REG - Aterian PLC - Exploration, Trading and ESG in Rwanda

AterianAnnouncement

20/02/2023 07:00

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RNS Number : 3432Q  Aterian PLC  20 February 2023

20 February 2023

 

Operational Update

Exploration, Trading and ESG in Rwanda

 

Mineralised pegmatite identified across 22 zones on southern Rwandan projects

Mr. Godfrey Kamanzi recruited to lead Rwandan metal trading business

Partnership negotiations underway with artisanal miners

 

Aterian Plc

("Aterian" or the "Company")

Aterian Plc (LSE: ATN), the exploration and development company advancing its
portfolio of African-focused critical and strategic metal assets, provides an
operational update on its work streams in the Republic of Rwanda.

 

Highlights:

·   22 zones of potentially mineralised pegmatite have been identified over
the southern projects, confirming the presence of a swarm of rare-metal
hosting targets for future exploration and evaluation.

o  Fieldwork over the HCK-1 zone indicates a strike length of c 2,500 m with
widths up to 100 m, in places.

o Multi-method geophysical survey currently underway in preparation for the
preliminary scout drilling programme to commence in Q2 2023.

o  Prospective HCK-1 targets include tantalum, niobium, tin, tungsten, and
lithium.

·    Mr. Godfrey Kamanzi has joined as head of Aterian's Rwandan metal
trading business. Mr Kamanzi has extensive experience in the Rwandan minerals
sector where he previously worked with RCS, the RMB, and multiple mining
companies managing tagging and traceability programmes.

·   Partnership discussions have begun with several artisanal mining
parties to improve artisanal mining productivity through mechanisation, and to
provide material to the Company's metal trading business.

·    1Villager.com, an online stakeholder management tool, has been engaged
to support Whistleblower management, social license reporting, and
stakeholder engagement, as part of the ongoing obligation by the Company to
ethical supply chain management as a member of the ITSCI Programme for
Responsible Mineral Supply Chains compliance

Charles Bray, Chairman of Aterian, commented:

"We are excited to have begun the geophysical survey work on the HCK project
in Rwanda with initial fieldwork having confirmed the presence of 22 pegmatite
zones across the southern projects. We will look to progress the project with
bulk sampling for initial metallurgical test work and scout drilling on the
HCK-1 prospect in the near term.

 

Work is now well advanced building a metal trading business based in Rwanda
and aligned to Rwanda's long-term mining sector objectives of improved mining
and metal recovery efficiencies. Key hires have been made to lead the business
and to ensure traceability compliance. ITSCI membership demonstrates our
compliance with internationally recognised standards of sustainable supply
chains. Working in partnership with existing artisanal producers in Rwanda we
expect to deliver substantial productivity gains that will benefit local
communities as well as deliver increased material for our trading business.

Aterian is committed to its ESG responsibilities including respecting human
rights and the avoidance of making any contribution to conflict through our
mineral purchasing decisions and practices. Utilising the OECD due diligence
guidelines and supported by our ITSCI membership our mineral trading business
will be compliant with international standards and work in synergy with our
exploration business. Our joint-venture relationships will produce mineral
ores and generate revenue that supports our investment in exploration. A key
strategic component of our Rwandan strategy has been to build a critical
metals business with exploration options funded internally."

 

Projects Summary:

The Company's wholly owned Rwandan subsidiary, Eastinco Limited ("Eastinco"),
is currently engaged in an initial 3 partnerships within Rwanda with local
entities to explore and develop tantalum, niobium, tin, and lithium
opportunities. Eastinco holds a Trading Licence, which will also facilitate
the trading of metal concentrates within the region.

 

HCK and Dynasty Joint Ventures (collectively the "Southern Projects")

Prospecting over the HCK licence has identified 18 zones of potentially
tantalum and niobium hosting pegmatite, frequently with multiple pegmatite
dykes observed at most locations. A total of 22 target pegmatite zones have
now been discovered on the combined Southern Projects, making this a strong
exploration play.

