TIDMEST
RNS Number : 3972F
East Star Resources PLC
10 July 2023
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF ARTICLE 7 OF REGULATION 2014/596/EU WHICH IS PART OF DOMESTIC UK
LAW PURSUANT TO THE MARKET ABUSE (AMMENT) (EU EXIT) REGULATIONS (SI
2019/310) ("UK MAR"). UPON THE PUBLICATION OF THIS ANNOUNCEMENT,
THIS INSIDE INFORMATION (AS DEFINED IN UK MAR) IS NOW CONSIDERED TO
BE IN THE PUBLIC DOMAIN.
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN
PART, DIRECTLY OR INDIRECTLY IN OR INTO THE UNITED STATES,
AUSTRALIA, CANADA, JAPAN, THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER
JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE
RELEVANT LAWS OF SUCH JURISDICTION.
10 July 2023
East Star Resources Plc
("East Star" or the "Company")
Verkhuba Copper Deposit Drilling Contract & Timetable
East Star Resources Plc (LSE:EST), which is defining mineral
resources in Kazakhstan for the energy revolution, is pleased to
provide updates regarding its forthcoming drilling programme at the
Verkhuba Copper Deposit in the Rudny Altai volcanogenic massive
sulphide ("VMS") belt in Kazakhstan.
Highlights
-- Initial site works to prepare access and drill locations will
begin this week with drilling commencing by late July / early
August
-- Fully funded 3,000m+ drilling campaign, including twinning
existing boreholes with identified strong copper mineralisation
-- Copper deposit with a JORC exploration target of 19-23Mt @
1-4% - 1.9% CuEq, close to infrastructure and existing processing
capacity
-- Drilling will also test potential of gold and silver
mineralisation which was not assayed for in historical drilling but
is known to be present in metallurgical samples taken from within
the deposit
East Star announces it has entered into a drilling rig contract
for 3,000m+ of oriented diamond core drilling, to commence late
July / early August , primarily focusing on the Verkhuba Copper
Deposit ("Verkhuba Deposit"). The Verkhuba Deposit contains a
significant JORC compliant exploration target of 19-23 Mt at
1.0-1.4% copper and 1.0-1.4% zinc (1.4-1.9% copper equivalent)
("Exploration Target"), derived from over 42,000m of historical
drilling, as announced on 21 March 2023. The Exploration Target
estimate, including a conceptual open pit optimisation and
analysis, was undertaken by AMC Consultants Pty Ltd ("AMC").
Shareholders are encouraged to view the AMC report which has been
made available on East Star's website at
www.eaststarplc.com/presentations .
The drilling contract has been awarded to Everest Sondaj LLP, a
Turkish-owned and locally operated drilling contractor with
extensive experience drilling oriented diamond core in mountainous
areas such as the prolific Rudny Altai VMS belt.
Alex Walker, East Star CEO, commented:
"We are extremely excited to commence drilling this potentially
game-changing copper deposit in a prolific copper region with
established processing infrastructure. We have undertaken an
extensive geological traverse over the project area in preparation,
mapping more than 70 historical collar locations from the more than
42,000m of drilling which make up the Verkhuba Deposit, as well as
a number of copper outcrops.
"It is important to note that historical drilling had often poor
core recovery and did not assay for precious metals such as gold,
which we know to be present based on historical metallurgical test
work from within the deposit. This offers further upside potential
in addition to the multiple drill targets generated from our
helicopter electromagnetic (HEM) survey in 2022.
"If East Star is successful in confirming historical results and
progressing towards a JORC resource, the Company will be in a prime
position to become a supplier of ore to processing plants with
excess capacity within a short trucking distance of this
deposit."
The programme will focus primarily on the Verkhuba Deposit
around historical intersections including:
-- Hole_ID 1: 4m @ 3.53% CuEq from 72m
-- Hole_ID 14: 11m @ 2.83% Cu from 32.9m and 6.25m @ 3.66% Cu from 60.25m
-- Hole_ID 16: 5.8m @ 2.87% CuEq from 187.2m and 12.55m @ 2.73% CuEq from 192.5m
-- Hole_ID 38: 12m @ 1.54% CuEq from 229.4m and 14m @ 1.17% Cu from 260.4m
-- Hole_ID 269: 15m @ 1.98% CuEq from 155m
*CuEq = Cu(%) + Zn(%) x 0.33889 + Pb(%) x 0.250000
Optimised open pits, shown below in blue, have potential to
allow low-cost development and early cash flow using one of several
existing ore processing facilities within trucking distance of the
project on a toll treatment basis.
