TIDMTRR
RNS Number : 6238L
Trident Royalties PLC.
14 January 2021
14 January 2021
Trident Royalties Plc
("Trident" or the "Company")
Royalty Portfolio Update: Lake Rebecca Gold Project
LAKE REBECCA PROJECT DRILLING SHOWS POTENTIAL FOR INCREASED
RESOURCES
Trident Royalties Plc (AIM:TRR, FSX:5KV), the growth-focused
mining royalty and streaming company, is pleased to provide a
technical update for the Lake Rebecca Gold Royalty (the "Royalty")
over tenement E28/1610 which hosts the entirety of the
million-ounce Lake Rebecca Gold Project ("Lake Rebecca" or the
"Project"), currently owned and operated by ASX-listed Apollo
Consolidated ("Apollo") in Western Australia.
Since the completion of the Royalty acquisition (announced 29
October 2020) Apollo has released technical and drilling updates
for the Project including the constituent Rebecca, Duchess, Duke
and Cleo deposits (all of which are covered by the Royalty).
Project highlights are summarised below.
Adam Davidson, Chief Executive Officer and Executive Director of
Trident commented:
"We are delighted by the exploration progress Apollo has made at
the 1Moz Lake Rebecca Gold Project, over which Trident holds a 1.5%
Net Smelter Royalty.
"Since completing the royalty acquisition on 29 October 2020,
Apollo has announced some very encouraging infill and exploratory
drilling results which bode well for significant upgrades in the
expected Q2 2021 Mineral Resource Estimate update, and which serve
to further de-risk future technical studies on the project as
Apollo seeks to fast track the project into mine construction.
"It is also encouraging to note that the royalty area shows
prospectivity for the definition of further Resources as
highlighted by developments at the emerging Cleo deposit. We look
forward to following developments at the project as drilling
continues and technical studies commence."
HIGHLIGHTS
Rebecca Deposit - Infill & Step-Out Drilling Results
Considered Very Positive(1, 2, 4, *)
-- High-density(#) infill drilling results help to de-risk
future mining studies, improving geological confidence in the
Rebecca deposit Resource modelling, especially around the margins
of high-grade gold zones such as the Jennifer, Maddy and Laura
structures.
-- Strong gold drill intercepts have been returned in expected
positions whilst additional intercepts have extended the Mineral
Resource block model in places. Example down-hole intercepts
include:
-- Hole RCLR0729: 21m @ 2.45g/t Au from 209m, 7m @ 1.24g/t Au
from 285m & 7m @ 2.09g/t Au from 301m.(1)
-- Hole RCLR0727: 30m @ 1.16g/t Au from 143m (Laura structure),
33m @ 1.46g/t Au* from 217m & 15m 1.74g/t Au* from 255m (Maddy
structure).(2)
-- Hole RCLR0680: 13m @ 2.96g/t Au & 4m @ 2.97g/t Au from 270m (4) ; and
-- Hole RCLR0681: 9m @ 3.81g/t Au from 255m. (4)
-- Significant new hanging-wall gold mineralisation identified
to the west of the Jennifer structure; downhole examples
include:
-- Hole RCLR0731 with 7m @ 2.21g/t Au from 312m (1)
-- Hole RCLR0682 with 18m @ 1.79g/t Au from 168m (4) ; and
-- Hole RCLR0681 with 15m @ 1.27g/t Au from 85m (4) .
-- New near-surface gold mineralisation identified; down-hole examples include:
-- Hole RCLR0741 22m @ 1.31g/t Au from 120m.(1)
-- Hole RCLR0722 10m @ 1.22g/t Au* from 30m, 8m@ 3.53g/t Au from
43m & 3m @ 8.22g/t Au from 85m.(2)
-- Apollo has stated that drilling along the 1.7km long Rebecca
deposit continues to demonstrate the strength of the mineralised
system, confirming and building on the geological modelling and
that the major mineralised structures remain open to depth and will
be the focus of additional RC and diamond drilling during
2021.(2)
Duchess & Duke Deposits (2, 5, 6)
-- New drilling results from 12 holes at the Duchess deposit,
located approximately 4km south of Rebecca, has increased the
understanding of the mineralised system, confirming, widening and
extending the known mineralisation within the 900m long and
>400m wide deposit footprint; best new down-hole intercept: 20m
@ 1.64g/t Au* from 110m in hole RCLR0700.(2)
-- Results show exploration potential for the circa 1km of
ground between the Duchess deposit (180koz Au Inferred Resource (5)
) and Duke deposit (80koz Au Inferred Resource (5) ). (6)
Cleo Exploration Target (1, 3)
-- Early stage drilling shows good potential for future Mineral Resource definition.
