REG - Chesterfield Res Plc - Positive Labrador Results

Chesterfield ResourcesAnnouncement

27/01/2022 07:00

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RNS Number : 7734Z  Chesterfield Resources PLC  27 January 2022

 

   Chesterfield Resources / EPIC: CHF / Market: LSE / Sector: Mining

 

27 January 2022

 

Chesterfield announces positive results of an extensive field survey and data
re-modelling at its Adeline copper project in Labrador, with the development
of a high-quality target pipeline

 

Chesterfield Resources is pleased to report positive copper and silver assay
results from widespread occurrences in its recent field exploration and
mapping programme on various targets within its Adeline copper project in
Labrador, Canada. The company also reports encouraging historical surface
sampling results and drill intersections determined from its six-month desktop
and data compilation study of the Adeline Project. The company will now use
this information to generate ranked targets and detailed design for its
forthcoming initial diamond drill programme.

 

·    A recent three-month field programme completed at the Adeline Project
has returned locally high-grade copper and silver assay results from chip and
rock samples from multiple targets. Planning is now underway for follow-up
exploration and drilling to determine the project's resource potential

 

·    The dominant copper minerals are chalcocite and bornite, often
disseminated in fine grained matrices that demonstrate a higher tenor of
copper mineralisation compared with chalcopyrite. Some historical grab samples
have been observed of between 10% to 30% copper.

 

·    Chesterfield has completed the first comprehensive desktop review and
compilation of the historical Adeline project dataset that includes the
results from historical geophysics, rock and trench sampling programmes, and
various drilling programmes dating as far back as the 1950s

 

·    The detailed compilation and desktop study has identified highly
encouraging historical drill intersections including 1.76% Cu and 56.2 g/t Ag
over 7.9m within the Ellis target

 

·    Remodelling of numerous geophysical datasets has also identified
several entirely new target areas for exploration

 

·    A detailed exploration and drilling plan is now being finalised by
the company commencing in H1 2022 leading to the potential for resource
estimation

 

 

Executive Chairman Martin French commented, "Over the past six months our
technical team have completed the first comprehensive review of several
decades worth of historical mapping, sampling, and drilling data. In tandem, a
geophysics team has remodelled a considerable bank of historical geophysical
data compiled from past programmes run by previous operators. This was
completed using the more recent modelling and  visualisation software. From
July to September 2021, Chesterfield also conducted an extensive field
programme at Adeline.

 

The Adeline Project is unusual in that while there has been extensive sampling
and geophysics work completed, there has comparatively been very little
drilling completed, in part due to a lack of direct road access. The recent
field programme re-sampled the key known target areas for verification of
historical results. It was also able to use the results of the technical
team's geological and geophysical re-interpretation to map entirely new target
areas for further exploration.

 

The combination of historical re-appraisal and new survey work has produced
some compelling data and targeting, some of which is itemised below. The
Company is now finalising a series of ranked drill targets and detailed drill
design which will be announced soon."

 

Adeline Project - Recent Programme Results

 

Chesterfield has recently completed a maiden field programme and data
compilation study for its 297 km(2) Adeline Project located in south-central
Labrador, Canada. The work programme was comprised of a comprehensive
historical data review and GIS compilation and analysis, in conjunction with
detailed geophysical remodelling of historical data sets, followed by two
fieldwork phases from early July to August 2021. The field programme focused
on detailed mapping and verification sampling of the key prospects. A
remodelling of high-quality aerial and ground-based geophysical data was also
used to vector the field team to previously unmapped new target areas. On the
back of encouraging field observations, an additional third phase was added,
taking the exploration programme into mid-September 2021.

 

Historical data from the Adeline Project, along with the company's field
observations suggest local areas of thickening at shallow depths that, if
confirmed by drilling over the coming months, provide the potential to advance
the project to the initial resource estimation relatively quickly.

 

Highlights of historical shallow drilling and trenching results for the
project by previous operators since the 1950s and determined from recent
compilation work completed by the Company include:

 

Ellis prospect

 

·    Historical drill hole SL11-10 (a twin of historic hole K10) completed
in 2011 by Playfair Mining intercepted 1.76% Cu and 56.2 g/t Ag over 7.9m from
90.6m hole depth.

·    Historical drill hole K10 completed in the 1950s intercepted 1.69% Cu
and 51.8 g/t Ag over 4.3m from 57.6m hole depth.

·    Historical trench result: averaged grade of several channel samples
collected across the same mineralised bed over 60m length of trench was 1.35%
Cu and 49.8 g/t Ag with an average thickness of 7.5m, including a highest
individual channel sample result of 2.50% Cu and 94.3 g/t Ag over 4.5m.

Whiskey Lake prospect

 

·    Historical trench result: averaged grade of several channel samples
collected across the same mineralised bed over 60m length of trench was 1.25%
Cu with an average mineralised  thickness of 7.5m. No silver results were
reported.

