2 May
2024
Arc
Minerals Ltd
('Arc' or
the 'Company')
Operational
Update
Arc Minerals (LSE: ARCM), an
exploration company forging partnerships to discover and develop
Tier 1 copper deposits, is pleased to provide an update on
activities at its Joint Venture project in Zambia and at its Virgo
Project within the highly prospective Central Structural Corridor
of the Kalahari Copper Belt ('KCB') in the Republic of
Botswana.
Highlights
Zambia:
·
Following the end
of the rainy season, the Arc Minerals Joint Venture partner has
commenced work at site
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Work programme to
include core diamond drilling, initially at two identified
targets
Botswana:
·
Ground IP Survey
over copper targets in PL 135/2017 anticipated to be completed by
next week
·
First phase of
2,000m Reverse Circulation Drill Programme to commence this
quarter
·
Prospecting
License Renewals submitted
Nick von Schirnding, Executive Chairman of Arc Minerals,
commented:
"We are thrilled to be
commencing drilling activities imminently in both Zambia and
Botswana, following a lengthy rainy season in North West
Zambia.
Extensive studies have been
carried out on the stratigraphic hole which was completed by our
joint venture partner in December 2023, providing valuable insights
and geological data of the deeper part of the Kabompo
basin.
We are also very excited to
move onto the next stage by ramping up activities on our licences
in Botswana with drilling to commence this
quarter."
Zambian Exploration Field Season
Arc is progressing its Zambia Copper
Project through its 67% subsidiary, Unico Minerals Limited, as part
of a joint venture. The joint venture partner has an earn in
arrangement by which they are required to undertake a significant
amount of project expenditures (see announcement dated 10 November
2023). The joint venture partner has also assumed operatorship of
the project. Over the course of the rainy season a thorough
geological technical review of the project was initiated by the
joint venture partner to evaluate its status and identify potential
opportunities. The directors are advised that through expansive
consultations, rigorous data analysis and information obtained from
the recent stratigraphic hole, the review team appointed by the
joint venture partner has generated valuable insights that has
culminated in a work program for 2024 which will entail:
·
LiDAR Survey to assist in determining the surface
outcrop positions with precision;
·
Detailed geological mapping, spectral and pXRF
analysis of samples collected providing a deeper understanding of
the geological context of the area in relation to the stratigraphic
horizons of interest;
·
Core Diamond drilling in areas that are deemed
prospective to host copper and nickel mineralisation;
and.
·
Further ground-based geophysics to understand the
underlying basin and sub-basin geometry
The joint venture partner
exploration team has already been to site in recent weeks and
mobilisation for the 2024 exploration season commences imminently.
The Directors look forward to providing more detailed updates as
work progresses.
Botswana Geophysical Survey
The Company has contracted 3D Earth
Exploration ('3DEE') to conduct a Gradient Array Induced
Polarisation ("IP") survey over one of the prospective parts of its
wholly owned PL 135/2017 license in Botswana. This ground IP will
help resolve the 3D orientation of structures and lithologies while
also helping to discriminate between types of conductive structures
and providing targets for drilling.
Following a c.30 line-kilometre bush
and shrub clearance started in March 2024, the ground IP survey
commenced on 22 April 2024 and has been extended to cover
additional areas that 3DEE has recommended based on the field
results observed to date. The extended programme will approximate
to c.35 line-kilometres over the selected part of the license area
and is expected to complete within the next few weeks. Further
updates will be provided on the results of this survey when they
are available.
Botswana Drill Programme
The results from the IP survey
referred to above, will inform a first phase c.2,000m reverse
circulation ('RC') drill programme to target the generated
anomalies within the PL135/2017 license.
Drilling contractors have been
invited to tender for the eight- to ten-hole drill programme, which
is expected to commence this financial quarter and take
approximately one month to complete.
Botswana License Renewal Applications
The Company's Botswana subsidiary
has this week lodged renewal applications for both the PL135/2017
and PL162/2017 licenses that are due to expire later this year.
This is an administrative process and the Directors see no reason
why the licences will not be automatically renewed in accordance
with their terms. The renewals will extend the period by
which the Company can continue exploring the Virgo Project licenses
for a further two years (and so would expire in 2026).
Additional information on the Virgo
project is set out in the Appendix at the end of this
announcement.
Qualified Persons
Mr Vassilios Carellas (BSc (Hons),
MAusIMM) is the Chief Operating Officer for Arc Minerals and has
sufficient experience relevant to the style of mineralisation and
type of deposit under consideration and to the activity which he is
undertaking to qualify as a Competent Person as defined under the
JORC Code (2012). Mr Carellas consents to the inclusion in this
announcement of the technical matters based on his information in
the form and context in which it appears.
Market Abuse Regulation (MAR)
Disclosure
This announcement contains inside
information for the purposes of Article 7 of the Market Abuse
Regulation (EU) 596/2014 as it forms part of UK domestic law by
virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under
Article 17 of MAR.
