REG - Empire Metals Ltd - Pitfield: Positive Drilling & Metallurgical Update

Empire MetalsAnnouncement

07/11/2024 07:00

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RNS Number : 2692L  Empire Metals Limited  07 November 2024

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

7 November 2024

Empire Metals Limited

("Empire" or "the Company")

 

Metallurgical Tests Confirm Weathered Zone Titanium Mineralisation Highly
Amenable to Heavy Mineral Separation

Outstanding Drill Intercepts in Recent Diamond Drilling Programme

 

Empire Metals Limited (LON: EEE), the AIM-quoted resource exploration and
development company, is pleased to announce the results of metallurgical
gravity testwork carried out on anatase-rich weathered cap samples from the
Pitfield Project ('Pitfield'), located in Western Australia. The recent
discovery of high-purity anatase mineralisation located within the
near-surface, strongly weathered "saprolite" cap covering the giant, 40km
long, titanium-rich mineral system at Pitfield has shifted Empire's immediate
focus to defining a process route for weathered zone titanium mineralisation.

 

The geochemical analysis results from the recently completed diamond core
drilling programme have been received. These results confirm the successful
mapping of extensive, high-grade weathered zones from very near surface to
depths of around 60 metres, nearly double that previously encountered at the
Cosgrove and Thomas prospects.

 

Highlights

 

·    A heavy mineral concentrate was achieved from the preliminary gravity
tabling tests on the anatase-rich weathered zone samples, with high a recovery
of titanium and iron (up to 80% and 92% respectively) and importantly a high
rejection of aluminium and silica minerals.

 

·    Preliminary froth flotation testwork on the weathered samples has also
been positive. Sighter rougher tests produced a concentrate containing 78% of
the TiO(2) bearing minerals with a rougher concentrate grade of 8.8% TiO(2).

 

·    The combination of gravity and flotation mineral separation techniques
shows significant promise as a processing route for firstly producing a heavy
mineral concentrate, and then for further mineral separation stages to
separate and recover the TiO(2) bearing minerals into a high-grade,
high-purity concentrate.

 

·    The latest diamond core drilling has provided substantial quantities
of high-grade, high-purity anatase-rich samples to accelerate the mineral
processing test work and has successfully mapped out the thickness, grade,
shape and extent of the anatase-rich weathered cap.

 

·    The Company has expanded its mineralogical and metallurgical testwork
programme, with considerable activity planned in November - December 2024 and
beyond, and involves collaboration with both international and locally based
expert consultants and utilises government and commercially owned
metallurgical laboratory facilities in Australia.

 

·    The development of a processing flowsheet will advance through H1
2025, with the Company now considering a lower capital and operating cost
option for a continuous pilot plant facility, thanks to the discovery of the
high-grade, high-purity anatase mineralisation in the soft, friable
near-surface weathered cap.

 

·    Discussions initiated with government authorities in relation to
research and development rebates, development grants and the Exploration
Incentive Scheme funding, with opportunities for further funding via Export
Finance Australia, which manages the Australian Government's $4 billion
"Critical Minerals Facility", providing funding for projects planning to
produce critical minerals listed in Australia's Critical Minerals Strategy,
such as titanium.

 

Shaun Bunn, Managing Director, said: "I am extremely pleased to report that we
have successfully produced a heavy mineral concentrate from the preliminary
gravity tabling tests on the anatase-rich weathered zone samples. During the
testwork there was a clear visual difference between products coming off the
table, indicating separation of heavy, dark coloured minerals from the lighter
coloured gangue minerals.  This has been confirmed by the assay results
indicating high recovery of titanium and iron, and high rejection of aluminium
and silica. The next phase of the testwork programme, using samples from the
recent drilling programme, will focus on unit processes to separate the iron
oxide minerals from the titanium oxide and titanium-iron-oxide minerals to
produce a high-grade TiO(2) mineral concentrate.