South Adeline Mountain prospect

 

·    Grab samples grading 13.55% Cu and 199 g/t Ag and 9.28% Cu and 122
g/t Ag

Seal Lake No. 1 prospect

 

·    Grab sample grading 26.90% Cu and 16.45 g/t Ag.

Extensive, modern re-modelling of historical geophysical survey data has taken
place on both a regional and prospect-level scale. The historical regional
work included an airborne EM (electromagnetic) survey alongside
helicopter-borne radiometrics and magnetics collected over 3,435-line km at a
200m line spacing. Reinterpretation of this data has refined the wider
structural understanding of the area and associations to known copper
occurrences. More detailed and targeted historical ground geophysics took
place at the prospect-level scale and included IP (induced polarization), SP
(self-potential), VLF-EM (very low frequency electromagnetic) and magnetic
surveys. Using present-day software, it has been possible to digitize some of
these historical data sets and model these in 3D space, displaying them
together with historical drilling and geological mapping, along with rock,
soil and lake bed geochemical samples. This desktop process has optimized the
interpretation of the geophysical results and geological observations by
georeferencing to better assure the overall interpretation.

 

The first phase of field work in July 2021 focused on initial site visits to
the most historically significant prospects and targets areas of the more than
250 known copper showings across the Seal Lake basin. Follow-up mapping of
selected target areas was undertaken, and locations of geophysical anomalies
were also investigated in the field. The objective of this initial phase was
to help define a ranked list of targets from the numerous known showings for
subsequent field work.

 

In the second phase, further visits to the higher ranked targets were
undertaken. A programme of focused stratigraphic and structural mapping was
completed on the most promising of these localities. The aim of the geological
mapping was to identify key structures responsible for concentrating
copper-silver mineralization within the targeted "grey bed" host stratigraphy.
In conjunction, a programme of geochemical rock sampling was completed to help
characterize host rocks relatively proximal and distal to copper-silver
mineralization and to assess the copper and silver values that could be
expected from mineralized zones at surface.

 

A total of 114 systematic chip samples, over varying widths of 0.30m to 7.60m,
were collected along 28 transects at 11 different localities. An additional 41
selective grab samples were also taken at sites of mineralisation and
alteration.

 

Assay highlights from the 2021 chip and grab sampling programmes include:

 

 Sample #  Sample Type  Prospect                Width (m)  Cu     Ag

                                                           (%)    (g/t)
 15461     Chip         Adeline Island          0.44       13.10  158.0
 15415     Grab         Adeline Mountain South  N/A        7.98   423.0
 15543     Chip         Adeline Mountain South  0.55       6.05   84.9
 15412     Grab         Ellis                   N/A        6.00   73.8
 15575     Grab         Adeline Island          N/A        5.71   72.9
 15413     Grab         Whiskey Lake            N/A        4.74   63.7
 15411     Grab         Ellis North             N/A        4.53   30.5
 15494     Chip         Whiskey Lake            2.00       4.40   63.4
 15421     Grab         Duck Lake East          N/A        4.36   24.1
 15488     Chip         Whiskey Lake            1.80       3.66   55.0
 15495     Chip         Whiskey Lake            3.10       3.30   51.7
 15524     Chip         East Seal Lake          2.50       2.77   5.4
 15403     Chip         Ellis                   1.00       2.76   227.0
 15608     Grab         Adeline Island          N/A        2.54   20.3
 15401     Chip         Ellis                   1.00       2.52   160.0
 15418     Grab         Adeline Island          N/A        2.21   25.3
 15427     Chip         Ellis                   2.30       2.06   84.9
 15486     Chip         Whiskey Lake            2.10       1.97   41.9
 15502     Chip         Whiskey Lake            2.50       1.97   65.2
 15469     Chip         Whiskey Lake            1.46       1.87   53.3
 15437     Chip         Ellis                   1.60       1.86   93.7
 15435     Chip         Ellis                   1.50       1.79   87.0
 15492     Chip         Whiskey Lake            1.30       1.67   23.8
 15414     Grab         Brian                   N/A        1.63   22.8

 

The third and final phase of the 2021 field programme consisted of follow-up
field investigations of the most prospective target areas, thereby allowing
integration of detailed geological, geochemical and geophysical data sets, and
historical drill results which led to the generation of an extensive ranked
target list with defined future follow-up work programmes. Additionally, this
helped develop an optimized exploration approach, including the use of
leading-edge geophysical modelling techniques that were not available during
the previous, historical exploration campaigns when the data was collected.

 

The entire 2021 field season helped develop a ranked target list including
identified priority drill targets which the team is now finalising for a
diamond drilling programme to commence in the first half of 2022.

 

About the Adeline Copper Project

 

In July 2021, Chesterfield acquired 100% of the Adeline copper project from
Altius Minerals in return for a 10% equity stake, a three-year warrant over a
further 10% of equity at a strike price of 20p, and the granting of a 1.6%
revenue royalty. In addition, Altius Minerals has agreed to assist the Company
as a strategic project partner providing valuable on-the ground assistance and
project management.