-- Infill and extensional reverse circulation ("RC") drilling
focussing on a part of the Cleo target, 1.4km to the west of the
Rebecca deposit, has returned encouraging results from shallow
depths; example down-hole intersections include:
-- Hole RCLR0683: 10m @ 1.0g/t Au from 110m.
-- Hole RCLR0684: 10m @ 0.82g/t Au* from 20m, 5m @ 1.69g/t Au*
from 35m, 5m @ 4.24g/t Au* from 80m & 5m 1.46g/t Au* from
95m.
-- Hole RCLR0685: 5m @ 3.76g/t Au from 55m, 15m @ 0.52g/t Au*
from 80m, 28m @ 0.63g/t Au* from 105m & 10m @ 0.92g/t Au* from
140m.
-- These encouraging intercepts lie within a 150m wide surface
footprint and feature broad down-hole anomalous zones of gold
anomalism, for example 115m @ 0.51g/t Au from 40m in RCLR0685
(calculated at nominal >0.1g/t Au & 2g/t Au top-cut).
(3)
-- Preliminary geological interpretation for Cleo suggests near
surface vertically orientated gold mineralisation which remains
open in strike and to depth. (3)
-- Follow-up drilling is planned to expand the mineralised
footprint and increase geological understanding along the current
approximately 1km long gold mineralisation strike. (1,) (3)
Project Next Steps (1, 4)
-- Mineral Resource Estimate update scheduled for completion in
Q2 2021 (Trident expects an increase in contained ounces based on
the positive infill and extensional drilling results since the
February 2020 maiden Mineral Resource Estimate of Total Indicated
& Inferred 27.1Mt @ 1.2g/t Au for 1.035Moz Au).
-- Exploration drilling continues to test under-explored
structural targets lying between the Cleo, Duchess and Rebecca
deposits.
-- Geotechnical testwork is in progress.
-- High resolution photographic and topographic surveys flown to
support future technical and project evaluation studies.
-- Apollo well-funded to continue the work programme (A$18.6M in
consolidated cash as of 11 January 2021).(1)
Trident announced the completion of the Lake Rebecca Gold
Royalty Acquisition (as defined below) on 29 October 2020.
On 24 September 2020, the Company announced that it had entered
into a binding agreement to acquire an existing 1.5% Net Smelter
Return ("NSR") gold royalty over tenement E28/1610 (the "Lake
Rebecca Gold Royalty Acquisition"), which hosts the entirety of the
million-ounce Lake Rebecca Gold Project, currently owned and
operated by ASX-listed Apollo Consolidated in Western Australia.
The Royalty was acquired for a total consideration of A$7,000,000
in cash (approx. US$5,000,000 at the time of completion) and
A$1,000,000 to be satisfied by the issue of 1,862,556 new ordinary
shares of 1p each in Trident ("Consideration Shares") at 29.39p per
Ordinary Share. Trident announced the completion of the Lake
Rebecca Gold Royalty Acquisition on 29 October 2020.
The royalty is payable on production from exploration licence
E28/1610 which is currently pending conversion to a mining licence
(M28/400, application date 2 December 2019), and covers the
entirety of the Cleo, Duke, Duchess and Rebecca deposits which are
collectively referred to as the "Lake Rebecca Gold Project." Apollo
is aggressively pursuing the development of Lake Rebecca following
the publication of a conservative open-pit shell constrained 1.035
million ounce gold JORC (2012) compliant maiden Mineral Resource
Estimate(1) in February 2020 (Indicated + Inferred resource of
27.1Mt @ 1.2g/t Au for 1.035Moz Au, with 0.5g/t Au cut-off &
A$2,250/oz gold price). Trident considers Lake Rebecca to be a key
cornerstone asset for the company and is expected to underpin the
precious metals' allocation in Trident's royalty portfolio.
Notes & References
All of the technical information has been extracted from the
publicly available source documents identified below, the reader is
advised that the appropriate JORC tables and Competent Persons
Statements may be found in these documents.
