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#SVML Sovereign Metals Ltd – Drilling Indentifies Mineralisation At Depth

KASIYA AIR-CORE DRILLING INDENTIFIES HIGH-GRADE MINERALISATION AT DEPTH

-First drilling results from the Company’s deeper air-core (AC) program confirm rutile mineralisation extends at depth beneath previous drilling in most of the targeted areas

-Results demonstrate the growth potential of Kasiya at depth and confirm that extensive rutile mineralisation remains outside of the current Mineral Resource Estimate (MRE) and pit shells

-Core areas of the previously designed pit shells averaged about 15m depth with new drilling commonly extending mineralisation to between 20m and 30m depth

-The new deeper and thicker rutile intercepts highlight the potential to increase the mineral resource at depth

-Highlights include:

  • 28m @ 1.05% inc. 5m @ 1.78% rutile
  • 25m @ 1.06% inc. 13m @ 1.15% rutile
  • 20m @ 1.26% inc. 16m @ 1.37% rutile
  • 22m @ 1.15% inc. 8m @ 1.51% rutile
  • 20m @ 1.29% inc. 6m @ 1.27% rutile
  • 20m @ 1.29% inc. 6m @ 1.27% rutile

-Identification of high-grade mineralisation at depth is expected to contribute to the MRE update targeted for Q1 2023

-Kasiya’s Pre-Feasibility Study (PFS) and Environmental and Social baseline workstreams are advancing with all major project and consultant teams appointed with a scheduled completion date in Q2 2023

Sovereign Metals Limited (ASX:SVM; AIM:SVML) (Sovereign or the Company) is pleased to report first results from its H1 2022 AC drilling program at the Kasiya Rutile Project (Kasiya), the world’s largest rutile deposit in Malawi.

The results confirm that rutile mineralisation is continuous in many pit areas from surface down to the top of saprock, normally between 20m and 30m from surface. Results reveal the potential for mining pits to be extended at depth to the top of saprock in numerous areas.

Sovereign’s Managing Director Dr Julian Stephens commented: “The early results from this deeper drilling re-asserts the truly remarkable Tier 1 nature of Kasiya in terms of size, grade and mineralisation consistency. We have now answered the question on the potential to deliver additional tonnes for the mineral resource at depth. Kasiya continues to grow and will likely become a multi generational project capable of supplying a reliable and sustainable source of high-purity titanium as natural rutile.”

ENQUIRIES

Dr Julian Stephens (Perth)
Managing Director

+61(8) 9322 6322

Sam Cordin (Perth)
+61(8) 9322 6322

Sapan Ghai (London)
+44 207 478 3900

 

Nominated Adviser on AIM

RFC Ambrian

Bhavesh Patel / Andrew Thomson

+44 20 3440 6800

Joint Brokers

Berenberg

Matthew Armitt

Jennifer Lee

+44 20 3207 7800

 

Optiva Securities

Daniel Ingram

Mariela Jaho

Christian Dennis

+44 20 3137 1902

To view the announcement in full, including all illustrations and figures, please refer to the announcement at http://sovereignmetals.com.au/announcements/.

KASIYA AIR CORE DRILLING

The 191-hole air-core drilling program at the Kasiya rutile deposit was completed in two phases from May to August 2022 by Thompson Drilling. The program was divided into an initial 32-hole sighter phase with results reported herein, and a second more expansive and targeted 159-hole phase. The drilling was completed on a nominal 200m x 200m grid spacing targeting upgrading of mineralisation into the Indicated category which could convert to Probable Reserves as part of the forthcoming PFS. A total of 32 drill-holes for 814m are reported (Figure 1) with results from the remaining 159 holes for 3,846m pending.

The initial sighter AC drilling program focused on mineralised corridors where high-grade rutile mineralisation was hypothesised to persist at depth, below the limit of the previous drilling. Results show that the mineralisation is pervasive throughout the saprolite zones with many holes showing mineralisation with 20-30m thickness from surface. Further MRE depth extensions are likely where the AC holes have extended known mineralisation beyond the base of the current MRE bound.

Second phase targeted drilling on the planned pit areas considered in the ESS has also been completed with the expectation that these pit designs may be modified if additional rutile mineralisation is encountered at depth.

Coarse flake graphite is present in all AC holes in association with rutile mineralisation. Graphite grades appear to improve with depth averaging +2% TGC in numerous holes.

PRE-FEASIBILITY STUDY PROGRESS

There are numerous technical work packages in progress for the Kasiya PFS including;

·      Further drilling to refine and extend the MRE and then the final PFS mining inventory

·      Preliminary hydrogeological pilot and test boreholes

·      Continued metallurgical test-work focused on the planned first 10 years of mining

·      Site visits throughout September by the principal PFS consultants

·      Updated JORC resource estimate planned for Q1 2023

·      Ongoing product marketing with further offtake MOUs expected to be executed

PERFORMANCE RIGHTS PLAN

The Company will seek shareholder approval to amend the terms of all existing performance rights currently on issue to amend the performance conditions as detailed in the table below (Amendment).

The Amendment is being sought to ensure that management are not disadvantaged by the impacts of COVID and the Company’s decision to complete the Expanded Scoping Study (ESS) which was underpinned by the substantial MRE update as announced in April 2022. The decision to complete the ESS has further enhanced the Kasiya economics but delayed the commencement of the PFS and subsequent Definitive Feasibility Study (DFS).

The Company does not envisage that it will require the full life of each tranche of performance rights to satisfy the relevant performance conditions, but the Amendment provides the Company with maximum flexibility to ensure the highest quality PFS and DFS can be completed whilst also allowing time to consider any funding opportunities or other corporate transactions that may present themselves as the Company approaches the completion of a PFS and DFS. The Company expects to complete the PFS in the June 2023 quarter.

The Board believes that the Amendment is required to ensure that the performance rights currently on issue continue to incentivise and retain existing key management personnel and to ensure continuing alignment between the strategic goals of the Company and the creation of shareholder value.

