Abbeytown Zinc Project, Ireland Update

RNS Number : 0653S

Erris Resources PLC

21 June 2018

 

Prior to publication, the information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). With the publication of this announcement, this information is now considered to be in the public domain.

Erris Resources plc / EPIC: ERIS.L / Market: AIM / Sector: Mining

21 June 2018

Erris Resources plc

('Erris Resources' or the 'Company')

Diamond Drilling Commences at the Abbeytown Zinc Project, Ireland

Erris Resources plc, the European focused mineral exploration company with a portfolio of zinc and base metals projects in Ireland and gold projects in Sweden, provides an update on its activities at its 100% owned Abbeytown zinc project in County Sligo, Ireland.  

Key points

●     Surface diamond drilling programme started 300m south of the old Abbeytown mine

●     Drilling intended to test for potential extensions of zinc-lead-silver-copper mineralisation extending south from the old workings at the Abbeytown Mine

●     Cleared and opened access portals at the historic Abbeytown Mine, planning underway for underground mine exploration programme including 3D laser surveying, systematic channel sampling followed by underground diamond drilling

●     New grab sample from underground pillar returns 500g/t Ag, 27.9% Pb and >30% Zn

●     Focus of future work to remain around Abbeytown, following early stage drilling results from Skreen

Erris Resources CEO, Merlin Marr-Johnson, said, "We are excited to have started brownfields exploration in and around the old Abbeytown Mine and surrounding targets.

"At the mine itself, we have gained entry to the old underground workings. Two access portals have been cleared and are now open, the upper and main workings of the mine are in good condition and we believe safe working conditions for underground drilling can be achieved.  The 1000m underground drill programme is planned to target mineralisation at depth and to the south of the historic workings.

"In parallel, surface drilling recently began 300m south of the mine, targeting the extensions to the mineralisation previously mined.  The programme hopes to define mineralisation both from surface and from underground with the aim of delivering a new mineral resource that could eventually be accessible from the existing underground portal and decline.  Elsewhere, the regional early stage drilling at Skreen demonstrated mineralisation was present within the target area, but not of economic potential, the focus of work will remain around Abbeytown.  We look forward to providing regular updates as the work at the Abbeytown project advances."

Please follow the link to see photographs of the recent work underground (www.errisresources.com/ technical-reports)."

Abbeytown Zinc Project, County Sligo, Ireland

Surface Drilling

A diamond drilling programme is underway at the Abbeytown prospect, circa 300m south of the historic mine.  In 2015 and 2017, Erris Resources drilled ER001 and ER002 here, intersecting mineralisation, as shown in Table 1 below. The Company has drill permits for an initial eight-hole programme that will test strike and depth extensions of the known mineralisation.

Table 1. Highlights of the drilling of ER001 and ER002. Composites are generated using a length weighted average for assays >2% Pb+Zn, maximum total length of waste 2 m, maximum consecutive length of waste 1m. Thicknesses have not been converted to apparent thickness at this time due to lack of data and uncertainty of deposit geometry

Hole ID	M From	M To	Width	Pb %	Zn %	Cu %	Ag g/t
ER001	24.40	26.90	2.50	3.71	6.75	0.02	16.5
ER001	110.55	121.00	10.45	1.92	4.36	0.07	44.0
ER001	125.00	137.00	12.00	2.14	1.63	0.38	10.1
ER002	122.00	126.00	4.00	1.65	2.81	0.01	24.5
ER002	130.1	145.65	15.55	1.19	2.75	0.45	25.5
inc.	138.8	141.3	2.5	1.35	4.67	0.17	21.3
ER002	150.8	155.65	4.85	3.91	2.84	0.32	14.2
inc.	150.8	152.8	2	8.47	3.57	0.72	26.9
ER002	162	164.4	2.4	0.03	0	1.84	6.07

Underground access and exploration plan

At the mine site, Erris is working with the Health and Safety Authority (HSA) and the Exploration and Mines Department (EMD) regarding safety, and access to the underground workings at Abbeytown. The HSA has made a site inspection, and water testing is currently underway to ensure Company compliance with environmental regulations.

A new exploration programme is planned at the historic mine, to include an underground drilling programme of 1,000m together with a systematic channel sampling programme.  The 1,000m underground drilling programme is part of the 4,500 to 5,000m drilling plan for the wider Abbeytown project area in 2018. Exploration targets include high grade extensions around the old mine workings, as well as the potential for mineralisation in a corridor to the south of the mine in the area currently the focus of the surface drilling programme. 

