REG - Arc Minerals Limited - Commencement of Drilling at the Virgo project
14/06/2024 07:00
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RNS Number : 4060S Arc Minerals Limited 14 June 2024
14 June 2024
Arc Minerals Ltd
('Arc' or the 'Company')
Commencement of Drilling at the Virgo project, Botswana
Arc Minerals (LSE: ARCM), an exploration company forging partnerships to
discover and develop Tier 1 copper deposits, is pleased to announce the
commencement of an exploration drilling programme over its PL135/2017 and
PL162/2017 licences at its Virgo Project within the highly prospective Central
Structural Corridor of the Kalahari Copper Belt ('KCB') in the Republic of
Botswana.
Highlights
· On 30 May 2024, the Company reported on the results of an encouraging
Induced Polarisation Survey which confirmed potential drill targets along two
distinct trends of high chargeability close to the interpreted redox contact.
· A large, previously unknown anomaly of high chargeability and low
resistivity was also detected at depth.
· This c.3,000m maiden exploration drilling programme will comprise a
combination of Reverse Circulation and Diamond Drill holes to test these
anomalies.
Nick von Schirnding, Executive Chairman of Arc Minerals, commented:
"I am very pleased that drilling is now underway at our Virgo Project. This
will be a busy and exciting period for the Company and I look forward to
reporting back on the results from these activities."
Further Details
This maiden exploration drilling programme follows up on the previous work
carried out by the Company which included a scout drilling programme (see
announcement dated 25 January 2024). The scout drilling programme confirmed
the interpreted geological formations within the licence areas. The recent IP
survey in the PL135/2017 licence, announced on 30 May 2024, also assisted in
locating the potential drill hole collar positions for this drilling
programme.
At the PL135/2017 licence, a combination of Percussion and Reverse Circulation
('RC') drilling will be used to pierce through the overlying Kalahari sand
cover to rapidly reach the target formation(s), before extending these holes
with Diamond Drilling ('DD') through these formations and down to the unknown
anomaly at depth. Five holes for 930m of Percussion/RC and 1,320m of DD
drilling, totalling 2,250m is planned for this programme.
At the PL 162/2017 licence, initially three holes for 750m of Percussion/RC
drilling is planned. Two holes will test a soil geochemical anomaly trending
for 5km along the south-western margin of the licence boundary, whilst the
third will test an interpreted syncline in the north-eastern part of this
licence.
Further updates will be provided when the results from this drill programme
are received.
Qualified Persons
Mr Vassilios Carellas (BSc (Hons), MAusIMM) is the Chief Operating Officer for
Arc Minerals and 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 as defined under the
JORC Code (2012). Mr Carellas consents to the inclusion in this announcement
of the technical matters based on his information in the form and context in
which it appears.
Market Abuse Regulation (MAR) Disclosure
This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.
For further information contact:
Arc Minerals
Ltd
c/o Benchmark Communications
Nick von Schirnding (Executive Chairman)
WH Ireland (Nominated Adviser & Joint Broker) Tel: +44 (0) 20 7220 1666
Katy Mitchell/Harry Ansell
Shard Capital Partners LLP (Joint Broker) Tel: +44 (0) 20 7186 9952
Damon Heath
Benchmark Communications (Investor Relations) Tel: +44 (0) 7841 67 3210
Richard Kauffer
For more information, visit www.arcminerals.com (http://www.arcminerals.com/)
.
Forward-looking Statements
This news release contains forward-looking statements that are based on the
Company's current expectations and estimates. Forward-looking statements are
frequently characterised by words such as "plan", "expect", "project",
"intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other
similar words or statements that certain events or conditions "may" or "will"
occur. Such forward-looking statements involve known and unknown risks,
uncertainties and other factors that could cause actual events or results to
differ materially from estimated or anticipated events or results implied or
expressed in such forward-looking statements. Such factors include, among
others: the actual results of current exploration activities; conclusions of
economic evaluations; changes in project parameters as plans continue to be
refined; possible variations in ore grade or recovery rates; accidents, labour
disputes and other risks of the mining industry; delays in obtaining
governmental approvals or financing; and fluctuations in metal prices. There
may be other factors that cause actions, events or results not to be as
anticipated, estimated or intended. Any forward-looking statement speaks only
as of the date on which it is made and, except as may be required by
applicable securities laws, the Company disclaims any intent or obligation to
update any forward-looking statement, whether as a result of new information,
future events or results or otherwise. Forward-looking statements are not
guarantees of future performance and accordingly undue reliance should not be
put on such statements due to the inherent uncertainty therein.
