REG - Armadale Capital PLC - Update on Canyon Silver Asset

Armadale CapitalAnnouncement

02/05/2024 09:30

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RNS Number : 9973M  Armadale Capital PLC  02 May 2024

Armadale Capital Plc

('Armadale' or 'the Company')

 

Update on Canyon Silver Asset

 

36 oz/t Ag, 66% Pb and 10% Zn grades demonstrated in previously hand-sorted
stockpiles at 'High-Grade Silver, Lead, Zinc Mine Project' in Burke Canyon,
Idaho

 

Further to the announcement of 24 April 2024, Armadale Capital Plc (TIDM:ACP),
an AIM quoted investment company focused on natural resource projects, is
pleased to announce further information on the assets relating to Africo
American Incorporated ("AAI"), a company incorporated under the laws of the
State of Idaho, the holding company of the Canyon Silver lead, zinc and silver
exploration asset based in Northern Idaho, USA ("Canyon Silver"), as well as
the Board's plan for future development of this asset.

 

Historic production prior to the mine ceasing operations in 1972 was focused
on the number three shaft which produced 25,000 tonnes of ore at a grade of 4
to 6 oz per tonne of silver, 6-13% lead and 2-4% zinc and exposed a further
48,000 metric tonnes of mineralisation within the main vein. The project has
an additional three to four more veins to assess.

 

In 1984 four truckloads of hand sorted ore were trucked to a local mill and
returned exceptionally high grades as follows:

 

Three 25t truck loads averaged.

●     36 oz/t Ag, 66% Pb and 10% Zn

One 25t truck load averaged.

●     50% Zn, 8 oz/t Ag, and 8% Pb.

 

The high grade mineralisation near existing mine infrastructure presents a
possible opportunity to unlock future cashflow for Armadale as we progress
renovations of the existing mine infrastructure and advance the exploration
prospects.

 

Work Programme:

 

The management of AAI will approve a detailed work programme and budget with
mining contractors. who have all the equipment, personnel, licenses, training
programs and contacts to cater for all the work planned at Canyon Silver,
including small underground and surface drill rigs which drill to 150m; which
is more than sufficient for Phase 1 drilling. The main objectives at this time
are to fully open and renovate the two main ore carrying tunnels.

Tunnel No. 2 was a Formosa vein only and extends 97 Metres into the mountain
side with the last 67 Metres believed to have lead, zinc and silver
mineralisation.  This may be confirmed when the tunnel is opened and
extensive samples have been taken. Armadale's first task is to  clean out any
loose rock and sample, measure and model the vein seen in the hanging and
footwall to ascertain the grades.

 

Tunnel No. 3 went 137 Metres into the mountain before intersecting the Formosa
vein it followed for over 60 Metres, stopping much of the ground above it
along the way. Eventually No. 3, which was still following mineralisation,
encountered an additional large, low grade orebody about 30 metres inside the
mountain - demonstrating additional potential for the deposit.

 

 

 

Canyon Silver has three tunnels, with shafts extending to veins located below
surface at the following depths:

 

●     42 Metres

 

●     73 Metres

 

●     124 Metres

 

●     182 Metres

 

●     243 Metres

 

We look forward to the potential in discovering even higher grade ore at
further depths, whilst taking advantage of the lower costs associated with
Canyon Silver's mineralisation starting at a very shallow level.

 

With the shaft vein being the only part previously mined, Armadale is in
position to take advantage of the available development, whilst further
exploring for additional resources. The East and South veins remain open, with
four more veins above adit level.

 

Armadale recently announced the addition of Greg Entwistle to the Board, who
has a tremendous track record in building and operating mining projects -
experience that will help move us towards production, and a cashflow positive
position for our shareholders.

 

Armadale continues to look at ways to reduce the burden on shareholders, as we
continue to benefit from material cost savings on infrastructure at Mahenge.
The Canyon Silver Project is another string in our bow to help reduce our
reliance on future dilutions to build cashflow.

 

Matt Bull, Executive Director of Armadale said:

"In light of the current bear market affecting resource juniors, the Board is
encouraged with the support that the Company has received from shareholders in
the recent capital raising. The Board intends to minimise any further dilution
to shareholders by building near term cashflow to fully realise long term
production goals. The Company is excited to explore the potential of Canyon
Silver, and to establish how this asset may secure Armadale's route to
becoming cashflow positive."

 

Competent Person statement

 

The information in this announcement that relates to exploration results is
based on information compiled by Mr Matt Bull, a competent person, who is a
Member of the Australian Institute of Geoscientists. Mr Bull has sufficient
experience which is 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 in the 2012 Edition of the
"Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves". Mr Bull consents to the inclusion in the report of the matters
based on his information in the form and context in which it appears.

 

 

 Enquiries:
 Armadale Capital Plc                                     +44 (0) 20 7236 1177

 Matt Bull, Executive Director

 Greg Entwistle Non Executive Director

 Tim Jones, Company Secretary
 Nomad and Broker: Cavendish Capital Markets Ltd          +44 (0) 20 7220 0500

 Simon Hicks / Seamus Fricker

 

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