REG - Empire Metals Ltd - High-Grade TiO2 Over Entire 40km System - Pitfield

Empire MetalsAnnouncement

03/07/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230703:nRSC6465Ea&default-theme=true

RNS Number : 6465E  Empire Metals Limited  03 July 2023

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

 

3 July 2023

Empire Metals Limited

("Empire" or "the Company")

 

High-Grade Titanium Footprint Extends Over Entire 40km Long Mineral System at
Pitfield

 

Empire Metals Limited (LON: EEE), the AIM-quoted resource exploration and
development company, is pleased to provide an update on the high-grade
titanium discovery at the Pitfield Project ('Pitfield'), located in Western
Australia, where our maiden, reconnaissance drilling programme confirmed
extensive, titanium-rich minerals associated with the 40km by 8km magnetics
anomaly defined by aeromagnetic data (announced 21 September 2022). Titanium
minerals are highly valued as a source for titanium oxide ("TiO(2)"), a high
growth commodity that is included on critical mineral lists globally.

 

Highlights

·    A detailed review of the historical geochemical data has confirmed
TiO(2) enrichment (greater than 1% TiO(2)) over virtually the entire 40km
length of the magnetics anomaly.

·    Area of high-grade TiO(2) mineralisation confirmed in the immediate
vicinity of Mt Scratch extended from ~3km(2) to more than 50km(2) with an
additional, similarly high-grade area (~50km(2)) confirmed east of the
historical Baxter's Mine, ~20km south of Mt Scratch.

·    These large TiO(2) enriched areas are both completely open to other
parts of the 40km by 8km magnetics anomaly.

·    Based on the scale of this find, Pitfield has the potential to be one
of the largest primary titanium mineral sources discovered globally.

·    Less than 2% of the regional magnetics anomaly drilled to date -
drilling has confirmed consistently high TiO(2) grades over thick intervals at
or very near surface (with many holes ending in high grade TiO(2)
mineralisation down to ~150m).

·    Planning underway for a second drilling campaign, including
additional reverse circulation ('RC') and first diamond core drilling to
follow up previous thick intersections, which included 152m at 4.4% TiO(2) and
120m at 4.72% TiO(2) (refer Table 1) and to provide first drill tests of other
target zones along the length of this regional TiO(2) enriched trend.

·    First petrographic/mineralogical and TiO(2) specific geochemical
study results expected shortly to define nature of mineralisation, including
mineralogical residence of TiO(2).

·    Titanium is on the "critical mineral list" in many countries
including the United States, the European Union, Japan and Australia.

·    The Company remains well funded for its next phase of exploration
with cash of ~£1.8m as reported on 19 June 2023.

Shaun Bunn, Managing Director, said: "In the past few weeks since verifying
this discovery, a detailed compilation and integration of all available
historical information on the project area has been carried out with a focus
on titanium. What can be clearly evidenced from both the historical surface
sampling and our recent geophysical surveys and drilling campaign is the
enormous scale of the discovery, extending the full 40km length of this
regional magnetics anomaly which has been the focus of our exploration
activities to date.

 

"We are extremely excited by the economic potential of this discovery and are
100% focused on building on our initial success through further drilling to
confirm the extent of this giant TiO(2) enriched mineral system. With cash at
bank of £1.8 million, as reported on 19 June 2023, we are well-funded to
continue our value-add, exploration work at Pitfield into the coming months."

 

The Pitfield Project

Empire holds a 70% interest in Pitfield which is comprised of four granted
Exploration Licences (E70/5465, E70/5876, E70/6320 and E70/6323) covering
1,042km(2). Pitfield is located near Three Springs, a town 313km north of
Perth, Western Australia on the Midlands Road, which until the opening of the
Brand Highway in 1975 was the main road route from Perth to the state's north
(refer Figure 1).

Figure 1.              Pitfield Project Location showing the
scale of the hydrothermally altered, magnetics anomaly.

Regional gravity and magnetics surveys, carried out historically by the
Geological Survey of Western Australia (GSWA), had indicated a strong,
extensive geophysical anomaly within the Yandanooka Basin. The airborne
magnetics (AM) and airborne electromagnetics (AEM) surveys undertaken by
Empire (announced 21 September 2022) confirmed a massive alteration footprint
with coincident gravity, magnetic and electromagnetic anomalies extending over
a 40km north-south distance (Figure 1).

The maiden, reconnaissance drilling campaign (announced 30 May 2023) was
focused on areas where Empire had previously identified highly
chargeable-highly resistive anomalies from Induced Polarisation (IP) surveys,
which have now been shown to be associated with iron and titanium oxide
mineralisation of the sandstone-siltstone beds.

TiO(2) Industry and Market

Titanium minerals are highly valued as a source for titanium oxide ("TiO(2)"),
a high growth commodity used primarily as an input into the process of the
manufacture of pigments which are used in the production of paints, paper and
plastics. Titanium as a metal alloy is known for its properties of low density
(light weight), high strength and rust-resistance, making it a key component
for the automotive industry with the rapid growth in demand for light weight,
fuel efficient vehicles.

 

Titanium minerals are regarded as a "critical" resource and titanium is on the
strategic "critical minerals list" in many countries including the United
States, the European Union, Japan and Australia.

 

Surface Sampling and Geochemical Mapping

The favourable geology of the Yandanooka Basin for large-scale copper deposits
has previously attracted major mining companies which carried out exploration
within the area, including: Kennecott Corporation ("Kennecott"), MIM Holdings
("MIM"), BHP Group Limited ("BHP") and Conzinc Riotinto of Australia ('CRA'),
(now Rio Tinto). Whilst widespread copper anomalism has been identified over
large parts of the Yandanooka Basin by these previous explorers, particularly
in association with magnetite-altered rocks, little information has been
published in relation to elevated values of TiO(2).

 

A review of the CRA sample database, which has now been digitised by Empire,
shows very high levels of TiO(2) (plus 1%) in stream sediment, soil and auger
samples associated with the regional magnetics anomaly, which at the time were
not highlighted by CRA for follow-up drilling, focusing on copper exploration
targets instead.

 

CRA (1992) completed IP geophysics and auger sampling defining a ~50km(2) area
of high TiO(2) values (greater than 1%) and anomalous copper-in-soils, over
what is now identified as the western flank of the magnetics anomaly, and
which remains open to the east and south (Figure 2.).

 

CRA also carried out soil sampling at Mt Scratch towards the north of the
project area which shows a similar area (~50km(2)) of high TiO(2) values and
anomalous copper-in-soils, associated with magnetic sedimentary beds within
the stratigraphy (Figure 2).

 

Figure 2.              CRA Elevated TiO(2) Soil and Auger
Sampling Locations

 

CRA also carried out stream sediment sampling across the Yandanooka Basin,
which also returned multiple high grade TiO(2) values in close proximity to,
and draining from, the topographic high associated with the magnetics anomaly,
which is clearly the source of the heavy, TiO(2) rich minerals (Figure 3).

 

Figure 3.              CRA Elevated TiO(2) Stream Sampling
Locations

 

The stream sampling by CRA shows extensive TiO(2) enrichment across the entire
40km length of the magnetics anomaly, with the majority of the stream sediment
samples assaying above 1% TiO(2), and peaking as high as 8.6% TiO(2).

 

Recent soil sampling carried out by Empire (2022) over parts of the Yandanooka
Basin identified elevated TiO(2) values within the regional magnetics anomaly
when compared to values outside the magnetics anomaly (Figure 4).

 

 

Figure 4.              Empire Elevated TiO(2) Soil Sample and
Drill Collar Locations

 

The extent of the TiO(2) enrichment in the Empire soil sampling is impacted by
the amount of transported surface sediment cover within the area, samples
taken from residual soil are best for identifying prospective areas of TiO(2)
enrichment. For example, the lower TiO(2) values in soil samples taken along
the eastern side of the magnetics anomaly are interpreted to reflect the
extensive presence of transported cover in that area.  Additional IP
surveying and drilling will be required to determine the extent of the TiO(2)
mineralisation along this eastern corridor.

 

With the addition of the geochemical mapping results the exploration target
area for titanium mineralisation in the vicinity of Mt Scratch has been
extended from ~3 km(2) to over 50 km(2) with nearly all the surface soil
samples containing greater than 1% TiO(2).

