REG - Empire Metals Ltd - Pitfield Development Plan

Empire MetalsAnnouncement

27/03/2024 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:20240327:nRSa4361Ia&default-theme=true

RNS Number : 4361I  Empire Metals Limited  27 March 2024

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

27 March 2024

Empire Metals Limited

("Empire" or "the Company")

 

Development Plan Highlights Simple, Expedited Route to Commercialisation

Additional Senior Appointments Strengthen Development Team

 

Empire Metals Limited (LON: EEE), the AIM-quoted resource exploration and
development company, is pleased to advise the market of the key milestones
expected over the next twelve months, as Empire advances the Pitfield Project
('Pitfield'), located in Western Australia, towards commercialisation. In line
with this objective, the Company is also pleased to announce the addition of
two experienced mining industry specialists to the development team.

 

Highlights

 

·   Diamond Core drilling focused on confirming the continuation of near
surface, high-grade titanium mineralisation identified by previous drilling
and surface sampling now complete. Logging and sampling of the drill core is
ongoing.

·   Third phase of Reverse Circulation ('RC') drilling is well underway
with two RC rigs on site at Pitfield, this 40-hole programme focussed on
testing and delineating the two known zones of high-grade, bedded
mineralisation.

·    The Company is working towards commencing the design and construction
of a Demonstration Plant in 2025, and in parallel advancing all aspects of the
project development plan, which includes a number of key milestones over the
next 6-12 months. The achievement of each of these milestones will
incrementally de-risk the project and together will unlock significant value.

·    These milestones include:

o  Definitive mineralogical characterisation studies of titanium
mineralisation and related host alteration mineral assemblages to further aid
both on-going metallurgical studies and exploration targeting of high-grade
zones;

o  Definitive metallurgical characterisation studies to establish ore
character, beneficiation steps to separate titanium bearing minerals from
gangue minerals, titanium minerals leachability and solution chemistry, and
final TiO(2) product assessment;

o  Finalising a process flowsheet and Demonstration Plant design that will
establish, confirm and provide valuation metrics for an economic process and
resultant high-value saleable product;

o  Definition of a maiden JORC-compliant Mineral Resource Estimate that will
provide the basis for a mining option study and eventual ore reserves;

o  Completion of a Mining Option Study that will form the basis for a
conceptual mine plan;

o  Permitting and government funding review to establish permitting routes
for the Demonstration Plant and subsequent mine operations and sources of
government funding and support along the way.

·    The project development team has been bolstered by the appointments
of an Environmental Manager and a Commercial Manager, who will jointly manage
many critical project related activities including government liaison for
project permitting and funding, commercial and legal compliance, land access
management and community stakeholder relations, including landowners,
indigenous groups and local government agencies.

 

Shaun Bunn, Managing Director, said: "I am pleased to provide an update on our
development plans, which are aimed at progressing Pitfield from maiden
discovery to a commercial mining operation as quickly and smoothly as
practicable.  We recently reported (5 March 2024) the results of our
preliminary technical studies, which show favourable mineralogy and metallurgy
in the high-grade titanium samples drilled at Pitfield; giving us confidence
that a highly concentrated titanium product can be delivered by a relatively
simple processing facility which can be located at site. The Company has
rapidly moved from an early exploration phase to project development, largely
thanks to the extremely large yet very simple, consistent and continuous
nature of this giant bedded titanium-rich mineral system, not unlike other
basin-hosted, bedded soft-rock type mineral deposits, such as potash.

 

"I am particularly pleased to announce further appointments to our small but
talented development team. Our recently appointed Commercial Manager, Mr David
Parker, and our Environmental Manager Ms Carrie Pritchard (who arrives 20
April 2024) bring additional invaluable industry development experience to the
team as we push Pitfield towards commercialisation. We will continue to build
up our in-house skills so that we retain responsibility for, and ownership of,
the project activities inclusive of building important stakeholder
relationships and retaining intellectual property developed along the way."