For further information contact:
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Arc Minerals
Ltd
Nick von Schirnding (Executive
Chairman)
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c/o Benchmark Communications
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WH Ireland
(Nominated Adviser & Joint Broker)
Katy Mitchell/Harry Ansell
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Tel: +44 (0) 20 7220 1666
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Shard Capital
(Joint Broker)
Damon Heath
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Tel: +44 (0) 20 7186 9952
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Benchmark
Communications (Investor Relations)
Richard Kauffer
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Tel: +44 (0) 7841 67 3210
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For more information,
visit www.arcminerals.com.
Forward-looking Statements
This news release contains forward-looking statements that are
based on the Company's current expectations and estimates.
Forward-looking statements are frequently characterised by words
such as "plan", "expect", "project", "intend", "believe",
"anticipate", "estimate", "suggest", "indicate" and other similar
words or statements that certain events or conditions "may" or
"will" occur. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors that could cause
actual events or results to differ materially from estimated or
anticipated events or results implied or expressed in such
forward-looking statements. Such factors include, among others: the
actual results of current exploration activities; conclusions of
economic evaluations; changes in project parameters as plans
continue to be refined; possible variations in ore grade or
recovery rates; accidents, labour disputes and other risks of the
mining industry; delays in obtaining governmental approvals or
financing; and fluctuations in metal prices. There may be other
factors that cause actions, events or results not to be as
anticipated, estimated or intended. Any forward-looking statement
speaks only as of the date on which it is made and, except as may
be required by applicable securities laws, the Company disclaims
any intent or obligation to update any forward-looking statement,
whether as a result of new information, future events or results or
otherwise. Forward-looking statements are not guarantees of future
performance and accordingly undue reliance should not be put on
such statements due to the inherent uncertainty
therein.
Appendix
Botswana: Background on the Virgo Licenses
PL
135/2017 License
The Company's PL135/2017 prospecting
license is surrounded on three sides by the prospecting licences of
Khoemacau Copper Mining Limited ("Khoemacau"), who have recently
been acquired by MMG for c.US$1.9 billion.
This PL135/2017 license is located
towards the south-eastern margin of the KCB occupying a similar
geological setting to that recently drilled by Khoemacau at their
recent Mawana Fold Discovery and the Zone 9 exploration target,
where economic grades of copper mineralisation has already been
intersected by drilling. These discoveries are located at the
north-western and south-eastern margins of the Company's
prospecting license, respectively.
Khoemacau's Mawana fold discovery
has defined a possible economic zone of copper mineralisation that
appears to trend towards and into the Company's PL 135/2017 license
(Figure 1.). The Company's recent scout drill holes intersected
anomalous grades of copper mineralisation close to this apparent
trend and confirmed an east-west trending DKF-NPF contact position approximately
5km long running through the license.
Fig 1. Image showing Khoemacau license holding, targets and
drilling results in relation to PL 135/2017.
In November 2021, Arc Minerals
Limited acquired a 75% interest in Alvis-Crest (Proprietary)
Limited, the holder of two prospecting licences (PL 135/2017 &
PL 162/2017) in Botswana's Kalahari Copper Belt ("KCB"),
colloquially called the Virgo Project/Licences. These licenses, cover an area of over 210km2, with PL 135/2017 approximately 10km south-east
of the large underground Khoemacau Copper mine recently
commissioned by Cupric Canyon Capital LP.
A map of the licences is available
here:
http://www.rns-pdf.londonstockexchange.com/rns/3027T_1-2021-3-24.pdf
The Virgo Licenses cover an area of
over 210km2 and lie within (PL 165/2017) and adjacent
(PL 135/2017) to the highly prospective Central Structural Corridor
and within 10km and 50km of the Zone 5 and Banana Zone copper
projects respectively, known as the two largest copper projects on
the KCB.
Historically, two copper-nickel soil
anomalies have already been recorded on PL 135/2017 and PL 162/2017
and are approximately 3km and 2.5km in strike length, respectively.
The largest of the two anomalies, located on PL 135/2017, overlays
an interpreted DKF-NPF contact, while a second, more intermittent,
anomaly may be linked to extensional faulting around the dome edge.
The large coherent anomaly on PL 162/2017 also appears to overlay
the interpreted DKF-NPF contact on the northern limb of a
syncline.
**ENDS**
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 copper, 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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"bornite"
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Bornite, also known as peacock ore,
is a copper sulphide mineral with the formula
Cu5FeS4.
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"breccia"
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Breccia is a rock classification,
comprises millimetre to metre-scale rock fragments cemented
together in a matrix, there are many sub-classifications of
breccias.
