REG - Critical Metals PLC - Key Operations, Logistics, and Drilling Update

Critical MetalsAnnouncement

19/12/2023 15:30

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20231219:nRSS3538Xa&default-theme=true

RNS Number : 3538X  Critical Metals PLC  19 December 2023

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) No. 596/2014, as it forms part of UK Domestic
Law by virtue of the European Union (Withdrawal) Act 2018. Upon the
publication of this announcement, this inside information is now considered to
be in the public domain.

 

Critical Metals plc / EPIC: CRTM / Market: Main Market

 

19 December 2023

Critical Metals PLC advances the Molulu Copper-Cobalt Project in DRC

Key Operations, Logistics, and Drilling Update

("Critical Metals" or the "Company")

 

Critical Metals plc, operator of Molulu copper/cobalt project in the
Democratic Republic of Congo, provides an update on the delivery of ore to the
buyer OM Metals SARL ('OM Metals').

 

Highlights

·    Permits for trucks to use the public roads received

·    Permission granted to transverse neighbouring property

·    Further road upgrades to begin soon to handle heavier general traffic

·    Ore sales expected to recommence in Q1 2024

·    Areas of 29.41%, 14.59%, and 8.88% copper intercepted using XRF.

·    Advancing diamond drilling campaign in Phases 1, 2, and 4 to
establish JORC resource estimation for copper-cobalt mineralisation in the
area.

·    High-grade copper mineralisation identified in most of the drilled
holes, proved to be of economic potential.

·    A total of 24 holes have been drilled, logged, and sampled.

 

Russell Fryer, CEO of Critical Metals, remarked: "The outcomes from our
24-drill-hole campaign have been tremendously encouraging, revealing
high-grade copper mineralization that underscores the remarkable promise of
the Molulu project. This success not only demonstrates our operational
efficiency but also highlights our strategic focus on enhancing both the
logistics and infrastructure critical to our operations. Our commitment to
upgrading road access, alongside our notable collaboration with OM Metals and
the planned acquisition of a processing plant, are pivotal steps towards
scaling our business. As we prepare for the next drilling phase in Q1 2024,
extending into Phase 3, our goal is to deepen our understanding of the
mineralization's grade, mineralogy, thickness, and spread. This will be
crucial in fulfilling our off-take commitments and driving sustainable growth.
We eagerly anticipate sharing more updates on our progress and drilling
activities with our shareholders soon."

 

Operations and Logistics Update:

The recently announced proposed acquisition of a copper-cobalt processing
plant and the sizeable off take agreement with OM Metals generates positive
momentum for Critical Metals moving into 2024. Ensuring smooth mine logistics
and delivery of ore throughout the year in extreme weather conditions of the
DRC is essential. The aim of the board of the Company is to prepare now for
the growth of the Company's business to create a sustainable and scalable
business, for all shareholders.

 

As previously reported on 15 May 2023, Critical Metals has invested in the
road at Molulu, including construction of a bridge, to allow ore to be removed
from the mine site and transported to the off-take purchaser. In addition, the
proposed rental and acquisition of the processing copper-cobalt plant would
see a significant increase in the volume of ore that will be transported from
Molulu.

 

The ore purchase agreement with OM Metals outlines the use of ten 40-tonne
trucks to transport the copper ore from Molulu to the OM Metals plant. These
trucks have the capacity to deliver 10,000 tonnes of copper ore to the OM
Metals plant per month.

 

After securing the seven necessary road permits to use the ten trucks for
transportation and receiving permission of a neighbour of the Molulu lease
area to pass through their adjacent property, the first 40-tonne trucks
arrived at Molulu with no delays in the week of November 20th to receive ore.
The trucks did have road delays on their return but arrived and delivered
copper ore to the OM Metals plant.

 

After consulting with the management of OM Metals, Critical Metals made the
strategic decision now, while the processing plant transaction is under due
diligence and before significant deterioration of the road occurs, to further
invest in the public road from the Molulu Project during the election and
holiday season to ensure reliable ore delivery at anticipated volumes.  These
road improvements also benefit the local community and form a continuing part
of our programme of local stakeholder engagement.

 

Improvements to the road include additional grading, ground compacting, with a
layer of stones to be placed in the areas of water collection and heavy usage.
Such improvements include rainwater drainage points.

 

A road contractor has already been appointed and the time to improve the road
as described above is anticipated to take forty-five (45) days. Work on the
road is scheduled to begin in late December and with these new improvements,
the road is expected to be useable for the remainder of the rain season which
normally ends in April.

