REG - Empire Metals Ltd - Extensive Kaolin Mineralisation Identified

Empire MetalsAnnouncement

27/02/2023 07:00

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RNS Number : 0605R  Empire Metals Limited  27 February 2023

Empire Metals Limited / LON: EEE / Sector: Natural Resources

 

27 February 2023

 

Empire Metals Limited

("Empire" or "the Company")

 

Extensive Kaolin Mineralisation Identified at Eclipse-Gindalbie

 

Empire Metals Limited (LON: EEE), the AIM-quoted resource exploration and
development company, is pleased to provide an update on the reverse
circulation ('RC') drilling programme recently completed at the
Eclipse-Gindalbie Project (the 'Project'), located in Western Australia. A
campaign consisting of nine RC drill holes for 770m was completed in January,
targeting both kaolin and high-grade gold mineralisation around the historical
South Gippsland #3 mine, which to date has been under-explored.

 

Highlights

·    Seven holes were drilled for kaolin with three reporting the
following significant white kaolin intercepts:

o  40m at 21.12% Al(2)O(3) from 8m to 48m downhole (23GPRC_005);

o  12m at 20.87% Al(2)O(3) from 4m to 16m downhole (23GPRC_003);

o  22m at 21.47% Al(2)O(3) from 18m to 40m downhole (23GPRC_003);

o  11m at 20.80% Al(2)O(3) from 13m to 24m downhole (23GPRC_006).

·    Kaolin is used extensively in a number of industries including paper,
plastics, adhesives, rubber, paint, refractories, cement, bricks and ceramics,
and is considered to be a desirable feedstock for the production of
high-purity aluminium oxide ('alumina') which is an essential component in
lithium-ion batteries.

·    Of the two holes drilled for gold mineralisation, one reported the
following significant intercepts:

o  1.5m at 5.04 g/t Au from 47m to 48.5m downhole (23GPRC_009);

o  1.5m at 1.73 g/t Au from 49.5m to 51m downhole (23GPRC_009).

 

Shaun Bunn, Managing Director, said: "Whilst our focus remains on our
potential "Giant" copper project at Pitfield with planning for the maiden
drill programme receiving the upmost priority, these recent drill results from
Gindalbie are nonetheless highly encouraging, having returned multiple
significant intercepts of white kaolin from our initial targeted area, just
west of the historical South Gippsland #3 mine.  Further test work on the
kaolin samples collected from this drill programme is required to ascertain
the likely kaolin yield and brightness, two key factors in determining the
quality of any potential deposit. We expect this metallurgical evaluation to
commence in the next few weeks."

 

"In addition to the kaolin intercepts encountered, one of the test holes
adjacent to the South Gippsland #3 shaft has returned high gold values.  This
drill hole encountered a small stope between 48.5m and 49.5m where the
high-grade gold vein had previously been  mined.  Further drilling along
strike of this intercept is warranted to test the extent of this high-grade
gold shoot."

 

RC Drilling Campaign at Eclipse-Gindalbie

The Eclipse-Gindalbie Gold Project consists of two adjacent mining leases,
located near the historic gold mining town of Gindalbie, situated 55km
north-east of Kalgoorlie.

 

Empire holds a 75% interest in the 306ha Eclipse mining lease (M27/153), which
contains the Eclipse and Jack's Dream historical gold mine workings. In
February 2022 Empire entered into a Tribute Agreement that gives Empire the
exclusive right to explore, develop and mine within a granted area on Maher
Mining's 100% owned mining lease M27/158 ('Gindalbie'), which sits adjacent to
the eastern border of the Eclipse licence area and extends the current area
for exploration targets by 643ha to a total of 943ha.

 

Following on from successful drilling campaigns in February 2022 and June
2022, targeting historical gold workings within the Gindalbie licence area,
the Company decided to carry out a small RC campaign consisting of nine RC
drill holes for 770m. This drilling focused around the historical South
Gippsland #3 mine where previous drilling in February 2022 by the Company
found evidence of kaolinite-rich clays within the intensely leached upper part
of the weathering profile (Figure 1).

Figure 1:  Collar positions and drill hole details in proximity to historical
workings of the South Gippsland # 3 Shaft. Note the red circled 2022 drill
collars where kaolin was previously encountered.

Kaolin

Kaolinite is a nearly white to white, very fine-grained clay mineral, with the
chemical composition Al(2)Si(2)O(5)(OH)(4). Rocks that are rich in kaolinite
are known as kaolin or "china clay". Kaolin is used in various industrial
applications, from the manufacture of paper (its use provides the gloss on
some grades of coated paper) to ceramics (it is the main component of
porcelain). In recent years kaolin has been considered as a feedstock for the
production of High Purity Alumina (HPA), an essential component in the
manufacture of lithium-ion batteries.