 

Pitfield Project Development Plan

 

Empire has introduced a 2024-25 project development plan (the Development
Plan) for Pitfield that identifies a number of key milestones, the achievement
of each will incrementally de-risk the project and together will create
significant value. The objectives are to jointly define the mineral resource,
mining options and process flowsheet and to commence design and construction
of a Demonstration Plant in 2025.  Many of the elements of this plan are
already well underway.

 

The Company has rapidly moved from an early exploration phase to project
development, largely thanks to the very large yet very simple nature of this
giant bedded titanium-rich mineral system.  Preliminary studies show
favourable mineralogy and metallurgy in the high-grade titanium samples
drilled at Pitfield, giving confidence that a highly concentrated titanium
product can be delivered by a relatively simple on-site processing facility.
A metallurgical bulk sample has already been generated from drill core which
will provide the source samples for further mineralogical and metallurgical
characterisation work, specifically investigating a range of known and
emerging beneficiation and hydrometallurgical processing steps to determine
the process flowsheet.

 

As part of the next phase of mineralogical assessment the Company will be
working with leading geoscience institutions such as Curtin University and the
CSIRO in order to better characterise the titanium mineralisation and related
hydrothermal alteration assemblages which will aid exploration vectoring
towards higher grade Ti mineralization as well as provide further ore
characterisation that will help optimise metallurgy.

 

As the next step in a definitive mineral resource development process, formal
Exploration Target estimates for two distinct, near-surface, bedded
sandstone-hosted zones of high-grade titanium mineralization (the subject of
the current Diamond Core and Reverse Circulation drilling programmes announced
29 February 2024), are expected once these programmes are completed in June.

 

Empire will aim to continue drilling in order to provide a Mineral Resource
Estimate (MRE) once the Exploration Target estimates are confirmed and to this
end has already conducted extensive geological mapping and geophysical
assessment, both of which are key components of an MRE.  Once the current
drilling programme is complete the Company will have drilled over 100 RC holes
for a total of around 15,000m as well as seven diamond core holes for a total
of around 2,000m. The Development Plan provides for an additional 36,000m of
RC drilling and 2,000m of diamond core drilling commencing Q4 2024.  The
Company will assess a number of different mining options, considering the
various processing techniques and production rates under review. Studies on
hydrology and hydrogeology, geotechnical assessment, and various mining
techniques are expected to commence in late 2024.

 

Key Milestones for 2024-25

 

Mineralogical Characterisation Studies

The Company announced the preliminary results from its on-going mineralogical
and metallurgical studies on 5 March 2024. To date the Company has submitted
29 samples for petrographic analysis and 16 samples for Tescan Integrated
Mineral Analyzer ("TIMA") analysis; the samples being collected from both RC
and diamond drill holes. Results of these mineralogical studies confirm that
titanite, a calcium titanium silicate mineral (CaTiSiO5), is the most abundant
titanium mineral followed by Ti-bearing iron oxides, ilmenite and then rutile
group minerals.

 

As part of the next phase of mineralogical characterisation studies the
Company is engaging with leading geoscience institutions such as Curtin
University and the CSIRO to establish a more advanced understanding of the
character of the titanium mineralisation and related hydrothermal alteration
mineral assemblages, as well as the formational conditions on mineralisation,
the controls on higher grades and how mineralisation changes across the basin.
We expect to initiate this work over the next few weeks and expect the first
phase of research to run for approximately six months with the aim of
providing answers by Q4 2024.

 

Metallurgical Characterisation Studies

From Empire's preliminary metallurgical studies, it is anticipated that
Pitfield ore will be amenable to conventional leaching under atmospheric
conditions to liberate the titanium. There is a considerable amount of
metallurgical research work that demonstrates the successful leaching of
titanite, using low temperature sulphuric acid or hydrochloric acid to
dissolve the titanite and liberate the Ti into a liquid phase.

 

An initial concept for the process flowsheet was announced 5 March 2024, which
indicated a potential process for extraction of the titanium from the Pitfield
ores. The process development programme will test this and other favourable
options for processing the titanium ore and then optimise the flowsheet to
make a high-value, saleable titanium product. The process development
programme will focus on four key study areas in parallel, all towards
expediting the design of a flowsheet and establishing the operating conditions
for a Demonstration Plant.

