REG - East Star Resources - Copper Porphyry Exploration Update

East Star ResourcesAnnouncement

12/08/2024 07:00

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RNS Number : 9369Z  East Star Resources PLC  12 August 2024

12 August 2024

East Star Resources Plc

("East Star" or the "Company")

Copper Porphyry Exploration Update: Completion of Soil Sampling

 

East Star Resources Plc (LSE:EST), which is exploring for copper in
Kazakhstan, is pleased to provide an update on exploration at the Ayagoz and
Snowy licences on the Balkash-Ili magmatic arc, which are prospective for
copper porphyry deposits. Exploration has initially been funded by the
US$500,000 BHP Xplor grant.

 

Highlights:

·    Soil sampling and spectral analysis of 2,800 samples completed

·    Multi-element Inductively Coupled Plasma Mass Spectrometry ("ICP-MS")
assays are underway

·    Satellite multispectral imagery clearly defines hydrothermal
alteration around the lithocap - consistent with that found proximal to other
porphyry examples elsewhere in the world

·    Lithocap samples were also collected for multi-element geochemistry

Chris van Wijk, East Star's Technical Director, commented:

"We are really impressed with the speed and quality of the work our team and
contractors have completed. The work programme has taken less than two months,
with a total of 2,800 samples collected which have already received spectral
analysis. When combined with the geochemistry results, we will have a detailed
map of the area, inferring the depth of the porphyry target. The soils will
also assist with the assessment of the historical artisanal gold mines around
Snowy and their potential to contain larger epithermal gold deposits. The
geochemical results from these two programmes will dictate the follow-on work
programme and provide information that will assist in targeting throughout the
rest of this proven mineral belt."

Systematic Soil Geochemistry and Lithocap Sampling

A recent site visit to the Ayagoz licence was undertaken in order to sample
the outcropping silica lithocap. Several field traverses along the ridge lines
of the lithocap were completed, and 25 rock chip samples were collected for
spectral analysis and multi-element geochemistry. In addition to this
programme, 1,160 soil samples have been collected and analysed using a
combination of low detection multi-element geochemistry (by ICP-MS) and
hyperspectral analysis using a spectral analyser.

At Snowy, 1,640 soil samples have been collected and have undergone both
spectral analysis and low detection multi-element geochemistry (by ICP-MS).

Multi-Spectral Analysis

Work has also been undertaken over the licence areas to understand the
regional spectral response using ASTER data. As expected, the silica
lithocaps, which are visible at surface, have strong multi-spectral signatures
in ASTER data, which indicate a high degree of hydrothermal alteration and
weathering, consistent with that found proximal to other porphyry examples
elsewhere in the world. Figures 1 and 2 below show the KLI Index over the
Ayagoz and Snowy licences respectively. KLI Index is a composite band index
designed to highlight the Kaolin group of minerals which are the end-product
of hydrothermal alteration and are expected in highly altered, leached
lithocaps such as Ayagoz and Snowy. The image is useful at delineating the
size and extent of the lithocap and the potential mineralogy, which will be
further refined using the spectral data once available.

The understanding of the lithocap environment is crucial in porphyry
exploration. Lithocaps are the direct product of intrusive systems such as
copper and gold porphyries and are the relic of the hot and highly acidic
hydrothermal fluids emanating from the intrusive system as it is emplaced and
cooled down. As these hot, acidic fluids pass through the rock, they alter the
minerals and selectively enrich or deplete certain pathfinder elements. As a
result, porphyry systems are consistently and predictably zoned, both in terms
of mineralogy and their associated pathfinder geochemistry. The current
geochemistry and spectral analysis work is aimed at understanding the zonation
within the lithocap which allows the company to infer the depth to the
porphyry target.

 

Figure 1 - Ayagoz licence with KLI index generated from ASTER data.

Figure 2 - Snowy licence with KLI index generated from ASTER data.

Regional Setting

The licences are located on the paleozoic Balkash-Ili volcanic arc. The
Balkash-Ili arc is known to host multiple copper and gold rich porphyry and
skarn deposits with the best-known examples including Kounrad (~650Mt @ 0.59%
Cu), located 145 km south of Snowy, and Aktogai-Aidarly (~2.5Bt @ 0.39% Cu),
located some 80 km to the south of Ayagoz.

 

The work history of the licences is still being compiled from archive data;
however, the prospects were both identified during soviet era mapping which
shows 'secondary quartzites' and anomalous copper and gold in several areas
around the licences. 'Secondary quartzites' were a soviet term used to refer
to the residual, leached silica lithocaps which are commonly associated with
porphyry intrusions. These lithocaps are also clearly identified through
analysis of ASTER multispectral data and have been classified as a mixture of
silica and argillic alteration which has been confirmed by field visits
initially carried out in 2023.

Both licences are well served by existing infrastructure including a railway
used to transport concentrate from the Aktogai mining complex which runs
through the south-east of the Ayagoz licence and a well-maintained gravel road
running from Aktogai in the south to Ayagoz in the north alongside the
railway. The Snowy licence is approximately 35 km east of the main
Almaty-Karaganda highway which is a paved, all weather highway. The licence is
directly accessed by a network of tracks used to navigate between the regional
villages.

Figure 3 - Regional location map.

Copper Porphyry Exploration Strategy

East Star has developed a strategy of regional target generation for copper
porphyry deposits, principally focussed on the Balkash-Ili magmatic arc, host
to the above-mentioned Kounrad and Aktogai-Aidarly deposits. By applying
modern mineral systems concepts with advanced desktop analytical techniques
and on-the-ground geological confirmation, East Star intends to secure several
more exploration licences within the area of interest for further field work.

 

East Star Resources Plc

Alex Walker, Chief Executive Officer

Tel: +44 (0)20 7390 0234 (via Vigo Consulting)

 

SI Capital (Corporate Broker)

Nick Emerson

Tel: +44 (0)1483 413 500

 

Peterhouse Capital Limited (Corporate Broker)

Peter Greensmith

Tel: +44 (0) 20 7469 0930

 

Vigo Consulting (Investor Relations)

Ben Simons / Peter Jacob

Tel: +44 (0)20 7390 0234

 

About East Star Resources Plc

 

East Star Resources is focused on the discovery and development of strategic
minerals required for the energy revolution. With eight licences covering
>1,000 km² in three mineral rich districts of Kazakhstan, East Star is
undertaking an intensive exploration programme, applying modern geophysics to
discover minerals in levels that were not previously explored. East Star's
most advanced project is a copper deposit on the world-class Rudny Altai VMS
Belt where the Company delivered a JORC compliant inferred resource of 20.3Mt
@ 1.16% copper, 1.54% zinc and 0.27% lead close to infrastructure, within
trucking distance of third-party mills with excess capacity. East Star's
management are based permanently on the ground, supported by local expertise,
a joint venture with the state mining company on certain projects, and grant
funding from BHP through the BHP Xplor programme, which has now completed, for
copper porphyry exploration.

 

Visit our website:

www.eaststarplc.com (http://www.eaststarplc.com)

 

Follow us on social media:

LinkedIn: https://www.linkedin.com/company/east-star-resources/
(https://www.linkedin.com/company/east-star-resources/)

 

X (formerly Twitter): https://twitter.com/EastStar_PLC
(https://twitter.com/EastStar_PLC)

 

Subscribe to our email alert service to be notified whenever East Star
releases news:

www.eaststarplc.com/newsalerts (http://www.eaststarplc.com/newsalerts)

 

The person who arranged for the release of this announcement was Alex Walker,
CEO of the Company.

 

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