The Company will seek shareholder approval in November at its 2022 Annual General Meeting to make the Amendment as follows:

TRANCHE

ORIGINAL PERFORMANCE CONDITIONS

ORIGINAL EXPIRY DATE

AMENDED PERFORMANCE CONDITIONS

AMENDED EXPIRY DATE

No. of Performance Rights

2

Feasibility Study Milestone means announcement of a positive Feasibility Study for the Malawi Rutile Project in accordance with the provisions of the JORC Code.

Feasibility Study has the meaning given in the JORC Code.

31 December 2023

Pre-Feasibility Study Milestone means announcement of a positive Pre-Feasibility Study for the Malawi Rutile Project in accordance with the provisions of the JORC Code.

Pre-Feasibility Study has the meaning given in the JORC Code.

30 September 2023

5,120,000

3

Decision to Mine Milestone means announcement of a Decision to Mine for the Malawi Rutile Project.

Decision to Mine means a decision to commence mining operations.

31 October 2025

Feasibility Study Milestone means announcement of a positive Feasibility (DFS) Study for the Malawi Rutile Project in accordance with the provisions of the JORC Code.

Feasibility Study has the meaning given in the JORC Code.

31 October 2025

7,320,0

 

Further, and subject to shareholder approval following his appointment as Chairman, the Company will also issue an additional 240,000 tranche 2 (PFS) performance rights and 120,000 tranche 3 (DFS) performance rights to director, Mr Ben Stoikovich.

Following the change in focus from exploration to development activities and the associated requirement for additional human resources, the Company will also issue, subject to shareholder approval of the Amendment, 1,140,000 tranche 2 (PFS) performance rights and 1,520,000 tranche 3 (DFS) performance rights to existing and incoming staff.

Competent Persons Statement

The information in this report that relates to Exploration Results is based on information compiled by Mr Samuel Moyle, a Competent Person who is a member of The Australasian Institute of Mining and Metallurgy (AusIMM). Mr Moyle is the Exploration Manager of Sovereign Metals Limited and a holder of ordinary shares and unlisted performance rights in Sovereign Metals Limited. Mr Moyle has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken, 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 Moyle consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this announcement that relates to the Mineral Resource Estimate is extracted from the announcement dated 5 April 2022. The announcement is available to view on www.sovereignmetals.com.au. Sovereign confirms that a) it is not aware of any new information or data that materially affects the information included in the announcement; b) all material assumptions included in the announcement continue to apply and have not materially changed; and c) the form and context in which the relevant Competent Persons’ findings are presented in this report have not been materially changed from the announcement.

Table 1:  Kasiya Mineral Resource Estimate at 0.7% Rutile Cut-off

 

 

Mineral Resource Category

Material Tonnes (millions)

Rutile
(%)

Rutile Tonnes (millions)

Total Contained Graphite (TGC)
(%)

TGC Tonnes (millions)

RutEq. Grade*
(%)

Indicated

662

1.05%

6.9

1.43%

9.5

1.76%

Inferred

1,113

0.99%

11.0

1.26%

14.0

1.61%

Total

1,775

1.01%

18.0

1.32%

23.4

1.67%

* RutEq. Formula: Rutile Grade x Recovery (98%) x Rutile Price (US$1,308/t) + Graphite Grade x Recovery (62%) x Graphite Price (US$1,085/t) / Rutile Price (US$1,308/t). All assumptions are taken from this Study ** Any minor summation inconsistencies are due to rounding

Qualified Person

Data disclosed in this press release have been reviewed and verified by Sovereign’s Qualified Person, Dr Julian Stephens (B.Sc (Hons), PhD, MAIG), Managing Director, for the purposes of the AIM Rules for Companies.

Forward Looking Statement

This release may include forward-looking statements, which may be identified by words such as “expects”, “anticipates”, “believes”, “projects”, “plans”, and similar expressions. These forward-looking statements are based on Sovereign’s expectations and beliefs concerning future events. Forward looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Sovereign, which could cause actual results to differ materially from such statements. There can be no assurance that forward-looking statements will prove to be correct.  Sovereign makes no undertaking to subsequently update or revise the forward-looking statements made in this release, to reflect the circumstances or events after the date of that release.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (‘MAR’). Upon the publication of this announcement via Regulatory Information Service (‘RIS’), this inside information is now considered to be in the public domain.

APPENDIX I – DRILL RESULTS

Rutile and graphite drilling results from Kasiya are shown below in Table 2.