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"chalcocite"
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Chalcocite is a copper sulphide
mineral with the formula Cu2S and is an important copper
ore mineral. It is opaque and dark-gray to black with a metallic
luster.
|
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"chalcopyrite"
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Chalcopyrite is a copper sulphide
mineral with formula CuFeS2. It has a brassy to golden
yellow colour.
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"chargeability"
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Chargeability is a physical property
related to conductivity. Chargeability is used to characterise the
formation and strength of the induced polarisation within a rock,
under the influence of an electric field, suggesting sulphide
mineralisation at depth.
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"covellite"
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Covellite is a copper sulphide
mineral with the formula CuS. This indigo blue mineral is
ubiquitous in some copper ores.
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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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"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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"gossan"
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is an iron-bearing weathered product
that usually overlies a sulphide deposit
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"grab sample"
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are samples of rock material
collected from a small area, often just a few pieces or even a
single piece of rock "grabbed" from a face, dump or outcrop or
roughly 2-5kg. These are common types of rock samples collected
when conducting mineral exploration. The sample usually consists of
material that is taken to be representative of a specific type of
rock or mineralisation.
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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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"hematite"
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Hematite is the mineral form of
iron(III) oxide (Fe2O3), one of several iron
oxides. Magnetite alteration is also typically associate with
porphyry copper systems, at or close to the central
core.
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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 parameters, 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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"Induced Polarisation
Geophysics"
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Induced polarisation (IP) is a
geophysical survey used to identify the electrical chargeability of
subsurface materials, such as sulphides. The survey involves an
electric current that is transmitted into the subsurface through
two electrodes, and voltage is monitored through two other
electrodes.
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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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"JORC Code"
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The Australasian Code for Reporting
of Exploration Results, Mineral Resources and Ore Reserves ('the
JORC Code') is a professional code of practice that sets minimum
standards for Public Reporting of minerals Exploration Results,
Mineral Resources and Ore Reserves.
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"K"
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The element potassium, abundance on
surface can be inferred from radiometric surveys
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"Magnetics"
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Rocks are made up of different
minerals and the magnetic properties of a rock depends on the
amount and type of iron rich minerals it contains. Earth's magnetic
field interacts with these iron rich minerals to generate
variations in the magnetic field. Measuring and mapping these
variations allows remotely mapping of the distribution and patterns
of magnetic rocks and, as a result, map the subsurface
geology
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"magnetite"
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Magnetite is main iron ore mineral,
with chemical formula Fe3O4. Magnetite is
ferromagnetic, and it is attracted to a magnet and can be
magnetized to become a permanent magnet itself.
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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
parameters, 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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"open pit mining"
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A method of extracting minerals from
the earth by excavating downwards from the surface such that the
ore is extracted in the open air (as opposed to underground
mining).
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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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"polymict"
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A geology term, often applied to
breccias or conglomerates, which identifies the composition as
consisting of fragments of several different rock types.
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"Preliminary Economic
Assessment"
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NI 43-101 defines a PEA as "a study,
other than a pre-feasibility study or feasibility study, which
includes an economic analysis of the potential viability of mineral
resources".
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"Pyrrhotite"
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Pyrrhotite is
an iron sulfide mineral with the
formula Fe(1-x)S (x = 0 to 0.2). It is
a nonstoichiometric variant
of FeS, the mineral known as troilite.
Pyrrhotite is also called magnetic pyrite
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"Radiometrics"
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The radiometric, or gamma-ray
spectrometric method is a geophysical process used to estimate
concentrations of the radioelements potassium, uranium and thorium
by measuring the gamma-rays which the radioactive isotopes of these
elements emit during radioactive decay
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"sediments"
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Sedimentary rocks formed by the
accumulation of sediments. There are three types, Clastic, Chemical
and Organic sedimentary rocks.
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"sphalerite"
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Sphalerite is a zinc sulphide in
crystalline form but almost always contains variable iron, with
formula (Zn,Fe)S. It can have a yellowish to honey brown or black
colour.
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"supergene"
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Supergene ore processes occur near
surface, and form deposits of secondary minerals, such as
malachite, azurite, chalcocite, covellite, digenite,
etc.
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"surface rock chip
samples"
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Rock chip samples approximately 2kg
in size that are typically collected from surface outcrops exposed
along rivers and mountain ridgelines.
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"syncline"
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a trough of stratified rock in which
the beds dip toward each other from either side.
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"Th"
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The element thorium, abundance on
surface can be inferred from radiometric surveys
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"U"
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The element uranium, abundance on
surface can be inferred from radiometric surveys
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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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"volcanics"
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Volcanic rock such as andesite or
basalt that is formed from magma erupted from a volcano, or hot
clastic material that erupts from a volcano and is deposited as
volcaniclastic or pyroclastics.
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"XRF"
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Instrument to determine the
chemistry of a sample by measuring the fluorescent (or secondary)
X-ray emitted from a sample when it is excited by a primary X-ray
source
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