 

The Company decided to drill to test the extent and quality of the kaolin
found at the project  and to determine what association it may have with the
adjacent high-grade South Gippsland #3 gold mine. If found in enough
quantities and quality, kaolin, has the potential to add significant value to
the Eclipse-Gindalbie Gold Project.

 

The kaolin present in the area around the South Gippsland #3 shaft is
"saprolitic" kaolin, derived from the surficial weathering of felsic or
metamorphic rocks. Felsic volcanic rocks have been mapped in the licence area
by the Geological Survey of Western Australia (1:100 000 Gindalbie map, plate
3237), and have been identified through mapping, drilling and ground magnetic
survey interpretation carried out by Touchstone Geophysics on the adjacent
Eclipse tenement, in the vicinity of the Houdini prospect.

 

Figure 2:  Regional geology with respect to the Eclipse-Gindalbie Project

No fresh rock was intersected during this drilling campaign. There were
strongly weathered, fine grained, foliated saprock chips intersected deeper in
the holes which are likely to be of the locally dominant intermediate
volcanoclastic rocks frequently intersected across the tenements.

 

Of the seven RC holes drilled for kaolin, four returned significant intercepts
of white kaolin (Table 1).  These four RC holes also encountered orange to
red coloured saprolitic clays sitting immediately below the white kaolin. The
remaining three RC holes were drilled through predominantly orange to red
coloured saprolitic clays on the periphery of the white kaolin intercept.
 Whilst the Al(2)O(3) enrichment observed in the kaolin continued into the
saprolitic clays the saprolitic clays reported elevated levels of Fe(2)O(3)
which displaces the Al(2)O(3) and accounts for the distinctive change in
colour from white to orange to red.

 

Table 1: Significant kaolin intercepts using a cut-off grade of 18% Al(2)O(3)
and colour (white to off-white cream).

 Hole ID     From (m)  To (m)  Width (m)  Al(2)O(3)  Comments

                                          (%)*
 23GPRC_001  29        31      2          20.50      Only 2m white clays (kaolin intersected), the rest of the intersection is
                                                     orange saprolitic clays
 23GPRC_002                                          No significant kaolin intersection, Al(2)O(3) enrichment throughout saprolitic
                                                     clays
 23GPRC_003  4         16      12         20.87      High QV content in from 2m to 24m
             18        40      22         21.47      Al(2)O(3) enrichment continues into light orange saprolitic clays
 inc         28        36      8          22.20
 23GPRC_004  23        32      9          22.08      Al(2)O(3) enrichment continues into red saprolitic clays
 inc         28        32      4          23.26
 23GPRC_005  8         48      40         21.12      Al(2)O(3) enrichment continues into orange coloured saprolitic clays
 inc         31        38      7          23.23
 23GPRC_006  10        12      2          19.44
             13        24      11         20.80      Al(2)O(3) enrichment continues into light coloured saprolitic clays
 23GPRC_007                                          No significant kaolin intersection, Al(2)O(3) enrichment continues into
                                                     saprolitic clays

*Weighted average

 

 

The colour difference between the kaolin and the saprolitic clays is very
distinctive, as illustrated in Figure 3 below. Kaolin was intersected from 2m
to 48 in GPRC23_005, however significant narrow quartz veining throughout the
kaolin horizon resulted in above cut-off Al(2)O(3) content only being
intersected from 8m.

Figure 3.  Kaolin intersected in GPRC23_005.

 

 

 

 

 

 

Figure 4. Section of GPRC23_003, GPRC23_004 and GPRC23_005 showing Al(2)O(3)
content, both within the kaolin zone and the underlying saprolitic clays.

 

Figure 5. Section of GPRC23_006 and GPRC23_007 showing Al(2)O(3) content, both
within the kaolin zone and the underlying saprolitic clays.

 

Of the two RC holes drilled for gold mineralisation adjacent to the South
Gippsland #3 mine, one reported the following significant intercepts.

 

Table 2: Significant gold intercepts at a downhole cut-off grade of >0.3g/t
Au and >1g Au*m intervals

 Hole ID     From (m)  To    Width (m)  Au      Comments

                       (m)              (g/t)
 GPRC23_009  47        48.5  1.5        5.04    Supergene enrichment adjacent to stopes
 GPRC23_009  49.5      51    1.5        1.73    Supergene enrichment adjacent to stopes

 

The drilling encountered a narrow stope between 48.5m and 49.5 m downhole.

 

Figure 6 shows the lack of quartz veining and alteration in the auriferous
intervals intersected in GPRC23_009. Mineralisation is likely to be attributed
to supergene enrichment into the transitional horizon prior to the primary
quartz lode being mined out.

Figure 6.  Stoping intersected in GPRC23_009. Mineralisation is likely to be
attributed to supergene enrichment into the transitional horizon.