 

"We have also now received the geochemical analysis results for the recently
completed diamond core drilling programme which have identified extensive,
high-grade TiO(2) weathered zones from very near surface to depths of around
60 metres, nearly double that previously encountered at the Cosgrove and
Thomas prospects, and also confirming the extremely soft and friable nature of
the bedded sandstones in this weathered zone."

 

Metallurgical Test Results

Quartered drill core samples collected from earlier drilling (February-March
2024) was used to create a small composite sample from the weathered zone. The
composite sample was used for diagnostic gravity testwork to progress the
metallurgical understanding of the weathered zone, whilst awaiting larger
whole of core samples from the September - October 2024 diamond drill
programme.

 

Mineralogical analysis was completed using TIMA SEM based measurement, to
confirm the extent of weathering and the detailed mineralogical breakdown of
both the titanium and gangue minerals. This analysis confirmed that the
titanium is contained within anatase, a high-purity titanium dioxide mineral,
a range of high-grade titano-iron-oxide minerals (collectively referred to as
leucoxenes) and ilmenite. Trace amounts of titanite were also observed in some
of the weathered samples.

A preliminary gravity table test was completed on the weathered sample. In
this test the sample was crushed and ground to 100 percent passing 150µm. The
sample was then screened to remove fines prior to running the wet gravity
table test. The head grade of the screened sample was 6.0% TiO(2).

 

The performance of the gravity tabling of the weathered sample was extremely
positive with a heavy mineral concentrate ("HMC") being recovered that
contained 62 to 80% of the TiO(2) bearing minerals and 88.3 to 92% of the
Fe-oxide minerals, mainly hematite (refer Table 1).  The concentrate streams
were largely free of the lighter, acid consuming gangue silicates. The mass
recovery into the first three concentrate streams was 40%, produced a heavy
mineral concentrate containing 62% of the TiO(2) at a grade of 9.3%TiO(2). An
additional concentrate stream (#4) was produced which took overall TiO(2)
recovery to 80.1% albeit at a lower overall concentrate grade, due to locked
mineral particles.  The HMC produced will require further mineral processing
to separate and recover the TiO(2) bearing minerals into a high-grade,
high-purity concentrate suitable for leaching. The remaining hematite rich
concentrate will be tested to see if it can be recovered as an iron
by-product.

 

Table 1. Gravity Table Results

 Mineral Group within Heavy Mineral Concentrate ('HMC')  Cons 1-3                      Cons 1-4
                                                         % Recovery  % by mass in HMC  % Recovery  % by mass in HMC
 HMC Mass                                                40                            67
 Titanium Dioxide                                        43.3        2.2               68          2.1
 Ilmenite group                                          70          12.4              87          9.2
 Titanite                                                84          0.9               94          0.6
 Fe Oxides                                               88.3        45                92          29
 Gangue Silicates/ other minerals                        19                            54
 Total TiO(2 )                                           62          9.3               80          7.2

 

 

Clockwise from the left: Figure 1. Gravity table set up, Figure 2. Close up of
table in operation, showing concentration of darker coloured minerals in the
HMC zone, and Figure 3. Final table test products 1-5 (L-R) with cons 1-3
making up the HMC, cons 4 for recycle and product 5 tailings.

 

Froth flotation testwork on the weathered sample has also shown promise. Froth
flotation is selective separation process to separate valuable minerals (in
this case anatase and/or titanite) from unwanted gangue (aluminium and silica
minerals) using fine air bubbles in a series of flotation cells, of varying
designs. Sighter rougher tests (the first concentration stage in the flotation
process) trialling a range of reagent chemistries from industry and literature
gave a concentrate containing 60% of the feed mass, with a titanium recovery
of 78% to a rougher concentrate grade of 8.8% TiO(2). Mineralogical analysis
of the flotation concentrate is pending and once received further mineral
separation testwork will be conducted to separate and recover the TiO(2)
bearing minerals into a high-grade, high-purity concentrate.

 

 

 Figures 4 & 5. Flotation reagent testing on weathered zone samples.

 

Further analysis is underway on the products from these initial tests, to
understand the mineral deportment and influence of particle size.

