REG - Aterian PLC - Azrar Copper-Gold Project and Portfolio Review

AterianAnnouncement

20/11/2024 07:00

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RNS Number : 8699M  Aterian PLC  20 November 2024

20 November 2024

 

Operational Update:

Azrar Copper-Gold Project and Portfolio Review, Morocco

 

Aterian Plc

("Aterian" or the "Company")

 

Aterian Plc (LSE: ATN), the critical metal-focused exploration and development
company, is pleased to provide an operational update on the fieldwork
conducted on the Company's Azrar Copper-Gold ("Cu - Au") Project ("Azrar" or
the "Project"), and the outcomes from an ongoing internal portfolio review.
The Azrar Project, covering 76.9 km(2), is located within the
western Anti-Atlas Mountains of the Kingdom of Morocco ("Morocco") and
lies 30 km north of the Company's Tata copper project ("Tata").

Highlights:

·    Additional copper, silver, and gold mineralisation discovered at
priority targets on the Project.

·    Tifrit copper-gold target:

o  0.82 g/t Au and 0.63 % Cu over 9.0 m from surface chip channel targeting
northerly strike quartz veins, including

o  0.70 g/t Au and 0.55 g/t Cu over 7.6 m from 0 to 7.6 m along the channel,
and

o  2.97 g/t Au and 2.00 % Cu over a 0.7 m interval from 8.3 m to 9.0 m.

o  These results and previously announced samples (per the announcement of 31
January 2024) indicate this gold-copper target zone's potential strike length
to be 3.8 km.

·    Ougri sedimentary-hosted copper target:

o  Up to 2.92 % Cu and 16 g/t Ag from rock chip samples over an 800 m strike
length of a 1.4 km basal Adoudou Formation target.

·      Izarzar fault zone hosted copper target:

o  Up to 1.37 % Cu and 6 g/t Ag from a variably mineralised fault zone with
an apparent width of up to 13.25 m within Adoudou Formation sediments.

·    Multiple mineralisation styles defined to date on the Azrar Project
include:

o  Sedimentary-hosted copper-silver in basal Adoudou Formation sediments.

o  Fold hinge and fault-controlled copper-silver in Adoudou Formation
sediments.

o  Fault controlled copper-silver +/- chrome-nickel within Adoudou Formation
sediments

o  Copper-gold mineralisation within quartz veins and veinlets.

·    Numerous fold hinge and fault intersection target zones were
identified from remote sensing data analysis for follow-up mapping and
sampling.

 

The Azrar Project forms part of Aterian's newly delineated 663.6 km(2)
portfolio, which targets copper, silver, gold and base metals within
established current and historic mining districts in Morocco. A portfolio
review is ongoing to remove non-core permits and projects, allowing the
Company to maintain its focus on the key priority projects, namely Agdz,
Azrar, Tata, and Jebilet Est.

Charles Bray, Chairman of Aterian, provided the following:

Shareholder Summary

·    The Azrar Project is one of Aterian's four high-priority copper
projects in Morocco and potentially offers Aterian a large-scale copper
development opportunity.

·    The reported copper (Cu) grades are considered economic, given the
current metal prices, and align with our expectations for advancing a
significant-scale project that demands target generation and drilling.

·    The silver (Ag) and gold (Au) mineralisation has positively surprised
us with the extent and grade for both elements and appears to be part of a
larger geological fault system demanding further investigation.

·    The addition of silver and gold as potential by-products is
encouraging and improves Aterian's likelihood of achieving its objective of
finding a joint-venture partner to advance the project at minimal cost to
Aterian shareholders.

·    The proximity and geological similarities of the nearby Tizert Copper
Mine, developed and operated by Managem, are highly encouraging.

 

The discovery of a significant copper-gold zone at the Tifrit target in
northeastern Azrar validates our decision to maintain Azrar as a high-priority
project for continued exploration. We will work to define drill targets on
these structures following detailed surface mapping, ground-based geophysics
and trenching. Recent results indicate the strong potential to deliver several
robust targets with multiple mineralisation styles defined to date and a
pipeline of targets generated by the field team. There are similarities
between Azrar and other local mining projects, which are encouraging.

