Completion of Airijoki Extension Drill program

Kendrick Resources PLC

12 October 2023

 

12 October 2023

Kendrick Resources Plc
("Kendrick" or the "Company")

Completion of Airijoki Extension Drill program

Kendrick Resources Plc (LSE: KEN), a mineral exploration and development company with vanadium, nickel and copper projects in Scandinavia is pleased to provide an operational update for its Airijoki Project in Vittangi, Sweden.

Highlights

·    8 Holes drilled for 1394 m

·    Vanadium mineralisation confirmed for circa 2km from the northern boundary of the existing 44.3Mt Mineral Resource comprising >100,000 tonnes of contained V₂O₅

·    Drilling provides fresh core for further metallurgical test work

·    Drilling has now been undertaken on two licences within the greater land package of seven contiguous licences

·    The remaining 5 licences are prospective for both vanadium and copper and will be subject to follow up exploration

·    Engagement of an external metallurgical engineer with vanadium experience working alongside Dr E Kirby Non-Executive director to guide future test work

Colin Bird, Executive Chairman of Kendrick Resources Plc commented: "The successful completion of the latest drill programme is an important step as we build a substantial vanadium resource based on the Airijoki Project.  We have now drill tested two of the seven licences that comprise the project area and these untested licences have been covered by historic and recent soil geochemistry and geophysics showing similar characteristics to that which has so far led to fresh vanadium discoveries. It is our intention to continue to build a substantial vanadium resource. Further metallurgical test work is required, and this process will continue as we expand our programme"

Drilling Programme

The Airijoki 200 license is located immediately to the northeast of the Airijoki 100 license in which the 44.3Mt JORC Inferred Vanadium mineral resource is estimated and is prematurely terminated between the license boundaries (Figure 1).

The drill program targeted the magnetic anomaly produced from a Ground Magnetic Survey completed in March 2021, which coincided with the inferred mineral resource and extended through into the Airijoki 200 license.

A total of 1394 m were drilled from 8 holes and from visible observations and portable XRF (pXRF) point measurements taken every meter, the continuity of the vanadium mineralisation is confirmed. Anomalous vanadium concentrations were detected by pXRF in 7 out of the 8 holes.

The mineralised samples have been dispatched to the laboratory for assay, to determine the V, and V₂O₅ concentrations in both whole rock and magnetic concentrate more accurately. The assay results are expected to confirm continuity of the Vanadium mineralisation and the potential to significantly expand the current Vanadium resource at Airijoki and will be announced in due course once received and assessed by the Company.

Figure 1. Map showing magnetic survey, JORC Inferred Resource outline, and location of recently completed drillholes.

Figure 2. Cross-section showing actual locations drilled and suspected vanadium mineralisation as detected by the pXRF measurements taken every metre. V measurements by pXRF only provide an indication of the location of the mineralisation and these results will need to be verified by an accredited laboratory.

This announcement contains information which, prior to its disclosure, was inside information as stipulated under Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310 (as amended).

For additional information please contact:

Kendrick Resources Plc: Chairman	Tel: [phone] Colin Bird
Novum Securities Financial Adviser Joint Broker	Tel: [phone] David Coffman / George Duxberry Jon Bellis
Shard Capital Partners LLP Joint Broker	Tel: [phone] Damon Heath / Isabella Pierre

Qualified Person

The technical information contained in this announcement has been reviewed, verified, and approved by Colin Bird, CC.ENG, FIMMM, South African and UK Certified Mine Manager and Director of Kendrick Resources plc, with more than 40 years' experience mainly in hard rock mining.

About Kendrick Resources Plc

Kendrick Resources Plc is a mineral exploration and development company with projects primarily based across Scandinavia. The principal of its business is to explore the opportunities within the natural resources sector with a focus on battery, base, and precious metals including but not limited to vanadium and nickel. In doing so, the Company is looking to build a long-term energy metals business in Scandinavia which delivers energy metals to Europe to help enable its renewable energy transformation by building a top tier energy metals production business.

The Airijoki Project

The Airijoki Project lies within the Vittangi Greenstone Group (VGG) of northern Sweden, in relative proximity to established infrastructure as well as several significant mines (i.e. Kiruna, Svappavaara, Leveäniemi and Mertainen) and other new energy mineral projects (i.e. Talga Group's Vittangi graphite project).  Geologically the Project is centred on a laterally continuous, northeast trending gabbroic (locally termed diabase) intrusion which hosts vanadium-magnetite mineralisation along with lesser base metal (predominantly copper mineralisation).

Airijoki is currently supported by an Inferred Mineral Resource comprising 44.3 Mt at an in-situ grade of 0.4% V₂O₅, containing 5.9 Mt of magnetite averaging 1.7% V₂O₅ (in magnetite concentrate) for 100,800 t of contained V₂O₅ based on a 13.3% mass recovery of magnetite concentrate and a 0.7% V₂O₅ cut-off grade, on a 100% equity basis (and net attributable basis).