# High density infill drilling conducted on average 25m x 40m
drill fences.
* Denotes intercept comprises one or more composite samples
which will now be resamples at 1m intervals.
1 Source: Apollo Consolidated ASX announcement 12 January
2021
(
https://asx.api.markitdigital.com/asx-research/1.0/file/2924-02329849-6A1015243?access_token=83ff96335c2d45a094df02a206a39ff4
)
2 Source: Apollo Consolidated ASX announcement 7 December
2020
(
https://asx.api.markitdigital.com/asx-research/1.0/file/2924-02318817-6A1011129?access_token=83ff96335c2d45a094df02a206a39ff4
)
3 Source: Apollo Consolidated ASX announcement 9 November
2020
(
https://asx.api.markitdigital.com/asx-research/1.0/file/2924-02306075-6A1006206?access_token=83ff96335c2d45a094df02a206a39ff4
)
4 Source: Apollo Consolidated ASX announcement 3 November
2020
(
https://asx.api.markitdigital.com/asx-research/1.0/file/2924-02303938-6A1005443?access_token=83ff96335c2d45a094df02a206a39ff4
)
5 - Apollo Consolidated ASX announcement 10 February 2020
( https://www.asx.com.au/asxpdf/20200210/pdf/44dyphpx3pl45r.pdf
)
6 - Apollo Corporate Presentation dated 5 November 2020
(
https://asx.api.markitdigital.com/asx-research/1.0/file/2924-02305357-6A1005898?access_token=83ff96335c2d45a094df02a206a39ff4
)
** Ends **
Contact details:
Trident Royalties Plc www.tridentroyalties.com
Adam Davidson +1 (757) 208-5171
Grant Thornton (Nominated Adviser) www.grantthornton.co.uk
Colin Aaronson / Samantha Harrison +44 020 7383 5100
/ Seamus Fricker
-------------------------
Tamesis Partners LLP (Financial www.tamesispartners.com
Adviser and Joint Broker) +44 203 882 2868
Richard Greenfield
-------------------------
Shard Capital Partners LLP (Joint www.shardcapital.com
Broker) +44 207 186 9927
Erik Woolgar / Isabella Pierre
-------------------------
Yellow Jersey (Public Relations) www.yellowjerseypr.com
Charles Goodwin / Joe Burgess +44 7747 788 221
-------------------------
About Trident
Trident is a growth-focused diversified mining royalty and
streaming company, providing investors with exposure to a mix of
base and precious metals, bulk materials (excluding thermal coal)
and battery metals.
Key highlights of Trident's strategy include:
-- Expanding on a royalty and streaming portfolio which broadly
mirrors the commodity exposure of the global mining sector
(excluding thermal coal) with a bias towards production or
near-production assets, differentiating Trident from the majority
of peers which are exclusively, or heavily weighted, to precious
metals;
-- Acquiring royalties and streams in resource-friendly
jurisdictions worldwide, while most competitors have portfolios
focused on North and South America;
-- Targeting attractive small-to-mid size transactions which are
often ignored in a sector dominated by large players;
-- Active deal-sourcing which, in addition to writing new
royalties and streams, will focus on the acquisition of assets held
by natural sellers such as: closed-end funds, prospect generators,
junior and mid-tier miners holding royalties as non-core assets,
and counterparties seeking to monetise packages of royalties and
streams which are otherwise undervalued by the market;
-- Maintaining a low-overhead model which is capable of
supporting a larger scale business without a commensurate increase
in operating costs; and
-- Leveraging the experience of management, the board of
directors, and Trident's adviser team, all of whom have deep
industry connections and strong transactional experience across
multiple commodities and jurisdictions.
The acquisition and aggregation of individual royalties and
streams is expected to deliver strong returns for shareholders as
assets are acquired on terms reflective of single asset risk
compared with the lower risk profile of a diversified, larger scale
portfolio. Further value is expected to be delivered by the
introduction of conservative levels of leverage through debt. Once
scale has been achieved, strong cash generation is expected to
support an attractive dividend policy, providing investors with a
desirable mix of inflation protection, growth and income.