 

 

Recent work has focussed on the HCK-1 prospect, which follows a prominent
northwest-trending ridgeline. A total of 67 vertical exploration pits (with a
cumulative depth of 422 m) have been completed, to test the strike extension
and obtain samples from both the known areas of mineralisation and potential
strike extensions. 30 of these pits intersected pegmatite with 15 pits
abandoned when the ground encountered was too resistant to manually excavate.
22 pits did not intersect pegmatite. Field observations indicate the strike of
the HCK-1 target extends for at least 2,500 m. The width of the target zone is
uncertain but in several locations along NE-SW orientated pit section
profiles, pegmatite is intersected over a horizontal distance of c.100 m. 32
rock chip samples were collected and submitted to an external international
laboratory for geochemical analysis. Approximately 100 kg of pegmatite was
collected, when intersected in a pit, which was then reduced in volume and
weight by cone-and-quartering to produce a 3 kg sample for analysis.

 

A positive outcome from the pitting is that 800 m of the identified pegmatite
strike continuation occurs in a "greenfield" environment to the southeast of
the main ridgeline hosting HCK-1. This can be described simply as an area
where there are no observed artisanal workings, pegmatite outcrop, or surface
expressions. The bodies remain blind to the surface covered by soil and
regolith of variable thickness up to 4.50 m. A drone survey has been flown
over HCK-1, covering an area of 360 hectares, to provide detailed imagery with
topographic data and a current view of the earlier artisanal workings.

 

A detailed ground-based geophysical survey over HCK-1 is currently in
progress. The multi-method survey of Induced Polarisation ("IP"), Electrical
Resistivity Tomography ("ERT"), and ground magnetics is designed to provide
additional information that will allow for a determination of the geological
contacts of the main pegmatite with the schistose country rock, controlling
geological structures and an approximation of the depth of weathering. Scout
drilling will be planned based on the outcome of this work and will provide an
opportunity to test the fresh bedrock for the lithium potential. It is
inferred that lithium has been leached out of the upper weathered, kaolinised
portions of the pegmatite and may occur within the deeper, fresh bedrock.

 

Musasa Project

Recent work on the project has been limited to geological reconnaissance and
the completion of the Kassava prospect exploration pitting programme. Kassava
is one of the five identified mineralized pegmatite targets occurring on the
project and follows a southeast-trending ridge. Historic artisanal miners have
excavated a 20 m x 30 m wide cut in the ridge to a depth of c. 13 m, close to
the centre of the prospect.

 

66 shallow vertical pits have been manually excavated, for a cumulative depth
of 337 m, to define the contacts of the pegmatite, with 41 of the pits
intersecting pegmatite with samples collected and shipped to an external
international laboratory for geochemical analysis. Field observations indicate
Kassava to be a lens-shaped body, with a maximum horizontal width of 80 m,
with the pits covering a strike length of 250 m.

 

The licence application to extend and secure the long-term tenure at Musasa
over an area of c. 400 hectares remains pending with the Government
of Rwanda. We will be working closely with the Rwanda Mines and Petroleum
Board ("RMB") to accelerate the grant of the licence. This application may
entail a change in the working relationship with our partner, Kuaka
Cooperative. No further improvements to the wash plant and metallurgical
testing are anticipated until the new licence application is granted.

 

Metal Trading

The trading business is being developed, under the supervision of Mr. Luke
Rogers (Aterian COO) and is built on local partnerships aligned with Rwanda's
long-term mining development goals. Rwanda exports approximately 16% of the
global tantalum market, with Kigali a central hub for tin, tungsten &
tantalum (the "3Ts") trade within the region. Establishing a trading division
will provide for additional value to be earned by Aterian from the 3Ts within
the Great Lakes Region.