Subsequent Davis Tube Recovery (DTR) and low-intensity magnetic separation (LIMS) test work indicated that vanadium magnetite concentrates grading over 2% V₂O₅ and more than 65% Fe are possible at mass recoveries over 20% from the vanadium mineralisation at Airijoki.  Overall, vanadium recoveries in excess of 70% can be achieved using a relatively coarse grind size of 355 µm and using LIMS without the need for further treatment.

Conceptual studies completed in 2019 envisage that Airijoki will be developed by bulk open pit mining techniques from four open pits using standard drill and blast, load/haul and crusher feed/magnetic separation to produce a vanadium magnetite concentrate. The conceptual techno-economic studies demonstrated the Project has the potential to be financially robust.  Further metallurgical test work, extensional and infill drilling and optimisation studies are warranted at Airijoki prior to more advanced techno-economic analysis.

Vanadium

Technological advances are expected to positively influence the demand for vanadium. Principally used as an alloy in steel and aluminium production, its' ability to make materials stronger and lighter offers important benefits particularly for weight-to-strength ratio, an important consideration particularly for EVs'. Vanadium pentoxide is also an important component in REDOX flow batteries used for energy storage associated with solar and wind farms. With the projected increased use of vanadium in EV batteries, demand for the metal is expected to grow.

  Appendix A - Glossary of Technical Terms

"anomaly or anomalous"	something in mineral exploration that geologists interpret as deviating from what is standard, normal, or expected.
"assay"	The laboratory test conducted to determine the proportion of a mineral within a rock or other material. For base metals, usually reported as percentage which is equivalent to percentage of the mineral (i.e. copper) per tonne of rock.
"azimuth"	the "compass direction" refers to a geographic bearing or azimuth as measured by a magnetic compass, in true or magnetic north.
"diamond drilling"	A drilling method in which penetration is achieved through abrasive cutting by rotation of a diamond encrusted drill bit. This drilling method enables collection of tubes of intact rock (core) and when successful gives the best possible quality samples for description, sampling and analysis of an ore body or mineralised structure.
"dip"	A line directed down the steepest axis of a planar structure including a planar ore body or zone of mineralisation. The dip has a measurable direction and inclination from horizontal.
"geochemical"	Refers to geological information using measurements derived from chemical analysis
"geophysical"	Refers to geological information using unit measurements derived from the use of magnetic and electrical readings
"geophysical techniques"	include the exploration of an area by exploiting differences in physical properties of different rock types. Geophysical methods include seismic, magnetic, gravity, induced polarisation and other techniques; geophysical surveys can be undertaken from the ground or from the air
"grade"	The proportion of a mineral within a rock or other material. For copper mineralisation this is usually reported as % of copper per tonne of rock.
"g/t"	grams per tonne; equivalent to parts per million ('ppm')
"Indicated Resource"	An "Indicated Mineral Resource" is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics, can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed.
"Inferred Resource"	An "Inferred Mineral Resource" is that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.
"intercept"	Refers to a sample or sequence of samples taken across the entire width or an ore body or mineralised zone. The intercept is described by the entire thickness and the average grade of mineralisation.
"massive"	In a geological sense, refers to a zone of mineralisation that is dominated by sulphide minerals.  The sulphide-mineral-rich material can occur in centimetre-scale, metre-scale or in tens of metres wide veins, lenses or sheet-like bodies containing sphalerite, galena, and / or chalcopyrite etc.
"Measured Resource"	A "Measured Mineral Resource" is that part of a Mineral Resource for which quantity, grade or quality, densities, shape, and physical characteristics are so well established that they can be estimated with confidence sufficient to allow the appropriate application of technical and economic parameters, to support production planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough to confirm both geological and grade continuity.
"Mineral Resource"	A "Mineral Resource" is a concentration or occurrence of diamonds, natural solid inorganic material, or natural solid fossilised organic material including base and precious metals, coal, and industrial minerals 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.
"mineralisation"	In geology, mineralisation is the deposition of economically important metals (copper, gold, lead, zin etc) that in some cases can be in sufficient quantity to form mineral ore bodies.
"outcrop"	A section of a rock formation or mineral vein that appears at the surface of the earth.  Geologists take direct observations and samples from outcrops, used in geologic analysis and creating geologic maps. In situ (in place) measurements are critical for proper analysis of the geology and mineralisation of the area under investigation.
"veins" "XRF"	A vein is a sheet-like or anastomosing fracture that has been infilled with mineral ore (chalcopyrite, covellite etc) or mineral gangue (quartz, calcite etc) material, within a rock. Veins form when minerals carried by an aqueous solution within the rock mass are deposited through precipitation and infill or coat the fracture faces. A non-destructive analytical technique used to determine the elemental composition of materials. XRF analysers determine the chemistry of a sample by measuring the fluorescent (or secondary) X-ray emitted from a sample when it is excited by a primary X-ray source.

 

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