Update - Auroch Minerals

RNS Number : 3032A

Cadence Minerals PLC

28 May 2019

 

Cadence Minerals Plc

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

Auroch Minerals (ASX: AOU) to acquire High-Grade Western Australian Nickel Projects.

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note the announcement today from Auroch Minerals Limited (ASX: AOU) ("Auroch") that it has entered into a binding agreement with Minotaur Exploration Pty Ltd (ASX:MEP) ("Minotaur") to acquire 100% of the tenements known as the Saints Nickel Project ("Saints") and the Leinster Nickel Project ("Leinster").

Highlights:

·      Binding agreement with Minotaur Exploration Ltd (ASX: MEP) to acquire the Saints and Leinster Nickel Projects located in Western Australia for a total consideration of $1.5M.

·      The Saints and Leinster Projects are advanced, high-quality nickel sulphide projects with the following Inferred Resources:

o  Saints - 1.05Mt @ 2.00% Ni, 0.20% Cu, 0.06% Co for 29.5kt Ni, 1.6kt Cu, 0.6kt Co.

o  Leinster (The Horn) - 0.60Mt @ 1.39% Ni, 0.30% Cu for 8.3kt Ni, 1.8kt Cu.

·      Both projects remain open down-plunge and along strike, with significant proximal exploration potential through untested or partially-tested electromagnetic (EM) conductors.

·      The 121.5km2 tenement package is considered both highly prospective and under-explored, hosting extensive ultramafic rock packages and a number of drill-ready nickel sulphide targets within one of the highest-producing nickel belts in Australia.

Auroch's acquisition of the Saints and Leinster projects aims to unlock the latent value of high-grade nickel sulphide assets. Auroch will provide a dedicated management team to aggressively explore the projects, which have historically seen limited nickel exploration. The combined portfolio of high-grade nickel sulphide assets provides a solid base for Auroch to systematically explore high-priority targets and emerge as the next significant nickel developer on the ASX.

The Saints high-grade deposit of 1.05Mt @ 2.00% Ni, 0.20% Cu, 0.06% Co3 remains open down-plunge and along strike with noteworthy proximal exploration potential through untested or partially tested electromagnetic (EM) conductors. Significant high-grade intercepts at the Saints Nickel Project include 2.0m @ 3.17% Ni from 171m depth. Auroch has identified high priority exploration targets for immediate drill testing that have the potential to extend the currently defined resource.

Leinster is prospective for both nickel and gold and is strategically located in a historic nickel region around Leinster-Waterloo, proximal to existing infrastructure. Significant historic intercepts include 14.66m @1.95% Ni and 0.35% Cu from 132.6m depth. The Horn deposit of 0.60Mt @ 1.39% Ni and 0.30% Cu6 remains open down-plunge and along strike and Auroch will systematically explore extensional targets with the aim of extending the currently JORC 2004 Code defined resource and converting to it to the JORC 2012 Code..

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

The full release can be found at: https://www.investi.com.au/api/announcements/aou/08c02b4a-90e.pdf

Cadence Minerals CEO Kiran Morzaria commented: "The acquisition of Saints and Leinster Nickel projects represents another milestone for Aidan Platel and the Auroch team, and an excellent addition to Auroch's existing portfolio of projects. As highlighted in the announcement, both projects offer multiple drill-ready targets that will be tested immediately. We look forward to the the results and subsequent developments."

- Ends -

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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