 

The key aspects of the programme are:

 

1.    Ore Characterisation

Developing a fundamental understanding of the ore across the project. This
includes geochemistry, mineralogy, grain size, breakage properties, hardness,
and leachability;

 

2.    Beneficiation

Testing of physical and chemical unit processes that can separate out gangue
minerals from Ti-bearing minerals. This programme of work will assess multiple
unit processes and combinations that can be used on the Pitfield ore to
separate the Ti-bearing minerals from non-value containing minerals. This
programme will assess comminution options for optimised breakage and
liberation of the Ti-bearing minerals from other minerals in the ore.
Separation processes to be assessed include gravity separation, at both a
coarse and fine scale; magnetic separation, froth flotation and others.

 

3.    Hydrometallurgy

Testing of leach response of both Ti-bearing and gangue minerals, initially
focused on the process required to bring the titanium into solution, then
optimising the leach solution chemistry and process steps for product
finishing.  This programme will assess acid type and usage, options for
reagent recycling, impurity management and options for producing a final
titanium product.

 

4.    Final product assessment

A high-grade TiO(2) product has been identified as the likely final on-site
product for the project. The proposed process chemistry provides optionality
for the selection of a high-value TiO(2) product amongst many, including those
designed for the pigment industry.  The programme is designed to assess these
options and select one optimal product.

 

Demonstration Plant - Process Flowsheet Design

The final output of the process development programme will be a detailed
flowsheet and inputs for a Demonstration Plant design, and most importantly
the confirmation of successful extraction of titanium within an economic
process that can produce a high-value product on-site. The Demonstration Plant
operation will collect data for full-scale design, allow optimisation of the
process flowsheet in continuous operation mode, and provide data for
definitive economic assessment of the mining and processing steps.

 

One of the key differences between the processing options being considered for
the Pitfield ore and those commonly found in the ilmenite industry is that a
low temperature acid leach process is likely all that is needed to extract the
titanium and produce a high-quality product.  No energy-intensive smelting is
required and a higher value product can be produced on-site. This simplifies
the process flowsheet and hence the design and construction of a Demonstration
Plant.

 

Exploration Target for Resource Development

As according to the Joint Ore Reserves Committee of The Australasian Institute
of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals
Council of Australia (JORC) code, an Exploration Target is a statement or
estimate of the exploration potential of a mineral deposit in a defined
geological setting where the statement or estimate, quoted as a range of
tonnes and a range of grade (or quality), relates to mineralisation for which
there has been insufficient exploration to estimate a Mineral Resource.

 

Empire expects to provide JORC-code Exploration Target estimates for two
distinct high-grade, near-surface bedded sandstone zones that are the subject
of the current Diamond Core and Reverse Circulation drilling once these
programmes are completed in June (refer Figure 1).

Figure 1. Grey-scale magnetics map overlain by airborne gravity data showing
location of Diamond and RC holes currently being drilled, highlighting the
shallow, high-grade bedded sandstone zones being targeted for advanced project
work.

 

JORC-compliant Mineral Resource Estimate

A Mineral Resource Estimate ("MRE") is a measure of a body of mineralisation
that in such form, grade (or quality), and quantity that there are reasonable
prospects for eventual economic extraction.  Based upon an MRE an assessment
of its potential economic value can be made. There are several key components
that combined will allow the Company to complete an MRE, being:

 

·    Geological and Geophysical Mapping: Required to establish the
geological characteristics and anatomy of a deposit, such as its shape, rock
types, stratigraphy and structure. Based on these characteristics, geologists
can estimate the location, form, size and continuity of mineralised zones;

 

·    Geostatistics: Statistical methods to analyse geological data and
create models of the distribution of mineralization within a deposit. This
method considers the spatial relationships between the different data points
generated by drilling and surface sampling, and can be used to estimate the
grade and tonnage of mineralisation; and

 

·    Block Modelling: A method of dividing a deposit into a grid system of
blocks and estimating the grade and tonnage of mineralization within each
block. This method can consider multiple data sources, such as drilling data
and geological maps, and can be used to create 3D models of the deposit.

