2 December 2024
East Star Resources
Plc
("East Star" or the
"Company")
Copper Porphyry Exploration
Update
East Star Resources Plc (LSE:EST),
which is exploring for copper in Kazakhstan, is pleased to provide
an update on its copper porphyry exploration strategy at the Snowy
licence, on the paleozoic Balkash-Ili volcanic arc, which was
initially funded by a US$500,000 BHP Xplor grant.
Highlights:
·
Soil sampling has identified a very large gold
(Au) in soil anomaly (5km by 1km), coincident with the alteration
signature from the multispectral imagery and directly along strike
from an artisanal gold mine
·
A second large anomaly (2km by 2km) with porphyry
potential, has been identified through strong molybdenum ("Mo") and
bismuth ("Bi") pathfinder elements, with results indicating >10
times Mo and >100 times Bi above anomalous thresholds
·
Based on the data, management consider Snowy
warrants further exploration for potential epithermal gold and
copper porphyry systems
Next steps
Field verification of the targets
and geological mapping over the areas identified by the soil
geochemistry is a necessary next step. In the Central Target area
(detailed below), field mapping will aim to identify veining
consistent with a porphyry system at explorable depth, whilst
mapping of the East Target (detailed below) will look for veins and
textures supportive of epithermal mineralisation. If the field
mapping supports the target styles of mineralisation, a likely next
step would be geophysics in the form of an Induced Polarity (IP)
survey designed to directly target disseminated sulphide
mineralisation.
Chris van Wijk, East Star Technical Director,
commented:
"We're very happy with the soil sampling results on our Snowy
licence. Our initial work using ASTER multispectral imagery
identified several areas of potential hydrothermal alteration and
guided the initial acquisition of this licence. The soil
geochemistry completed has identified several areas with highly
enriched pathfinder elements that correspond with anomalous areas
highlighted by the multi-spectral imaging. The geochemical data is
consistent with that seen proximal to other mineralised systems and
worthy of further exploration."
Systematic
soil geochemistry and lithocap sampling
During the 2024 field season, 1,469 soil
samples were collected for multi-element soil geochemistry over the
Snowy licence area. The licence was known to host at least two very
large silica lithocaps and hence the aim of the soil sampling
programme was to test whether the lithocaps contained pathfinder
elements suggestive of the presence of a mineralised
system.
The results have identified two coherent
targets: the Central and East Targets, both of which display highly
anomalous soil geochemistry and are worthy of follow-up work in the
next field season.
The Central Target displays multi-element
geochemical anomalism consisting of very strong Mo and Bi anomalies
and moderate copper anomalism, which is similar to the geochemical
signature expected proximal to a porphyry system. Lower copper
anomalism is likely explained by the higher mobility of copper in
the weathering profile when compared to the less mobile
Mo and Bi.
The East Target displays anomalous gold and
silver in soils, which is consistent with the nearby artisanal
workings, thought to have exploited an epithermal vein at
surface.
Multi-spectral
analysis
Work began over the licence area by assessing
the regional multi-spectral response using ASTER data. As expected,
the silica lithocaps that are so visible at surface have a strong
multi-spectral signature in ASTER data. Figure 1 below shows the
KLI Index over the Snowy licence. The KLI Index is a composite band
index designed to highlight the Kaolin group of minerals, which are
commonly present in highly altered, leached lithocaps such as
Snowy. The ASTER imagery is useful at delineating the size extent
of the lithocaps and their potential mineralogy, which have now
been further refined using the multi-element geochemistry
data.
The KLI index shows two particularly strong
anomalies, corresponding to the known lithocap referred to as Snowy
and the extension of an artisanal mining area in the east of the
licence area (East Target). Several other areas present lower
intensity anomalies, one of which, the Central Target, has now been
demonstrated to have multi-element geochemical anomalism consistent
with a porphyry system.
Figure
1 KLI index generated from ASTER data - KLI
index is used to identify areas of hydrothermal alteration which
may be proximal to mineralization.
Systematic
soil geochemistry and lithocap sampling
1,469 soil samples were collected for
multi-element soil geochemistry over the Snowy licence area with
the aim of testing whether the lithocaps identified through the
ASTER work yielded any geochemical anomalism suggestive of a
mineralised system. The samples were analysed using an Aqua Regia
digest with ICP-MS finish, which is an economical assay method
yielding ultra-low detection limits for a wide variety of elements
and includes gold and mercury in the same analysis. Gold and
mercury are key pathfinders for both porphyry and related
epithermal mineralisation.
The Central Target corresponds to an anomalous
intrusive body in the centre of the licence that aligns with an
area of weak alteration that can be detected in the ASTER imagery
(See Figure 1 above). This area, shown in Figures 2a and b, is
highly anomalous in Bi (up to 371ppm) and Mo (up to 52ppm) and also
has low level anomalism in copper (up to 1,575ppm copper (Cu)).
