REG - Empire Metals Ltd - Rationalisation of Portfolio

Empire MetalsAnnouncement

23/02/2024 07:00

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RNS Number : 1523E  Empire Metals Limited  23 February 2024

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

23 February 2024

Empire Metals Limited

("Empire" or "the Company")

 

Rationalisation of Portfolio to Support Accelerated Development of Pitfield

Gindalbie Tribute Agreement Not Extended

 

Empire Metals Limited (LON: EEE), the AIM-quoted resource exploration and
development company, announces that, in line with the Company's strategy to
accelerate the development of the Pitfield Titanium Project ('Pitfield') in
Western Australia, management has undertaken an assessment of the Company's
non-core assets and as a consequence decided not to extend the Gindalbie
Tribute Agreement which is due to expire on 24 February 2024.

 

Shaun Bunn, Managing Director, said: "Since the discovery of the giant
titanium-rich mineral system at Pitfield less than 10 months ago, the Company
has been setting a cracking pace in establishing the massive scale, superior
grade, and soft-rock nature of the titanium mineralisation. As announced on 6
February 2024, we have strengthened our technical expertise with the
appointments of a process development team, comprising of a highly experienced
process design manager and two of the titanium industry's leading processing
experts. This places the Company in an excellent position to accelerate the
economic development of the Pitfield Titanium Project.

 

"Given the focus on the rapid advancement of Pitfield, the Company considers
it prudent to rationalise its exploration portfolio and has decided not to
renew the Tribute Agreement covering the Gindalbie tenement which sits
adjacent to our Eclipse Gold Project, near Kalgoorlie in Western Australia.
The Board no longer believes that this is a core project for Empire. By
rationalising the Company's portfolio, the Board can apply all of the
Company's energy and resources on Pitfield as it targets a maiden resource in
2024, and the construction of a demonstration plant in the following year. I
look forward to providing an update on our progress at Pitfield, particularly
on the outcome from our recent mineralogical and metallurgical studies, in the
very near future."

 

Eclipse and Gindalbie Gold Project

The Eclipse and 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 gave 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 extended the area for
exploration targets by 643ha to a total of 943ha.

 

Since August 2020, Empire has completed a series of exploration drill
programmes culminating in a small but high-grade gold mineral inventory around
the historical Eclipse mine shaft. The drilling to date has confirmed that the
gold mineralisation is associated with a NW-striking and steeply SW-dipping
shear zone ('Eclipse shear') with significant gold mineralisation known to
extend over a strike length of more than 500 metres.

 

The exploration drilling completed at Gindalbie under the Tribute Agreement
tested for high-grade gold lodes within the transition and fresh rock,
immediately below or adjacent to several of the historic mine shafts scattered
across the tenement. Based on these results it was concluded that the main
gold mineralisation at Gindalbie was associated with similar NW-striking and
steeply SW-dipping shear zone as encountered at Eclipse. As part of the
drilling campaign at Gindalbie, the Company also encountered a kaolin-rich
zone. Subsequent testwork has shown that the kaolin was not of sufficient
quality to warrant further studies.

 

The Gindalbie Tribute Agreement is due to expire on 24 February 2024.  Until
expiration, Empire has the option to extend the Tribute Agreement by up to 12
months, subject to paying Maher Mining the amount of A$250,000 and to continue
exploration drilling ahead of completing a mining study. Rather than continue
to pursue this opportunity, the Company, having met all of its commitments
under the Tribute Agreement, has decided not to extend.

 

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.

 

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