REG - East Star Resources - Verkhuba Copper Deposit Drill Results Update
12/12/2023 07:00
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RNS Number : 4040W East Star Resources PLC 12 December 2023
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
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12 December 2023
East Star Resources Plc
("East Star" or the "Company")
Verkhuba Copper Deposit Drill Results Update
Open pit potential confirmed
East Star Resources Plc (LSE:EST), which is defining mineral resources in
Kazakhstan for the energy revolution, is very pleased to provide an update on
the assays from drilling at the Verkhuba Copper Deposit on the Rudny Altai
volcanogenic massive sulfide ("VMS") belt, which confirm the potential for
resource development by way of open pit mining.
Highlights:
· 92.5m of mineralisation recorded above a cut-off grade of 0.38% copper
equivalent (CuEq being Cu, Pb, Zn and Ag)
· Thick and high-grade intersections within the conceptual open pit shell
modelled by independent consultants including:
· VU_23_DD_001
· 2.9m @ 2.07% CuEq from 19.4m
· 15.0m @ 1.56% CuEq from 27.4m (including 10m @ 2% CuEq from 30.4m)
VU_23_DD_002
· 11.8m @ 1.41% CuEq from 171.0m
· 10.3m @ 1.77% CuEq from 186.8m
VU_23_DD_003
· 2.4m @ 2.45% CuEq from 74.0m
· 5.0m @ 0.86% CuEq from 101.4m
VU_23_DD_004
· 10.7m @ 0.79% CuEq from 55.8m (including 4.4m @ 1.26% CuEq from
55.8m, and 0.5m @ 2.71% CuEq from 62.0m)
VU_23_DD_005
· 8.0m @ 0.55% CuEq from 225.7m
· High-grade mineralised zones match well with high-grade zones identified in
>42,000m of historical drilling
· Extensive previously unidentified lower-grade mineralised envelopes around
higher-grade intersections
· Predominantly copper mineralisation with up to 6.6% zinc identified in some
intersections
· Gold offers potential for additional upside once assays are complete
Alex Walker, East Star CEO, commented:
"We are delighted with the results of high-grade assays from our recent
Verkhuba drilling campaign. We can now definitively demonstrate that the
Verkhuba Deposit has multiple copper-rich ore grade intervals at mineable
depths. Grades are relatively consistent with the 1.4 - 1.8% copper grade
range derived from the 5-6Mt open-pit resource calculated from the independent
resource model. This gives confidence in the accuracy of the more than 42,000m
of historical drilling used in calculating our JORC-compliant exploration
target. Additional ore lenses and lower grade halos not reported in historical
drilling, and therefore not a part of the existing resource model, should
increase the total tonnes of ore expected in future resource models.
The vast majority of the ore is copper; however, it is good to see zinc as
well as silver in intersections. Silver grades, not included in the previous
resource model, indicate the potential for gold credits that could further
improve the project's economics - which are already compelling given existing
regional infrastructure.
Kazakhstan continues to be a fantastic jurisdiction for resource exploration,
with strong support for new projects being demonstrated at the federal and
local levels. There's a lot to be excited about in East Star's future."
Next Steps
The Company is in the process remodelling the historical drilling and will
undertake a geostatistical analysis of the results against the historical
results to understand what additional work is required to progress Verkhuba to
a JORC-compliant resource.
This remodelling is expected to be undertaken over the holiday period with an
updated resources model expected in early 2024. The updated model will also
inform the follow up drill programme which will be planned with the purpose of
progressing the open pit development concept through to a stage where economic
feasibility can be demonstrated, and a mining licence application can begin.
East Star's geological team has also been undertaking additional desktop work
on targets within the existing licences in the Rudny Altai belt. Field work
will commence as soon as possible in 2024 to advance these exciting targets to
drill ready status.