Forward-looking Statements
This news release contains forward -- looking information. The
statements are based on reasonable assumptions and expectations of
management and Trident provides no assurance that actual events
will meet management's expectations. In certain cases, forward --
looking information may be identified by such terms as
"anticipates", "believes", "could", "estimates", "expects", "may",
"shall", "will", or "would". Although Trident believes the
expectations expressed in such forward -- looking statements are
based on reasonable assumptions, such statements are not guarantees
of future performance and actual results or developments may differ
materially from those projected. Mining exploration and development
is an inherently risky business. In addition, factors that could
cause actual events to differ materially from the forward-looking
information stated herein include any factors which affect
decisions to pursue mineral exploration on the relevant property
and the ultimate exercise of option rights, which may include
changes in market conditions, changes in metal prices, general
economic and political conditions, environmental risks, and
community and non-governmental actions. Such factors will also
affect whether Trident will ultimately receive the benefits
anticipated pursuant to relevant agreements. This list is not
exhaustive of the factors that may affect any of the forward --
looking statements. These and other factors should be considered
carefully and readers should not place undue reliance on
forward-looking information.
Third Party Information
As a royalty and streaming company, Trident often has limited,
if any, access to non-public scientific and technical information
in respect of the properties underlying its portfolio of royalties
and investments, or such information is subject to confidentiality
provisions. As such, in preparing this announcement, the Company
often largely relies upon information provided by or the public
disclosures of the owners and operators of the properties
underlying its portfolio of royalties, as available at the date of
this announcement.
Glossary of Technical Terms
"cut-off grade" A "cut-off grade" is a fundamental component in
the preparation of Mineral Resources or Mineral
Reserves. It is defined as the grade or value that
is used to differentiate between ore and waste for
a given set of conditions, parameters and time frame.
As such, the criteria and processes by which a cut-off
grade or value are determined will often be different
between mineral properties, for different situations
within a given mining operation, and at different
times.
"Exploration Exploration Target is defined as a statement, or
Target" estimate, of the exploration potential of a mineral
deposit in a defined geological setting where the
statement or estimate, quoted as a range of tons
and a range of grade or quality, relates to mineralisation
for which there has been insufficient exploration
to estimate Mineral Resources.
"grade" The proportion of a mineral within a rock or other
material. For gold mineralisation this is usually
reported as g/t of gold per tonne of rock.
"Indicated Resource" An 'Indicated Mineral Resource' is that part of
a Mineral Resource for which quantity, grade (or
quality), densities, shape and physical characteristics
are estimated with sufficient confidence to allow
the application of Modifying Factors in sufficient
detail to support mine planning and evaluation of
the economic viability of the deposit.
Geological evidence is derived from adequately detailed
and reliable exploration, sampling and testing gathered
through appropriate techniques from locations such
as outcrops, trenches, pits, workings and drill
holes, and is sufficient to assume geological and
grade (or quality) continuity between points of
observation where data and samples are gathered.
An Indicated Mineral Resource has a lower level
of confidence than that applying to a Measured Mineral
Resource and may only be converted to a Probable
Ore Reserve.
"Inferred Resource" An 'Inferred Mineral Resource' is that part of a
Mineral Resource for which quantity and grade (or
quality) are estimated on the basis of limited geological
evidence and sampling. Geological evidence is sufficient
to imply but not verify geological and grade (or
quality) continuity. It is based on exploration,
sampling and testing information gathered through
appropriate techniques from locations such as outcrops,
trenches, pits, workings and drill holes.
An Inferred Mineral Resource has a lower level of
confidence than that applying to an Indicated Mineral
Resource and must not be converted to an Ore Reserve.
It is reasonably expected that the majority of Inferred
Mineral Resources could be upgraded to Indicated
Mineral Resources with continued exploration.
"JORC (2012)" The 2012 edition of The Australasian Code for Reporting
of Exploration Results, Mineral Resources and Ore
Reserves ("the JORCCode" or "JORC (2012)") is a
professional code of practice that sets minimum
standards for Public Reporting of minerals Exploration
Results, Mineral Resources and Ore Reserves. The
JORC Code provides a mandatory system for the classification
of minerals Exploration Results, Mineral Resources
and Ore Reserves according to the levels of confidence
in geological knowledge and technical and economic
considerations in Public Reports.
"Mineral Resource" A "Mineral Resource" is a concentration or occurrence
of solid material of economic interest 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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