Update - Auroch Minerals Saints Nickel Project

RNS Number : 9625F

Cadence Minerals PLC

18 July 2019

 

Cadence Minerals Plc

("Cadence Minerals", "Cadence" or "the Company")

Auroch Minerals (ASX: AOU) - Saints Nickel Project Exploration Programme.

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note the update today from Auroch Minerals Limited (ASX: AOU) ("Auroch") on the Company's exploration strategy for the recently-acquired Saints Nickel Project ("Saints"). Auroch entered into a formal Share Sale Agreement with Minotaur Exploration Ltd (ASX: MEP, "Minotaur") on the 11th July 2019 to acquire 100% of Saints and the Leinster Nickel Project ("Leinster").

Cadence currently owns approximately 6.5% of the equity in Auroch Minerals, which is an exploration company targeting principally zinc, cobalt and lithium.

Highlights:

·    Auroch entered into a formal Share Sale Agreement with Minotaur to acquire 100% of the Saints Nickel Project and the Leinster Nickel Project in Western Australia on the 11^th July 2019.

·      97.5% of the existing JORC 2012-compliant high-grade nickel Resources at Saints is fresh primary sulphide mineralisation (total Mineral Resources of 1.05Mt @ 2.00% Ni, 0.20% Cu & 0.06% Co).

·     Significant upside potential to add to the Saints nickel resources through near-resource exploration and drill testing of postulated extensions along strike and/or down-plunge of known nickel sulphide mineralisation.

·   Program of Work (PoW) applications have been submitted to the Department of Mines, Industry, Regulation and Safety (DMIRS) with drilling to commence in August 2019.

The Saints Nickel Project is located approximately 65km northwest of Kalgoorlie and 7km east of the Goldfields Highway. The tenement package comprises two mining leases covering an area of approximately 20km2 of prospective Archaean greenstone belt geology within the Eastern Goldfields province of the Yilgarn Craton.

The Saints Nickel Project high-grade deposit of 1.05Mt @ 2.00% Ni, 0.20% Cu, 0.06% Co1 has historically seen limited nickel exploration over the past decade, remaining open down-plunge and along strike with noteworthy proximal exploration potential through untested or partially tested electromagnetic (EM) conductors. Significant high-grade intercepts at Saints include 2.0m @ 3.17% Ni from 171m depth.

Auroch plans to commence its 2019 exploration programme at its high-grade Saints Nickel Project through a three-phase drilling programme that includes extensional, confirmatory and regional drilling. The Company's proposed exploration strategy will provide greater confidence and aims to significantly increase the current mineral resources.

The full release can be found at: https://www.investi.com.au/api/announcements/aou/74bab91c-3b2.pdf

Cadence Minerals CEO Kiran Morzaria commented: "Cadence views the acquisition of Saints and Leinster Nickel projects as excellent additions to Auroch's existing portfolio of projects. As stated by Auroch CEO Aidan Platel, the maiden drill programme at Saints comes at an exciting time as the LME nickel price recently surpassed US$14,000/t. We look forward to further developments when drilling commences next month."

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For further information:

Cadence Minerals plc	[phone]
Andrew Suckling
Kiran Morzaria
WH Ireland Limited (NOMAD & Broker)	[phone]
James Joyce
James Sinclair-Ford
Novum Securities Limited (Joint Broker)	[phone]
Jon Belliss

Qualified Person

Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information contained in this announcement. Kiran holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance) from CASS Business School.

Forward-Looking Statements:

Certain statements in this announcement are or may be deemed to be forward-looking statements. Forward-looking statements are identified by their use of terms and phrases such as ''believe'' ''could'' "should" ''envisage'' ''estimate'' ''intend'' ''may'' ''plan'' ''will'' or the negative of those variations or comparable expressions including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth results of operations performance future capital and other expenditures (including the amount. nature and sources of funding thereof) competitive advantages business prospects and opportunities. Such forward-looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors.  Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions competition environmental and other regulatory changes actions by governmental authorities the availability of capital markets reliance on key personnel uninsured and underinsured losses and other factors many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. The Company cannot assure investors that actual results will be consistent with such forward-looking statements.

 

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