Hole ID

Interval Thickness

Rutile %

TGC %

From (m) Downhole

Hole Type

KYAC0001

19.0

0.88

1.8

0.0

AC

incl

6.0

1.23

1.5

0.0

KYAC0002

16.0

0.84

1.3

0.0

AC

incl

5.0

1.12

0.7

0.0

KYAC0003

11.0

0.84

0.8

1.0

AC

incl

3.0

1.27

0.3

1.0

KYAC0004

16.0

1.05

1.9

2.0

AC

incl

13.0

1.10

1.8

2.0

KYAC0005

22.0

1.06

1.5

1.0

AC

incl

15.0

1.16

1.4

1.0

KYAC0006

28.0

1.05

2.0

2.0

AC

incl

5.0

1.78

2.4

10.0

KYAC0007

5.0

1.15

0.2

1.0

AC

incl

3.0

1.36

0.1

1.0

KYAC0008

19.0

0.95

1.5

1.0

AC

incl

3.0

1.24

0.2

1.0

KYAC0009

NSR

AC

KYAC0010

24.0

1.03

1.9

0.0

AC

incl

5.0

1.87

0.3

0.0

KYAC0011

20.0

1.17

2.1

0.0

AC

incl

11.0

1.21

1.7

0.0

KYAC0012

20.0

0.70

1.2

1.0

AC

KYAC0013

20.0

1.03

1.5

1.0

AC

incl

6.0

1.46

1.1

1.0

KYAC0014

7.0

1.64

1.0

0.0

AC

KYAC0015

19.0

0.97

1.7

1.0

AC

incl

10.0

1.12

1.9

3.0

KYAC0016

7.0

1.16

0.5

0.0

AC

KYAC0017

20.0

0.97

1.5

0.0

AC

incl

4.0

1.53

0.4

0.0

KYAC0018

25.0

1.06

2.5

0.0

AC

incl

13.0

1.15

2.5

0.0

KYAC0019

20.0

0.98

1.6

0.0

AC

incl

3.0

1.67

0.3

0.0

KYAC0020

14.0

0.95

2.1

0.0

AC

incl

3.0

1.51

0.0

0.0

KYAC0021

14.0

0.99

2.2

0.0

Twin AC

incl

3.0

1.37

0.0

0.0

KYAC0022

20.0

1.26

2.4

0.0

AC

incl

16.0

1.37

2.4

0.0

KYAC0023

23.0

0.86

2.2

0.0

AC

incl

7.0

1.08

2.9

7.0

KYAC0024

17.0

1.06

1.7

0.0

AC

incl

4.0

1.56

0.6

0.0

KYAC0025

23.0

1.08

2.4

0.0

AC

incl

10.0

1.50

1.9

0.0

KYAC0026

22.0

1.15

3.5

0.0

AC

incl

8.0

1.51

2.3

0.0

KYAC0027

30.0

0.95

2.7

0.0

AC

incl

3.0

2.19

0.2

0.0

KYAC0028

23.0

0.85

1.6

0.0

AC

incl

2.0

2.06

0.3

0.0

KYAC0029

16.0

0.86

1.1

0.0

AC

incl

4.0

1.45

0.1

0.0

KYAC0030

20.0

1.29

1.6

0.0

AC

incl

6.0

1.70

0.5

0.0

KYAC0031

26.0

1.18

2.1

0.0

AC

incl

6.0

1.66

0.4

0.0

KYAC0032

27.0

1.06

1.5

0.0

AC

incl

6.0

1.48

0.5

0.0

APPENDIX II: DRILL HOLE COLLAR DATA – TABLE 3

Hole ID

Easting

Northing

RL

Depth

 

Hole ID

Easting

Northing

RL

Depth

KYAC0001

542200

8480400

1117

23.0

KYAC0017

544200

8471800

1126

20.0

KYAC0002

542399

8480401

1123

18.0

KYAC0018

544400

8471800

1128

27.0

KYAC0003

542601

8480400

1126

25.0

KYAC0019

544600

8471800

1130

23.0

KYAC0004

542800

8480402

1129

21.0

KYAC0020

544800

8471800

1132

27.0

KYAC0005

543001

8480400

1132

26.0

KYAC0021

544801

8471800

1132

27.0

KYAC0006

548200

8478600

1144

32.0

KYAC0022

543599

8468204

1129

22.0

KYAC0007

548399

8478603

1143

33.0

KYAC0023

543800

8468200

1136

25.0

KYAC0008

548600

8478600

1140

24.0

KYAC0024

544000

8468197

1139

36.0

KYAC0009

548800

8478600

1137

18.0

KYAC0025

544200

8468200

1142

25.0

KYAC0010

549000

8478600

1134

26.0

KYAC0026

544401

8468200

1142

24.0

KYAC0011

549180

8478600

1130

21.0

KYAC0027

544600

8468200

1140

33.0

KYAC0012

549400

8478600

1125

23.0

KYAC0028

544798

8468201

1136

27.0

KYAC0013

543400

8471800

1121

23.0

KYAC0029

544998

8465399

1162

30.0

KYAC0014

543600

8471800

1123

21.0

KYAC0030

545196

8465401

1164

21.0

KYAC0015

543800

8471800

1124

21.0

KYAC0031

545399

8465398

1166

27.0

KYAC0016

544000

8471800

1125

29.0

KYAC0032

545600

8465400

1167

36.0

 

APPENDIX III: JORC CODE, 2012 EDITION – TABLE 1

SECTION 1 – SAMPLING TECHNIQUES AND DATA

Criteria

 JORC Code explanation

Commentary

Sampling Techniques

Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

 

Air-Core samples are composited based on regolith boundaries and sample chemistry, generated by hand-held XRF analysis. Each 1m of sample is dried and riffle-split to generate a total sample weight of 3kg for analysis, generally at 2m intervals. This primary sample is then split again to provide a 1.5kg sample for both rutile and graphite analyses.

 

Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

 

Drilling and sampling activities are supervised by a suitably qualified Company geologist who is present at all times. All drill samples are geologically logged by the geologist at the drill site/core yard.

 

Each sample is sun dried and homogenised. Sub-samples are carefully

riffle split to ensure representivity. The 1.5kg composite samples are then processed.

 

An equivalent mass is taken from each sample to make up the composite. A calibration schedule is in place for laboratory scales, sieves and field XRF equipment.

 

Placer Consulting Pty Ltd (Placer) Resource Geologists have reviewed Standard Operating Procedures (SOPs) for the collection and processing of drill samples and found them to be fit for purpose. The primary composite sample is considered representative for this style of rutile mineralisation.

 

 

Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.

 

 

Logged mineralogy percentages, lithology information and TiO2% obtained from handheld XRF are used to determine compositing intervals. Care is taken to ensure that only samples with similar geological characteristics are composited together

Drilling Techniques

Drill type (e.g. core, reverse circulation, openhole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, facesampling bit or other type, whether core is oriented and if so, by what method, etc).

 

A total of 32 Air-Core holes for 814m are reported here from drilling at the Kasiya Rutile Deposit to obtain samples for quantitative determination of recoverable rutile and Total Graphitic Carbon (TGC).

 

Placer has reviewed SOPs for Air-Core and found them to be fit for purpose and support the resource classifications as applied to the MRE.

 

Drill Sample Recovery

Method of recording and assessing core and chip sample recoveries and results assessed.

 

Samples are assessed visually for recoveries. The configuration of drilling and nature of materials encountered results in negligible sample loss or contamination.