Notes
CuEq grades are calculated using the below metal prices and recoveries:
Cu Pb Zn Ag
Price ($) 8430.5/t 2275.0/t 2563.5/t 23.78oz
Recovery 1 0.7 0.7 0.5
All intersections above 0.38% CuEq cut-off are listed in Annex A.
Drilling within the Verkhuba Deposit totalled 1,084.1m. The drill programme
was lower than the originally intended 3,000m as the Company believed the
potential to achieve a sufficient comparison to the historical drill results,
specific to the most likely development option, being the primary open pit,
could be achieved from fewer drill metres and therefore decided to conserve
capital until the comparison is complete and an updated resource model can be
produced to better inform the next drill programme.
Laboratory Process
Samples were prepared by ALS in Ust-Kamenogorsk and then sent to ALS in
Karaganda (the "Lab") to initially undergo assay by ICP Aqua Regia (AR) digest
(ME-ICP41). 23 blanks, 20 certified reference materials (CRM), and 21
duplicates were inserted into the batch of 388 samples from the core. A
statistical analysis of the results confirmed blanks and standards were within
acceptable error limits. In 62 samples from the batch, copper or zinc grades
were above the upper detection limit of the method (10,000 ppm).
ICP 4 acid digest with a higher upper detection limit (ME-OG62) was then
applied to the 62 samples sent for re-assay for copper and zinc. 3 blanks, 3
CRM, and 3 duplicates were inserted into the batch. 1 CRM within this batch
failed, being more than 3 standard deviations from the certified copper and
zinc content. 10 samples and the failed CRM were then re-assayed by the Lab.
Re-assay results were within expected range with regards to the CRM and are
considered accurate, however, in 9 of the 10 samples, reported copper grades
were up to 10% higher than in the original assays reported by ALS. The Company
is discussing with the Lab the processes and potential for a re-assay of the
62 high-grade samples to ensure the most precise measurements are used for
future resource calculations.
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 an initial nine licences
covering 1,321.5 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.
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)
Subscribe to our email alert service to be notified whenever East Star
releases news:
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The person who arranged for the release of this announcement was Alex Walker,
CEO of the Company.
Competent Persons Statement
The information in this release that relates to Exploration Results has been
reviewed by Mr Mikhail Tsypukov. Mr Tsypukov is a Fellow of the Institute of
Materials, Minerals and Mining (FIMMM, Reg. No 459707). He has a PhD in
geology from A.P. Vinogradov Institute of Geochemistry Siberian Branch Russian
Academy of Sciences with over 30 years of experience of gold and base metal
exploration in Russia, Kazakhstan, Mongolia, Rwanda and Islamic Republic of
Mauritania.
Mr Tsypukov has sufficient experience that is relevant to the style of
mineralisation and type of deposit under consideration and the activity being
undertaken to qualify as a Competent Person as defined in 2012 Edition of the
"Australasian Code for Reporting of Exploration targets, Exploration Results,
Mineral Resources and Ore Reserves", also known as the JORC code. The JORC
code is a national reporting organisation that is aligned with CRIRSCO. Mr
Tsypukov consents to the inclusion in the announcement of the matters based on
his information in the form and context in which they appear.