 

Empire is well on its way to being able to provide a maiden MRE at Pitfield,
having already conducted extensive geological and geophysical mapping that has
been tested and refined by drilling and consequent drill sample analyses.
Once the current drilling programme is complete the Company will have drilled
over 100 RC holes for a total of around 15,000m as well as seven diamond core
holes for a total of around 2,000m. The Development Plan provides for an
additional 36,000m of RC and 2,000m of Diamond Core drilling commencing Q4
2024 which will provide the additional data needed to complete a
JORC-compliant MRE.

 

Mining Option Study

As part of the planned development the Company will assess a number of
different mining options, considering the various processing techniques and
production rates under review at the time.  The Development Plan provides for
studies covering hydrology and hydrogeology, geotechnical assessment, and
various mining techniques and these are expected to commence in late 2024.
The objective here is to narrow down the options before investing further
funds in more detailed studies.

 

Environmental & Social Impact Assessment

Environmental and social impacts are the positive or negative effects that our
business activities have on the natural environment and the people affected by
them. These can include impacts on biodiversity, climate change, water
quality, human health, community development, amongst others.

 

The establishment of a Demonstration Plant will allow many of these important
elements to be assessed under actual operating conditions albeit at a smaller
production scale.  Importantly there are preliminary studies and permitting
requirements to be put into place ahead of the construction of a Demonstration
Plant which will allow the Company to interface with key stakeholders in a
timely and efficient manner.  To this end the Company has appointed an
Environmental Manager (refer to section Additional Key Appointments below) to
execute these studies and manage the stakeholder interface.

 

It is important to note that the Company has strong existing relationships
with local land holders in the area, with several land access agreements in
place as well as an ongoing community engagement programme and a preference to
utilise local suppliers where possible.  The Company is also pleased to work
with the local Yamatji Southern Regional Corporation, the regional entity
responsible for implementing the Indigenous Land Use Agreement (ILUA) on
behalf of the Yamatji Nation.

 

Infrastructure, Services and Supply Chain

The Company has initiated a review of local infrastructure, services and the
required supply chain as part of preparation for the Demonstration Plant and
subsequent proposed transition to mine development.  The mid-west region has
extensive infrastructure and the review will highlight relevant providers and
identify any access and planning issues that need addressing.  The local
supply chain will also be reviewed in relation to requirements for the
Demonstration Plant and mining stages.

 

Permitting & Government Funding

The Company has initiated a review of relevant permitting issues for the
operation of a Demonstration Plant and potentially the commercial mining
operations.   The Company has identified a small-scale mining permit that
may be suitable for the Demonstration Plant stage.  Once the results of the
current drill programme are in hand, a review of the location of the
Demonstration Plant and small-scale open-cut pit will be completed prior to
engagement with local stakeholders and landowners.

 

The Company has also initiated engagement with relevant government authorities
in relation to research and development rebates, grants and funding.  There
are significant government grants aimed at developing the critical minerals
industry in Australia. This is highlighted by the Australian Federal
Government committing $1.25 billion in funding via a low-cost, non-recourse
loan to support the Iluka Resource Ltd Eneabba refinery (30km southwest of the
Pitfield Project) in Western Australia through Export Finance Australia (EFA)
from its Critical Minerals
Facility   (https://www.exportfinance.gov.au/newsroom/transforming-australia-s-critical-minerals-sector/
(https://www.exportfinance.gov.au/newsroom/transforming-australia-s-critical-minerals-sector/)
).

 

Additional Key Appointments

The Company recently announced (6 February 2024) the appointment of Narelle
Marriott as the Company's Process Development Manager effective 11 March 2024.
Ms. Marriott leads a small but very experienced team of metallurgists and
engineers and is responsible for managing the ongoing development of the
process design for the Project. Coinciding with this pivotal appointment
Empire secured the services of two senior titanium industry consultants, Dr.
Trevor Nicholson and Mr. Eugene Dardengo, who together have over 72 years of
experience in the titanium processing and extraction industry. The Company
continues to seek out experienced and talented professionals to join the
development team and is pleased to announce the following appointments.