Air-Core drilling recovery in the top few metres are moderate to good. Extra care is taken to ensure sample is recovered best as possible in these metres. Recoveries are recorded on the rig at the time of drilling by the geologist. Drilling is ceased when recoveries become poor once Sap rock has been encountered.

Measures taken to maximise sample recovery and ensure representative nature of the samples.

 

The Company’s trained geologists supervise drilling on a 1 team 1 geologist basis and are responsible for monitoring all aspects of the drilling and sampling process.

 

Air-core drilling samples are recovered in large plastic bags. The bags are clearly labelled and delivered back to the laydown at the end of shift for processing.

 

Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

 

No relationship is believed to exist between grade and sample recovery. The high percentage of silt and absence of hydraulic inflow from groundwater at this deposit results in a sample size that is well within the expected size range.

 

No bias related to preferential loss or gain of different materials is observed.

Logging

Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation mining studies and metallurgical studies.

 

Geologically, data is collected in detail, sufficient to aid in Mineral Resource estimation.

 

All individual 1-metre intervals are geologically logged, recording relevant

data to a set log-chief template using company codes. A small representative sample is collected for each 1-metre interval and placed in appropriately labelled chip trays for future reference.

 

Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography.

 

All logging includes lithological features and estimates of basic mineralogy. Logging is generally qualitative.

 

The total length and percentage of the relevant intersection logged

 

 

100% of samples are geologically logged.

Sub-sampling techniques and sample preparation

If core, whether cut or sawn and whether quarter, half or all core taken.

 

 

N/A

 

If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry.

Air-Core samples are dried, riffle split and composited. Samples are collected and homogenised prior to splitting to ensure sample representivity. ~1.5kg composite samples are processed.

 

An equivalent mass is taken from each primary sample to make up the composite.

 

The primary composite sample is considered representative for this style of mineralisation and is consistent with industry standard practice.

 

For all sample types, the nature, quality and appropriateness of the sample preparation technique.

 

Techniques for sample preparation are detailed on SOP documents verified by Placer Resource Geologists.

 

Sample preparation is recorded on a standard flow sheet and detailed QA/QC is undertaken on all samples. Sample preparation techniques and QA/QC protocols are appropriate for mineral determination.

 

Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

 

The sampling equipment is cleaned after each sub-sample is taken.

 

Field duplicate, laboratory replicate and standard sample geostatistical analysis is employed to manage sample precision and analysis accuracy.

 

Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.

 

Sample size analysis is completed to verify sampling accuracy. Field duplicates are collected for precision analysis of riffle splitting. SOPs consider sample representivity. Results indicate a sufficient level of precision for the resource classification.

 

Whether sample sizes are appropriate to the grain size of the material being sampled.

 

 

The sample size is considered appropriate for the material sampled.

Quality of assay data and laboratory tests

The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

Rutile

The Malawi onsite laboratory sample preparation methods are considered quantitative to the point where a non-magnetic mineral concentrate (NM) is generated.

 

Final results generated are for recovered rutile i.e, the % mass of the sample that is rutile that can be recovered to the non-magnetic component of a HMC.

 

The HMC is prepared via wet-table, gravity separation at the Lilongwe Laboratory which provides an ideal sample for subsequent magnetic separation and XRF.

 

All samples (incl. QA) included in this announcement received the following workflow undertaken on-site in Malawi;

 Dry sample in oven for 1 hour at 105

 Soak in water and lightly agitate

 Wet screen at 5mm, 600µm and 45µm to remove oversize and slimes material

 Dry +45µm -600mm (sand fraction) in oven for 1 hour at 105

 Pass +45µm -600mm (sand fraction) across wet table to generate a heavy mineral concentrate (HMC)

 Pan HMC to remove retained light minerals

 Dry HMC in oven for 30 minutes at 105

 Magnetic separation of the HMC by Carpco magnet @ 16,800G (2.9Amps) into a magnetic (M) and non-magnetic (NM) fraction.

 

Bag NM fraction and send to Perth, Australia for quantitative chemical and mineralogical determination.

 The NM fractions were sent to ALS Metallurgy Perth for quantitative XRF analysis. Samples received XRF_MS.

 

Graphite

All samples are initially checked in and processed to pulp at Intertek-Genalysis Johannesburg.

The pulp samples are then dispatched to Intertek-Genalysis Perth where they undergo TGC assay via method C72/CSA.

A portion of each test sample is dissolved in dilute hydrochloric acid to liberate carbonate carbon. The solution is filtered using a filter paper and the collected residue is the dried to 425°C in a muffle oven to drive off organic carbon. The dried sample is then combusted in a Carbon/ Sulphur analyser to yield total graphitic or elemental carbon (TGC).

 

The graphitic carbon content is determined by eliminating other carbon forms from the total carbon content. The addition of acid to the sample liberates carbon dioxide thus removing carbonate carbon. Soluble organic carbon will also be removed. Insoluble organic carbon is removed by heating the samples at 425°C in an oxidising environment. The “dried” carbon-bearing sample that is analysed in the resistance furnace is considered to contain only graphitic carbon. 

An Eltra CS-800 induction furnace infra-red CS analyser is then used to determine the remaining carbon which is reported as Total Graphitic Carbon (TGC) as a percentage.

 

For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

 

 

Acceptable levels of accuracy and precision have been established. No handheld XRF methods are used for quantitative determination.

Nature of quality control procedures adopted (e.g. standards, blanks, duplicate, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.

 

Sovereign uses internal and externally sourced wet screening reference material inserted into samples batches at a rate of 1 in 20. The externally sourced, certified standard reference material for HM and Slimes assessment is provided by Placer Consulting.

 

Accuracy monitoring is achieved through submission of certified reference materials (CRM’s).

ALS and Intertek both use internal CRMs and duplicates on XRF analyses.

Sovereign also inserts CRMs into the sample batches at a rate of 1 in 20.

 

Three Rutile CRMs used by Sovereign.

Rutile A (AMIS0602) containing TiO2 XRF 90.62%. The CRM is supplied by African Mineral Standards (AMIS), South Africa.

Rutile B containing TiO2 XRF 70.71%. The CRM is supplied by OREAS and has been designed and matrix matched specifically for Sovereign.

Rutile C containing TiO2 XRF 40.76%. The CRM is supplied by OREAS and has been designed and matrix matched specifically for Sovereign.

 

Two Graphite Standards are used by Sovereign.

MPHLG1 containing 3.22% TGC

TCMG1 containing 7.54% TGC

Both these CRMs are supplied by OREAS and has been designed and matrix matched specifically for Sovereign.

 

Analysis of sample duplicates is undertaken by standard geostatistical methodologies (Scatter, Pair Difference and QQ Plots) to test for bias and to ensure that sample splitting is representative.  Standards determine assay accuracy performance, monitored on control charts, where failure (beyond 3SD from the mean) may trigger re-assay of the affected batch.

 

Examination of the QA/QC sample data indicates satisfactory performance of field sampling protocols and assay laboratories providing acceptable levels of precision and accuracy.

 

Acceptable levels of accuracy and precision are displayed in geostatistical analyses.

 

Verification of sampling & assaying

The verification of significant intersections by either independent or alternative company personnel.

 

Results are reviewed in cross-section using Micromine software and any spurious results are investigated.  The deposit type and consistency of mineralisation leaves little room for unexplained variance. Extreme high grades are not encountered.

Significant mineralisation intersections.

 

The use of twinned holes.

Twinned holes are drilled across a geographically-dispersed area to determine short-range geological and assay field variability. Twin drilling is applied at a rate of 1 in 20 routine holes.

 

Acceptable levels of precision are displayed in the geostatistical analysis of twin drilling data.

 

No twin holes are reported here.

Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

All data are collected initially on paper logging sheets and codified to the Company’s templates.  This data is hand entered to spreadsheets and validated by Company geologists.  This data is then imported to a Datashed5 and validated automatically and then manually.

 

A transition to electronic field and laboratory data capture is underway.

 

Discuss any adjustment to assay data.

 

QEMSCAN of the NM fraction shows dominantly clean and liberated rutile grains and confirms rutile is the only titanium species in the NM fraction.

 

Recovered rutile is therefore defined and reported here as: TiO2 recovered in the +45 to -600um range to the NM concentrate fraction as a % of the total primary, dry, raw sample mass divided by 95% (to represent an approximation of final product specifications). i.e recoverable rutile within the whole sample.

 

Location of data points

Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

 

A Trimble R2 Differential GPS is used to pick up the Air-Core collars. Daily capture at a registered reference marker ensures equipment remains in calibration.

No downhole surveying of Air-Core holes is completed. Given the vertical nature and shallow depths of the Air-Core holes, drill hole deviation is not considered to significantly affect the downhole location of samples.

 

 

Specification of the grid system used.

WGS84 UTM Zone 36 South.

 

Quality and adequacy of topographic control.

DGPS pickups are considered to be high quality topographic control measures.

 

 

Data spacing & distribution

Data spacing for reporting of Exploration Results.

The Air-Core collars are spaced on a 200m x 200m grid which is deemed to adequately define the mineralisation.

 

 

Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

The drill spacing and distribution is considered to be sufficient to establish a degree of geological and grade continuity appropriate for further future Mineral Resource estimation.  

 

Whether sample compositing has been applied.

Individual 1m intervals have been composited, based on lithology, at a max 2m sample interval for the 32 air-core holes.

 

 

Orientation of data in relation to geological structure

Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known considering the deposit type

 

Sample orientation is vertical and approximately perpendicular to the orientation of the mineralisation, which results in true thickness estimates, limited by the sampling interval as applied. Drilling and sampling are carried out on a regular square grid. There is no apparent bias arising from the orientation of the drill holes with respect to the orientation of the deposit.

 

 

If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

 

 

There is no apparent bias arising from the orientation of the drill holes with respect to the orientation of the deposit.

Sample security

The measures taken to ensure sample security

Samples are stored in secure storage from the time of drilling, through gathering, compositing and analysis.  The samples are sealed as soon as site preparation is complete.

 

A reputable international transport company with shipment tracking enables a chain of custody to be maintained while the samples move from Malawi to Australia or Malawi to Johannesburg. Samples are again securely stored once they arrive and are processed at Australian laboratories. A reputable domestic courier company manages the movement of samples within Perth, Australia.

 

At each point of the sample workflow the samples are inspected by a company representative to monitor sample condition. Each laboratory confirms the integrity of the samples upon receipt. 

 

Audits or reviews

The results of any audits or reviews of sampling techniques and data

 

Richard Stockwell (CP) has reviewed and advised on all stages of data collection, sample processing, QA protocol and mineral resource estimation. Methods employed are considered industry best-practice.

 

Malawi Field and Laboratory visits have been completed by Richard Stockwell in May 2022. A high standard of operation, procedure and personnel was observed and reported.

SECTION 2 – REPORTING OF EXPLORATION RESULTS

Criteria

Explanation

Commentary

Mineral tenement & land tenure status

Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environment settings.

The Company owns 100% of the following Exploration Licences (ELs) and Retention Licence (RL) under the Mines and Minerals Act 2019, held in the Company’s wholly-owned, Malawi-registered subsidiaries: EL0609, EL0492, EL0528, EL0545, EL0561, EL0582 and RL0012.

A 5% royalty is payable to the government upon mining and a 2% of net profit royalty is payable to the original project vendor.

No significant native vegetation or reserves exist in the area. The region is intensively cultivated for agricultural crops.

The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

The tenements are in good standing and no known impediments to exploration or mining exist.

Exploration done by other parties

 

Acknowledgement and appraisal of exploration by other parties.

Sovereign Metals Ltd is a first-mover in the discovery and definition of residual rutile and graphite resources in Malawi. No other parties are involved in exploration.

Geology

Deposit type, geological setting and style of mineralisation

The rutile deposit type is considered a residual placer formed by the intense weathering of rutile-rich basement paragneisses and variable enrichment by elluvial processes.

Rutile occurs in a mostly topographically flat area west of Malawi’s capital, known as the Lilongwe Plain, where a deep tropical weathering profile is preserved. A typical profile from top to base is generally soil (“SOIL” 0-1m) ferruginous pedolith (“FERP”, 1-4m), mottled zone (“MOTT”, 4-7m), pallid saprolite (“PSAP”, 7-9m), saprolite (“SAPL”, 9-25m), saprock (“SAPR”, 25-35m) and fresh rock (“FRESH” >35m).

The low-grade graphite mineralisation occurs as multiple bands of graphite gneisses, hosted within a broader Proterozoic paragneiss package. In the Kasiya areas specifically, the preserved weathering profile hosts significant vertical thicknesses from near surface of graphite mineralisation.

Drill hole information

A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: easting and northings of the drill hole collar; elevation or RL (Reduced Level-elevation above sea level in metres of the drill hole collar); dip and azimuth of the hole; down hole length and interception depth; and hole length

All collar and composite data are provided in the body and appendices of this report.

 

If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case

No information has been excluded.

Data aggregation methods

In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high-grades) and cut-off grades are usually Material and should be stated.

All results reported are of a length-weighted average of in-situ grades. The results reported in the body of the report are on a nominal lower cut-off of 0.5% Rutile and exclude bottom of hole samples where saprock has been geologically logged.

 

Where aggregate intercepts incorporate short lengths of high-grade results and longer lengths of low-grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

No data aggregation was required.

The assumptions used for any reporting of metal equivalent values should be clearly stated.

No metal equivalent values are used in this report.

Relationship between mineralisation widths & intercept lengths

These relationships are particularly important in the reporting of Exploration Results.

The mineralisation has been released by weathering of the underlying, layered gneissic bedrock that broadly trends NE-SW. It lies in a laterally extensive superficial blanket with high-grade zones reflecting the broad bedrock strike orientation of ~045°.

If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

The mineralisation is laterally extensive where the entire weathering profile is preserved and not significantly eroded. Minor removal of the mineralised profile has occurred in alluvial channels. These areas are adequately defined by the drilling pattern and topographical control.

If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. ‘down hole length, true width not known’.

Downhole widths approximate true widths limited to the sample intervals applied. Mineralisation remains open at depth and in areas coincident with high-rutile grade lithologies in basement rocks, is increasing with depth. Graphite results are approximate true width as defined by the sample interval and typically increase with depth.

Diagrams

Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported. These should include, but not be limited to a plan view of the drill collar locations and appropriate sectional views.

Refer to figures in the body of this report.

Balanced reporting

Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high-grades and/or widths should be practiced to avoid misleading reporting of exploration results.

All results are included in this report.

Other substantive exploration data

Other exploration data, if meaningful and material, should be reported including (but not limited to: geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

Rutile has been determined, by QEMSCAN, to be the major TiO2-bearing mineral at and around several rutile prospects within Sovereign’s ground package. The company continues to examine areas within the large tenement package for rutile and graphite by-product mineralisation.

Further work

The nature and scale of planned further work (e.g. test for lateral extensions or depth extensions or large-scale step-out drilling).

Core-drilling and water exploratory drilling is planned and ongoing throughout the remainder for 2022.

Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

Refer to diagrams in the body of this report.

 

Kavango Resources #KAV – Kavango’s KCB push continues with new copper target area in Mamuno – Will Schafer

This morning saw Kavango Resources add another drill target to the growing inventory of prospective areas across its licences in Botswana’s Kalahari Copper Belt (“KCB”).

 

The explorer revealed that high-resolution soil sampling had identified a 5km long by 3.5km wide area of anomalous copper on its “Mamuno” licences, as well as elevated zinc values.

 

With a peak value of 73 parts per million of the red metal, the work conforms with underlying geology already mapped by Kavango–a key indicator of in-situ mineralisation.

 

Specifically, the copper follows the geological trend of Ngwako Pan-D’kar geological contact identified by the company. These zones which are known to be linked to high-grade copper mineralisation elsewhere on the KCB.

 

The Mamuno licences extend to the Botswana-Namibia border, beyond which Rio Tinto and Sandfire Resources are actively exploring adjacent to the west and north.

 

Kavango is now planning its next steps to sharpen its new target area ahead of drilling.

 

This includes infill soil sampling, static seismic surveys, and reinterpretation of region aeromagnetic data. The company will also complete airborne or ground electromagnetic and controlled source audiomagnetotelluric surveys to learn more about Mamuno’s underlying geology.

 

Kavango’s chief executive Ben Turney described the latest drill target as “robust”, adding that the area of the KCB in which the Mamuno licences are based is enjoying an “intensification” of interest after long sitting underexplored due to its sand cover.

 

“Kavango has managed to carry out geological mapping in the area despite the cover, and considers that the anomaly aligns with an underlying Ngwako Pan/D’kar Formation contact, which is a key control on copper/silver mineralisation in the KCB,” he said.

 

Turney also highlighted how the work on the company’s Mamuno licences represents the culmination of a 2022 programme of more than 9,500 soil samples across its KCB licences.

 

This work has been highly successful.

 

Just last week, Kavango announced that sampling on its PL082/2018 licence had confirmed two major copper/silver drill targets with strike lengths of 8km and 27km. As with Mamuno, these both conform with underlying geology previously mapped by Kavango, and will now be sharpened with follow-up geophysical work ahead of drilling.

 

Meanwhile, at the start of August, the company confirmed four targets on its PL036/2020 licence. Three of these conform to previously identified target areas known as Acacia, Morula, and Happy, while one sits in an entirely new target area called Kudu.

 

Kavango’s continued progress in the KCB is particularly encouraging from a timing perspective.

