REG - Corcel PLC - Dempster Vanadium Project Expansion

CorcelAnnouncement

07/06/2022 07:00

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RNS Number : 9053N  Corcel PLC  07 June 2022

Corcel PLC

("Corcel" or the "Company")

 

Dempster Vanadium Project Expansion

 

7 June 2022

 

Corcel, the natural resource exploration and development company with
interests in battery metals and flexible energy generation and storage, is
pleased to announce that the Company has now, subject to minority investor
approval, expanded the focus of the Dempster Vanadium project, in which the
Company has a 50 percent interest, to include a review of the nickel potential
in addition to the existing vanadium targets and provides an update following
the results of an external report on the project.

Highlights:

o  Results of a Corcel commissioned CSA Global review of the project confirm
potential to pursue nickel targets

o  Historic Corcel efforts have focused on vanadium exploration largely
ignoring the nickel potential of the tenements

o  Potential may exist for the NiMo horizon as either a stand-alone
development or a by-product for the vanadium focused Canol Formation

o  Project broadening undertaken in light of extended high global nickel
prices and issues around security of nickel supply and Russian exports

Nickel Expansion Details:

While an initial focus by previous owners, historically limited work has been
done on nickel on the area covered by the Dempster project, and more recently
the focus of efforts there have been the vanadium potential.  Following the
conclusion of a recent external desktop study conducted by consultants CSA
Global, and a larger review of the project, the Company has formally decided
to broaden the focus of the project to include both vanadium and the confirmed
NiMo (nickel/molybdenum metal bearing, organic-rich black shales with PGMs)
horizon that extends across the property.

Historic drilling at Dempster in 2007 confirmed an extensive NiMo layer
throughout the property.  The limited drilling conducted did not specifically
target areas where the NiMo layer might be expected to thicken, such as
structurally complex zones, fold hinges or dome fringes, instead focusing on a
nickel sulphide horizon that outcrops further south at the contact between the
Canol and Road River formations.  Corcel has already identified a fold hinge
in the project's north as one such target. Application of geophysical
techniques and structural analysis should aid further target generation in
these areas.

 

The historic results from Dempster's NiMo horizon suggest relatively small
zones of NiMo horizon thickening may either prove to be independently
economic, or at could be expected to add by-product credits to any production
operations built at the project.

Rich NiMo deposits of small areal extent are known at Minas Ragra, Peru and at
the Huangjiawan mine, Guanzhou province, China. High grade NiMo layers have
been reported in other Yukon projects such as Pe, Rich, Deer, El and Nick.
Nickel has been mined from NiMo horizons within vanadium bearing formations in
Songlin, Zunyi, Dayong, Guizhou and Hunan provinces, China.  More broadly,
the Talvivaara mine in Finland, demonstrates an example of a similar head
grade nickel deposit hosted in black shales, and offers a method of processing
that could be applied locally with relatively low capital expenditure.

The Company believes that this project expansion is appropriate due to
nickel's increased recognition as a key battery metal that is essential to
creating the lithium-ion battery density demanded by buyers of EVs as well as
grid level energy storage installations.  This renewed focus on nickel can be
seen in recent nickel prices movements as well as an ongoing race to secure
nickel supplies by end users such as Tesla, Inc.  This expanded effort fits
well with the Company's existing battery metals led strategy and should
ultimately make the Dempster project more valuable and more likely to be
progressed to an operating mine in the Yukon.

Vanadium Workplan:

The project review also suggested a series of next steps as regards vanadium
targets outlined below:

            -Define mineable limits - focus on waterway avoidance

            -Inferred drilling resource definition - with a
potential initial program of 5-20km of 400 x 400 spacing

            -Explore bi-metals that might life project economics

            -Examine remote exploration options for zones of
significant thickening

            -Provide material through drilling for metallurgical
testwork

            -Explore additional tenement additions in the area

The Company intends to discuss the results and conclusions of its recent
studies with its project investors and partners, and following these meetings
will update the markets on its future plans in due course.

For further information, please contact:

 

Scott Kaintz 020 7747 9960
                     Corcel Plc CEO

James Joyce / Andrew de Andrade 0207 220 1666
         WH Ireland Ltd NOMAD & Broker

Simon Woods 0207 3900
230
                 Vigo Communications IR

 

The information contained within this announcement is deemed to constitute
inside information as stipulated under the retained EU law version of the
Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK
law by virtue of the European Union (Withdrawal) Act 2018. The information is
disclosed in accordance with the Company's obligations under Article 17 of the
UK MAR. Upon the publication of this announcement, this inside information is
now considered to be in the public domain.

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