REG - Aterian PLC - Morocco Agdz Project Update: Copper & Silver

AterianAnnouncement

16/01/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230116:nRSP7105Ma&default-theme=true

RNS Number : 7105M  Aterian PLC  16 January 2023

16 January 2023

 

Morocco Agdz Project Update: Copper & Silver

Aterian Plc

("Aterian" or the "Company")

Aterian Plc (LSE: ATN), the critical and strategic metal-focused exploration
and development company, announces an update on its 100% owned Agdz copper
("Cu") and silver ("Ag") project ("Agdz" or the "Project") in the Kingdom of
Morocco ("Morocco"). The Company has undertaken a review of an induced
polarisation ("IP") gradient array and high-resolution IP ("HIRIP")
geophysical survey. The survey was completed on the northern part of the
Project in preparation for scout drilling to be executed on the Project. The
review has indicated several high-priority anomalies and increased the target
area due for further exploration.

 

The Company recently acquired Agdz as part of a portfolio of 15 prospective
copper-silver and base metal projects covering an area of 762 km(2) in
Morocco.

 

Agdz Highlights:

·      Agdz hosts four significant Cu-Ag prospects covering an area of
approximately 8 km(2)

o  The 2.80 km long Makarn prospect, with results up to 8.00 % Cu and 448 g/t
Ag

o  The 2.00 km long Amzwaro prospect, with results up to 4.82 % Cu and 189
g/t Ag

o  The 0.15 km long Minière prospect, with results up to 13.05 % Cu and 12
g/t Ag

o  The 0.70 km long Daoud prospect, with results up to 2.71 % Cu, 152 g/t Ag

·      137 line-km IP gradient array survey completed over an area of 14
km(2).

·      12 High-Resolution IP ("HIRIP") profiles completed to acquire 2-D
resistivity and chargeability depth sections to depths of c.250 m.

·      Several new geophysical anomalies identified.

·      Surveying key geological structures and outlining potential
mineralised targets for follow-up.

·      Previously reported assay results from a limited reconnaissance
trenching exercise included 0.65 % Cu and 36.54 g/t Ag over 14.12 m and 0.36 %
Cu and 13.26 g/t Ag over 13.70 m.

·      Agdz is located 14 km southwest of the Bouskour Cu-Ag mine.

 

Charles Bray, Chairman of Aterian, commented:

"Agdz is an important asset in our portfolio of 15 copper-silver and base
metal projects we recently acquired in Morocco which in turn is attracting
good attention as a mining destination. Agdz is the most advanced of the 15
projects and we are doing the necessary work to progress our understanding of
the site for drilling. The geophysical survey data has generated several
high-priority anomalies requiring additional fieldwork to further resolve
these targets. In addition to the known prospects on the Project, there are
now several new targets identified from the survey for our field teams to
further evaluate. We are currently working towards building a conceptual
geological model for the Project, which has already demonstrated some
excellent high-grade copper and silver values, up to 26.5 % Cu and 448 g/t Ag.
The presence of multiple historical copper workings at Agdz provides further
encouragement, with the Project located in an established copper and silver
mining district in the eastern Anti-Atlas of Morocco and is an additional
exciting exploration opportunity in our Moroccan portfolio.

 

Fieldwork has recently re-commenced on the Project, where we plan to undertake
mechanical pitting and trenching over the anomalies. The commencement of scout
drilling based on these outcomes will provide further important geological and
grade information shortly thereafter. I look forward to updating our
shareholders with the results from these programmes in due course.''

 

Project Summary:

The Company's wholly owned subsidiary, Aterian Resources Limited, has a 100%
interest in the 34.5 km(2) Agdz Project, which comprises a single mining
licence. The Project is located in the Souss-Massa-Drâa region of the
Anti-Atlas Mountains of central Morocco, approximately 350 km south of the
capital, Rabat, and approximately 35 km east of the city of Ouarzazate, where
high-standard infrastructure and services exist, including a regional airport.
The 'Noor 1' solar power station, which is the world's largest concentrated
solar power plant with a planned output of 580 MW is located approximately 40
km northwest of Agdz. The Project is accessed via a paved road and a network
of unpaved roads and vehicle tracks close to and within the licence.

 

Agdz lies approximately 14 km southwest of the Bouskour copper-silver mine
with the world-class Imiter silver mine located 80 km to the northeast. Both
deposits are operated by the Moroccan mining company, Managem Group (it should
be noted that mineralisation hosted at the adjacent mines is not necessarily
indicative of mineralisation at Agdz).

 

Agdz Geology and Identified Mineralised Prospects

The Project is located on the southern margin of the Proterozoic Jbel Saghro
inlier, proximal to the Oued Dar'a caldera within the East Anti-Atlas domain.
The Jbel Saghro inlier is the largest and most prospective Precambrian massif
in the Anti-Atlas, hosting multiple base and precious metal ore deposits
including the world-class Imiter Ag mine 1  (#_ftn1) and the Bouskour Cu-Ag
mine 2  (#_ftn2) , both Managem owned.