 

''We previously announced an ongoing, detailed in-house rationalisation of the
Moroccan project portfolio to provide a clear focus and make our exploration
efforts more productive. As part of the process, we have reduced the Azrar
landholding by two permits, which we considered low potential after initial
reconnaissance. This will allow our field teams to further evaluate the
identified sedimentary copper potential at the Ougri and Amane targets and
focus on the new gold-bearing zones recently discovered at the Tifrit target.
I look forward to updating shareholders on Morocco generally and the Azrar
Project more specifically in due course."

 

Project Summary:

The Azrar Project now covers 76.9 km(2) and comprises six license blocks, with
access to the Project via asphalt roads and a network of smaller tracks. The
Company holds a 100 % interest in the Project, located in the
western Anti-Atlas Mountains, a region considered highly prospective for
sedimentary-hosted copper mineralisation. Azrar occurs approximately 155 km
southeast of the port city of Agadir and 45 km east of the Tizert
copper-silver project (estimated resources of 57 Mt grading 1.03 % Cu and 23
g/t Ag), currently under development by Managem Group. The Project lies 30 km
north of the Company's Tata sedimentary-hosted copper project. Late Ediacaran
to early Cambrian-aged Adoudounian sediments occur within the Project along
the southeastern margins of the Paleoproterozoic Agadir-Melloul Inlier. These
sedimentary units are known to host copper mineralisation within the
Anti-Atlas and represent the primary copper target on the Project.

 

 

Aterian Exploration Results

Recent fieldwork focused on completing c.8-line km of geological traverse
mapping covering several interpreted structural targets within the Adoudou
Formation sediments, with additional sampling along the strike of previously
identified copper-gold targets in northeastern Azrar.

 

During the recent work, 108 samples were collected: 91 composite point rock
chip samples, one float sample, and 16 chip channel samples. Of the composite
point rock chip samples, 24 (26 %) were > 0.2 % Cu, and 7 (8 %) were >
0.5 % Cu.

 

Three sub-horizontal surface reconnaissance chip channels (see Figure 1 for
locations) were completed, with channel lengths ranging from 9.00 m to 10.55
m. The results from the channel sampling are briefly described below:

·    24AZCH-001 - Izarzar Target - targeting a northeast-southwest
striking mineralised fault zone located in the central part of the Project.
The fault zone, mapped over 2 km of a potential 4 km strike length, reported
0.80 % Cu over a 4.20 m interval from 2.00 m to 6.20 m.

·    24AZCH-002 - Tifrit Target - targeting a north-south striking quartz
vein zone and wall rock silicification within the northeast of the Project.
Sample results reported 0.7 g/t Au and 0.55 % Cu over a continuous interval of
7.60 m from 0.00 m to 7.60m and 2.97 g/t Au and 2.00 % Cu over 0.70 m from
8.30 m to 9.00 m (no sample collected between 7.60 m and 8.30 m, with only
soil observed on surface). The total chip channel reported an interval of 9 m
with 0.82 g/t Au and 0.63 % Cu.

·    24AZCH-003 - Tifrit Target - targeting a north-south striking quartz
vein zone and wall rock silicification located within the northeast of the
Project, with results reporting 0.25 g/t Au over a 2.00 m interval from 4.60 m
to 6.60 m.

Tifrit Target: Copper-gold in quartz veins:

The 3.8 km long Tifrit target is characterised by north-south striking quartz
veins, quartz-vein breccia, and quartz-carbonate veinlets traced
discontinuously within Adoudounian sediments and underlaying basement
volcano-sediments. Visible copper mineralisation is observed within the veins
and disseminated within the host rock (see the illustrations below).

 

The area sampled during this phase of work potentially represents the southern
extension to the previously reported (see the 31 January 2024 announcement)
rock chip sampling of quartz veins, which reported 1.19 % Cu with 0.50 g/t Au
and 1.22 % Cu with 0.33 g/t Au, with several small-scale artisanal workings
mapped. The potential strike extent of this northerly trending zone is c.3.8
km.