Annex A - Drill Results Table
Drill Hole From (m) To (m) Length (m) Cu Pb Zn Ag CuEq CuEq
% % % ppm with recovery
VU_23_DD_001 19.4 20.6 1.2 3.23 0.02 0.14 24.4 3.28 3.27
VU_23_DD_001 20.6 21.5 0.9 1.77 0.04 0.06 10.6 1.79 1.78
VU_23_DD_001 21.5 22.3 0.8 0.60 0.02 0.09 15.2 0.63 0.62
VU_23_DD_001 27.4 28.4 1 1.86 0.01 0.16 6.3 1.91 1.89
VU_23_DD_001 29.4 30.4 1 0.57 0.01 0.17 3.9 0.63 0.61
VU_23_DD_001 30.4 31.9 1.5 1.06 0.01 0.16 1 1.11 1.10
VU_23_DD_001 31.9 32.8 0.9 0.92 0.04 0.12 3.7 0.97 0.95
VU_23_DD_001 32.8 33.3 0.5 2.57 0.06 0.07 11.8 2.61 2.60
VU_23_DD_001 33.3 34.3 1 2.03 0.02 2.03 10 2.65 2.47
VU_23_DD_001 34.3 35.3 1 1.43 0.01 0.05 7.6 1.45 1.44
VU_23_DD_001 35.3 36.4 1.1 1.74 0.00 0.04 6 1.75 1.74
VU_23_DD_001 36.4 37.4 1 4.34 0.08 0.32 23.8 4.46 4.43
VU_23_DD_001 37.4 38.4 1 1.07 0.02 0.07 5.3 1.09 1.08
VU_23_DD_001 38.4 39.4 1 2.54 0.02 0.18 10.6 2.60 2.58
VU_23_DD_001 39.4 40.4 1 1.41 0.01 0.08 4.9 1.43 1.42
VU_23_DD_001 41.4 42.4 1 0.45 0.00 0.02 1.5 0.45 0.45
VU_23_DD_001 48.9 49.7 0.8 1.50 0.00 0.02 4.2 1.50 1.50
VU_23_DD_001 52.7 54.2 1.5 0.72 0.00 0.02 2.6 0.73 0.73
VU_23_DD_001 56.4 56.9 0.5 0.77 0.00 0.02 1.8 0.78 0.78
VU_23_DD_001 56.9 57.6 0.7 0.61 0.00 0.02 2 0.62 0.62
VU_23_DD_001 57.6 58.6 1 2.35 0.00 0.04 7.8 2.36 2.36
VU_23_DD_001 58.6 59.6 1 0.75 0.00 0.04 2.9 0.76 0.75
VU_23_DD_001 59.6 60.6 1 0.98 0.01 0.04 4.6 0.99 0.99
VU_23_DD_001 60.6 61.6 1 0.63 0.02 0.11 4.2 0.67 0.66
VU_23_DD_001 61.6 62.6 1 0.93 0.01 0.12 6.6 0.97 0.96
VU_23_DD_001 64.6 65.6 1 0.36 0.00 0.25 1.7 0.43 0.41
VU_23_DD_001 65.6 67.6 2 0.66 0.00 0.03 1.6 0.67 0.67
VU_23_DD_001 68.6 69.1 0.5 2.13 0.00 0.07 7.9 2.15 2.15
VU_23_DD_001 88.3 88.9 0.6 2.50 0.01 0.05 6.5 2.52 2.51
VU_23_DD_001 88.9 89.5 0.6 2.39 0.00 0.03 5.8 2.40 2.40
VU_23_DD_002 105.1 106 0.9 0.42 0.00 0.01 0.9 0.42 0.42
VU_23_DD_002 162.7 163.7 1 0.45 0.00 0.02 2.5 0.45 0.45
VU_23_DD_002 163.7 164.7 1 1.15 0.00 0.04 4.8 1.16 1.16
VU_23_DD_002 166.7 167.4 0.7 1.67 0.01 0.12 9.4 1.71 1.69
VU_23_DD_002 171 172 1 0.42 0.00 0.02 1.6 0.43 0.43
VU_23_DD_002 172 173 1 0.30 0.00 6.60 2.7 2.30 1.70