 

The lithological package at Agdz broadly consists of mostly
felsic-intermediate volcano-sedimentary rocks of the Ouarzazate Supergroup
with large granodiorite plutons in the north and locally conglomeratic
metasedimentary sequences in the south. The units are bisected by a series of
sub-parallel NE and NW striking brittle faults and alteration zones, several
of which have been historically mined for copper.

 

 

Geological mapping and sampling, reconnaissance surface trenching, and ground
magnetic surveys undertaken on the Project have defined four priority
prospects at Agdz, namely:

 

·    The Makarn Prospect: A swarm of mineralised dykes, shears, and veins
that predominantly strike NNE over a lateral distance of 2.8 km. Historical
results include rock chip grades 3  (#_ftn3) of 8.00 % Cu and 448 g/t Ag. More
recent exploration has discovered two new trends at Makarn North of 200 m and
400 m in length respectively, as defined by alteration (silica, chlorite,
K-feldspar, and epidote) in discontinuous outcrops with grades up to 2.86 % Cu
and 136 g/t Ag.

·    The Amzwaro Prospect: Multiple NNE and NNW trending structures
within a zone up to 2 km in length and 200 m wide, bound by extensional
structures. Individual alteration zones are up to 33 m wide. Alteration
comprises predominantly chlorite and silica in breccia and veins. Historical
results include rock chip grades of 4.82 % Cu, 189 g/t Ag and 1.91 g/t Au.

·    The Minière Prospect: A 150 m long and 90 m wide area of historical
underground artisanal mining, exploiting multiple sub-parallel copper-bearing
zones with chlorite and potassic alteration. Historical results include rock
chip and spoil sample grades of 13.05 % Cu, 12.90 g/t Ag, and 0.49 g/t Au.

·    The Daoud Prospect: A series of NNW striking quartz veins and
pervasive silicification, mapped discontinuously over a 700 m strike length
transected by ENE striking chlorite-rich alteration zones. Historical results
include rock chip grades of 2.71 % Cu, 152 g/t Ag, and 2.96 g/t Au.

IP Gradient Array and HIRIP Geophysical Survey

The Company has completed a review of the geophysical survey conducted over
the northern part of the Agdz project, incorporating the conclusions of the
geophysical consultants. The surveyed area covers c. 14 km(2), focusing on the
Makarn, Amzwaro, Minière, and Daoud prospects. The objective was to
investigate mineralised structures and to augment the earlier geological
interpretation with a multi-method geophysical survey.

 

 

The IP-gradient array survey was completed over a total of 137.3 line km to
map key geological structures and outline potential mineralised zones,
supported with 12 targeted HIRIP (High-Resolution IP) profiles, each 950 m
long, to acquire 2-D resistivity and chargeability depth sections or profiles
to depths of c.250 m. These profiles were strategically located over the key
prospects and targets identified during the gradient array survey. Resistivity
is mainly used to distinguish between different lithologies and chargeability
to detect minerals showing polarisation effects. The strongest chargeability
effects can be observed on sulphides, magnetite, and graphite. To a lesser
extent, clay minerals also show a polarisation effect.

 

 

The geophysical survey has identified a series of linear N-S and NE-SW
trending narrow, low resistive structures which are interpreted as faults or
shear zones, with later northwest-southeast fault offsets in the western area,
and northeast-southwest trending faults in the eastern survey area. This
correlates well with structures interpreted in an earlier ground magnetic
survey. The presence of linear high-resistive structures is interpreted to
reflect shallow dykes or intrusive bodies. Both are of interest as the work to
date indicates mineralisation is associated with faults, fault-parallel
silicified zones (and veins), and later intrusive dykes.

 

A strong chargeability anomaly is observed running south-north to
southwest-northeast linking the Makarn and Makarn North prospects, extending
over a lateral distance of 2,400 m and up to 120 m wide in places (Anomaly A).
A second strong chargeability feature over the eastern part of the Makarn
prospect, trends south-north for over 750 m, and remains open to the south
(Anomaly B). Both features correlate well with high chargeability zones
identified during the HIRIP survey. Anomalies C and D correspond with
mineralisation identified at Makarn North.

 

A further chargeability anomaly (Anomaly E), trends south-north occurring in
the eastern part of the surveyed area, with a series of horizontal offsets
identified in the central portion of this anomaly suggesting a
northeast-southwest trending fault zone. These chargeability anomalies are
associated with low to intermediate resistivity zones indicating faults or
fault zones underlying the Amzwaro prospect.

The southern part of the Daoud prospect is described by Anomaly G with the
Minière prospect lying on the margin of a larger NE trending chargeability
high which is coincident with a linear resistivity low trending parallel to a
historically mapped NE striking fault zone.