 

After all, copper is used in everything from electric vehicles to solar panels, and demand is set to increase considerably over the coming decades. However, with reserves not being replaced at an adequate rate, concerns over supply shortfalls are seeing demand for pipeline projects grow among producers of the red metal.

 

This has seen the KCB experience an accelerated discovery rate, with explorers like Khoemacau and Sandfire enjoying significant progress in their development of copper-silver mines over the 1,000km-long geological structure.

 

More recently, Cobre caught the eye of the market after repeatedly hitting

copper in its ongoing KCB drilling programme.

 

Kavango is targeting areas of the KCB where thick sand cover has, for the most part, precluded historical exploration. The company is overcoming this barrier to progress with the aid of modern-day surveying and sampling methods across is >5,000km2 land package.

 

Things are still, of course, at an early stage. But with today’s news from Mamuno giving Kavanago yet another shot at KCB success, it will be interesting to see where drilling takes the company in the area next later this year.

Kavango Resources #KAV – Kavango appoints leading financial adviser to push forward KSZ JV discussions KAV) – Will Schafer

Tuesday saw Botswana-focused explorer Kavango Resources double down on efforts to secure a partner or partners for its flagship Kalahari Suture Zone (“KSZ”) project.

In an update, the company reported that it has engaged global natural resources adviser Tamesis Partners in respect of a possible corporate transaction involving the KSZ.

It said it already has in place a number of non-disclosure agreements with interested parties, and will now advance discussions with additional parties alongside Tamesis.

To aid in this, Kavango has established an extensive data room to share information relating to the KSZ project, where it is exploring licences covering more than 8,000km2.

The KSZ is thought to be geologically favourable for mafic-ultramafic mineralisation, including massive nickel, copper, and PGE sulphides. This is because deep-seated structures are repeatedly activated and may enable the ascent of fertile mantle-derived magma to surface. Specifically, Kavango is looking for mineralisation associated with two large rock layers–the Karoo Large Igneous Province and the regionally extensive Proterozoic (Tshane Complex).

In Tuesday’s update, Kavango highlighted Tamesis’ strong track record of mining sector transactions, adding that its team boasts extensive financial and technical expertise. It said this would assist in its search for potential partners as well as guiding what sort of structure a deal would take.

Kavango’s current thinking is that a corporate transaction for the KSZ could involve a joint venture, an earn-in, direct investment, or another similar mechanism. Whatever ends up being the case, the explorer made it clear that its goal is to maximise its exposure to the potentially large value of the KSZ while minimising dilution to shareholders.

As pointed out by Kavango’s chief executive Ben Turney, Tuesday’s news follows last week’s publication of a technical review for the KSZ authored by industry veteran Richard Hornsey. Following the release of the documents, “Kavango is now ready to engage formally with potential partners for future development of this large-scale exploration project,” he said.

This is because Hornsey’s report included significant geochemical proof of magmatic nickel, copper, PGE mineralising processes throughout the KSZ. These processes, which include depletion and enrichment, were found in intrusions located in both Karoo and Proterozoic rock. Hornsey’s work also confirmed previously unrecognised PGE potential in the KSZ South.

 

Kavango is exploring primarily for two different styles of mineralisation at the KSZ.

The first is in the same style as the Norilsk project, which accounts for 90% of Russia’s nickel reserves, 55% of its copper and virtually all of its PGMs. The company’s licences display a geological setting with numerous similarities to the project.

The second centres around the KSZ’s Great Red Spot anomaly, where recent drill holes appear to support a late 1990’s theory that the area could host a form of Iron Oxide-Copper-Gold, or “IOCG”, style mineralisation.

IOCG systems can host highly valuable copper, gold and uranium ores. The large size and relatively simple metallurgy can produce extremely profitable mines. Specifically, the Great Red Spot exhibits similar geophysical signatures to the world-renowned Olympic Dam IOCG ore deposit in Australia.

As confirmed in today’s release, Kavango’s ground exploration at the KSZ project will continue as its efforts to secure a JV partner step up.

“Our main focus in the coming months will be to act on the recommendations made in the Technical Review and build on the project’s growing momentum,” said Turney. “We have a number of leads to pursue immediately and will continue advancing the B1, B3 and B4 conductors to drill ready status.”

Kavango Resources Plc (KAV) – Kalahari Copper Belt update: Copper and Silver targets identified on LVR JV

KCB update: Cu/Ag targets identified on the LVR JV

Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce that extensive copper/silver targets (the “Targets”) have been identified on Prospecting Licences (PLs) 082/2018 and 083/2018 in the Kalahari Copper Belt (KCB). The two PLs are held in a Joint Venture farm-in with LVR GeoExplorers Ltd (the “LVR Project”).

The Targets were detected as a result of the recent Airborne EM (AEM) surveys flown over the LVR Project.  Strong soil geochemical anomalies occur at surface above the Targets.

Highlights

  • 1,216km of Airborne Electromagnetic (AEM) surveys flown over the LVR Project in March
    • Stage 1 of the LVR farm-in now complete, taking Kavango’s stake in the LVR Project to 25%
  • PL 082/2018
    • Identification of a series of conductors over a 3.5km wide deformation zone
    • The conductors lie along strike of the Plutus deposit and the Boseto Mine to the north east
    • The primary target is a large EM conductor, extending to at least 400m from the surface
    • Strong coincidental copper (25ppm to >56ppm) and zinc (50ppm to >100ppm) in soils anomaly on surface
    • Fault controlled soil geochemistry anomalies striking over 5km
    • Distinct similarities with Cupric Canyon’s Banana Zone South Limb (mirror image) on the south side of the Ghanzi Ridge
  • PL 083/2018,
    • >10km of AEM conductors in the south-east of the PL, across two main targets (6km and 4km wide)
    • Both targets have coincidental copper in soils anomaly over three lines (500m spacing) and the anomaly remains open
    • The conductors are underlain by a linear magnetic anomaly extending for over 2km beneath the soil anomaly
  • The structural position of the Targets is prospective for the discovery of copper/silver mineralisation
    • PL 082/2018 is drill ready
    • PL 083/2018 requires further field exploration to delineate drill targets
  • Drilling expected in Q3, on award of Environmental Management Plan.