 

Once the road is rehabilitated, ore sales to OM Metals can resume and the
Company aims to fulfil its off-take contract commitment. It is anticipated
that ore sales to OM Metals will restart once the road upgrade is complete. OM
Metals has indicated they will purchase as much copper oxide ore as Molulu can
produce once the road is ready for the 40-tonne trucks to resume deliveries.

 

Critical Metals is actively engaging with OM Metals and will provide
additional information and updates on operations to the market as
appropriate.

 

Drilling Update

 

Details

·    Notable drill results from all three phases using the handheld Niton
XRF include:

Phase 1 (Figure 3)

o  Hole DD1-01 recorded an average of 1.01% of copper at a depth of 12.20m

Phase 2 (Figure 4)

o  Hole DD2-05BIS recorded an average of 1.57% of copper at a depth of 22.65m

o  Hole DD2-6BIS recorded an average of 1.39% of copper at a depth of 16.80m

o  Hole DD2-07 recorded an average of 2.15% of Cu at a depth of 7.40m

Phase 4 (Figure 5)

o  Hole DD4-01BIS recorded an average of 5.97% of copper at a depth of 32.85m

o  Hole DD4-09BIS recorded an average of 7.35% of Cu at a depth of 36.05m

o  Hole DD4-10 recorded an average of 4.53% of Cu at a depth of 49.65m

 

Excellent higher grade copper intercepts in Phase 4 include:

           DD4-09BIS intercepted a copper zone with a grade of
29.41%,

           DD4-01BIS intercepted a copper zone with a grade 14.59%,

           DD4-10 intercepted a copper zone with a grade of 8.88%.

 

·    Extension of the drilling plan into Phase 3 is set to commence in Q1
2024

 

Drilling Overview

Molulu Project has undertaken diamond drilling in Phases 1, 2, and 4, for
resource estimation of the copper-cobalt mineralisation in the area in order
to update a JORC compliant report.

The planned drill holes were placed in high signature zones shown by magnetics
and IP surveys done within the project area. A total of 24 holes have been
drilled, logged, and sampled at the Molulu Mine in the Democratic Republic of
Congo ('DRC').

 

 

The Molulu Project

The Molulu project area is approximately 100 km north of Lubumbashi City,
within the Kasenga Administrative District (Figure 1 below).

Figure 1: Molulu copper-cobalt project location showing the scale of the
northern copper-anomaly and drilled holes in each Phase. The copper ore body
is believed to be at least 3 kilometers long.

Diamond Core Drilling Update

The diamond core drilling exploration program for Phases 1, 2, and 4
(announced 23 July 2023) focused on areas where highly chargeable-highly
resistive anomalies from an Induced Polarisation (IP) gradient ground
geophysical survey were previously identified. These anomalies were sourced to
a stratabound copper-mineralisation hosted within a structurally controlled,
bedded succession of metasedimentary rocks, composed of interbedded siltstone
and shale (Figure 2).

A total of 24 drill holes have been drilled, logged, and scanned using a
handheld XRF analyser to identify mineralised zones within the core. Logging
the core has indicated two types of mineralisation; rock-type-specific
mineralisation hosted with the siltstone and shale, and structurally
controlled mineralisation.  The identified mineralised zones are associated
with traces of malachite within fracture zones.

The handheld XRF analyser has aided in identifying high-grade mineralised
zones and low-grade mineralised zones within each Phase. The high-grade
copper-mineralisation, identified in most of the drilled holes, proved to be
of economic potential. However, sampling the core and taking the samples to an
accredited laboratory will increase the level of confidence in the results
given by the XRF analyser.

A senior geologist at the Molulu mine has also carried out a Quality
Assurance/Quality Control ("QA/QC") oversite, including re-logging of the core
to quantify data provided throughout the drilling program. A sampling protocol
was implemented on 20(th) November 2023, alongside drilling, logging, and
scanning using the handheld XRF analyser, of the drilled holes in Phases 1, 2,
and 4.

The drill holes in Phases 1, 2, and 4 were strategically positioned at an
incline to intercept the mineralised layer. Adjustments to a vertical position
have been made to a few drill holes where the mineralized layer was not
intercepted at an inclined angle.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Figure 2: Magnetics map overlain by gradient IP survey results with indicative
highest density zones (solid purple outlines) and locations of diamond core
drill holes.

