7 February
2024
Kendrick Resources Plc
("Kendrick" or the
"Company")
Discovery of new drill
targets and
Extensions of mineralisation
at the Espedalen nickel complex
Kendrick Resources Plc (LSE:
KEN), a mineral exploration and development company with
Nickel, Copper and Vanadium projects in Scandinavia is pleased to
announce the delineation of new nickel drill targets at Stormyra
based upon positive findings from ground
magnetic and electromagnetic ("EM") surveys conducted at the
Company's Espedalen Nickel Complex (the "Complex").
Highlights
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Ground magnetic
survey identifies two prospective areas with a magnetic signature
similar to the near-surface main zone of the known
mineralisation.
·
The survey
confirms an extra 500 metre of untested south easterly extension of
the Stormyra orebody that can be drilled with the objective of
increasing the existing in-house resource
tonnage.
·
In addition, a
transient electromagnetic ("TEM") survey identified a strong
conductive body at depth further to the southeast which could
potentially represent deeper mineralisation reflecting the source
of nickel-bearing fluids in the Complex.
·
The geophysical
anomalies represent viable drill targets likely to add to the
existing mineral resource.
·
A further 10
drill-defined anomalies remain to be thoroughly tested within the
Complex.
Colin Bird, Executive
Chairman of Kendrick Resources Plc commented:
"The successful 2023 diamond drill programme achieved notable
Ni-Cu intercepts over a strike length of 1.2
kilometres. These new geophysical survey
results provide the evidence and motivation to expand the resource
at the Stormyra deposit located within the Espedalen nickel and
copper complex. The results will form part of further technical
studies leading to drilling. The opportunity to build on the
historical mineral resource of 1.1Mt at 1.1% Ni and 0.50% Cu is
looking extremely likely, placing Stormyra as the forefront deposit
within the Espedalen Complex for development.
Based on the successful outcome of the geophysical study at
Stormyra, we are now minded to roll out this programmeme across the
rest of the Espedalen Complex where a further 10 prospects have
been identified and tested with drilling, with some returning
intercepts greater than 1% Ni, and where further targeted
exploratory studies are likely to add additional resources to the
Complex.
Our preliminary investigations over the Complex have enhanced
the Espedalen project and provide clear evidence for the
development of an as yet undetermined resource tonnage most likely
at cumulative grades exceeding 1% Ni with a significant copper and
possibly cobalt by-product. "
Introduction
The successful 2023 drilling
programmeme was followed up by two ground geophysical surveys to
provide insight into the potential extent of the mineralized zones
at Stormyra. The recently completed interpretation of the
geophysical survey results supports the premise that mineralisation
extends beyond the current resource area where there has been no
drilling.
Ground Magnetic Survey
The interpretation of the ground
magnetic survey has revealed several linear magnetic anomalies. Two
dominant fault orientations, striking northwest-southeast and
north-northwest-south-southeast, were recognized that can be
explained by the main regional deformation events. A comparison
with the outline of the known mineralisation indicates that the
mineralisation zone strikes parallel to delineated
northwest-southeast linear structures. Notably, an intense linear
magnetic anomaly in the northwestern part of the area aligns with
the known shallow occurrence of the main mineralized zone. Based on
the spatial coherence of known mineralisation relative to magnetic
anomalies, two prospective areas have been identified (see Figure
1). Like the known mineralisation, these zones coincide with
northwest-southeast striking linear magnetic anomalies within an
intermediate-low background magnetic field. One of the prospective
areas occurs about 500m southeast of the nearest drill hole. This
confirms the results of a historic ground EM survey over the area
that indicated a similar extent of the mineralisation of about 500m
towards the southeast. The other prospective area occurs about 150m
to the southwest parallel to the currently drilled mineralized
trend and could be indicative of the mineralisation extending to
surface.
In response to these encouraging
findings, a diamond drilling programme is planned to test the
strike extent of mineralisation towards the southeast and assess
the width of the zone both up and down dip.
Figure 1. Map over the Stormyra mineralization displaying the
results and interpretation of the 2023 ground magnetic survey and
planned drill holes.
Electromagnetic (EM) Survey
In addition to the ground magnetic
survey, a transient electromagnetic (TEM) survey was conducted. The
historic UTEM survey indicated a mineralisation extent of
approximately 500 metres towards the southeast. The new TEM survey
focused on investigating an airborne EM anomaly east of this
historic anomaly, aiming to explore a potential extension of
mineralisation even further southeast.
TEM measurements along six profiles
revealed a significant EM anomaly with a slow signal decay,
indicative of a well-conducting body. The field data were modelled,
revealing a large sub-horizontal plate at depth measuring 660 x 840
metres, gently dipping towards the northwest. The southern corner
of the plate is around 250 metres below ground surface, and the
northern corner is approximately 400 metres below ground
surface.