 

These results demonstrate that mineral separation can be achieved on the
Pitfield drill core samples. Further optimisation is needed for this stage,
and additional stages in order to increase concentrate grade. These results
begin to pave the path for flowsheet development on Pitfield, helping to
narrow the options being assessed. The new drill core samples will be an
important feedstock for further mineral concentration and titanium extraction.

 

The full PQ size (101.5mm diameter) drill core from the recent drilling
programme has been received at the metallurgical testwork laboratory in Perth.
Samples for testwork have been selected by the geology and metallurgical
teams. A multi-stage testwork programme is planned to step through the
flowsheet options, building on the results of the recent testwork programme on
preliminary samples.  Work will include ore characterisation, comminution
steps suitable for the weathered mineralisation, further development of the
gravity and flotation conditions, iron removal from gravity concentrates, and
titanium recovery from the slimes fraction.

 

Gravity testwork will continue on mineralised samples from both the weathered
cap zone and the underlying unweathered bedrock throughout November and
December, in order to evaluate the effect of grind size on particle liberation
and to produce mineral concentrate samples for preliminary hydrometallurgical
testing. These tests will involve additional wet gravity tabling work as well
as initial testing of a Multi Gravity Separator ('MGS') which is an enhanced
gravity separation device with capability to treat finer particle sizes than
wet gravity tables or spirals.

 

Other mineral separation processes being assessed include magnetic separation
and froth flotation.

 

Given the soft, friable nature of the weathered zone a comminution testwork
programme will commence in November 2024 on the new diamond drill core samples
to investigate the potential for low intensity crushing/grinding techniques
such as log washers or scrubbers.

 

Diamond Core Drill Results

The Company recently announced (24 October 2024) the completion of Diamond
Core drilling at the Thomas and Cosgrove prospects. The focus of the drill
campaign was on providing additional drill core samples for metallurgical test
work as well as a better geological understanding of the weathered cap zone,
including thickness, grade and shape.

 

This diamond drilling programme at Pitfield drilled ten holes, five at the
Cosgrove prospect and five at Thomas prospect. Of these ten holes, four will
remain uncut and the whole core sample will be dedicated to metallurgical test
work. The six remaining holes have had a quarter of the core removed for
geochemical assaying and half the core will be used for metallurgical
testwork, the remainder being kept in storage.

 

The geochemical data returned from this drill programme has confirmed previous
results which highlights high-grade TiO(2) in the near surface environment at
both the Thomas and Cosgrove prospects (Table 2). At the Cosgrove prospect
drillhole DD24COS004 in particular returned a significantly elevated intercept
of 4.6m @ 12.2% TiO(2) from 14.85m including an interval of 17.97% TiO(2).

 

Table 2: Complete intercepts from the whole hole including fresh material

 Hole ID     Depth From (m)  Depth To (m)  EOH (m)  Interval (m)  Grade TiO(2) (%)
 DD24TOM006  0               72.6          72.6     72.6          5.48
 DD24TOM007  11.5            54.3          65.8     54.3          5.66
 DD24TOM008  0               72.6          72.6     72.6          5.70
 DD24COS004  0               78.7          78.7     78.7          5.55
 DD24COS005  0               48.7          48.7     48.7          5.99
 DD24COS006  0               48.4          48.4     48.4          6.14

 

The geochemical data confirms the previous modelling carried out that
predicted the depth of the weathered profile at both prospects.  The
geochemical results show that the Thomas project has deeper weathering than
Cosgrove in general, with the depth of weathering decreasing from south to
north at Cosgrove and decreasing west to east at Thomas (Table 3). The grade
and thickness of previous drilling has been confirmed by the data from this
drilling programme and provides more confidence in the exploration target
modelling previously done.

