REG - East Star Resources - Three New VMS Licences Awarded

East Star ResourcesAnnouncement

15/08/2022 07:00

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RNS Number : 9887V  East Star Resources PLC  15 August 2022

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15 August 2022

East Star Resources Plc

("East Star" or the "Company")

Three New Licences Awarded in VMS Belt of Rudny Altai, Kazakhstan

East Star Resources Plc (LSE:EST), the Kazakhstan-focused gold, rare earths
and copper explorer, is pleased to announce the award of three new licences
comprising 55 blocks (1794-EL, 1795-EL, 1799-EL) (the "New Licences") on the
Rudny Altai volcanogenic massive sulfide ("VMS") belt in Kazakhstan.

Highlights:

·    New Licences incorporate two historic operating (extremely high
grade), copper-lead-zinc mines (Pokrovskoye and Talovskaya), one known deposit
(Verkhubinskoye), and many historical mineral occurrences

·    New Licences, comprising 111.7 sq km, are contiguous with the
Company's existing Rudny Altai belt licences, Novo 1 and Novo 2

·    Geological exploration of the new licences has already started with
some rock chip samples collected and sent for assay along with samples from
Novo 1 and Novo 2

·    New Licences already covered by helicopter electromagnetic ("HEM")
survey conducted in July 2022, with analysis and targeting underway

 

Alex Walker, East Star CEO, commented:

"The best place to find a new mine is around an existing one, so expanding our
footprint to include more licences with historical mines is extremely
exciting. The Pokrovskoye mine for example - reportedly 'mined out' in 1979 -
contained average grades of 11.5% copper, 3.3% lead and 12% zinc. We don't
believe these areas have been fully explored, especially considering changes
in economic cut-off over the last 40 years and new geophysical methods such as
downhole electromagnetics to explore for additional conductors which do not
outcrop at surface. We are still collecting data on these areas, both in the
field and via historical reports which, along with the processing of our HEM
data, will dictate our exploration programme going forward.

We are grateful to the Akimat of Shemonaikha for their support of our
applications and intended work plan, having received their required letters of
support in just a matter of weeks after meeting with them.''

Figure 1 East Star Licence map with key mines, deposits and occurrences

 

Selected Historical Mines and Deposits

The following summaries are extracted and translated from a 1996 report by
'Altai Geolog', a geology body of the Government of Kazakhstan, titled
'Geological Structure and Mineral Resources of the Eastern part of the
Priirtysh Ore District' and from geological field work conducted by East Star
in June 2022.

Talovskaya - A massive sulphide ore deposit found in 1782 and mined up to
1896, consisting of many ore lenses up to 30 m by 60 m with grades up to 11.9%
Cu, 16% Zn and 2% Pb. The most recent exploration was conducted between 1989
and 1992, which found disseminated sphalerite.

The main rock type in the ore field is tuffaceous siltstone. Large volumes of
malachite veinlets along a granite porphyry were reported from the first field
visit (Figure 1) as well as magnesium skarns nearby. In the area are lots of
smaller waste dumps and outcrops with malachite.

Figure 2 Bleached tuffaceous siltstones with malachite veinlets at Talovskaya

Pokrovskoye - Found in 1822 and mined up to 1979. The massive sulphide ore
body was reported as 150 m long by 200 m wide and up to 22 m thick with
average ore grades of 11.5% Cu, 3.3% Pb and 12% Zn.

 

This ore lens was located in a flexure along the contact of andesitic lava
with a rhyolitic body. The volcanic formation was hornfelsed by granite prior
to the ore stage. During this, there was tectonic brecciation with chlorite
and sericite alteration.

 

Figure 3 Open pit of historic Pokrovskoye mine

Figure 4 Waste dump of Pokrovskoye deposit

 

Verkhubinskoye - Found in 1949 (vein type) and 1988 (skarn type). The total
length is up to 1,500 m with irregular grades over two zones; the northern
zone 2.5-17.5% Cu, 1.25-14.34% Pb and the southern zone 0.2-1.8% Cu and 3.36%
Pb. A summary report after drilling stated (non-compliant) resources with
contained metal of 136,500 t of Cu, 24,810 t of Pb and 173,500 t of Zn,
however, the deposit was not taken into production.