 

The Adeline project is located within the western half of the Central Mineral
Belt, a 260 km long metal-rich belt located in Central Labrador within the
Province of Newfoundland and Labrador in Eastern Canada. The Adeline Project
is comprised of ten contiguous mineral licences totalling 29,725 ha (297.3
km(2)) covering the full extent of the Seal Lake Basin, an approximate 40 km
long by 10 km wide geological structure that contains approximately 250 copper
prospects. The Adeline Project is located close to the regional service hub of
Goose Bay, Labrador which can provide a base of operations for field and
drilling programmes including air support.

 

The Seal Lake Basin has seen extensive regional exploration over the years
resulting in a rich exploration database. Trenching and channel sampling has
established the presence of laterally continuous high-grade copper beds.
However, there has been relatively little historical drill testing, largely
due to the lack of direct road access. Historically, where sulphide
mineralisation has become highly concentrated as chalcocite and bornite the
grades have reached 10 to 30% copper.

 

The company has recently completed the compilation and re-analysis of all
historical regional exploration datasets with the latest geophysical modelling
and visualisation software tools, and it has assembled a team of expert
consultants who have decades of experience in this belt.

 

An initial field season, which has just been completed, focused on both
previously identified, as well as new prospect areas. This is expected to
generate a pipeline of quality diamond drilling targets to test for
significant extents of bedded copper-silver mineralisation. The company is
currently progressing project planning and permitting applications.

 

Qualified Person Statement

 

The information in this announcement that relates to exploration results is
based upon information compiled by the company's technical staff and
geological consultants. Paul Ténière, M.Sc., P.Geo., an independent
Technical Advisor to the company and a Qualified Person under NI 43-101, has
reviewed and approved the scientific and technical information disclosed in
this announcement. Mr. Ténière consents to the inclusion in the announcement
of the matters based on his information in the form and context in which
it appears being consistent with the adoption of the NI 43-101 reporting
code.

 

Further background about Chesterfield Resources

Chesterfield Resources is a copper focused exploration company centred around
its newly-acquired Adeline Copper Project in Labrador, Canada, together with
its existing copper/gold project in Cyprus.

 

The exploration technical team is led by Dr Neil O'Brien, formally SVP
Exploration & New Business Development, Lundin Mining. Dave Cliff,
previously Head of Exploration Europe, Rio Tinto, serves as a board member.

 

The Company has also acquired a major backer. In December 2020, Polymetal
International, the FTSE100 mining group, made a 23% investment in
Chesterfield via a placing of new shares, as strategic backing for the
company's project in Cyprus.

 

In Cyprus, the company holds the largest mineral exploration licence area of
any operator on the island. Cyprus is regarded as a prospective
copper-zinc-gold-silver exploration location. It is a member of the EU, and
its legal system is based on English common law. Chesterfield identified a
value-creative exploration opportunity due to minimal exploration activity on
the island in the last 48 years since the invasion by Turkey in 1974 that
put a halt to what had been a very active mining industry.

 

While copper is the main exploration target, it is noteworthy that gold was
not historically exploited in Cyprus. Gold has been encountered in several
locations in the exploration target area and is an important part of the
exploration objective. This also includes a waste dump opportunity that will
be appraised, called Limni South Gold and an encouraging, potentially enlarged
mineralised zone described above.

 

The company announced high grade polymetallic results from its 2020 drilling
campaign and embarked in 2021 on an enlarged integrated geophysics,
percussion, and diamond drilling exploration campaign. The company has now
completed its diamond drilling campaign for 2021. In December 2021, the
company reported a significant gold mineralised system at its Westline target
including a drill hole with 21.4 m intersection grading 1.75 g/t gold from
98.7 m downhole including a high-grade zone of 3.3 m grading 6.55 g/t gold and
90.35 g/t silver from 100.20 m downhole. In addition, the company has recently
identified a new gold oxide project name Limni South Gold based upon
encouraging samples at a waste dump as well as drilling in the vicinity with a
programme of further test work being planned.

 

Chesterfield Resources is committed to world-class environmental standards in
all of its operations that are focussed on the exploration for copper, which
is an essential metal to developing clean technology projects worldwide. The
company hopes to develop industry and opportunities for the benefit of Canada
and the Republic of Cyprus.

 

 

Market Abuse Regulation (MAR) Disclosure

 

Certain information contained in this announcement would have been deemed
inside information for the purposes of Article 7 of Regulation (EU) No
596/2014 until the release of this announcement.

 

**ENDS**

 For further information, please visit www.chesterfieldresourcesplc.com
(http://www.chesterfieldresourcesplc.com/)  or contact:

 

Chesterfield Resources plc:

Martin French, Executive Chairman
                Tel: +44(0) 7901 552277

 

Panmure Gordon (UK) Limited (Joint Broker):       Tel: +44 (0)207 886
2500

John Prior & Hugh Rich

 

First Equity Limited (joint Broker):

Jason Robertson
               Tel: +44 (0) 207 330 188

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