These results are significant because copper is expected to be
mobile in the acidic lithocap environment and hence is often
depleted; however, Mo and Bi are much less mobile in acidic
weathering environments and will persist in the soils at surface.
Furthermore, Aqua Regia will tend to under-report Mo in soils and
therefore, the fact that these soils are so anomalous in Mo makes
this area worthy of further investigation.
Figures
2a (left) shows the Bi anomaly & 2b (right)
shows the Mo anomaly
The East target is clearly visible in the ASTER
imagery as an east-west trending anomaly in the KLI index. This
target is reinforced by very anomalous gold and silver results (two
samples showing 0.28g/t Au and ~1g/t Ag in soils) in soil
geochemistry (See Figure 3 below). This target is lent further
weight by the fact that there is an historical excavation on an
outcropping epithermal style vein, which was presumably excavated
to test the gold potential. The artisanal workings are clearly
visible in satellite imagery, and the soil geochemistry shows this
trend continuing to the east into the Snowy licence
area.
Figure
3 - Showing Au in soil results as well as
location of open pit artisanal mine workings.
Regional
setting
The licence is located on the
western end of the paleozoic Balkash-Ili volcanic arc. The
Balkash-Ili arc is known to host multiple copper and gold rich
porphyry and skarn deposits with the best-known examples including
Aktogai-Aidarly and the Kounrad mine (~650Mt @ 0.59% Cu), which is
located some 230km to the south of the licence.
The licence is well served by
existing infrastructure including the main Balkash to Astana
highway and a railway used to transport metals from the Balkash
mining complex. The road and rail are both located around 50km to
the west of the licence. Access to the licence is via a network of
gravel tracks and roads.
Copper
porphyry exploration strategy
Under the Company's copper porphyry
strategy, East Star has identified a number of regional targets,
which has to date principally focussed on the Balkash-Ili magmatic
arc, host to the Kounrad deposit (~650Mt @ 0.59% Cu) and
Aktogai-Aidarly (~2.5Bt @ 0.39% Cu). Results to date have resulted
in a decision to progress Snowy and drop Ayagoz while we refine our
additional targets for initial field work in 2025. By applying
modern mineral systems concepts combined with advanced desktop
analytical techniques and on the ground geological confirmation,
East Star intends to secure other prospective exploration licences
for further field work.
East Star
Resources Plc
Alex Walker, Chief Executive
Officer
Tel: +44 (0)20 7390 0234 (via Vigo
Consulting)
SI
Capital (Corporate Broker)
Nick Emerson
Tel: +44 (0)1483 413 500
Peterhouse Capital Limited (Corporate
Broker)
Peter Greensmith
Tel: +44 (0) 20 7469 0930
Vigo Consulting (Investor Relations)
Ben Simons / Peter Jacob
Tel: +44 (0)20 7390 0234
About East
Star Resources Plc
East Star Resources is focused on the discovery
and development of copper and other strategic minerals required for
the energy revolution. With eight licences covering >1,000 km²
in three mineral rich districts of Kazakhstan, East Star is
undertaking an intensive exploration programme, applying modern
geophysics to discover minerals in levels that were not previously
explored. East Star's most advanced project is a copper deposit on
the world-class Rudny Altai VMS Belt where the Company delivered a
JORC compliant inferred resource of 20.3Mt @ 1.16% copper, 1.54%
zinc and 0.27% lead close to infrastructure, within trucking
distance of third-party mills with excess capacity. East Star's
management are based permanently on the ground, supported by local
expertise, and a joint venture with the state mining company on
certain projects. In 2024, East Star was selected to receive grant
funding through the BHP Xplor programme for copper porphyry
exploration.
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The person who
arranged for the release of this announcement was Alex Walker, CEO
of the Company.
Competent
Person Statement
The technical information related to East Star
Resources assets contained in this report that relates to
Exploration Results is based on information compiled by Mr
Christopher van Wijk, who is a Member of the Australasian Institute
of Mining and Metallurgy and who is a Geologist employed by East
Star Resources as an Executive Director. Mr van Wijk has
sufficient experience which is 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 in the 2012 Edition of the 'Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves'. Mr van Wijk consents to the inclusion in the
release of the matters based on the information he has compiled in
the form and context in which it appears.
This announcement contains inside information
for the purposes of Article 7 of Regulation 2014/596/EU which is
part of domestic UK law pursuant to the Market Abuse (Amendment)
(EU Exit) Regulations (SI 2019/310) ("UK MAR"). Upon the
publication of this announcement, this inside information (as
defined in UK MAR) is now considered to be in the public
domain.
