Investment Update

RNS Number : 6251C

CEB Resources PLC

19 March 2014

 



19 March 2014

CEB Resources plc

("CEB" or "the Company")

Investment Update - Successful Electromagnetic Survey Completed, Peelwood NSW

CEB Resources is pleased to advise that an airborne time-domain electromagnetic survey together with high-resolution aeromagnetics has been completed at the Peelwood Project in NSW.

The geophysical surveys were conducted as part of a new exploration program being funded by CEB.  

The helicopter-borne SkyTEM survey comprised a total of 695 line kilometres with lines flown at 100m spacings. Work was concentrated on two groups of CEB tenements, the Peelwood group to the north and Black Springs group to the south (see Figure 1). 

The Peelwood deposits are copper-zinc massive to semi-massive sulphide bodies and the Black Springs mineralization is similar but predominantly lead-silver-zinc in nature. Both styles of mineralization are electrically conductive and the SkyTEM survey is designed to identify near-surface buried conductors within the first 100m from surface and to discriminate between potential ore bodies and any weathered overburden which can also be weakly conductive.

The survey was designed to identify new targets for future exploration drilling aimed at increasing the overall Mineral Resource at the Project, laying the foundations for potential additions to the mineable Ore Reserves.

Some initial processing of data was conducted on site and the initial phase of modelling involving corrections for the elevation of the aircraft will be completed this week. This corrected data will then be subject to specialist inversion modelling which will produce a three dimensional sub-surface model of the surveyed areas. These final models will be completed in approximately one month's time.

Preliminary indications from the survey are positive. The main known mineralization at Peelwood North has given a response and several similar responses have been identified at areas that are not associated with known mineralization. Initial field visits have been made to locate these responses. Following the final modelling, follow-up work including possible ground geophysics and geochemistry may be conducted to identify targets for drilling.

http://www.rns-pdf.londonstockexchange.com/rns/6251C_-2014-3-18.pdf

The agreement with ASX listed Balamara Resources was completed in December 2013, enabling CEB to farm into the Peelwood Project in three stages for a total cash commitment at CEB's election of A$1.2 million in order to progress the Project to the next stage of development. CEB can earn up to 49% of the Project if it spends the entire A$1.2 million.

Both companies are targeting an extension to the existing mineable Ore Reserve at Peelwood as a catalyst for a decision to mine, with the airborne EM survey representing the first phase of that process.

Peelwood is an advanced high grade zinc-copper project on which Balamara has completed considerable work. The existing mine life is currently considered too short to warrant the required capital investment to start a mine. Accordingly, an extensive aeromagnetic survey over the entire concession area has been enabled in order to identify any further anomalies that may be considered as priority targets for further drilling.

The parties expect the electromagnetic and aeromagnetic survey and associated interpretation to be completed by end-April 2014.

CEB's Chairman Cameron Pearce commented:

'These are encouraging initial results from SkyTEM airborne survey designed to identify new drilling targets, we look forward to updating the market and shareholders with final results and interpretations in due course".

FURTHER INFORMATION ON CEB RESOURCES 

CEB Resources is an AIM-listed investment company which adopted a new investing policy in December 2013.  It is now developing a strong portfolio of investments as a significant minority shareholder in various high quality resource projects, acquired at an early stage in their cycle where value enhancement is most likely, utilising CEB cash to develop the assets further.  The Company announced its first resource investment in December 2013 being the advanced Peelwood VMS Zinc-Copper Project in Australia and in February the advanced Mariola Thermal Coal Project in Poland. Both the Peelwood and Mariola Projects are earn-in investments for up to 49%.

COMPETENT PERSON

The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Mr. Kevin Alexander. Mr. Alexander is a consultant to CEB Resources. Mr. Alexander is a member of the Australasian Institute of Mining and Metallurgy and Australian Institute of Geoscientists. 

He has sufficient experience that is relevant to the style of mineralization under consideration and to the activity which he is undertaking to be qualified as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting on Exploration Results, Mineral resources and Ore Reserves". Mr. Alexander consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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For further information, please contact:

CEB Resources plc Cameron Pearce / Jeremy King	Tel: [phone]
Peter House Corporate Finance Limited Jon Levinson / Lucy Williams	Tel: [phone]
N+1 Singer James Maxwell / Nick Donovan	Tel: [phone]

 

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