TIDMKEN
RNS Number : 3028Z
Kendrick Resources PLC
13 September 2022
13 September 2022
Kendrick Resources Plc
("Kendrick" or the "Company")
Operational Update
Kendrick Resources Plc (LSE: KEN), the Scandinavian focussed new
age mineral exploration and development company with nickel, and
vanadium projects in Norway, Sweden and Finland is pleased to
provide an update on its activities in Scandinavia.
A thorough review of all projects and licences in the Kendrick
portfolio has directed management to the short-term potential of
its' Ni assets. Below is the summary of the Company's findings.
Subsequent focused studies have shone a positive light on the
nickel assets, all of which show potential particularly as a
significant amount of historic drilling, resource estimation and
general exploration generated a database that had never been
properly assimilated and processed. This database has now been
recognised to have significant additional financial and technical
potential. The Company has therefore re-ranked the nickel ahead of
the vanadium projects based on the immediate opportunities that the
nickel assets present to Kendrick.
HIGHLIGHTS
-- Detailed review of the Norwegian Espedalen Ni-Cu Project
including the Stormyra, Megrund and Dalen prospects and the
initiation of a resource estimation programme for the Project.
-- Relogging of the Stormyra Ni-Cu drillholes using an external
recognised nickel expert has led to the discovery of previously
unrecorded nickel mineralisation in drill core that could
potentially result in wider zones of mineralisation.
-- Re-engagement and consultation with an engineering group to
revisit a previous study for the design and high-level financial
analysis of a bespoke processing plant capable of processing nickel
ores mined at Espedalen and, subject to further evaluation, other
nickel satellite projects located in central southern Norway in the
Company's licence portfolio
-- Significant copper anomalies identified at the Airijoki
vanadium project that has warranted an expansion of historic soil
geochemical surveys and the application for additional licences for
copper.
-- Detailed review of the suite of vanadium licences in Sweden
and Finland has confirmed and validated the findings of previous
studies and the Company is developing an exploration plan to
further assess potential.
Colin Bird, Executive Chairman, commented
"Since listing we have conducted an extensive review of all
licences of asset potential to create a league table of opportunity
aimed at today and the mid-term. That review led us to the
conclusion that the nickel assets in Norway have immense potential
in that they are sulphide and hold immediate opportunity for value
add in the form of resource enhancement and mid-term mining. We are
also conscious of the potential of PGE group metals and cobalt
within the resource package. The Airijoki vanadium prospect is very
exciting and extremely well located, with an unexpected bonus in
the form of significant geochemical copper potential within and on
the periphery of the licence. We intend to aggressively pursue the
copper indication and have included these copper anomalies in our
applications for further licences. The region is copper prolific,
and I am excited about the potential of having two new age metals
in the same licence. In Finland, we have confirmed previous
vanadium work and are potentially pursuing a limited drilling
programme, to test a VTEM geophysical anomaly generated between
2012-2014. This anomaly is barely tested and shows potential for
nickel and vanadium.
In essence, our work has been directed to focus on short- and
medium-term opportunities, whilst maintaining the overall integrity
of the portfolio. Not unusually feet on the ground have identified
new opportunities no t recognised during the early acquisition and
financing stage. We are also strengthening our management team with
the highly qualified and experienced individuals who will be able
to advance the company in its Northern European endeavours"
NORWAY: Detailed Review
The company has carried out a detailed review of its Norwegian
Nickel-Copper licenses, with a focus on the more advanced Espedalen
license, where there has been a substantial amount of work carried
out by previous license holders that includes 167 holes drilled
leading to the delineation of ten targets.
Espedalen - Relogging of Core and Discovery of Additional
Mineralisation
The Company engaged an independent consultant to re-log the
drill core from the advanced stage Stormyra deposit (55 shallow
holes; <300m), to verify the loggable lithological units
specifically to enable good geological control on 3D modelling for
mineral resource estimation. The result of the relogging was to
identify areas of mineralisation within drill core that had not
been recognised previously and which had not been sampled. In
addition, areas of lower grade mineralisation were also identified
which again had not been sampled which at the current nickel price
may constitute economic intersections and increase the overall
mineralised package width. A drill programme has been designed to
improve the confidence of and expand on the already defined 1Mt
resource at Stormyra.
