REG - Corcel PLC - Wowo Gap – Receipt of Gap Analysis Report

CorcelAnnouncement

09/06/2022 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:20220609:nRSI2421Oa&default-theme=true

RNS Number : 2421O  Corcel PLC  09 June 2022

Corcel PLC

("Corcel" or the "Company")

 

Wowo Gap - Receipt of Gap Analysis Report

 

09 June 2022

 

Corcel, the natural resource exploration and development company with
interests in battery metals and flexible energy generation and storage,
announces receipt of its externally commissioned Gap Analysis Report conducted
on the Company's Wowo Gap nickel/cobalt project, where the Company retains a
100% interest.

Highlights:

o  A detailed Gap Analysis report for the Wowo Gap Project has been completed
externally, including a comprehensive review of legacy data and proposals for
areas of future emphasis in preparation for an eventual Mining Lease
application

o  Key findings, other than the need to continue to mature the project
technically, include the requirement to update offtake assumptions given
recent positive structural changes in Nickel prices and the proposed
broadening of focus to include multiple development concepts including both a
DSO alongside HPAL (High Pressure Acid Leach) and DNi (Direct Nickel)
processing options

Gap Analysis:

AMC Consultants Pty Ltd ("AMC") were contracted, as part of the Company's
preparation work for a Mining Lease application, to prepare a Gap Analysis of
the Wowo Gap lateritic nickel/cobalt project in Papua New Guinea ("PNG").
This work builds on the historic 2010 feasibility study and the 2016 direct
shipping ore ("DSO") study conducted by the previous owners of the project.
The focus of the study was to provide a clear understanding of the additional
data and work required to make an eventual formal application for the Mining
Lease, including a bankable feasibility study ("BFS") acceptable for project
financing purposes.

Key Findings:

Geology:

o  In general AMC considers the deposit geology to be well understood however
some additional resource definition work suggested to define mineralization
boundaries and the extent of the deposit

o  Some portion of the resource may need to be upgraded to the JORC Measured
classification in order complete a full BFS

Offtake:

o  Requirement to update previous 2010 and 2016 views on market demand,
quality, and expected Nickel prices, particularly given recent strong
structural changes in Nickel prices

Geotechnical:

o  Requirement to plan for expected very wet conditions at the minesite
including surface drainage, stability of excavation and landform walls and
trafficability across benches and haul roads

Operations and Infrastructure:

o  Currently envisaged operations are considered reasonable and consistent
with others in the region (including the Ramu nickel mine- using hydraulic
excavators and articulated dump trucks).  Further work limited to finalising
routine additional documentation, economic assessment and engineering work

o  Ore likely to be stockpiled at the mine to be dried and later sent to the
coast for export through a barge loading facility at Collingwood Bay hence key
infrastructure spread across minesite, local village and barge loading
facility

Mine Planning:

o  Some early work on mine planning completed by the previous owners but
additional work, including ore loss and dilution models, cut-off grade
analysis and the determination of economic pit limits now required

Environmental:

o  Requirement to prepare detailed risk mapping including risk mitigation
measures and associated implications.

o  Requirements to understanding project hydrology including peak flows and
flood mapping alongside relevant average recurrence intervals for the
predicted mine-life with a view to right sizing required development
infrastructure

o  Greatest risk which requires mitigation is expected to be water quality
downstream of project and potential contamination from run-off, leachate and
spills

Economic Assessment:

o  Building on previous work additional analysis of expected operating and
capital costs will be developed

Development Concept :

o  Wowo Gap was originally developed in 2010 as a 1.5Mtpa (dry) open pit mine
with on-site processing using HPAL technology.  In 2016 a further study was
undertaken examining a 2Mtpa DSO nickel laterite operation.  Based on the
results of the AMC report Corcel intends to conduct a Pre-Feasibility Study
("PFS") examining multiple development concepts including both a DSO operation
alongside a HPAL or Direct Nickel operation.

 

The Company will update the market as it continues its technical work to
advance the Wowo Gap project.

 

 

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.

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  MSCUWAURUUUNRUR