This depth is greater than expected
for the continuation of the Stormyra mineralisation, suggesting the
possibility of an offset mineralisation at depth. Alternatively,
the anomaly may represent a conductive layer within the underlying
sedimentary basement. To further investigate these findings, a
single drillhole targeting the centre of the plate is planned to
test the anomaly.
Figure 2. Map over the Stormyra mineralization displaying the
potential southeast extension, the results and interpretation
of the TEM survey and planned drill hole.
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).
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For additional information please
contact:
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Kendrick Resources Plc:
Chairman
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Tel: +44 2039 616 086
Colin Bird
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Novum Securities
Financial Adviser
Joint Broker
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Tel: +44 7399 9400
David Coffman / George
Duxberry
Jon Bellis
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Shard Capital Partners
LLP
Joint Broker
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Tel: +44 207 186 9952
Damon Heath / Isabella
Pierre
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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 Kendrick Resources 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.
The
Espedalen Complex
The Espedalen Complex is located
approximately 50km north-west of Lillehammer in southern central
Norway, 3 hours' drive north of Oslo. The project is well served
with transport infrastructure being accessible by tarmac roads and
is close to rail links to ports in southern Norway and to
Glencore's Nikkelverk nickel refinery located 350km to the
south.
The known nickel mineralisation on
the Espedalen Complex is hosted within differentiated mafic and
ultramafic bodies which have intruded anorthositic country rocks
collectively referred to as the Espedalen Complex and range in age
from 1698 - 1250 Ma. This age range is similar to the age of the
rocks hosting the giant Voisey's Bay nickel deposit in Labrador,
Canada. Further evidence supporting the analogy between Espedalen
and Voisey's Bay are tectonic plate reconstructions which place
southern Norway in relatively close proximity during the time of
formation of Voisey's Bay and with the two regions undergoing
similar tectonic developments.
Mining in the Espedalen area dates
from 1666. Total production from the Espedalen region is estimated
at 100,000t @ 1.0% Ni, 0.4% Cu and 0.06% Co. Significant
exploration has been undertaken in the area. The majority and most
recent work having been completed by Falconbridge Limited and
Blackstone Ventures Limited having completed 134 drill holes across
the Espedalen project area, defining significant accumulations of
nickel sulphides at the Stormyra and Dalen prospects and generating
numerous other quality targets.
In 2009, Blackstone published a NI
43-101 report detailing Inferred Mineral Resources at the Stormyra
and Dalen prospects. Blackstone relinquished the Espedalen Project
in 2011 following the preceding financial crisis. ASX listed Drake
Resources Limited (now renamed Ragnar Metals Limited) acquired the
Espedalen Project in 2012. Drake refined the Mineral Resources at
Stormyra (1.16Mt @ 1% Ni, 0.42% Cu & 0.04% Co) and Dalen (7.8Mt
@ 0.28% Ni, 0.12% Cu & 0.02% Co) prospects in accordance with
JORC (2012).
In addition to defining JORC (2012)
compliant mineral resources at Stormyra and Dalen, Drake identified
10 prospects where drilling by Blackstone had intersected at least
5 metres percent Ni, which were never followed up. A detailed
compilation of all past mineral exploration and drilling data
recognised that the Stormyra Mineral Resource is not closed off and
several intersections warrant follow up drilling, to determine if
the Mineral Resource can be expanded, including:
· 12.18m @ 2.39%
Ni, 0.95% Cu & 0.07% Co from 64m in hole ES2005-20
· 7.15m @ 2.68%
Ni, 1.26% Cu & 0.08% Ni from 29.35m in hole
ES2005-22
· 14.6m @ 1.74%
Ni, 0.79% Cu & 0.06% Co from 80.4m in hole ES2004-09
The Stormyra Mineral Resource
contains a high-grade core, with assays of up to 8.2% Ni. The
high-grade core is not fully defined by drilling. Additional
investigation of this high-grade core is warranted along with drill
testing a ground geophysical conductor, directly associated with
the nickel mineralisation, which extends 500m to the south-east of
the currently defined limits of the Stormyra Mineral
Resource.
Appendix A - Glossary of Technical Terms
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"anomaly or anomalous"
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something in mineral exploration
that geologists interpret as deviating from what is standard,
normal, or expected.
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"assay"
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The laboratory test conducted to
determine the proportion of a mineral within a rock or other
material. For base metals, usually reported as percentage which is
equivalent to percentage of the mineral (i.e. copper) per tonne of
rock.