 

PHASE 1 Highlights

·    Notable 2023 positive results of copper from the handheld XRF
analyser recordings in the following drilled holes of Phase 1, 2 and 4:

 

o  Phase 1 (Figure 3 below)

-  Hole DD1-01 recorded an average of 1.01% of copper at a depth of 12.20m.

 Figure 3: Phase 1 Diamond Drill Hole Positions with Copper Intersection
Weight Percentage.

 

 

PHASE 2 Highlights

o  Phase 2 (Figure 4 below)

 

-     Hole DD2-05BIS recorded an average of 1.57% of copper at a depth of
22.65m.

-     Hole DD2-6BIS recorded an average of 1.39% of copper at a depth of
16.80m.

-     Hole DD2-07 recorded an average of 2.15% of copper at a depth of
7.40m.

 

 

 

 

 

 

Figure 4: Phase 2 Diamond Drill Hole Positions with Copper Intersections
Weight Percentage and planned drill holes at the white pins.

 

PHASE 4 Highlights

o  Phase 4 (Figure 5 below)

 

-     Hole DD4-01BIS recorded an average of 5.97% copper at a depth of
32.85m.

-     Hole DD4-09BIS recorded an average of 7.35% copper at a depth of
36.05m.

-     Hole DD4-10 recorded an average of 4.53% copper at a depth of
49.65m.

 

Although the above Phase 4 grades are averages, the XRF has recorded copper
grades well in excess of the averages over multiple meters.

Examples of the excellent copper intercepts in Phase 4 include:

-     DD4-09BIS intercepted a copper zone with a grade of 29.41%,

-     DD4-01BIS intercepted a copper zone with a grade 14.59%,

-     DD4-10 intercepted a copper zone with a grade of 8.88%.

 

These copper intercepts in Phase 4 are outstanding and support the July 2023
decision by management to pivot to the Phase 4 sulphide pit area and
deemphasize drilling on the Phase 1 area.

 

 

 

 

 

 

 

 

 

 

Figure 5: Phase 4 Diamond Drill Hole Positions with Copper Intersections
Weight Percentage and planned drill holes at the white pins.

 

Future Activities

Drilling is anticipated to restart in January 2024 with core logging, scanning
XRF analysis, QA/QC, and sampling to begin soon after. An extension of the
drilling plan into Phase 2 and 3 is set to also commence in the first quarter
of 2024. The key factors to this drilling program are to scale out the
mineralised zones in all the Phases, and to get the grade, mineralogy,
thickness, and extent of the mineralised beds in each Phase.

 

The drilling data and information is planned to be inserted into the JORC
report which is expected to be released in Q1 2024.

 

Once the further drilling of the Phase 4 area is completed, the next phase is
for a new drill programme  be designed in the cobalt area that is located
south of the current drilling areas. See Figure 6 below.

 

 

Figure 6: Copper Anomalies found in the Cobalt area are the blue dots.

 

Processing Plant Update

Due diligence of the Kastro SARL plant assets (announced 10 October 2023)
continues with both parties committed to working to a positive outcome. These
complex discussions not only encapsulate the plant assets, but also the
tailings waste facility and property where the Kastro SARL assets reside. The
Company will update the market on developments when appropriate.

 

 

**ENDS**

 

 

 

 

For further information on the Company please visit www.criticalmetals.co.uk
(http://www.criticalmetals.co.uk/)  or contact: 

 

 Critical Metals plc

 Russell Fryer, CEO                               Tel: +44 (0)20 7236 1177
 Peterhouse Capital Limited

 Corporate Broker

 Lucy William / Charles Goodfellow                Tel: +44 (0)20 7469 0936 / +44 (0)20 7220 9797

 St Brides Partners Ltd

 Financial PR

 Catherine Leftley /Ana Ribeiro/Isabelle Morris   Tel: +44 (0)20 7236 1177

 

About Critical Metals

Critical Metals PLC has acquired a controlling 100% stake in Madini Occidental
Limited, which holds an indirect 70% interest in the Molulu copper/cobalt
project, a producing asset in the Katangan Copperbelt in the Democratic
Republic of Congo.

 

The Company will continue to identify future assets that are in line with its
stated acquisition objective of low CAPEX and OPEX brown-field projects with
near-term production and cash-flow, whilst concentrating on minerals that have
strategic importance to future economic growth thereby generating significant
value for shareholders.

 

 

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  DRLEKLFFXLLLFBB