Background on the Virgo Licences
PL 135/2017 Licence
The Company's PL135/2017 prospecting licence is surrounded on three sides by
the prospecting licences of Khoemacau Copper Mining Limited ("Khoemacau"), who
have recently been acquired by MMG for c.$1.9 billion.
This PL135/2017 licence is located towards the south-eastern margin of the
Kalahari Copper Belt occupying a similar geological setting to that recently
drilled by Khoemacau at their recent Mawana Fold Discovery and the Zone 9
exploration target, where economic grades of copper mineralisation has already
been intersected by drilling. These discoveries are located at the
north-western and south-eastern margins of the Company's prospecting licence,
respectively.
Khoemacau's Mawana fold discovery has defined a possible economic zone of
copper mineralisation that appears to trend towards and into the Company's PL
135/2017 licence (Figure 1.). The Company's recent scout drill holes
intersected anomalous grades of copper mineralisation close to this apparent
trend and confirmed an east-west trending DKF-NPF contact position
approximately 5km long running through the licence.
Fig 1. Image showing Khoemacau licence holding, targets and drilling results
in relation to PL 135/2017.
In November 2021, Arc Minerals Limited acquired a 75% interest in Alvis-Crest
(Proprietary) Limited, the holder of two prospecting licences (PL 135/2017
& PL 162/2017) in Botswana's Kalahari Copper Belt ("KCB"), colloquially
called the Virgo Project/Licences. licence PL 135/2017 is approximately 10km
south-east of the large underground Khoemacau Copper mine recently
commissioned by Cupric Canyon Capital LP.
A map of the licences is available here:
http://www.rns-pdf.londonstockexchange.com/rns/3027T_1-2021-3-24.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/3027T_1-2021-3-24.pdf)
The Virgo Licences cover an area of over 210km(2) and lie within (PL 165/2017)
and adjacent (PL 135/2017) to the highly prospective Central Structural
Corridor and within 10km and 50km of the Zone 5 and Banana Zone copper
projects respectively, known as the two largest copper projects on the KCB.
Historically, two copper-nickel soil anomalies have already been recorded on
PL 135/2017 and PL 162/2017 and are approximately 3km and 2.5km in strike
length, respectively. The largest of the two anomalies, located on PL
135/2017, overlays an interpreted DKF-NPF contact, while a second, more
intermittent, anomaly may be linked to extensional faulting around the dome
edge. The large coherent anomaly on PL 162/2017 also appears to overlay the
interpreted DKF-NPF contact on the northern limb of a syncline.
**ENDS**
Appendix A - Glossary of Technical Terms
"anomaly or anomalous" something in mineral exploration that geologists interpret as deviating from
what is standard, normal, or expected.
"assay" The laboratory test conducted to determine the proportion of a mineral within
a rock or other material. For copper, usually reported as percentage which is
equivalent to percentage of the mineral (i.e. copper) per tonne of rock.
"azimuth" the "compass direction" refers to a geographic bearing or azimuth as measured
by a magnetic compass, in true or magnetic north.
"bornite" Bornite, also known as peacock ore, is a copper sulphide mineral with the
formula Cu(5)FeS(4).
"breccia" Breccia is a rock classification, comprises millimetre to metre-scale rock
fragments cemented together in a matrix, there are many sub-classifications of
breccias.
"chalcocite" Chalcocite is a copper sulphide mineral with the formula Cu(2)S and is an
important copper ore mineral. It is opaque and dark-gray to black with a
metallic luster.
"chalcopyrite" Chalcopyrite is a copper sulphide mineral with formula CuFeS(2). It has a
brassy to golden yellow colour.
