Update on Centerra Gold Joint Venture in Sweden
Erris Resources plc / EPIC: ERIS.L / Market: AIM / Sector: Mining
18 June 2018
Erris Resources plc
('Erris' or 'the Company')
Update on Centerra Gold Joint Venture Exploration Programme in Sweden
Erris Resources plc, the European focused mineral exploration company with a portfolio of zinc prospects in Ireland and gold projects in Sweden, provides an update on the Swedish work programme funded by Canadian gold producer Centerra Gold (as defined below) as part of the strategic alliance between the two parties (the 'Centerra JV Agreement').
Overview
● Advanced 2018 US$1.85m work programme fully funded by Centerra Gold; work to date includes ground magnetic ('mag'), electromagnetic ('EM') and induced polarisation ('IP') surveys, surface sampling, mapping, ground-truthing and drilling
● Identified a series of anomalies indicative of gold mineralisation from ground magnetic survey at the Brännberg gold project
● Appointed Finnish drilling company, Kati Oy, to drill a total of 3,000m at the Käringberget and Brännberg gold projects; drilling expected to commence imminently
● Drill results from Klippen not indicative of economic mineralisation - Centerra Gold has elected not to earn-in at the Klippen Project
Erris CEO, Merlin Marr-Johnson, said, "We are pleased to report that the recent ground magnetic survey at Brännberg has identified a series of anomalies over at least 1km of strike-length, that will be targeted in the diamond drilling programme due to begin in July. Ahead of this, drilling will start at Käringberget, as part of the agreed U$1.85m 2018 work programme across a portfolio of properties covered by our joint venture with Centerra Gold in Sweden.
"While drill results from Klippen confirmed gold mineralisation, the nature of the veining encountered is not indicative of a potentially economic mineralising system. Accordingly, Centerra Gold has elected not to earn-in at the Klippen Project. Work will now continue on other projects within our strategic alliance."
Centerra Gold Joint Venture
Centerra Gold KB Inc ('Centerra Gold'), a wholly owned subsidiary of Centerra Gold Inc., a TSX listed gold and copper producer, is funding a work plan for 2018 totalling US$1.85m to explore a portfolio of gold properties within a common area of interest in northern Sweden with the Company. To date, work has included mag, EM and IP surveys, surface sampling, mapping, ground-truthing and drilling.
Brännberg and Käringberget
A mag survey is ongoing at Brännberg; results to date have highlighted multiple anomalies that tie in with mineralisation intersected in historic drilling. After initial review of the mag data in early June, extensions to the survey were made to expand the size of the survey area to approximately 3km x 2km. In parallel with the mag survey, an IP survey covering a 2km x 1km grid started on 8 June and is expected to take approximately three weeks to complete. In addition, a series of test lines of soil samples have been taken across the main strike of the mineralisation, to ascertain whether soil sampling can be used as an exploration tool in the 6284-hectare licence area.
Ahead of this, a short drill programme at Käringberget will start imminently and will test a number of magnetic anomalies.
Klippen
In 2017, Erris Resources drilled 9 NQ2 diamond holes within the Klippen project area, totalling 1,797.4m. In 2018, a further 13 NQ2 diamond holes for 2,854.3m were drilled, taking the total drilled at Klippen by Erris Resources to 4,651.7m.
Typically, the best mineralisation intersected in core is hosted in veins of quartz arsenopyrite or massive sulphide veins (chalcopyrite + arsenopyrite) often associated with silicification and a strong shear fabric. The quartz-arsenopyrite veins are thin and appear to be developed best in more brittle units. Two high-grade veins were encountered and returned over 30g/t Au but were only 15-40cm wide.
The intersections in some of the drill holes are traceable between drill holes, surface outcrops and some high bottom till gold values. Sulfides can be seen to be localised in the pressure shadow of porphyroblasts in the core and this is mirrored at a prospect scale where the best mineralisation occurs in the pressure shadow of a large granodiorite intrusive. The extensional gold bearing quartz-sulfide veins are related to shearing which post-dates the regional metamorphism. Widespread pyrrhotite mineralisation which is locally semi-massive in the sediments has been interpreted to be early-stage and can occasionally be remobilised into small scale fold hinges in the core. The pyrrhotite is associated with only anomalous values of gold.
The work undertaken historically and by Erris Resources has focussed on the zones containing the best surface geochemical responses and anomalies. The nature of the veining (thin and infrequent veins, and mostly low grade) encountered in the drill programmes is not indicative of a potentially economic mineralising system and the Company is confident it can now explain the source of the surface and bottom till gold anomalies.
The results to date from the work have meant that Centerra Gold has indicated that it will decline to exercise its option over the Klippen DPA. The Klippen Licence no.10 was due for renewal on 18 June and based on the recent results from the drilling programme Erris Resources has elected not to renew the Klippen licence areas.
|
Permit |
Area Ha |
Status |
Licence ID |
Valid From |
Valid To |
|
Klippen nr.10 |
3353.72 |
Expired |
2015:87 |
18/06/2015 |
18/06/2018 |
|
Klippen nr.11 |
400.10 |
Granted |
2015:97 |
10/09/2015 |
10/09/2018 |
|
Klippen nr.12 |
682.70 |
Granted |
2016:21 |
07/03/2015 |
07/03/2018 |
|
Klippen nr.13 |
1050.00 |
Granted |
2016:27 |
10/03/2015 |
10/03/2018 |
Technical Background
Mag surveys were carried out with a line spacing of 50m. The data was processed by Williams Geophysics Ltd. in the UK.
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.
The information contained within this announcement is 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 via a Regulatory Information Service, this inside information is now considered to be in the public domain.
*ENDS*
For further information visit www.errisresources.com or contact:
|
Merlin Marr-Johnson |
Erris Resources plc |
+44 (0) 7803 712 280 |
|
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 focussed, discovery driven exploration company that 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 and supported by Canadian mining majors, Osisko Gold Royalties, which has an 18.9% interest in the Company, and Centerra Gold KB Inc., a wholly owned subsidiary of TSX listed Centerra Gold Inc., Erris' 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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