Information
|
A
summary of all information material to the understanding of the
exploration results including a tabulation of the following
information for all Material drill holes:
easting and northing of the drill hole
collar
elevation or RL (Reduced Level - elevation above sea level in
metres) of the drill hole collar
dip
and azimuth of the hole
down hole length and interception depth
hole length.
|
Appendix 1 contains all relevant
drillhole information.
|
|
If
the exclusion of this information is justified on the basis that
the information is not Material and this exclusion does not detract
from the understanding of the report, the Competent Person should
clearly explain why this is the case.
|
All available drill collars are
provided. The availability of historical assay results are listed
in Appendix 1 Table 1. Assay results less than 0.3% Cu are
not reported.
|
Data aggregation
methods
|
In
reporting Exploration Results, weighting averaging techniques,
maximum and/or minimum grade truncations (eg cutting of high
grades) and cut-off grades are usually Material and should be
stated.
|
N/A
|
|
Where aggregate intercepts incorporate short lengths of high
grade results and longer lengths of low grade results, the
procedure used for such aggregation should be stated and some
typical examples of such aggregations should be shown in
detail.
|
N/A
|
|
The
assumptions used for any reporting of metal equivalent values
should be clearly stated.
|
N/A
|
Relationship
between mineralisation widths
and intercept
lengths
|
These relationships are particularly important in the
reporting of Exploration Results. If the geometry of the
mineralisation with respect to the drill hole angle is known, its
nature should be reported.
|
Drilling is perpendicular to
mineralisation. Detailed sampling was done to lithological contacts
on a range of scales from 1-50cm.
|
|
If
it is not known and only the down hole lengths are reported, there
should be a clear statement to this effect (eg 'down hole length,
true width not known').
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Intercepts are true width.
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Diagrams
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Appropriate maps and sections (with scales) and tabulations of
intercepts should be included for any significant discovery being
reported These should include, but not be limited to a plan view of
drill hole collar locations and appropriate sectional
views.
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Appropriate diagrams, including a
maps, cross sections, and tables are included in the main body of
this announcement.
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Balanced
reporting
|
Where comprehensive reporting of all Exploration Results is
not practicable, representative reporting of both low and high
grades and/or widths should be practiced to avoid misleading
reporting of Exploration Results.
|
All available results are reported.
Only assays above or equal to 0.4% Cu are reported for practical
reasons.
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Other substantive exploration
data
|
Other exploration data, if meaningful and material, should be
reported including (but not limited to): geological observations;
geophysical survey results; geochemical survey results; bulk
samples - size and method of treatment; metallurgical test results;
bulk density, groundwater, geotechnical and rock characteristics;
potential deleterious or contaminating
substances.
|
All substantive results are reported.
Geological logs and downhole gamma logs are not reported
here.
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Further
work
|
The
nature and scale of planned further work (eg tests for lateral
extensions or depth extensions or large-scale step-out
drilling).
|
Infill and step out drilling required
to assess the full potential of mineralisation near Ronshausen is
planned. The search for additional archive material and historical
records will continue. Desktop analysis and drill targeting will be
conducted in consultation with subject-matter experts. Geophysical
methods (such as seismic, magnetic, electrical, and gravity) will
be evaluated and used if deemed appropriate for the
project.
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Diagrams clearly highlighting the areas of possible
extensions, including the main geological interpretations and
future drilling areas, provided this information is not
commercially sensitive.
|
These diagrams are included in the
main body of this release.
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