Completion of Acquisition of GC Gold Mines
09 August 2021
Caerus Mineral Resources PLC
('Caerus' or the 'Company')
Completion of Acquisition of GC Gold Mines (Cyprus) Ltd ("GMCL")
Caerus Mineral Resources (LON: CMRS), the exploration and resource development company focused on developing mineral resources in Europe to support the global "Clean Energy" initiative, is pleased to announce the completion of the acquisition of Gold Mines (Cyprus) Limited ("GMCL") for a total consideration of GBP£300,000, funded through the recent disposal of the Black Pine nickel-cobalt project and associated licences as announced on 29 July 2021.
Highlights
· 3 new licences acquired hosting a partially delineated Volcanogenic Massive Sulphide ("VMS") copper-gold and gold oxide deposits
· Due diligence drilling undertaken by Caerus has strongly confirmed the potential for both copper-gold VMS and gold oxide mineralisation
· A mining licence application has been submitted for the Anglisides property noted for high-grade gold oxide mineralisation and significant mineralised widths of copper-gold sulphides at, or near, surface
The 3 licences have a legacy of small-scale mining and host ore stockpiles, waste dumps and tailings GMCL is a private, Cypriot-registered, exploration and mining company with three additional advanced copper - gold exploration properties, each with a mining history and excellent potential for discovery of further high-grade, copper-gold Volcanogenic Massive Sulphide ("VMS") and epithermal gold deposits. The Anglisides, Pano Lefkara and Layia licences not only show prominent evidence of unmined resources, but also metal-bearing dumps, tailings and waste stockpiles on-surface.
Since agreeing Head of Terms with GMCL, and in advance of completion, the Company has reviewed all the historic exploration data from trenching, pitting and drilling at all three sites, and especially Anglisides where an application for a Mining Licence was submitted to the Mines Department in March 2019.
Martyn Churchouse, Chief Executive Officer of Caerus Mineral Resources, commented; "The Acquisition is another important step in the Company's growth and development with these three new licences meeting both our Brownfield acquisition policy and 'Waste to Revenue" strategy. The agreement with Jubilee Metals Group ('JLP") for the treatment and recovery of residual metals from surface materials together with the more recent agreement with Bezant Resources for the future mining of hard rock resources fits the model allowing Caerus to continue building the foundations of a Mineral Resource. This will comprise both surface materials and hard rock mineralisation that can be processed in a common processing facility to which Caerus will deliver feedstock whereupon the expertise of our partners takes over the mining and processing of ore and waste materials".
For further information , please visit www.caerusmineralresources.com or contact:
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Caerus Mineral Resources plc: |
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Martyn Churchouse Chief Executive Officer |
info@caerusmineralresources.com +44 (0)1249 782162 |
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Novum Securities |
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Jon Belliss |
+44 (0) 20 7399 9425 |
Follow us on Twitter at @CaerusMineral
Consideration
The transaction between the Company and GMCL values the acquisition of GMCL's issued shares and its licence assets at GBP£300,000, the balance of GBP£280,000 payable in cash upon Completion. The cost of the acquisition of GMCL is to be met in full from the proceeds of the disposal of the non-core Black Pine nickel-cobalt licences to Aeramentum Resources Pty. Ltd details of which were announced on 29 July 2021. The two transactions, though unconnected, are financially neutral for the Company Treasury and thus safeguard the funds raised at IPO specifically for copper-gold exploration as described in the Prospectus.
Licence Details
Anglisides
· Mined in 1936 at average grades of 5.98% Cu, 24.5g/t Au and 86.4g/t Ag
· Recent PVTGM exploration focusing on gold mineralisation in surface gossan returned grades of 4.4g/t Au for channel samples, 3.9g/t Au for pits and 2.10g/t Au for short drillholes
· Waste dump sampling peak grades of 50.1g/t Au, 44.1gt Ag, 9.4% Zn and 0.35% Cu
· External consultant review commissioned by Caerus concluded:
o Cu sulphide mineralisation beneath the gossans is underexplored
o Future evaluation should target VMS-type Cu - Au sulphide mineralisation already known to extend over a substantial strike length at grades of >1% Cu and 2g/t Au
Pano Lefkara Licence
· Comprises a full suite of mineralisation styles characteristic of a Cyprus-type VMS setting
· High-grade surface gold gossan, Cu - Au sulphide and substantial package widths of Cu-bearing stockwork mineralisation
· Peak channel samples returned grades of 3.47g/t Au over 41 metres and 1.1g/t Au over 25 metres
· VMS-type mineralisation is of particular interest to Caerus. Limited drill intercepts include 3.13% Cu and 4.1g/t au over 7.6 metres and stockwork intercepts including 0.69% Cu and 1.82g/t Au over 27.4 metres and 0.34% Cu and 1.5g/t Au over 18.3 metres.
· External consultant review highlights the potential for extensions to sulphide mineralisation in both directions from the partially defined VMS body.
Layia Licence
· A gold prospect last mined in the 1940's
· A potential low-cost easily accessible source of additional gold-bearing gossans to supplement production from surrounding licences in the Troulli and Kalavasos Project areas
· Average gold grade from grab and pit samples of 3.8g/t Au
About Caerus Mineral Resources
Caerus Mineral Resources is a European focused copper-gold resource development and exploration company with a portfolio of mineral exploration licences located in Cyprus. The Country has a well-developed infrastructure and history of mineral exploration and production, which has been dormant over the last 50 years and provides significant undiscovered value.
With investors recognising copper as one of the cornerstone metals for the Clean Energy Transition centred upon the Electric Vehicle and Stationary Energy sectors, Caerus is working to rapidly expand its copper exploration and production objectives. The Caerus licence portfolio includes 16 former mines which operated with an average head grade of approximately 2% copper.
Caerus' licence portfolio comprises brownfield sites, where historic mining has taken place, and greenfield licences, where there has been no systematic exploration. The Brownfield sites and the former high-grade copper-gold mines they host are evidence of rock types and structures conducive to Volcanogenic Massive Sulphide ("VMS") mineralisation. As VMS deposits characteristically occur in camps or clusters, it is the Company's view that its licences are prospective for both extensions to existing or mined-out orebodies together with new discoveries.
The combination of brown and greenfield exploration provides optionality and the opportunity for the Company to quickly build a resource portfolio that can be commercially developed.
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
Qualified Persons
The content of this news release has been reviewed, verified, and approved by H. Andrew Daniels, P. Geo in his capacity as a Qualified Person as defined by National Instrument 43-101.
END
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