REG - Arc Minerals Limited - Operational Update

ARC MineralsAnnouncement

02/05/2024 07:00

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RNS Number : 9152M  Arc Minerals Limited  02 May 2024

 

2 May 2024

Arc Minerals Ltd

('Arc' or the 'Company')

Operational Update

 

Arc Minerals (LSE: ARCM), an exploration company forging partnerships to
discover and develop Tier 1 copper deposits, is pleased to provide an update
on activities at its Joint Venture project in Zambia and at its Virgo Project
within the highly prospective Central Structural Corridor of the Kalahari
Copper Belt ('KCB') in the Republic of Botswana.

 

Highlights

 

Zambia:

·    Following the end of the rainy season, the Arc Minerals Joint Venture
partner has commenced work at site

·    Work programme to include core diamond drilling, initially at two
identified targets

 

Botswana:

·    Ground IP Survey over copper targets in PL 135/2017 anticipated to be
completed by next week

·    First phase of 2,000m Reverse Circulation Drill Programme to commence
this quarter

·    Prospecting License Renewals submitted

 

Nick von Schirnding, Executive Chairman of Arc Minerals, commented:

 

"We are thrilled to be commencing drilling activities imminently in both
Zambia and Botswana, following a lengthy rainy season in North West Zambia.

 

Extensive studies have been carried out on the stratigraphic hole which was
completed by our joint venture partner in December 2023, providing valuable
insights and geological data of the deeper part of the Kabompo basin.

 

We are also very excited to move onto the next stage by ramping up activities
on our licences in Botswana with drilling to commence this quarter."

 

 

Zambian Exploration Field Season

 

Arc is progressing its Zambia Copper Project through its 67% subsidiary, Unico
Minerals Limited, as part of a joint venture. The joint venture partner has an
earn in arrangement by which they are required to undertake a significant
amount of project expenditures (see announcement dated 10 November 2023). The
joint venture partner has also assumed operatorship of the project.  Over the
course of the rainy season a thorough geological technical review of the
project was initiated by the joint venture partner to evaluate its status and
identify potential opportunities. The directors are advised that through
expansive consultations, rigorous data analysis and information obtained from
the recent stratigraphic hole, the review team appointed by the joint venture
partner has generated valuable insights that has culminated in a work program
for 2024 which will entail:

 

·    LiDAR Survey to assist in determining the surface outcrop positions
with precision;

·    Detailed geological mapping, spectral and pXRF analysis of samples
collected providing a deeper understanding of the geological context of the
area in relation to the stratigraphic horizons of interest;

·    Core Diamond drilling in areas that are deemed prospective to host
copper and nickel mineralisation; and.

·    Further ground-based geophysics to understand the underlying basin
and sub-basin geometry

 

The joint venture partner exploration team has already been to site in recent
weeks and mobilisation for the 2024 exploration season commences imminently.
The Directors look forward to providing more detailed updates as work
progresses.

 

Botswana Geophysical Survey

 

The Company has contracted 3D Earth Exploration ('3DEE') to conduct a Gradient
Array Induced Polarisation ("IP") survey over one of the prospective parts of
its wholly owned PL 135/2017 license in Botswana. This ground IP will help
resolve the 3D orientation of structures and lithologies while also helping to
discriminate between types of conductive structures and providing targets for
drilling.

 

Following a c.30 line-kilometre bush and shrub clearance started in March
2024, the ground IP survey commenced on 22 April 2024 and has been extended to
cover additional areas that 3DEE has recommended based on the field results
observed to date. The extended programme will approximate to c.35
line-kilometres over the selected part of the license area and is expected to
complete within the next few weeks. Further updates will be provided on the
results of this survey when they are available.

 

Botswana Drill Programme

 

The results from the IP survey referred to above, will inform a first phase
c.2,000m reverse circulation ('RC') drill programme to target the generated
anomalies within the PL135/2017 license.

 

Drilling contractors have been invited to tender for the eight- to ten-hole
drill programme, which is expected to commence this financial quarter and take
approximately one month to complete.

 

Botswana License Renewal Applications

 

The Company's Botswana subsidiary has this week lodged renewal applications
for both the PL135/2017 and PL162/2017 licenses that are due to expire later
this year. This is an administrative process and the Directors see no reason
why the licences will not be automatically renewed in accordance with their
terms.  The renewals will extend the period by which the Company can continue
exploring the Virgo Project licenses for a further two years (and so would
expire in 2026).

 

Additional information on the Virgo project is set out in the Appendix at the
end of this announcement.

 

 

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 (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.

Appendix

 

 

Botswana: Background on the Virgo Licenses

 

PL 135/2017 License

 

The Company's PL135/2017 prospecting license is surrounded on three sides by
the prospecting licences of Khoemacau Copper Mining Limited ("Khoemacau"), who
have recently been acquired by MMG for c.US$1.9 billion.

 

This PL135/2017 license is located towards the south-eastern margin of the KCB
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 license, 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 license (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 license.

 

 

Fig 1. Image showing Khoemacau license 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. These licenses, cover an area of over
210km(2), with PL 135/2017 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 Licenses 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**

 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.
 "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 (https://en.wikipedia.org/wiki/Iron_sulfide)
                                     mineral (https://en.wikipedia.org/wiki/Mineral)  with the formula Fe(1-x)S
                                    (x = 0 to 0.2). It is a nonstoichiometric
                                    (https://en.wikipedia.org/wiki/Nonstoichiometric_compound)  variant of FeS,
                                    the mineral known as troilite (https://en.wikipedia.org/wiki/Troilite) .
                                    Pyrrhotite is also called magnetic pyrite
                                    (https://en.wikipedia.org/wiki/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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