Operational update and board change
Erris Resources plc / EPIC: ERIS.L / Market: AIM / Sector: Mining
25 February 2019
Erris Resources plc
("Erris Resources" or the "Company")
Operational update and board change
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 and Finland, is pleased to provide an operational and corporate update on its activities, including a change to its board of directors.
Highlights
· Underground and surface drilling at the Abbeytown Project in Q4 2018 demonstrated that mineralisation extends 375 metres south from the old underground workings to ERAB005, the most southerly hole drilled by Erris
· Soil sampling programme completed in February 2019 to identify new targets and demonstrate that this mineralisation corridor has the potential to extend 900 metres to the Ox Mountains fault south of Abbeytown
· Metallurgical test work ongoing on samples taken from Abbeytown underground drilling
· Preliminary prospecting of geophysical targets underway on the new Galway Project licences
· As part of the Centerra funded programme in Finland, several targets are under review, with a number of Reservation Permit applications already submitted
· Maintaining a disciplined approach to expenditure and well-funded for 2019
· Identifying and reviewing new opportunities that show synergies and the potential to add value to the Erris portfolio
Erris Resources CEO, Anton du Plessis, said, "2019 has started well, with activity on a number of our projects. At Abbeytown, work has focussed on identifying new targets further south of the mine site towards the Ox mountain fault approximately 1.2km away. The team has been running a soil sampling programme with the aim of upgrading geophysical targets. This is looking promising and could increase the overall potential of the project. Our partnership with Centerra, which gives us exposure to exploration upside at no cost, has seen us focus on two new districts in Finland where several targets have been identified and are under review. Additionally, we are reviewing several new projects that fit the Erris model. These are opportunities that either have defined mineral resources or show significant exploration upside and we want to ensure that any asset we bring into the Company delivers real shareholder value. We look forward to updating the market on our progress in due course."
Further Information
Ireland
At the Company's Abbeytown zinc-lead-silver-copper project in County Sligo, Northwest Ireland, the results of the underground work programme, announced on 30 January 2019, extended the mineralisation south to join with the surface drilling completed last year expanding the overall size and potential of the mineralised system. The programme returned a number of high-grade drill intersections including:
· 10.85% Zn & Pb combined and 31.1g/t Ag over 4.0m in ERAB001
· 15.63% Zn+Pb combined and 90.68 g/t Ag over 4.1m in ERAB005
· 9.14% Zn+Pb combined with 92.89 g/t Ag over 4.5m in ERAB007 and
· 14.37 % Zn+Pb combined and 67.25g/t Ag over 2.0m in ABUG009 from underground
Soil sampling work in a new target area near the Ox Mountains Fault has been completed; results are pending and expected to be reported before the end of Q1 2019. A metallurgical study involving a bench flotation test and a bond mill test on material collected from the Abbeytown mine is also being undertaken by Wardell Armstrong. This will define the potential zinc, lead and silver recoveries and allow us to start looking at the economic potential of the project. The key benefit of the Abbeytown project is that the mineralisation is essentially outcropping with good existing underground development allowing for a low-cost start to any future mining activity.
Preliminary prospecting of geophysical targets on the Company's Galway project is underway. These licences are 15-40km from the previously producing Tynagh Mine, adjoin a large land package owned by Boliden and have excellent potential for the discovery of base metal mineralisation.
Sweden and Finland
Erris Resources and its partner Centerra Gold KB Inc ("Centerra") have agreed that, in Finland, the strategic alliance will focus its efforts on two areas: the Laivakangas district in Central Finland; and the Central Lapland Greenstone belt in Northern Finland. Within these districts, several targets are under review. A number of Reservation Permit applications have been submitted with one already granted. Under the Finnish Mining Act, an area of land can be reserved for a period of up to two years while an exploration permit application is being prepared.
In Sweden, Erris Resources is also actively reviewing potential targets. As part of the strategy of efficiently turning over exploration ground, the Company has decided to relinquish the Nordgruvan and Hornkullen licences as these were not considered sufficiently prospective to warrant further work.
Board and Cost Reduction
In line with current market conditions, the Company has been reducing its costs across all areas and, as such, Andrew Partington has agreed to step down from his position as Non-Executive Director effective from 28 February 2019. The Company will still maintain contact with Andrew and his links to the North American markets. The Board would like to thank Andrew for his valuable contribution to the Company and wishes him well in his other endeavours. Jeremy Taylor-Firth will assume Andrew's position as Chairman of the Audit Committee and Graham Brown will also join the Audit Committee.
The Company maintains a disciplined approach to expenditure and as such is well funded for the remainder of 2019.
The technical information in this announcement has been compiled on behalf of Erris by Aiden Lavelle. Aiden Lavelle (BSc (Hons), MSc, MIGI, P.Geo ) is Erris' 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.
*ENDS*
For further information visit www.errisresources.com or contact:
|
Anton du Plessis /Aiden Lavelle |
Erris Resources plc |
+353 (0) 94 902 8481 |
|
David Hart/Liz Kirchner |
Allenby Capital (Nominated Adviser) |
+44 (0) 20 3328 5656 |
|
Erik Woolgar |
Shard Capital (Joint Broker) |
+44 (0) 20 7186 9952 |
|
Andy Thacker |
Turner Pope Investments (TPI) Ltd (Joint Broker) |
+44 (0) 20 3621 4120 |
|
Isabel de Salis/Gaby Jenner |
St Brides Partners (Financial PR) |
+44 (0) 20 7236 1177 |
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 and base metals 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.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
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