 

Figure 5.              Mt Scratch area - showing the enlarged
soil sampling

footprint and location of drill hole collars.

 

The recent drilling within the northern part of the regional magnetics
anomaly, near Mt Scratch, identified consistently high TiO(2) grades (between
4% and 10% TiO(2)) over thick intervals (Table 1), starting at or very near
surface and with many of the holes still ending in high TiO(2) values at a
depth of ~150 metres (Figure 6).

Figure 6.              Cross Section showing TiO(2) intercepts
across IP Traverse (PM01 L6753800)

 

Significant Drill Results

 Hole ID     Depth From  Depth To  EOH   Interval  Grade        Target

             (m)         (m)       (m)   (m)       (TiO(2) %)
 RC23MTS001  2           154       196   152       4.40         Mt Scratch
 RC23MTS002  30          150       178   120       4.72         Mt Scratch
 RC23MTS003  92          170       178   78        4.75         Mt Scratch
 RC23MTS004  0           72        178   72        4.82         Mt Scratch
             136         169             33        5.00
 RC23MTS005  0           128       156   128       4.47         Mt Scratch
 RC23MTS006  0           50        160   50        4.25         Mt Scratch
             60          114             54        4.45
 RC23MTS010  0           36        154   36        4.54         Mt Scratch
             96          148             52        4.40
 RC23MTS011  4           20        154   16        4.70         Mt Scratch
             90          148             58        4.30

Table 1.                Significant Intercepts from RC Drilling
across IP Traverse (PM01 L6753800)

with an incremental cut-off grade of >2.5% Ti (>4.17% TiO2 equivalent).

 

Future Work

The maiden drill campaign consisted of only 21 RC drill holes totalling 3,206
metres, with the first 18 holes focused near the old Mt Scratch workings to
the north and the final three holes spread evenly across a 30km distance to
the south. Future drill programmes, including both diamond core and additional
RC drilling, will be carried out along the entire length of the magnetics
anomaly to confirm the scale of this giant, titanium enriched mineral system
and to also understand the distribution of key factors better, such as grade,
mineralogy, thickness and extent of mineralised beds and controls on
high-grade TiO(2) mineralisation.

 

Prior to drilling, in order to gain a better understanding of the nature of
the titanium mineral discovery, we will complete our current
petrographic/mineralogy and geochemistry studies on the RC drill samples
already collected. This, along with a more comprehensive evaluation of the
geophysical data, will provide valuable information related to the formation
of this giant TiO(2) enriched mineral system, as well as provide an indication
of the potential depth extent of the mineral system. An update on the progress
of these studies should be available over the next few weeks.

Considering that only 2% of this highly prospective, giant mineral system has
been drilled to date, there is enormous potential for additional discoveries
to be made through the future drilling campaigns currently being planned.

 

Competent Person Statement

The technical information in this report that relates to the Pitfield Project
has been compiled by Mr Andrew Faragher, an employee of Eclipse Exploration
Pty Ltd, a wholly owned subsidiary of Empire. Mr Faragher is a Member of the
Australian Institute of Mining and Metallurgy. Mr Faragher 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'. Mr
Faragher consents to the inclusion in this release of the matters based on his
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

 Shaun Bunn / Greg Kuenzel                                                               Tel: 020 4583 1440
 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

 

About Empire Metals Limited

Empire Metals is an AIM-listed (LON: EEE) exploration and resource development
company with a project portfolio comprising copper and 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 current focus is on the Pitfield Project
in Western Australia, which has demonstrated strong potential to be a new
"Giant" copper mineral system.  The Company is also advancing the
Eclipse-Gindalbie Project in Western Australia, which is prospective for
high-grade gold and also kaolin, which is used extensively in a number of
industries and is considered to be a desirable feedstock for the production of
high-purity alumina - an essential component in lithium-ion batteries.

 

The Company also has two further exploration projects in Australia; the Walton Project in Western Australia, and the Stavely Project in the Stavely Arc region of Victoria, in addition to three precious metals projects located in a historically high-grade gold production region in central-southern Austria.

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  MSCZZGGNFMNGFZM