 

Ougri Target: Sedimentary-hosted copper:

The 1.4 km long Ougri target comprises basal Adoudounian sediments consisting
of basal sandstone and overlaying dolomite with fracture-controlled and
disseminated copper oxides and occasional sulphides (see Figure 1 below). The
apparent thickness of mineralised horizons varies along strike from 0.30 m up
to 1.50 m. Reconnaissance composite point rock chip sampling over an 800 m
long section of the 1.4 km target zone has been completed, returning up to
2.92 % Cu and 16 g/t Ag.

 

Izarzar Target: Fault-controlled copper-silver within Adoudou Formation:

The four km-long Izarzar target is comprised of folded and faulted Adoudounian
sediments. Fault zones and fold hinges identified through remote sensing
interpretation and field mapping were sampled. They vary in apparent width
from sub-1 m to 13.25 m and have apparent sub-vertical dips, typically
striking east to northeast. Recent results from composite point rock chip
sampling, proximal to sampling previously undertaken over 2.2 km of the target
zone, returned up to 2.45 % Cu with 2.5 g/t Ag and 1.37 % Cu with 6.27 g/t Ag.

 

Target Generation:

Following the recent field programmes, an in-house remote sensing data-based
structural interpretation has been completed over Azrar with results defining:

·    Four interpreted east-west striking structural corridors of apparent
brittle deformation traversing the project over strike lengths of > 12 km.

·    Interpreted extension of the northeast-southwest striking Izarzar of
the fault zones, known to host copper-silver mineralisation, of potentially
> 4 km in strike length within both Proterozoic and Adoudounian-aged
Formations.

Fold hinge target zones, generally northerly striking, including potential
regional fold hinges, are interpreted to extend over 4.75 km along strike
within the Project area. Fold hinges have been observed to host copper
mineralisation associated with carbonate and quartz veinlets. The extent and
continuity of known mineralisation in fold hinge targets are yet to be mapped.

 

Figure 1. Azrar Project - Assay Results from Recent Work

 

 Chip Channel ID  From (m)  To (m)  Interval (m)  Au ppm  Cu %   Lithology
 24AZCH-001       0         2       2             0.00    0.07   Dolomite
 24AZCH-001       2         3       1             0.00    1.14   Felsic dyke
 24AZCH-001       3         4.7     1.7           0.00    1.03   Dolomite
 24AZCH-001       4.7       7.2     1.5           0.00    0.30   Felsic dyke
 24AZCH-001       7.2       9.2     2             0.00    0.03   Dolomite
 24AZCH-002       0         2       2             0.13    0.78   Conglomerate
 24AZCH-002       2         4       2             0.45    1.24   Conglomerate
 24AZCH-002       4         6.2     2.2           1.52    0.04   Quartz vein
 24AZCH-002       6.2       7.6     1.4           0.58    0.05   Quartz vein
 24AZCH-002       7.6       8.3     0.7           No sample      Soil
 24AZCH-002       8.3       9       0.7           2.97    2.05   Quartz vein
 24AZCH-003       0         2.3     2.3           0.00    0.03   Dolomite
 24AZCH-003       2.3       4.1     1.8           No sample      Soil
 24AZCH-003       4.1       4.6     0.5           0.00    0.11   Dolomite
 24AZCH-003       4.6       6.6     2             0.25    0.04   Quartz vein
 24AZCH-003       6.6       8.1     1.5           0.05    0.26   Quartz vein
 24AZCH-003       8.1       8.6     0.5           No sample      Soil
 24AZCH-003       8.6       10.55   1.95          0.00    0.03   Dolomite

Table 1. Azrar Project - chip channel assay results

*A rock chip or grab sample cannot be taken as a representation of the overage
grade average and potential deposit size. A float sample is collected from
loose pieces of rock not connected to an outcrop.

 

Previous Aterian Fieldwork on the Project

Copper mineralisation has previously been identified within the carbonaceous
sediments of the Adoudou Formation, proximal to the Agadir-Melloul Proterozoic
age basement inlier. It is also found to be associated with several differing
mineralisation styles that include:

·    Disseminated and fracture-controlled malachite and copper sulphides
from a 1.4 km long target zone within basal Adoudou Formation dolomites
proximal to the inlier.