 

Table 3: Weathered interval grade and thickness based on Ca values

 Hole ID     Depth From (m)  Depth To (m)  EOH (m)  Weathered interval (m)  Grade TiO(2) (%)
 DD24TOM006  0               46.5          72.6     46.5                    5.94
 DD24TOM007  11.5            51            65.8     39.5                    5.82
 DD24TOM008  0               58.5          72.6     58.5                    5.89
 DD24COS004  0               63            78.7     63                      6.13
 DD24COS005  0               30.5          48.7     30.5                    5.35
 DD24COS006  0               30            48.4     30                      6.67

 

The geochemical data returned for the drill holes associated with the
geological logging data and core photos can now be used to more accurately
determine the depth of the weathering profile. The downhole increase in
calcium, magnesium and to a lesser degree sodium can be used as markers for
the depth of weathering, as all of these elements are strongly depleted in the
weathering zone. This information will enable better modelling of the
geochemical data from previous RC drilling campaigns to provide a more
accurate interpretation of the weathered zone at both the Thomas and Cosgrove
prospects. The increased certainty about the depth of weathering will also
feed into decisions regarding future drilling and where to drill to obtain the
best results for any future mineral resource estimate.

 

Future Work - Pitfield Project Development Plan

The Pitfield Project is a unique giant-scale, high-grade, soft-rock titanium
deposit, comprising a suite of non-refractory titanium-bearing minerals that
the Company considers hold the potential to process into a high value
feedstock for the pigment and/or titanium metal markets. Empire's vision
remains to develop the project as a fully integrated, mining, processing and
refining operation. The recent discovery of high purity anatase within the
weathered cap zone takes the Company one step closer to this goal.

 

The Company has rapidly moved from an early exploration phase into project
development, largely thanks to the very large yet simple nature of this giant
titanium-rich mineral system. Two separate metallurgical bulk samples,
representing the titanite-rich fresh bedrock and the anatase-rich weathered
cap have already been generated from drill core. These samples have provided
source samples for the mineralogical and metallurgical characterisation work
completed to date, specifically investigating a range of known and emerging
beneficiation and hydrometallurgical processing steps to determine the process
flowsheet.

 

The Pitfield Project Development Plan, originally announced on the 27 March
2024, set out several important milestones, many of which have now been
achieved, including:

 

·    Mineralogical characterisation studies of titanium mineralisation and
related host alteration mineral assemblages have been completed, which will
further inform both on-going metallurgical studies and the mineral resource
drilling, targeting high-grade, anatase-rich zones;

·    Metallurgical characterisation studies are well advanced on the
titanite-rich unweathered bedrock mineralisation to determine ore
characteristics, the beneficiation steps required to separate titanium bearing
minerals from gangue minerals, and the leachability of the primary titanium
minerals;

·    A maiden JORC-compliant Exploration Target has been defined consisting
of two, distinct high-grade, near surface bedded sandstone zones, referred to
as the Cosgrove and Thomas mineral prospects;

·    Government funding initiatives underway, with the establishment of
co-funding agreements with Curtin University and CSIRO, Australia's national
science agency;

·    Commencement of environmental impact and baseline studies, and
continuation of stakeholder and community engagement activities.

 

Metallurgical and Mineralogical Studies

The ongoing metallurgical and mineralogical testwork programme continues to
focus on four key study areas, running in parallel and all aimed towards
expediting the design of a flowsheet and establishing the operating conditions
for a continuous piloting facility.

The key aspects of the programme are:

 

1.    Ore Characterisation - Comminution

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

 

Standard comminution tests have already been undertaken on mineralised drill
core samples collected from the unweathered bedrock as well as the overlying
weathered cap zone to provide information on rock competency and energy input
for breakage requirements. Weathered zone material was confirmed to be very
soft whereas the unweathered bedrock, whilst more competent, is expected to
fracture easily due to the bedding layers within the sandstone sediments.
Planning is underway for a full range of comminution tests on both the
weathered and fresh rocks, pending receipt of full diamond 'PQ' drill core.