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"azimuth"
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the "compass direction" refers to a
geographic bearing or azimuth as measured by a magnetic compass, in
true or magnetic north.
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"diamond drilling"
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A drilling method in which
penetration is achieved through abrasive cutting by rotation of a
diamond encrusted drill bit. This drilling method enables
collection of tubes of intact rock (core) and when successful gives
the best possible quality samples for description, sampling and
analysis of an ore body or mineralised structure.
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"dip"
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A line directed down the steepest
axis of a planar structure including a planar ore body or zone of
mineralisation. The dip has a measurable direction and inclination
from horizontal.
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"dyke"
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A magmatic dyke is a
tabular or sheetlike igneous body
that intruded preexisting rocks, often at a
steep angle.
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"fault"
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A planar fracture or discontinuity
in a volume of rock across which there has been significant
displacement.
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"geochemical"
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Refers to geological information
using measurements derived from chemical analysis.
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"geophysical"
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Refers to geological information
using unit measurements derived from the use of magnetic and
electrical readings.
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"geophysical techniques"
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include the exploration of an area
by exploiting differences in physical properties of different rock
types. Geophysical methods include seismic, magnetic, gravity,
induced polarisation and other techniques; geophysical surveys can
be undertaken from the ground or from the air
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"grade"
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The proportion of a mineral within a
rock or other material. For copper mineralisation this is usually
reported as % of copper per tonne of rock.
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"g/t"
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grams per tonne; equivalent to parts
per million ('ppm').
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"Indicated Resource"
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An "Indicated Mineral Resource" is
that part of a Mineral Resource for which quantity, grade or
quality, densities, shape and physical characteristics, can be
estimated with a level of confidence sufficient to allow the
appropriate application of technical and economic parametres, to
support mine planning and evaluation of the economic viability of
the deposit. The estimate is based on detailed and reliable
exploration and testing information gathered through appropriate
techniques from locations such as outcrops, trenches, pits,
workings and drill holes that are spaced closely enough for
geological and grade continuity to be reasonably
assumed.
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"Inferred Resource"
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An "Inferred Mineral Resource" is
that part of a Mineral Resource for which quantity and grade or
quality can be estimated on the basis of geological evidence and
limited sampling and reasonably assumed, but not verified,
geological and grade continuity. The estimate is based on limited
information and sampling gathered through appropriate techniques
from locations such as outcrops, trenches, pits, workings and drill
holes.
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"intercept"
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Refers to a sample or sequence of
samples taken across the entire width or an ore body or mineralised
zone. The intercept is described by the entire thickness and the
average grade of mineralisation.
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"massive"
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In a geological sense, refers to a
zone of mineralisation that is dominated by sulphide
minerals. The sulphide-mineral-rich material can occur in
centimetre-scale, metre-scale or in tens of metres wide veins,
lenses or sheet-like bodies containing sphalerite, galena, and / or
chalcopyrite etc.
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"Measured Resource"
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A "Measured Mineral Resource" is
that part of a Mineral Resource for which quantity, grade or
quality, densities, shape, and physical characteristics are so well
established that they can be estimated with confidence sufficient
to allow the appropriate application of technical and economic
parametres, to support production planning and evaluation of the
economic viability of the deposit. The estimate is based on
detailed and reliable exploration, sampling and testing information
gathered through appropriate techniques from locations such as
outcrops, trenches, pits, workings and drill holes that are spaced
closely enough to confirm both geological and grade
continuity.
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"Mineral Resource"
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A "Mineral Resource" is a
concentration or occurrence of diamonds, natural solid inorganic
material, or natural solid fossilised organic material including
base and precious metals, coal, and industrial minerals in or on
the Earth's crust in such form and quantity and of such a grade or
quality that it has reasonable prospects for economic extraction.
The location, quantity, grade, geological characteristics and
continuity of a Mineral Resource are known, estimated or
interpreted from specific geological evidence and
knowledge.
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"mineralisation"
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In geology, mineralisation is the
deposition of economically important metals (copper, gold, lead,
zin etc) that in some cases can be in sufficient quantity to form
mineral ore bodies.
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"outcrop"
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A section of a rock formation or
mineral vein that appears at the surface of the earth.
Geologists take direct observations and samples from outcrops, used
in geologic analysis and creating geologic maps. In situ (in place)
measurements are critical for proper analysis of the geology and
mineralisation of the area under investigation.
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"veins"
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A vein is a sheet-like or
anastomosing fracture that has been infilled with mineral ore
(chalcopyrite, covellite etc) or mineral gangue (quartz, calcite
etc) material, within a rock. Veins form when minerals carried by
an aqueous solution within the rock mass are deposited through
precipitation and infill or coat the fracture faces.
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