"chargeability" Chargeability is a physical property related to conductivity. Chargeability is
used to characterise the formation and strength of the induced polarisation
within a rock, under the influence of an electric field, suggesting sulphide
mineralisation at depth.
"covellite" Covellite is a copper sulphide mineral with the formula CuS. This indigo blue
mineral is ubiquitous in some copper ores.
"diamond drilling" A drilling method in which penetration is achieved through abrasive cutting by
rotation of a diamond encrusted drill bit. This drilling method enables
collection of tubes of intact rock (core) and when successful gives the best
possible quality samples for description, sampling and analysis of an ore body
or mineralised structure.
"dip" A line directed down the steepest axis of a planar structure including a
planar ore body or zone of mineralisation. The dip has a measurable direction
and inclination from horizontal.
"geochemical" Refers to geological information using measurements derived from chemical
analysis
"geophysical" Refers to geological information using unit measurements derived from the use
of magnetic and electrical readings
"geophysical techniques" include the exploration of an area by exploiting differences in physical
properties of different rock types. Geophysical methods include seismic,
magnetic, gravity, induced polarisation and other techniques; geophysical
surveys can be undertaken from the ground or from the air
"gossan" is an iron-bearing weathered product that usually overlies a sulphide deposit
"grab sample" are samples of rock material collected from a small area, often just a few
pieces or even a single piece of rock "grabbed" from a face, dump or outcrop
or roughly 2-5kg. These are common types of rock samples collected when
conducting mineral exploration. The sample usually consists of material that
is taken to be representative of a specific type of rock or mineralisation.
"grade" The proportion of a mineral within a rock or other material. For copper
mineralisation this is usually reported as % of copper per tonne of rock.
"g/t" grams per tonne; equivalent to parts per million ('ppm')
"hematite" Hematite is the mineral form of iron(III) oxide (Fe(2)O(3)), one of several
iron oxides. Magnetite alteration is also typically associate with porphyry
copper systems, at or close to the central core.
"Indicated Resource" An "Indicated Mineral Resource" is that part of a Mineral Resource for which
quantity, grade or quality, densities, shape and physical characteristics, can
be estimated with a level of confidence sufficient to allow the appropriate
application of technical and economic parameters, to support mine planning and
evaluation of the economic viability of the deposit. The estimate is based on
detailed and reliable exploration and testing information gathered through
appropriate techniques from locations such as outcrops, trenches, pits,
workings and drill holes that are spaced closely enough for geological and
grade continuity to be reasonably assumed.
"Inferred Resource" An "Inferred Mineral Resource" is that part of a Mineral Resource for which
quantity and grade or quality can be estimated on the basis of geological
evidence and limited sampling and reasonably assumed, but not verified,
geological and grade continuity. The estimate is based on limited information
and sampling gathered through appropriate techniques from locations such as
outcrops, trenches, pits, workings and drill holes.
"IP" or "Induced Polarisation Geophysics" Induced polarisation (IP) is a geophysical survey used to identify the
electrical chargeability of subsurface materials, such as sulphides. The
survey involves an electric current that is transmitted into the subsurface
through two electrodes, and voltage is monitored through two other electrodes.
"intercept" Refers to a sample or sequence of samples taken across the entire width or an
ore body or mineralised zone. The intercept is described by the entire
thickness and the average grade of mineralisation.
"JORC Code" The Australasian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves ('the JORC Code') is a professional code of practice that
sets minimum standards for Public Reporting of minerals Exploration Results,
Mineral Resources and Ore Reserves.
"K" The element potassium, abundance on surface can be inferred from radiometric
surveys
"Magnetics" Rocks are made up of different minerals and the magnetic properties of a rock
depends on the amount and type of iron rich minerals it contains. Earth's
magnetic field interacts with these iron rich minerals to generate variations
in the magnetic field. Measuring and mapping these variations allows
remotely mapping of the distribution and patterns of magnetic rocks and, as a
result, map the subsurface geology
"magnetite" Magnetite is main iron ore mineral, with chemical formula Fe(3)O(4). Magnetite
is ferromagnetic, and it is attracted to a magnet and can be magnetized to
become a permanent magnet itself.