 

Aterian, through Eastinco, holds a Rwandan metal Trading License allowing it
to purchase concentrates from third parties and export directly to refiners or
sell to other international trading houses. The Company is negotiating a trade
finance partnership and credit facility, to support the growth of this part of
the business and which involves no dilution to shareholders. It is also in
advanced discussions with a major metal refinery to process concentrates. A
process is well underway to recruit  additional team members with trading,
traceability, and technical experience.

 

The Company has secured premises in the heart of Kigali's mineral trading
district and Mr. Godfrey Kamanzi has been recruited to lead the local trading
business. Godfrey has extensive experience in the Rwandan minerals sector
where he has previously worked with RCS, the RMB, and multiple mining
companies managing tagging and traceability programmes. His extensive
knowledge of mineral producers in the region and experience in OECD-compliant
mineral supply chains makes him an excellent addition to the team.

 

The Company will begin to move its laboratory and upgrading equipment to the
new site in Kigali in March and procurement has started for the materials and
additional equipment required for substantial trading and export activities.
Current pricing is attractive with Ta(2)O(5) prices in Kigali reported at
c$220,000 per tonne. Typically concentrates grade 25% Ta(2)O(5) resulting in
concentrates valued at c$55,000 per tonne, at today's prices.

 

Potential New Projects

Following multiple mine site visits and a review of business opportunities
concluded in December 2022 and January 2023, the Company's focus is on the
potential for upskilling of local technicians and the opportunity of selected
small-scale capital investments in partners' operations to drive significant
improvement in mineral extraction in Rwanda.

 

ESG

As part of the Company's expanding ESG programme, in January we delivered the
construction materials for a water supply project at the Rugarama Primary
School adjacent to our HCK project. The team is now on site and the
installation project is expected to be completed during the first week of
March. The water tank was requested by the school to capture fresh rainwater
which will be used in the school kitchen.

 

Additionally, the Company has recently engaged with 1Villager
(www.1villager.com). 1Villager offers a science and AI-driven SaaS platform
providing for business Whistleblower management and social license reporting
and stakeholder engagement. 1Villager's mission is to help companies prevent
headline risks, achieve ESG compliance, and improve stakeholder welfare.

 

The Company has recently hosted a party of students from the Department of
Geology at the  University of Rwanda on the HCK project to observe and study
the geophysical survey, which is currently in progress.

 

These projects demonstrate our ongoing commitment to working with local
communities to develop projects which improve the lives of people in that
community, and specifically our commitment to investing in education. We aim
to work with our local communities to help drive long-term improvements in the
lives of people living around the Company's operations.

 

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

 

 

Qualified Person

The technical disclosure in this regulatory announcement has been approved by
Simon Rollason, Chief Executive Officer of Aterian Plc. A graduate of the
University of the Witwatersrand in Geology (Hons). He is 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 Broker:

Novum Securities Limited

David Coffman / George Duxberry

Colin Rowbury

Tel: +44 (0)207 399 9400

 

Financial PR:
Yellow Jersey PR - aterian@yellowjerseypr.com

Tom Randell / Bessie Elliot

Tel: +44 (0)20 3004 9512

 

Notes to Editors:

 

About Aterian plc

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

Aterian plc is an exploration and development company with a diversified
portfolio in Africa of critical and strategic metals projects.

Aterian plc is actively seeking to acquire and develop new critical and
strategic metal resources to strengthen its existing asset base, whilst
supporting ethical and sustainable supply chains. 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 currently has three partnerships in Rwanda where it is exploring
and developing small-scale tantalum-niobium-tin mining opportunities and
recently acquired Aterian Resources Ltd, a wholly owned and battery
metals-focused subsidiary of Elemental Altus Royalties Corp (formerly Altus
Strategies plc). Aterian owns a portfolio of 15 copper and silver projects
with a project area of 762 km(2) in the Kingdom of Morocco.