 

From the field visit, a small shaft and several pits were found. The shaft
crossed brecciated tuffaceous sandstones and siltstones with malachite
veinlets (Figure 4). The pits contain iron oxides and quartz veins, and rare
malachite and limonite veinlets. Two trenches at the lower half of slope
contain malachite-quartz veinlets and lenses in brecciated siltstones.

Figure 5 Small exploration shaft at the southern slope of a hill

Rodnikovoye - Found in 1986, the occurrence reported massive sulphide ores 1-4
m thick and up to 200 m long with grades of 2-15% Cu, up to 9% Pb and up to
20.7% Zn. The reports do not state that mining ever occurred.

 

Rudny Altai Region

 

The Rudny Altai region is one of the largest VMS provinces in the world, part
of the Central Asian Orogenic Belt. Licences 1794-EL, 1795-EL and 1799-EL are
located in the Rudny Altai region of Eastern Kazakhstan, adjacent to the
existing licences 847-EL and 914-EL (together, the "Licences").
Administratively, the Licences are within the Shemonaikha district and are
extraordinarily well connected to infrastructure. The regional centre of
Oskamen/Ust-Kamenogorsk is located 45 km, and its international airport is
located 35 km, southeast of the Licences. The railway connecting Ridder and
Tomsk cities crosses the Licences from the south to the northwest with two
railway stations located on the territory of the Licences. There is a network
of dirt roads within the Licences that are suitable for driving all year
round. A hard-surfaced road from Ust-Kamenogorsk to Shemonaikha crosses the
western part of the Licences.

The area is characterised by moderately hilly terrain with elevations ranging
between 270 m and 630 m above the mean sea level.

Next Steps

 

A number of additional reports have been located and ordered from the state
geological data provider which will provide more detail to the above-mentioned
historical reports. Once received, key data will be digitised and analysed to
continue to grow the Company's geological model and understanding of the
region and specifically the areas of known mineralisation.

 

The final deliverables from the HEM survey have now been received and are
currently undergoing processing by East Star's external consultants after
which a thorough geological review will take place to assist the modelling and
then ranking of priority targets.

 

For further information visit the Company's website at www.eaststarplc.com
(http://www.eaststarplc.com) , or contact:

 

East Star Resources Plc

Alex Walker, Chief Executive Officer

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

 

Peterhouse Capital Limited (Corporate Broker and Placing Agent)

Duncan Vasey / Lucy Williams

Tel: +44 (0) 20 7469 0930

 

Vigo Consulting (Investor Relations)

Ben Simons / Tara Benniman

Tel: +44 (0)20 7390 0234

 

About East Star Resources Plc

 

East Star Resources is focused on the discovery and development of gold, rare
earth, and copper deposits in Kazakhstan. With an initial seven licences
covering 1,694 sq km in three mineral rich districts, East Star is undertaking
an intensive exploration programme, applying modern geophysics to discover
minerals in levels that were not previously explored. The Company also intends
to further expand its licence portfolio in Kazakhstan. East Star's management
are based permanently on the ground, supported by local expertise, and joint
ventures with the state mining company.

Follow us on social media:

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

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

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

Competent Persons Statement

Information and data presented within this announcement has been compiled by
Mr Azamat Bizhanov, a Member of the Australian Institute of Geoscientists
("MAIG"). Mr Bizhanov is the Exploration Manager for East Star Resources Plc
and has sufficient experience, which is relevant to the style of
mineralisation, deposit type and to the activity which he is undertaking to
qualify as a Competent Person defined by the 2012 Edition of the Australasian
Code for Reporting Exploration Results, Mineral Resources and Ore Reserves
(the "JORC" Code). This includes 10 years of Mining, Resource Estimation and
Exploration relevant to the style of mineralisation.

 

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