 

Environmental Manager

The Company has appointed Ms. Carrie Pritchard as Environmental Manager and
she will be joining the Company as of 20 April 2024. Ms Pritchard, an honours
graduate from the University of Western Australia (B.Sc. Natural Resource
Management) has over 20 years' experience in the mining/processing industry
and has managed projects through feasibility, environmental impact assessment
construction and commissioning, including establishing compliance and
environmental management systems.

 

Ms Pritchard was the Senior Environmental Scientist with e3Scientific Limited
in Aotearoa, New Zealand (2013 - 2023) and has worked with Australian mining
company's such as Apex Minerals Pty Ltd as Environmental Manager (2007-2012),
Windimurra Vanadium Ltd. as Environmental Superintendent (2006-2007) and
LionOre NL as Environmental Coordinator (2001-2006). Ms. Pritchard's most
recent appointment was with Newmont Corporation as Senior Advisor - Closure
Planning for the Telfer Mine.

 

Ms Pritchard's key areas of responsibility include the execution of
environmental, cultural and social studies, which includes the supervision of
a small team of environmental consultants and contractors who will provide
input into the development of a metallurgical flowsheet for mineral
beneficiation and subsequent metal extraction. Importantly Ms. Pritchard will
monitor compliance and report on environmental activities in accordance with
requirements of the Western Australian Department of Mines, Industry
Regulation and Safety and will assist with the management of land access and
community consultations, including landowners, indigenous groups and local
government agencies.

 

Commercial Manager

The Company has appointed Mr. David Parker as Commercial Manager. Mr. Parker
holds a bachelor's degree of Commerce from Curtin University, and a Graduate
Diploma of Applied Corporate Governance from the Governance Institute of
Australia. Mr. Parker is also a licensed investment advisor having originally
completed the required units set out by the Securities Institute of Australia
in 2003.

 

Mr. Parker has extensive project management, commercial, investment, financial
and corporate services experience. He is an experienced investment and
corporate advisor and has acted as Director & Company Secretary for
various ASX listed and private companies.

 

Mr. Parker also has over 20 years' experience in equity capital markets
focused on emerging companies in the mining, industrial and technology
sectors. As the principal at Cobblestones Advisory, he has provided company
secretarial and advisory services to pre-IPO and ASX Listed clients. He also
worked with Alto Capital where he acted as corporate advisor and managed
several ASX IPOs as Lead Manager, primarily for companies in the resources,
technology and industrial sectors.

 

Mr. Parker's key areas of responsibility include government liaison with
respect to permitting and funding, commercial and legal compliance, management
of land access and community consultations, including landowners, indigenous
groups and local government agencies and importantly will be able to provide
commercial advice and guidance to senior management and company employees,
including exploration, project development, environmental and marketing staff
and consultants.

 

The Pitfield Titanium Project

Located within the Mid-West region of Western Australia, near the northern
wheatbelt town of Three Springs, Pitfield lies 313km north of Perth and 156km
south of Geraldton, the Mid West region's capital and major port.

 

Western Australia is ranked as one of the top mining jurisdictions in the
world according to the Fraser Institute's Investment Attractiveness Index
published in 2023, and has mining-friendly policies, stable government,
transparency, and advanced technology expertise. Pitifled has existing
connections to port (both road & rail), HV power substations, and is
nearby to natural gas pipelines as well as a green energy hydrogen fuel hub,
which is under planning and development (refer Figure 2).

Figure 2. Pitfield Project Location showing the Mid-West Region Infrastructure
and Services

 

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 / Kasia Brzozowska
 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, titanium 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 to contain a newly recognised
giant titanium-rich mineral system that hosts a globally significant titanium
discovery.

 

The Company also has three further exploration projects in Australia; the
Eclipse Project and 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 producing region of
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  DRLSEUSSWELSEFD