 

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

 

Summary information on Rwandan Projects

HCK Joint Venture

Eastinco has a Joint Venture Agreement and Operating Agreement ("Agreement")
with HCK Mining Limited, a private non-related Rwanda registered entity and
the holder of a 2,750-hectare exploration licence in southern Rwanda. Eastinco
will fund and manage the exploration activities over the project and will
retain a 70% share in the net operating profits with the right to purchase
100% of the Ta-Nb-Sn from any future production.

 

Dynasty Construction Joint Venture

Eastinco entered a Joint Venture Agreement and Operating Agreement
("Agreement") with Dynasty Construction Ltd, a private non-related Rwanda
registered entity and the holder of a 400-hectare exploration licence in the
Huye District of southern Rwanda. A renewal of the exploration licence is
pending approval with the Rwanda Government. Eastinco holds a 50% interest in
the proposed joint venture company, with Eastinco and Dynasty to provide
future capital expenditure in proportion with their shareholding at the time
of any potential future mine build.

 

Musasa Joint Venture

A Joint Venture and Operating Agreement ("Agreement") with the Kuaka
Cooperative ("Kuaka"), the holder of a small-scale mining licence in western
Rwanda. An application for a new, larger 400-hectare mining licence, in the
name of the joint venture company, Musasa Mining Limited, is pending approval
with the Rwanda Government. Eastinco will retain an 85% interest in the joint
venture company holding the new licence, with the right to purchase 100% of
the Ta-Nb-Sn from any future production.

 

Glossary of Terms

The following is a glossary of technical terms:

 

 "3Ts"               means  Tin (cassiterite), Tungsten (wolframite), and Tantalum (coltan)
 "Coltan"            means  a metallic ore from which the elements niobium and tantalum are extracted
 "Dyke"              means  a sheet of rock that is formed in a fracture of a pre-existing rock body
 "ERT"               means  Electrical Resistivity Tomography. A geophysical method for imaging
                            sub-surface structures from electrical resistivity measurements made on the
                            surface
 "Grades"            means  the quantity of ore or metal in a specified quantity of rock
 "Gradient array"    means  geophysical mapping tool providing information about the subsurface, in the
                            interval from a particular depth to the surface. The results are typically
                            maps of the apparent resistivity and chargeability
 "IP"                means  Induced Polarisation
 "IP Survey"         means  a geophysical survey technique where electrodes induce and measure a potential
                            field in the ground. From this data, the soil chargeability and apparent
                            resistivity can be measured
 "km"                means  kilometers
 "Ma"                means  Mega-annum which is equal to one million years
 "Magnetic survey"   means  a survey mapping the magnetism of the underlying rock and is used to
                            understand the general structure of these rocks
 "mm"                means  millimeters
 "Mt"                means  millions of tonnes
 "NI 43-01"          means  National Instrument 43-101 Standards of Disclosure of Mineral Projects of the
                            Canadian Securities Administrators
 "Niobium"           means  a chemical element with the chemical symbol Nb, that is very resistant to
                            corrosion due to a layer of oxide on its surface. Niobium is used in alloys
                            including stainless steel
 "Outcrop"           means  a rock formation that is visible on the surface
 "Pegmatite"         means  an igneous rock showing a very coarse texture, with large interlocking
                            crystals usually greater in size than 1 cm (0.4 in) and sometimes greater than
                            1 meter (3 ft). Most pegmatites are composed of quartz, feldspar, and mica,
                            having a similar silicic composition to granite
 "ppm"               means  Parts per million (equivalent to g/t)
 "Prospect"          means  an area that is a potential site of mineral deposits, based on preliminary
                            exploration
 "Schist"            means  a medium-grained strongly foliated crystalline metamorphic rock
 "Sn"                means  tin
 "Tantalum"          means  a chemical element with the symbol Ta, typically found in the ore
                            columbite-tantalite (usually referred to as coltan) and characterised by its
                            high density. One of the main uses of tantalum is in the production of
                            electronic components
 "QA/QC"             means  Quality Assurance/Quality Control
 "Qualified Person"  means  a person that has the education, skills, and professional credentials to act
                            as a qualified person under NI 43-101

 

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