VU_23_DD_002 173 174 1 0.25 0.00 6.17 3.7 2.13 1.57
VU_23_DD_002 174 175 1 1.80 0.00 3.14 7.1 2.75 2.46
VU_23_DD_002 175 175.7 0.7 0.67 0.00 0.04 2.3 0.69 0.68
VU_23_DD_002 176.4 176.9 0.5 1.02 0.00 2.16 10.7 1.67 1.48
VU_23_DD_002 176.9 177.5 0.6 1.73 0.00 3.27 16 2.73 2.43
VU_23_DD_002 177.5 178.1 0.6 0.63 0.02 2.48 20.1 1.39 1.16
VU_23_DD_002 178.1 178.7 0.6 0.44 0.00 1.64 9.3 0.94 0.79
VU_23_DD_002 178.7 179.5 0.8 0.50 0.01 1.98 14.8 1.11 0.92
VU_23_DD_002 179.5 180.1 0.6 0.35 0.00 0.29 6.4 0.44 0.41
VU_23_DD_002 180.1 180.6 0.5 1.65 0.00 1.67 19.6 2.16 2.00
VU_23_DD_002 180.6 181.2 0.6 3.07 0.01 3.98 33.9 4.28 3.92
VU_23_DD_002 181.2 181.8 0.6 1.01 0.00 0.11 4 1.05 1.03
VU_23_DD_002 181.8 182.8 1 0.87 0.00 0.02 1.4 0.88 0.88
VU_23_DD_002 186.8 187.8 1 2.07 0.00 0.39 3.1 2.19 2.15
VU_23_DD_002 187.8 188.4 0.6 3.93 0.00 3.47 10.2 4.99 4.67
VU_23_DD_002 188.4 189.2 0.8 1.68 0.00 1.44 5.9 2.11 1.98
VU_23_DD_002 189.2 189.7 0.5 1.04 0.00 6.19 8.2 2.92 2.35
VU_23_DD_002 189.7 190.2 0.5 0.25 0.00 4.79 2.2 1.71 1.27
VU_23_DD_002 190.2 190.8 0.6 2.69 0.00 5.78 9.5 4.45 3.92
VU_23_DD_002 191.8 192.3 0.5 0.89 0.00 1.57 5.8 1.36 1.22
VU_23_DD_002 192.3 193 0.7 0.45 0.00 3.06 4 1.39 1.11
VU_23_DD_002 193 193.8 0.8 0.65 0.00 4.12 7.1 1.90 1.52
VU_23_DD_002 193.8 194.4 0.6 0.14 0.00 4.44 1.6 1.49 1.08
VU_23_DD_002 194.4 195.1 0.7 1.17 0.00 2.41 4 1.90 1.68
VU_23_DD_002 195.1 196.1 1 0.79 0.00 0.53 1.7 0.95 0.90
VU_23_DD_002 196.1 197.1 1 0.59 0.00 0.75 1 0.82 0.75
VU_23_DD_002 250.6 251.3 0.7 0.69 0.00 5.13 4.6 2.25 1.78
VU_23_DD_002 251.3 251.9 0.6 0.39 0.00 5.60 4.8 2.10 1.58
VU_23_DD_003 74 74.8 0.8 3.28 0.01 0.04 8.4 3.29 3.29
VU_23_DD_003 75.4 76.4 1 3.13 0.00 0.07 8.1 3.15 3.15
VU_23_DD_003 77.9 78.7 0.8 0.56 0.00 0.02 1.7 0.57 0.56
VU_23_DD_003 81.6 82.6 1 0.91 0.00 0.04 5 0.92 0.91
VU_23_DD_003 89.2 90.2 1 0.49 0.00 0.04 2.6 0.50 0.50
VU_23_DD_003 101.4 102.4 1 1.86 0.00 0.03 4.2 1.87 1.87
VU_23_DD_003 102.4 103.4 1 0.91 0.00 0.02 2 0.91 0.91
VU_23_DD_003 103.4 104.4 1 0.79 0.00 0.02 1.8 0.79 0.79
VU_23_DD_003 105.4 106.4 1 0.41 0.00 0.02 0.5 0.42 0.42