Figure 1 Micromine model of ore bodies including modelled open
pit scenario
Figure 2 Verkhuba Deposit area with highlighted
intersections
Exploration Target
East Star announced a JORC Exploration Target over the Verkhuba
Deposit on 21 March 2023. The Exploration Target is based on a
block model developed from 42,000m of historical drilling and
includes an open pit and underground component.
Mining method Tonnes Zn Cu Pb
--------------
(kt) (%) (%) (%)
-------------- ---------------- ---------- ---------- ----------
Open pit 5,000 - 6,000 0.5 - 0.8 1.4 - 1.8 0.1 - 0.2
Underground 14,000 - 17,000 1.2 - 1.6 0.8 - 1.2 0.1 - 0.2
---------------- ---------- ---------- ----------
Total 19,000 - 23,000 1.0 - 1.4 1.0 - 1.4 0.1 - 0.2
---------------- ---------- ---------- ----------
Table 1 Exploration Target Summary Table
Notes:
-- This is an Exploration Target and should not be considered to be a Mineral Resource
-- The Exploration Target assumes an open pit mining method with
marginal cut-off of 0.38% Cu equivalent and underground mining
method with the marginal cut-off of 0.86% Cu equivalent
-- A nominal dry density values of 3.0 t/m(3) was assumed to be
appropriate for the style of mineralisation
-- Cu equivalent was calculated using the following metal
prices: 3,050 US$/t for Zn, 9,000 US$/t for Cu, 2,250 US$/t for
Pb
-- Tonnage is reported on dry basis
Further background on the Verkhuba Deposit including a summary
of the Exploration Target and Rudny Altai belt follows in the
appendix below.
For further information visit the Company's website at
www.eaststarplc.com , or contact:
East Star Resources Plc
Alex Walker, Chief Executive Officer
Tel: +44 (0)20 7390 0234 (via Vigo Consulting)
Peterhouse Capital Limited (Corporate Broker)
Duncan Vasey / Lucy Williams
Tel: +44 (0) 20 7469 0930
Vigo Consulting (Investor Relations)
Ben Simons / Peter Jacob
Tel: +44 (0)20 7390 0234
About East Star Resources Plc
East Star Resources is focused on the discovery and development
of strategic minerals required for the energy revolution. With an
initial nine licenses covering 1,321.5 km(2) in three mineral rich
districts of Kazakhstan, East Star is undertaking an intensive
exploration programme, applying modern geophysics to discover
minerals in levels that were not previously explored. The Company
also intends to further expand its licence portfolio in Kazakhstan.
East Star's management are based permanently on the ground,
supported by local expertise, and joint ventures with the state
mining company.
Follow us on social media:
LinkedIn:
https://www.linkedin.com/company/east-star-resources/
Twitter: https://twitter.com/EastStar_PLC
Subscribe to our email alert service to be notified whenever
East Star releases news:
www.eaststarplc.com/newsalerts
The person who arranged for the release of this announcement was
Alex Walker, CEO of the Company.
APPIX
Background on the Verkhuba Deposit
East Star commissioned AMC Consultants Pty Ltd ("AMC") to
prepare a Mineral Resource Estimate ("MRE") and a conceptual pit
optimisation and analysis for the Verkhuba Deposit located in
eastern Kazakhstan. For reporting purposes, the MRE was converted
to an Exploration Target range under JORC reporting standards.
Exploration of the project area was carried out in the 1950s
through to the 1990s, mostly by surface core drilling. Exploration
adits and drives were also developed at the Verkhuba Deposit, but
the database for underground channel sampling was not available.
Mineralised bodies are represented by VMS shallow dipping
sheet-like bodies and lenses.
A total of 97 diamond drillholes define the Verkhuba Deposit
with a total of 42,178 m of drilling. 62 drillholes were used for
the grade estimate. The deposit area was sampled using diamond
drillholes at variable spacings - from 200 m x 200 m to 100 m x 100
m spacing.