 

2.    Mineral Concentration

Testing of physical and chemical unit processes that can separate out gangue
minerals from titanium bearing minerals. The key mineral concentration
techniques currently under investigation include:

 

·    Gravity separation testwork: initial gravity tabling tests focussed on
producing a low-grade mineral waste stream and a titanium-rich mineral
concentrate for further downstream processing;

 

·    Magnetic separation testwork: focused on separating weakly magnetic
minerals, like ilmenite, from non-magnetic minerals such as quartz or
hematite;

 

·    Froth Flotation testwork: focused on separating the finer gangue
minerals from the titanium bearing minerals utilising a range of physical
conditions and flotation chemicals.

 

3.    Hydrometallurgy

Bench-scale testwork to determine the leach response of both the titanium
minerals and the associated gangue minerals, initially focused on bringing the
titanium into solution, and then looking to optimise the leach solution
chemistry and define the process steps for product finishing. The testwork is
assessing acid types (HCl and H(2)SO(4)) and their consumption, options for
reagent recycling, impurity management and options for producing a final
high-purity titanium product.

 

4.    Final product assessment

A high-grade, high-purity titanium product suitable as feedstock for chloride
pigment production or conversion into titanium metal sponge has been
identified as the most desirable final product for the project. The possible
process chemistries in the leaching step provide a good synergy with this type
of final product. The potential to produce a range of different products,
depending on market demand, will be investigated in the testwork programme.
Additionally, any opportunity to produce a viable by-product and to reduce
waste streams is being explored.

 

Pilot Plant - Process Flowsheet Design

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

 

One of the key differences between the processing options being considered for
Pitfield 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. Furthermore,
thanks to the discovery of a high-grade, high purity anatase-rich zone in the
soft, friable near-surface weathered cap there is significant potential to
establish a straightforward mineral separation flowsheet. This will simplify
the pilot plant design and help reduce construction and operating costs of the
pilot plant.

 

Government Funding

The Company has initiated discussions with relevant government authorities in
relation to research and development rebates, development grants and
Exploration Incentive Scheme funding. The Australian Government is actively
supporting investment in critical minerals projects as part of its Critical
Minerals Strategy. Export Finance Australia ('EFA') manages the Australian
Government's $4 billion Critical Minerals Facility and provides funding for
projects producing or planning to produce critical minerals listed in
Australia's Critical Minerals Strategy, such as titanium. This includes
activities undertaken post-exploration and before final investment decision.

 

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
Resources Ltd Eneabba refinery in Western Australia (located 30km southwest of
the Pitfield Project) through EFA from its Critical Minerals Facility. The
Government also recently provided $400 million in new loans to Australian
company Alpha HPA Ltd to deliver Australia's first high-purity alumina
processing facility in Queensland. Alpha will use Australian owned IP and
technology to process high purity alumina - a critical mineral used in LED
lighting, semiconductors, and lithium-ion batteries and other high-tech
applications. These loans were also provided by EFA, through the Government's
$4 billion Critical Minerals Facility, as well as through the Northern
Australia Infrastructure Facility.

 

The Pitfield Titanium Project

Located within the Mid-West region of Western Australia, near the northern
wheatbelt town of Three Springs, the Pitfield titanium project lies 313km
north of Perth and 156km southeast 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. Pitfield
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 6).

Figure 6. Pitfield Project Location showing the Mid-West Region Infrastructure
and Services

 

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 / Arabella Burwell                                  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 PR)                                         Tel: 020 7236 1177

 Susie Geliher / Charlotte Page

 

About Empire Metals Limited

Empire Metals is an AIM-listed exploration and resource development company
(LON: EEE) with a primary focus on developing Pitfield, an emerging giant
titanium project in Western Australia.

 

Exploration activity at Pitfield has confirmed the discovery of a new giant
mineralised system extending over 40km by 8km by 5km deep. Drilling campaigns
have confirmed high-grade TiO₂ mineralised zones across thick bedded
intervals to a vertical depth of ~350m, confirming Pitfield as a world class,
district-scale titanium mineral system.

 

Empire is now accelerating the economic development of Pitfield, with the
objective of becoming a leading producer of high value titanium dioxide
products.

 

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

 

 

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