Espedalen - Other Prospects
In addition to Stormyra, the Company has identified the Megrund
prospect as a priority target for follow up with potential to host
massive sulphides based on the Ni tenor being on par with Stormyra
, together with the prospect having the highest PGE grades recorded
at Espedalen.
The review also noted that several other prospects within the
Espedalen Project area that had been tested with only 1 to 3
drillholes, all intersected nickel sulphide mineralisation. No
follow-up was undertaken on these prospects and the Company intends
to review the original geophysics results over these targets before
deciding on further evaluation.
Conceptual Ni-Cu Plant Design and Flow Sheet
An engineering group was engaged by Boutique Copper in 2018 to
complete the conceptual design, a flow sheet and high-level
financial analysis for a nickel processing plant capable of
treating 75ktpa of high-grade Espedalen ore with average Ni and Cu
grades of 3% and 0.79%, respectively. Kendrick has started a
dialogue with the engineering group to re-evaluate plant design
based on a higher annual throughput and the use of any future
facility as a central processing unit to treat ores from the
various Espedalen prospects, principally Stormyra and Megrund
together with any of the remaining under-explored prospects
previously identified within the Licence. In addition, the review
will consider the scope for the delivery of additional feedstock
from other central southern Norwegian nickel projects held by the
Company that are under investigation.
SWEDEN
Airijoki Project
Following on from the extensive vanadium and copper anomalism
shown by the results of an historic ionic leach soil geochemistry
programme over Airijoki licence nr 200, the Company extended the
geochemical survey to cover licences nr 101, 102, 103 and 104
comprising the balance of licences for the Airijoki Project. A
total of 526 samples were collected. Once processed, these samples
will provide the basis to target Airijoki not only for vanadium,
but also copper.
New Licence Applications
The Company has also applied for an additional two license areas
(Airijoki 104 & 105), which it believes are prospective for
copper mineralisation. Further updates will be provided as these
applications progress.
Airijoki - Phase 2 Metallurgical Test Work
A second phase of metallurgical testwork on drill samples from
Airijoki is in the final preparatory stages with over 1t of
metallurgical sample to be run through a series of tests, with the
objective of increasing the mass recovery of vanadium into the
magnetite concentrate.
FINLAND
Vanadium Review
Licences held in Finland include the Koitelainen Vanadium
Project. Located 30km from Boliden's Kevitsa mine, the Project is
reported to host an Inferred minerals resource of 116.4Mt,
containing 5.8 million tonnes of magnetite @ 2.3% V(2) O(5) (in
magnetite concentrate), for 131,000 tonnes of V(2) O(5) based on
5.0% Mass Recovery of magnetite concentrate and a cut-off of 0.5%
V. The Inferred Mineral Resource was estimated in accordance with
JORC (2012), utilising data from 3,784m of drilling from 27
historical drill holes.
Karhujupukka Ni- V(2) O(5) Project
Only limited follow-up has taken place over the Project and in
particular the 391km airborne VTEM geophysical survey conducted
between 2012 and 2014 and the anomalies this survey generated.
Swedish consultants currently being used by Kendrick have
recommended a follow-up ground geophysical survey to better define
targets for subsequent evaluation. The Company is considering
undertaking a programme and has requested a budget estimate for the
proposed survey ahead of making a decision to proceed.
Further information on the Company's projects can be found on
the Company's website at: https://www.kendrickresources.com/
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 additional information please contact:
Kendrick Resources Plc: Tel: +44 203 961 6086
Chairman Colin Bird
Novum Securities Tel: +44 7399 9400
Financial Adviser David Coffman / Lucy Bowden
Joint Broker Jon Bellis
Shard Capital Partners LLP Tel: +44 207 186 9952
Joint Broker Damon Heath / Isabella Pierre
Qualified Person:
The technical information contained in this announcement has
been reviewed, verified, and approved by Colin Bird, CC.ENG, FIMMM,
South African and UK Certified Mine Manager and Director of African
Pioneer plc, with more than 40 years' experience mainly in hard
rock mining.
About Kendrick Resources Plc
Kendrick Resources Plc is a mineral exploration and development
company with projects primarily based across Scandinavia. The
principal of its business is to explore the opportunities within
the natural resources sector with a focus on battery, base, and
precious metals including but not limited to vanadium and nickel.
In doing so, the Company is looking to build a long-term energy
metals business in Scandinavia which delivers energy metals to
Europe to help enable its renewable energy transformation by
building a top tier energy metals production business.
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