VU_23_DD_003 113.8 114.8 1 0.81 0.00 0.03 3.2 0.82 0.82
VU_23_DD_003 114.8 115.8 1 0.61 0.00 0.04 2.7 0.62 0.61
VU_23_DD_003 115.8 116.8 1 0.22 0.00 1.38 1.7 0.64 0.51
VU_23_DD_003 116.8 117.4 0.6 0.34 0.00 1.71 1.7 0.85 0.70
VU_23_DD_003 129.9 130.6 0.7 2.17 0.00 0.03 3.6 2.18 2.18
VU_23_DD_003 160.8 161.6 0.8 4.99 0.00 2.80 16.7 5.84 5.59
VU_23_DD_004 52.2 52.7 0.5 0.77 0.00 0.02 2.2 0.77 0.77
VU_23_DD_004 55.8 56.8 1 1.17 0.00 0.05 3.4 1.19 1.18
VU_23_DD_004 56.8 57.8 1 1.11 0.00 0.03 2.4 1.12 1.12
VU_23_DD_004 57.8 58.8 1 2.12 0.00 0.05 6.5 2.14 2.13
VU_23_DD_004 59.5 60.2 0.7 1.23 0.00 0.05 3.9 1.25 1.24
VU_23_DD_004 62 62.5 0.5 2.70 0.00 0.04 8.7 2.71 2.71
VU_23_DD_004 64.5 65.5 1 0.65 0.00 0.04 3.2 0.66 0.66
VU_23_DD_004 65.5 66.5 1 0.48 0.00 0.40 2.5 0.60 0.56
VU_23_DD_004 70.5 71.5 1 0.56 0.00 0.49 2.7 0.71 0.66
VU_23_DD_004 74.5 75.5 1 0.18 0.00 1.26 1.5 0.56 0.44
VU_23_DD_004 75.5 76.5 1 0.47 0.00 0.03 1.7 0.48 0.47
VU_23_DD_004 77.5 78.5 1 0.69 0.00 0.13 3 0.73 0.72
VU_23_DD_004 83.5 84 0.5 0.47 0.00 0.03 1.3 0.47 0.47
VU_23_DD_004 85.3 85.8 0.5 0.47 0.00 0.03 1.2 0.48 0.48
VU_23_DD_004 96.9 98.4 1.5 0.45 0.00 0.07 1.2 0.48 0.47
VU_23_DD_005 66.6 67.1 0.5 0.85 0.00 0.01 2.2 0.85 0.85
VU_23_DD_005 76.5 77 0.5 0.68 0.00 0.03 3.1 0.69 0.69
VU_23_DD_005 88.5 89.2 0.7 0.84 0.00 0.02 3.4 0.84 0.84
VU_23_DD_005 114.4 115 0.6 0.96 0.00 0.03 20.1 0.97 0.97
VU_23_DD_005 136.2 137.2 1 0.41 0.00 0.02 1.1 0.41 0.41
VU_23_DD_005 137.2 138 0.8 0.58 0.00 0.02 1.2 0.59 0.59
VU_23_DD_005 147.9 148.4 0.5 1.01 0.00 0.04 1.8 1.02 1.01
VU_23_DD_005 225.7 226.7 1 0.40 0.00 0.01 1.4 0.40 0.40
VU_23_DD_005 228.5 229.5 1 0.66 0.00 0.01 1.8 0.67 0.66
VU_23_DD_005 230.2 230.8 0.6 0.60 0.00 0.02 1.4 0.60 0.60
VU_23_DD_005 230.8 231.8 1 1.07 0.00 0.03 3.5 1.08 1.08
VU_23_DD_005 232.8 233.7 0.9 0.88 0.00 1.83 3.3 1.44 1.27
VU_23_DD_005 276.2 276.7 0.5 0.58 0.00 0.02 1.3 0.59 0.59
VU_23_DD_005 278.6 279.1 0.5 0.82 0.00 0.01 2.5 0.83 0.82
VU_23_DD_005 280.3 280.8 0.5 0.63 0.00 0.02 1 0.64 0.64
VU_23_DD_005 290.8 291.4 0.6 0.65 0.00 0.02 1.7 0.66 0.66
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