·    Fault and fold hinge-controlled copper-silver mineralisation within
the Adoudou Formation dolomites, with numerous fault and fold hinge target
zones identified for follow-up field assessment.

·    Fault and fracture-controlled copper +/- gold associated with a
northerly trending silicified fault zone and fracture zone, traced
discontinuously over a 3.8 km long strike length within volcanic, red-beds and
basal Adoudou Formation dolomite beds.

The maximum grade previously reported was 4.01 % Cu, 26.9 g/t Ag from an
apparent 8 m thick carbonate bed. Disseminated malachite was observed along
bedding plane surfaces and cross-cutting fractures and joints.

 

Several old artisanal workings are present within Azrar, up to 7 m deep and 2
m wide, targeting quartz-specular haematite veins up to 1.2 m wide. Spoil
material adjacent to old artisanal workings returned up to 1.19 % Cu with 0.50
g/t Au and 1.22 % Cu with 0.33 g/t Au.

 

Figure 2. Azrar Project - Assay Results to Date, including Previous Work
Programme Highlights (% Cu, g/t Ag, g/t Au)

 

Sampling Methodology and Analysis

Afrilab, an accredited independent laboratory in Marrakech, Morocco, prepared
and analysed 108 samples. Rock samples were crushed with 70 % passing -2 mm.
The less than 2 mm fraction was pulverised, with 85 % of the sample passing
<75 microns. All samples were analysed for a multi-element suite of 40
elements by Inductively Coupled Plasma Atomic Emission Spectroscopy (ICP-AES).
In addition, selective samples were analysed for their gold content using a 50
g Fire Assay method with a gravimetric finish. Given the early-stage nature of
these programmes, no QA/QC samples were included.

 

Work Plan for the Azrar Project

Future work programmes at the Azrar Project will include follow-up geological
mapping and sampling of prospective targets described above, supported by a
ground-based magnetic geophysical survey and trenching over the Tifrit
copper-gold target to define future drill targets. In addition, traverse
mapping and sampling will be undertaken over structural targets defined from
remote sensing data analysis to refine the geological model and prioritise
targets.

 

Illustrations
The following figures have been prepared by Aterian and relate to the
disclosures in this announcement.

 

 

Morocco Portfolio Review

Following an extensive review and prioritisation of the asset portfolio held
in Morocco, Aterian has elected to relinquish a number of non-core research
permits due for renewal. The ongoing asset review considers several factors,
including, but not limited to, geological prospectivity based on initial
reconnaissance mapping and sampling, project size, access, and infrastructure.
This has reduced the land holding from 897.7 km(2) to 663.6 km(2). Our reduced
portfolio will allow us to focus and better deploy capital and time into the
more prospective areas within our priority assets, such as Agdz, Azrar, Tata
and Jebilet Est while providing bandwidth to pursue additional opportunities
within Morocco.

 

Qualified Person

The technical disclosure in this regulatory announcement has been approved by
Simon Rollason, Chief Executive Officer of Aterian Plc. He is a graduate of
the University of the Witwatersrand in Geology (Hons) and a Member of the
Institute of Materials, Minerals and Mining, with over 30 years of experience
in mineral exploration and mining.

 

- ENDS -

 

This announcement contains information which, prior to its disclosure, was
inside information as stipulated under Regulation 11 of the Market Abuse
(Amendment) (EU Exit) Regulations 2019/310 (as amended).

 

For further information, please visit the Company's website:
www.aterianplc.com (http://www.aterianplc.com) or contact:

 

Aterian Plc:

Charles Bray, Executive Chairman - charles.bray@aterianplc.com
(mailto:charles.bray@aterianplc.com)

Simon Rollason, Director - simon.rollason@aterianplc.com
(mailto:simon.rollason@aterianplc.com)

 

Financial Adviser and Joint Broker:

Novum Securities Limited

David Coffman / George Duxberry

Colin Rowbury

Tel: +44 (0)207 399 9400

 

Joint Broker:

SP Angel Corporate Finance LLP

Ewan Leggat / Adam Cowl

Tel: +44 20 3470 0470

 

Financial PR:

Bald Voodoo - ben@baldvoodoo.com

Ben Kilbey

Tel: +44 (0)7811 209 344

Notes to Editors:

About Aterian plc

www.aterianplc.com (http://www.aterianplc.com)

 

Aterian plc is an LSE-listed exploration and development company with a
diversified African portfolio of critical metals projects.