As part of the initial underground work, two samples were taken that represent the range of mineralising styles present in the mine. One composite chip sample taken over 1m x 2m from the SE end of Index Bed workings returned 22.7g/t Ag, 2.9% Pb and 1.8% Zn. The sample was a medium-grained calcarenite with calcite and quartz grains visible in a calc-dolomite matrix, minor coarse galena but with low sphalerite and pyrite content.  A second sample taken from a pillar close to the main structure returned 500g/t Ag, 27.9% Pb and >30% Zn. The sample consisted of massive coarse galena, fine sphalerite and minor chalcopyrite.

The results are consistent with the revised carbonate replacement deposit model developed by Erris which suggest that there may be a high-grade structure or feeder zone to the deposit surrounded by mineralised breccias of intermediate and lower grade. Historic mining appears to have left in place high-grade pillars in parts of the mine. The underground drill programme will also test the newly identified copper potential at depth in the mine area.

Two mine entrances have been opened and scaled down by a rock breaker with safety fencing put in place. A consultant engineer has identified locations in the main workings where underground drilling can take place. 

Regional Exploration Update

Fifteen kilometres away from Abbeytown, an initial program of drilling at Skreen has been completed. Seven holes were drilled for a total of 1,025m. The holes were widely spaced over an area of approximately 2km x 3km to gain information on stratigraphy, structure and to test soil anomalies. The information has allowed the company to develop a new and better interpretation of the regional aeromagnetic data. Holes ERSK001 and ERSK002 intersected thin zones of massive to semi-massive pyrite with anomalous zinc and silver before encountering basal clastics at shallow depth that explain the magnetic signature in the west of the Skreen area.

Hole ERSK005 intersected calcite-pyrite alteration identical to that seen at Abbeytown and assay results include 0.55m @ 0.41% Zn and 6g/t Ag.  Alteration in hole ERSK005 and ERSK006a along with records of alteration in historic drill holes define an ESE-WNW trending area of interest close to and parallel with a low magnetic zone.  This zone is now interpreted to host demagnetised basement and basal clastics beneath the limestones.  Hole ERSK005 is close to the demagnetised zone and intersected some alteration, mineralisation and a 100m thickness of the Ballyshannon limestone formation. It is now apparent that broadly east-west trending trending structures have caused significant increases in the thickness of the carbonate sequence to the north. The carbonate sequence in ERSK007 is 160m thick. In summary, drilling at Skreen confirms there is mineralisation within the target area, but it is not considered to be of economic potential.  Drilling will now focus around the Abbeytown mine site.

Technical Background

The technical information in this announcement has been compiled on behalf of Erris Resources by Aiden Lavelle. Aiden Lavelle (BSc (Hons), MSc, MIGI, P.Geo) is Erris Resources' chief operating officer. Mr Lavelle has sufficient experience relevant to the style of mineralisation and type of deposit under consideration, and to the activity which he is undertaking to qualify as a Competent Person in accordance with the guidance note for Mining, Oil & Gas Companies issued by the London Stock Exchange in respect of AIM Companies, which outlines standards of disclosure for mineral projects. Mr Lavelle consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

See the Company website (www.errisresources.com/technical-reports) for maps and photos.

*ENDS*

For further information visit www.errisresources.com or contact:

Merlin Marr-Johnson	Erris Resources plc	[phone]
David Hart/Liz Kirchner	Allenby Capital (Nominated Adviser)	[phone]
Erik Woolgar	Shard Capital (Joint Broker)	[phone]
Andy Thacker	Turner Pope Investments (TPI) Ltd (Joint Broker)	[phone]
Isabel de Salis/Gaby Jenner	St Brides Partners (Financial PR)	[phone]

Notes

Erris Resources plc (EPIC: ERIS.L) is an AIM quoted, European focused, discovery driven exploration company.  Supported by Canadian mining majors, Osisko Gold Royalties, which has a 18.9% interest in the Company, and Centerra Gold KB Inc, a wholly owned subsidiary of TSX listed Centerra Gold Inc., the Company has an established portfolio of zinc assets in Ireland and gold projects in Sweden, which it is looking to further build on.  Led by a highly qualified team with extensive corporate and sector experience, Erris Resources' strategy is to create shareholder value through commercial discovery of base or precious metal assets in proven mineral districts and in favourable European jurisdictions.

 

END

 

 

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