"massive" In a geological sense, refers to a zone of mineralisation that is dominated by
sulphide minerals. The sulphide-mineral-rich material can occur in
centimetre-scale, metre-scale or in tens of metres wide veins, lenses or
sheet-like bodies containing sphalerite, galena, and / or chalcopyrite etc.
"Measured Resource" A "Measured Mineral Resource" is that part of a Mineral Resource for which
quantity, grade or quality, densities, shape, and physical characteristics are
so well established that they can be estimated with confidence sufficient to
allow the appropriate application of technical and economic parameters, to
support production planning and evaluation of the economic viability of the
deposit. The estimate is based on detailed and reliable exploration, sampling
and testing information gathered through appropriate techniques from locations
such as outcrops, trenches, pits, workings and drill holes that are spaced
closely enough to confirm both geological and grade continuity.
"Mineral Resource" A "Mineral Resource" is a concentration or occurrence of diamonds, natural
solid inorganic material, or natural solid fossilised organic material
including base and precious metals, coal, and industrial minerals in or on the
Earth's crust in such form and quantity and of such a grade or quality that it
has reasonable prospects for economic extraction. The location, quantity,
grade, geological characteristics and continuity of a Mineral Resource are
known, estimated or interpreted from specific geological evidence and
knowledge.
"mineralisation" In geology, mineralisation is the deposition of economically important metals
(copper, gold, lead, zin etc) that in some cases can be in sufficient quantity
to form mineral ore bodies.
"open pit mining" A method of extracting minerals from the earth by excavating downwards from
the surface such that the ore is extracted in the open air (as opposed to
underground mining).
"outcrop" A section of a rock formation or mineral vein that appears at the surface of
the earth. Geologists take direct observations and samples from outcrops,
used in geologic analysis and creating geologic maps. In situ (in place)
measurements are critical for proper analysis of the geology and
mineralisation of the area under investigation.
"polymict" A geology term, often applied to breccias or conglomerates, which identifies
the composition as consisting of fragments of several different rock types.
"Preliminary Economic Assessment" NI 43-101 defines a PEA as "a study, other than a pre-feasibility study or
feasibility study, which includes an economic analysis of the potential
viability of mineral resources".
"Pyrrhotite" Pyrrhotite is an iron sulfide mineral with the formula Fe(1-x)S (x = 0 to
0.2). It is a nonstoichiometric variant of FeS, the mineral known
as troilite. Pyrrhotite is also called magnetic pyrite
"Radiometrics" The radiometric, or gamma-ray spectrometric method is a geophysical process
used to estimate concentrations of the radioelements potassium, uranium and
thorium by measuring the gamma-rays which the radioactive isotopes of these
elements emit during radioactive decay
"sediments" Sedimentary rocks formed by the accumulation of sediments. There are three
types, Clastic, Chemical and Organic sedimentary rocks.
"sphalerite" Sphalerite is a zinc sulphide in crystalline form but almost always contains
variable iron, with formula (Zn,Fe)S. It can have a yellowish to honey brown
or black colour.
"supergene" Supergene ore processes occur near surface, and form deposits of secondary
minerals, such as malachite, azurite, chalcocite, covellite, digenite, etc.
"surface rock chip samples" Rock chip samples approximately 2kg in size that are typically collected from
surface outcrops exposed along rivers and mountain ridgelines.
"syncline" a trough of stratified rock in which the beds dip toward each other from
either side.
"Th" The element thorium, abundance on surface can be inferred from radiometric
surveys
"U" The element uranium, abundance on surface can be inferred from radiometric
surveys
"veins" A vein is a sheet-like or anastomosing fracture that has been infilled with
mineral ore (chalcopyrite, covellite etc) or mineral gangue (quartz, calcite
etc) material, within a rock. Veins form when minerals carried by an aqueous
solution within the rock mass are deposited through precipitation and infill
or coat the fracture faces.
"volcanics" Volcanic rock such as andesite or basalt that is formed from magma erupted
from a volcano, or hot clastic material that erupts from a volcano and is
deposited as volcaniclastic or pyroclastics.
"XRF" Instrument to determine the chemistry of a sample by measuring the fluorescent
(or secondary) X-ray emitted from a sample when it is excited by a primary
X-ray source
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