To establish the Exploration Target, AMC completed the following
phases of work:
-- Database import and validation
-- Classical statistical analysis
-- Interpretation and wireframing of mineralised zones using
metal equivalent grades available in the database
-- Data selection and compositing
-- Block model development
-- Grade interpolation and model validation
-- Preliminary pit optimisation study using a base case scenario
-- Pit analysis and a preliminary scoping estimate of the deposit's economic potential
-- Development of verification and an infill drilling programme
Geological modelling was completed by AMC which resulted in 59
interpreted and wireframed mineralised bodies. A block model
constrained by the interpreted mineralised bodies was constructed
with the parent cell size of 5 mE x 5 mN x 2 mRL with standard
sub-celling five times in all directions to maintain the volume
resolution of the mineralised bodies. Drillhole sample intervals
have been composited to 1 m length and were used to interpolate all
main modelled grades (Zn, Pb, Cu) into the block model using
ordinary kriging (OK) interpolation techniques. Block grades were
validated both visually and statistically and all modelling was
completed using Micromine software.
Constant average bulk density values of 3.0 t/m(3) were applied
to each model cell, which was assumed from the historical
reports.
Exploration Target
The grade estimate and subsequent Exploration Target allowed an
assessment of the integrity of the input data. It was also used to
confirm estimation and reporting of exploration potential ranges of
tonnage and grades for the Verkhuba Deposit. The Exploration Target
is to be reported in accordance with the JORC Code*.
Table 1 (in the announcement above) shows the Exploration Target
for the Verkhuba Deposit for both open pit and underground mining
methods. The Exploration Target is based on actual Exploration
Results that were obtained during several historical exploration
programmes completed between 1950 and 1990 when a total number of
97 diamond holes were drilled totaling 42,178 m. The estimated
potential quantity of tonnes and grades are conceptual in nature as
there has been insufficient data and evaluation to support
estimation of a Mineral Resource. Tonnages and grades are expressed
as ranges that are considered appropriate for the Exploration
Target. There is no certainty that further exploration,
verification drilling, or twinned drilling will result in the
estimation of a Mineral Resource. The Exploration Target is not to
be considered in any way to represent a Mineral Resource or Ore
Reserve.
Following the Exploration Target, AMC made the following
findings:
-- The quality of procedures for the historical data collection
used for the Exploration Target estimate is believed to be of
sufficient standard
-- The Exploration Target for the Verkhuba Deposit was prepared
using data, geological interpretation and understanding, and
estimation practices that are appropriate for the style of
mineralisation
-- The cut-off grades which have been calculated for reporting
open pit and underground Exploration Target are considered
reasonable and based on justifiable assumptions and parameters
-- The Exploration Target has potential to be developed via open
pit and underground mining methods, and it has been delineated and
reported in accordance with the JORC Code
-- Further verification and infill drilling are required to
upgrade the current Exploration Target to a Mineral Resource
*Note: Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves. The JORC Code, 2012 Edition.
Prepared by: The Joint Ore Reserves Committee of The Australasian
Institute of Mining and Metallurgy, Australian Institute of
Geoscientists and Minerals Council of Australia (JORC).
Rudny Altai Region
The Rudny Altai region is one of the largest VMS provinces in
the world, part of the Central Asian Orogenic Belt. The Company's
newest 1794-EL, 1795-EL (containing the Verkhuba Deposit) and
1799-EL licences are located adjacent to the Company's existing
847-EL and 914-EL licences (together, the "Licences").
Administratively, the Licences are within the Shemonaikha District
and are extraordinarily well connected to infrastructure. The
regional centre of Ust-Kamenogorsk is located 45 km, and its
international airport is located 35 km, southeast of the Licences.
The railway connecting Ridder (Kazzinc Mine) and Tomsk cities
crosses the Licences from the south to the northwest with two
railway stations located on the territory of the Licences. There is
a network of dirt roads within the Licences that are suitable for
driving all year round. A hard-surfaced road from Ust-Kamenogorsk
to Shemonaikha crosses the western part of the Licences.
The area is characterised by moderately hilly terrain with
elevations ranging between 270 m and 630 m above the mean sea
level.
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.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
UPDUBOVROSUBRAR
(END) Dow Jones Newswires
July 10, 2023 02:00 ET (06:00 GMT)
East Star Resources (LSE:EST)
Historical Stock Chart
Von Apr 2024 bis Mai 2024
East Star Resources (LSE:EST)
Historical Stock Chart
Von Mai 2023 bis Mai 2024