Aterian plc is actively seeking to acquire and develop new critical metal
resources to strengthen its existing asset base whilst supporting ethical and
sustainable supply chains as the world transitions to a sustainable, renewable
future. The supply of these metals is vital for the development of the
renewable energy, automotive and electronic manufacturing sectors that are
playing an increasing role in reducing carbon emissions and meeting climate
ambitions globally.

 

The Company recently entered into a joint venture agreement with Rio Tinto
Mining and Exploration Limited for Rio Tinto to earn into the HCK project in
southern Rwanda to explore and develop a lithium-tantalum-niobium-tin mining
operation. The Company also holds an exploration licence in Rwanda. Aterian
has a portfolio of multiple copper-silver (+ gold) and base metal projects in
Morocco. In January 2024, the Company announced the acquisition of a 90%
interest in Atlantis Metals. This private Botswana registered company holds
one mineral prospecting licence for copper-silver in the Kalahari Copperbelt
and three for lithium brine exploration in the Makgadikgadi Pans region.

 

The Company's strategy is to seek new exploration and production opportunities
across the African continent and to develop new sources of critical mineral
assets for exploration, development, and trading.

Glossary of Terms

The following is a glossary of technical terms:

 

 "Ag"                              means  silver
 "Anti-Atlas Mountains"            means  a mountain range in Morocco, forming part of the Atlas Mountains in
                                          northwest Africa. The Anti-Atlas extends from the Atlantic Ocean in the
                                          southwest towards the northeast to the heights of Ouarzazate and further
                                          east to the city of Tafilalt, a distance of approximately 500 km. The range
                                          borders on the Sahara to the south
 "Au"                              means  Gold
 "Breccia"                         means  a rock consisting of angular fragments of stones cemented by finer materials
 "Cambrian"                        means  is the first geological period (538 to 485 ma) of the Paleozoic Era
 "Cu"                              means  copper
 "Ediacaran"                       means  the uppermost division of the Proterozoic Eon of Precambrian time and the
                                          youngest period (635 to 538 ma) of three that make up the Neoproterozoic Era
 "Ferruginous"                     means  containing iron oxides
 "Float sample"                    means  loose pieces of rock that are not connected to an outcrop
 "g/t"                             means  grams per tonne
 "Hercynian or Variscan Orogeny"   means  an orogenic belt that evolved during the Devonian and Carboniferous periods,
                                          from about 419 to 299 million years ago
 "Inlier"                          means  an area of older rocks surrounded by younger rocks. The erosion of overlying
                                          younger rocks typically forms inliers.
 "km"                              means  kilometres
 "m"                               means  metres
 "Ma"                              means  million years
 "mm"                              means  millimetres
 "Mt"                              means  millions of tonnes
 "Outcrop"                         means  a rock formation that is in situ and visible on the surface
 "Qualified Person"                means  a person who has the education, skills and professional credentials to act as
                                          a qualified person under NI 43-101
 "Paleoproterozoic"                means  the first of three subdivisions of the Proterozoic Eon (occurring from 2,500
                                          billion to 1,600 Ma. This period is marked by the first stabilisation of the
                                          continents and when cyanobacteria evolved.
 "Sedimentary-hosted copper"       means  stratabound copper deposits that are typically restricted to a narrow range of
                                          layers within a sedimentary sequence but do not necessarily follow sedimentary
                                          bedding.
 "Stratabound"                     means  a mineral deposit confined to a single stratigraphic unit
 "Stratiform"                      means  parallel to the bedding planes of the surrounding rock
 "Vein"                            means  a distinct sheetlike body of crystallised minerals within a rock

 

 

 

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