Michael Foster, Chief Executive Officer of Kavango Resources, commented:

“The Airborne EM surveys have produced compelling justification for Kavango’s strategy in the Kalahari Copper Belt. We are confident we have identified copper mineralised systems, which we now have to test through drilling.

The Company’s integrated exploration approach, combining soil geochemistry, stratigraphical and structural mapping together with geophysical surveying is proving to be highly effective. A program of trenching on PL082/2018 and additional soil geochemistry on PL083/2018 is planned prior to a drill program later in the year.”

Background

SkyTEM Ltd conducted the AEM surveys in February 2021, flying a total of 1,216 line/kms over the LVR Project.

The AEM surveys, flown together with airborne magnetic surveying, were carried out on lines 200m apart, on an approximately north-south orientation.

The survey blocks were selected by Kavango’s geophysical team, based upon analysis of magnetic data and soil geochemistry results obtained at the end of 2020 combined with the remote mapping of geological structures from the analysis of Landsat imagery.

The LVR JV

The LVR JV Agreement between Kavango and LVR GeoExplorers Ltd comprise two PLs totalling 1,091km2. Kavango has the right to acquire a 90% interest in the PLs through staged exploration expenditure commitments.

With completion of Stage 1 of the JV, Kavango has earned its first 25% interest in the two licences.

The plots of the AEM surveys and their interpretation will be posted on the Company’s website.

PL 082/2018

PL 082/2018 is 126km2 and lies along strike of the Plutus deposit and the Boseto Mine, owned by Cupric Canyon. This PL is characterised by steeply dipping repetitions of D’Kar and Ngwako Pan formations sitting above and either side of a basement dome.

The AEM survey has identified a series of EM conductors over 3.5km, which are coincident with a significant geochemical anomaly. Kavango has completed extensive soil sampling over this target area, including fifteen 4km sample lines that have returned copper readings in the range of 25ppm to >56ppm and zinc readings of 50ppm to >100ppm. Fault controlled soil geochemistry anomalies strike over 5km and merit immediate further investigation.

The conductors appear to be centred on an area of deformation and thrusting marked by a number of NNE trending faults commonly associated with economic mineralisation on the KCB.

The geological interpretation suggests an almost mirror image of the Banana Zone deposit (15km to the SE) that has been drilled out by Cupric Canyon on the southern side of the adjacent Ghanzi Ridge.

The main conductor lies just 1km from the main tarred road to Maun and a few hundred meters from a major power line. It is close to surface and extends to 400m depth. It represents an attractive drill target.

LVR PL 083/2018,

PL 083/2018 covers 965km2 and lies in the western part of the KCB in Botswana.

The AEM survey over this PL shows a series of thin formational conductors (possible redox boundaries) proceeding west for over 20km but, as they approach the eastern boundary of the PL, these conductors are intercepted by NNE faults and “blossom” into a large conductive body 6km wide (Target A), with another conductive body (Target B) 4km wide further to the north.

Kalahari sand cover is approximately 10m thick in this area, but soil geochemistry anomalies remain strong.

A well-defined copper in soil anomaly (>40ppm Cu), sitting above Target A, is defined over three sample lines 500m apart. The soil anomaly remains open.

A 2km magnetic anomaly is also coincident with both the AEM survey results and the soil anomalies.

Further exploration work is required on these two anomalies to identify their stratigraphical associations and depth. However, initial data suggests both have good potential for metal mineralisation.

Further information in respect of the Company and its business interests is provided on the Company’s website at www.kavangoresources.com and on Twitter at #KAV.

For further information please contact:

Kavango Resources plc

Ben Turney

bturney@kavangoresources.com

First Equity (Joint Broker)

+44 207 374 2212

Jason Robertson             

SI Capital Limited (Joint Broker)

+44 1483 413500

Nick Emerson

ECR Minerals #ECR confirms potential for “significant gold discovery” at Blue Moon; discovers two new targets – via Proactive Investors

Via Proactive Investors 03 Sep 2018
ECR’s technical team have been working hard at Blue Moon, where they have confirmed the potential for a “significant” gold system, and also found two new prospective targets

gold mineralisation

The two new discoveries are called Red Moon and Yellow Moon

ECR Minerals PLC (LON:ECR) shares spiked once on Monday as the miner confirmed the potential for a “significant gold discovery” at its Blue Moon prospect in Central Victoria, Australia.

In July, ECR told investors it was carrying out a technical review of the project after results from an initial drilling campaign provided “evidence of a significant near surface gold system”.

READ: ECR unearths significant mineralisation at Blue Moon

The review has backed up that earlier theory and suggested that there could be higher grade mineralisation a bit further below the surface, similar to the nearby 1mln ounce Fosterville mine.

As a result, ECR now plans to undertake more drilling at Blue Moon in “the coming months”.

In addition to the review, the explorer has also undertaken field mapping and soil sampling over previously unexplored areas just to the north and north-west of Blue Moon.

This work programme has identified two new prospective targets – called Red Moon and Yellow Moon – which share similarities with Blue Moon.

Further work on those two targets is due to begin shortly as ECR looks to better understand them and help determine a follow-up work programme.

Boss delighted with progress

“I am delighted with the progress our technical team have made with the review of Blue Moon,” said chief executive Craig Brown.

“It is evident that the Blue Moon target offers an opportunity to discover a significant gold deposit and that will be our prime objective in the forthcoming drill campaign.”

He added: “Furthermore, the addition of two new targets at Red Moon and Yellow Moon is extremely exciting for the technical team and the company.

“The multiple gold targets identified to date support the rationale of the company in securing the Bailieston licence with the overall objective being the discovery of a significant and economic gold deposit.”

ECR shares rose 16.2% to just shy of a penny in early trading on Monday.

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