 

Sampling and Analysis

 

For the drill holes targeting kaolin, spear-generated 4m composites, and where
appropriate 1m single splits, were submitted for analysis. 1m splits were
selected based on their colour (degree of whiteness). Samples were selected up
to 60m, after that the regional proximity saprock led to the material becoming
unfavourable to sample. The samples were delivered by the geological crew to
Intertek Kalgoorlie. The samples were crushed and pulverised and  then
analysed by XRF using a Li borate fusion XRF. Samples were assayed for
Al(2)O(3), SiO(2), CaO, Cr(2)O(3), Fe(2)O(3), K(2)O, MgO, MnO, Na(2)O,
P(2)O(5), SO(3), and TiO(2). No size differentiation or processing was
completed prior to analysis.

 

For the drill holes targeting gold mineralisation, spear-generated 4m
composites were submitted as a first round pass.  The samples were delivered
by the geological crew to Intertek Kalgoorlie. The samples were crushed and
pulverised to at least 85% passing -75µm before being  analysed by Fire
Assay (50 gram charge) with an AAS finish. The lowest limit of detection being
0.005g/t Au.

 

The trigger for collecting further 1m re-splits was if gold concentration in
the composite samples exceeded 0.2 g/t Au. The single split samples were then
collected and delivered by the geological crew to ALS Kalgoorlie for priority
processing.  Samples were crushed and pulverised to at least 85% passing
-75µm. They were then analysed by Fire Assay (50 gram charge) with an AAS
finish.  The lowest limit of detection being 0.05g/t Au.

 

Future Work

 

The next phase of the exploration programme will focus on the metallurgical
quality of the white kaolin samples collected from this drill programme.
Test work is required to ascertain the size distribution of the samples, with
the clean kaolin generally reporting to the <45 micron fraction (referred
to as the "yield"). The fine kaolin is then tested to establish a brightness
factor. Brightness refers to the percentage of blue light reflected from the
clay surface at a specific, effective wavelength of 457.  Yield and
brightness, along with the iron content, are the key factors in determining
the quality of any potential deposit.

 

Should the white kaolin achieve acceptable levels of yield and brightness then
a further drilling program, utilising air-core (AC) drill rigs over a broader
target area, is warranted to delineate the extent of this white kaolin zone.

 

Competent Person Statement

The technical information in this report that relates to the Eclipse-Gindalbie
Project has been compiled by Ms Louisa Stokes, an employee of Eclipse
Exploration Pty Ltd, a wholly owned subsidiary of Empire. Ms Stokes is a
Member of the Australian Institute of Mining and Metallurgy. Ms Stokes is
employed in the role of Exploration Geologist and has assisting with the
exploration activities for the Eclipse-Gindalbie project areas. Ms Stokes has
sufficient experience that is relevant to the style of mineralisation and type
of deposit under consideration and to the activity being undertaken to qualify
as a Competent Person as defined in the 2012 Edition of the 'Australasian Code
for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Ms
Stokes consents to the inclusion in this release of the matters based on her
information in the form and context in which it appears.

 

 

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed
inside information for the purposes of Article 7 of Regulation (EU) No
596/2014, as incorporated into UK law by the European Union (Withdrawal) Act
2018, until the release of this announcement.

 

**ENDS**

 

For further information please visit www.empiremetals.co.uk
(http://www.empiremetals.co.uk)   or contact:

 Empire Metals Ltd                                                                       Tel: 020 7907 9327

 Shaun Bunn / Greg Kuenzel
 S. P. Angel Corporate Finance LLP (Nomad & Broker)                                      Tel: 020 3470 0470

 Ewan Leggat / Adam Cowl
 Shard Capital Partners LLP (Joint Broker)                                               Tel: 020 7186 9950

 Damon Heath
 St Brides Partners Ltd (Financial                                                       Tel: 020 7236 1177
 PR)

 Susie Geliher / Ana Ribeiro / Max Bennett

 

 

 

About Empire Metals Limited
Empire Metals is an AIM-listed (LON: EEE) exploration and resource development company with a project portfolio comprising gold interests in Australia and Austria.

 

The Company's strategy is to develop a pipeline of projects at different stages in the development curve. Its initial focus has been on the high-grade Eclipse and Gindalbie Gold Projects in Western Australia.  The Company expanded its exploration licence area in April 2022 from 9.5km(2) to 1,728km(2) with the acquisition of the Pitfield Copper-Gold Project and the Walton Copper-Gold Project in Western Australia, and the Stavely Copper-Gold Project in the Stavely Arc region of Victoria.

 

Empire also holds a portfolio of three precious metals projects located in a historically high-grade gold production region comprising the Rotgulden, Schonberg and Walchen prospects in central-southern Austria.

 

The Board continues to evaluate opportunities through which to realise the
value of its wider portfolio and reviews further assets which meet the
Company's investment criteria.

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