 

Several new geophysical anomalies (namely anomalies H, I, J and K on the
chargeability plan) are identified from the survey and require additional
groundwork in 2023.

 

 

 

Work Plan for the Agdz Project

Our field teams are currently planning an exploration programme to ground
truth and field verify several of the IP targets, initially starting on the
Makarn, Makarn North and Amzwaro prospects. This will involve mechanical
pitting and trenching to provide additional geological and geochemical data,
which will further enhance the interpretation of the geophysical data.

 

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 / Henry Wilkinson / 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, in
addition to building a metal trading division. Recently the Company 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.

 

Geological Setting of the Agdz Project

Agdz is proximal to the Oued Dar'a Caldera, which formed within a brittle
pull-apart structure along a northeast trending regional fault zone in the
eastern Anti-Atlas. The caldera is located within the highly prospective
Neoproterozoic Sidi Flah - Bou Skour inlier of the Saghro Massif, which
developed during Pan-African tectonic events. This massif is comprised of a
lower, tightly folded volcano-sedimentary sequence formed from arc-related
metagreywacke and metavolcanic lithologies deposited approximately 650 Ma. The
lower complex was intruded by diorite, granodiorite, lesser gabbro, and
monzogranite between 615 Ma and 575 Ma. The upper complex is comprised
predominantly of felsic metavolcaniclastic lithologies related to the
development of several calderas emplaced typically between 575 Ma and 540 Ma
and is intruded by granitic plutons. The upper complex is gently folded,
sitting unconformably on the lower complex. Regionally, ore deposits are
commonly associated with the upper complex and are typically spatially related
to magmatic emplacement.

Locally, the geology at Agdz comprises meta-sedimentary and meta-volcanic
sequences. These belong to the upper complex and are cut by a series of
sub-parallel NE to NW striking brittle faults and alteration zones, several of
which have been historically mined for copper. The alteration (comprising
variably of chlorite, iron, silica, k-feldspar, actinolite, carbonate, and
barite) is generally located within brittle pull-apart fault breccias and
fracture zones, between (and oblique to) the mapped lineaments.

 

At surface, blebby and disseminated Cu sulphides (chalcopyrite, chalcocite and
covellite with subordinate chalcopyrite and bornite) are found in fresh
outcrops of a range of rock types. Secondary Cu oxides (malachite, azurite,
and chrysocolla) are more abundant and occur as surface stains, veinlets and
infilled voids, even on highly weathered surfaces. Mineralisation displays a
relatively strong structural control on all scales, occurring in veins, as
fracture coatings or disseminated within the host rock.

Work undertaken to date has defined four priority prospects at Agdz, namely
Makarn, Amzwaro, Minière, and Daoud. The previous owner completed a series of
13 reconnaissance trenches at Agdz, totalling 576 m in length, and excavated
to a depth of up to 1 m. The trenches revealed several NNE trending alteration
zones in packages, which are up to 33 m wide, beneath a thin cover of soil and
float material. Previously reported assay results included 0.65 % Cu and 36.54
g/t Ag over 14.12 m and 0.36 % Cu and 13.26 g/t Ag over 13.70 m.

Glossary of Terms

The following is a glossary of technical terms:

 

 "Ag"                means  silver
 "Au"                means  gold
 "Breccia"           means  a rock consisting of angular fragments of stones cemented by finer materials
 "Cu"                means  copper
 "Ferruginous"       means  containing iron oxides
 "g/t"               means  grams per tonne
 "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.
 "ICP-AES"           means  Inductively coupled plasma atomic emission spectroscopy analytical technique
 "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
 "HIRIP"             means  High-Resolution Induced Polarisation, measures depth-related resistivity and
                            chargeability data along a profile
 "km"                means  kilometres
 "Ma"                means  Mega-annum which is equal to one million years
 "mm"                means  millimetres
 "Mt"                means  millions of tonnes
 "NI 43-01"          means  National Instrument 43-101 Standards of Disclosure of Mineral Projects of the
                            Canadian Securities Administrators
 "Outcrop"           means  a rock formation that is visible on the surface
 "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
 "Stratiform"        means  parallel to the bedding planes of the surrounding rock

 

 

 1  (#_ftnref1) Reported to contain 189 million ounces of silver (resource +
reserve) - Managem 2019 Annual Report.

 2  (#_ftnref2) Resource of 53 Mt at 0.8 % Cu and 9 g/t Ag, of which 21 Mt
contain a high grade of 1.3% Cu. Maacha, L., Ouadjou, A., El Azmi, M.,
Zouhair, M., Saquaque, A., Alansari, A., and Soulaimani, A. (2011). Bouskour
copper and silver mine (J Saghro inlier, eastern Anti-Atlas). Notes et Mem.
Serv. Geol. Maroc, 564, 59-64.

 3  (#_ftnref3) A rock chip or grab sample cannot be taken as a representation
of the overage grade average and potential deposit size.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDLXLFFXFLFBBZ