REG - Empire Metals Ltd - Update on Central Menzies Gold Project

Empire MetalsAnnouncement

28/01/2022 12:15

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RNS Number : 0159A  Empire Metals Limited  28 January 2022

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

28 January 2022

Empire Metals Limited

('Empire' or the 'Company')

 

Update on Central Menzies Gold Project

 

Empire Metals Limited, the AIM-quoted resource exploration and development
company, is pleased to provide an update on the second phase of reverse
circulation ('RC') drilling at the Central Menzies Gold Project in Western
Australia ('Central Menzies' or the 'Project'), over which Empire holds an
option to acquire a 75% interest.

 

Highlights:

·      1,422m of RC drilling completed, focusing mainly on the
mineralised trend known as Nugget Patch which was prioritised based on
previous exploration results showing a coherent supergene gold-enriched zone.

·      At Teglio, additional holes were drilled to confirm historic
high-grade gold intersections closely associated with the main workings, plus
an additional traverse to test under a strong gold-in-soil anomaly recently
defined by Empire some 300m northwest of the previous drilling

·      Significant intercepts reported:

Ø 1m @ 1.35 g/t Au from 81m downhole at Nugget Patch

Ø 2m @ 1.41 g/t Au from 90m downhole at Nugget Patch

Ø 3m @ 3.1 g/t Au from 13m downhole at Teglio (drilled 300m NW of old
workings)

Ø 4m @ 1.12 g/t Au from 36m downhole at Teglio (drilled near old workings)

 

Shaun Bunn, Managing Director, said: "The results from the December drilling
programme indicate the existence of gold mineralised zones along the projected
Menzies Shear Zone corridor. The drilling has intercepted quartz veins and
alteration which occur along the contact between basalts and sediments however
only a few of these intercepts have identified significant gold mineralisation
extending into fresh rock. We will continue to evaluate the technical merits
of the overall licence area with a plan to complete our evaluation of the
Central Menzies Project in the period leading up to the Option expiry date,
due late February 2022. We look forward to updating the market on the outcome
of this review once available."

 

Background on the Central Menzies Gold Project

In May 2021 Empire entered into an option agreement to acquire a 75% interest
in the Central Menzies Gold Project, located in the Menzies Shire,
approximately 115km north of the city of Kalgoorlie-Boulder and 10km south of
the township of Menzies. Central Menzies consists of four prospecting
tenements (P26/2361, 2362, 2363 and 2364) covering a total area of 618
hectares.

 

Empire can exercise the Option at any time up to the 9-month option expiration
date by payment of AUD$1,750,000 in cash and AUD$1,250,000 to be settled via
the issue of new ordinary shares of no-par value at a price calculated by
reference to a 10% discount to the 30-day VWAP.

 

Since entering into the Option Agreement in May Empire Metals has undertaken
several exploration campaigns in order to technically evaluate the potential
for a significant gold resource within the licence area. The exploration
activities undertaken include:

 

Geophysical mapping: Empire Metals purchased close-spaced (25 metres) airborne
magnetic and radiometric data over the four exploration licences from Kingwest
Resources Ltd which had commissioned an airborne geophysical survey across the
adjacent tenements in Q4 2019.

Geochemical Mapping: A soil programme comprising 688 sites was completed in
July 2021. The sampling sites were situated on each of the four licences,
although largely focused on P29/2361 and P29/2363. The sampling grid was 160m
x 40m and samples were collected from 10-30cm below surface using standard
industry practices.

 

RC Drilling Programme: An initial RC drilling programme of 27 RC holes for a
total of 2,379 metres was completed in September 2021, targeting the two
priority prospects initially identified from the historical exploration
dataset (refer Figure 1.).  14 RC holes for 1,189 metres were drilled at
Teglio, testing a strike length of 520 metres. A total of seven sections of
drill holes spans this length. At Nugget Patch a further 13 holes were drilled
for 1,190 metres. These targets were chosen based on elevated gold
concentration within the licence area and the potential to generate
significant strike and lateral extension from old workings. Table 1 summarises
the significant gold intercepts from the Phase 1 drilling programme.

 

 Hole Number  From Depth  To Depth  Interval (m)  Grade (g/t)  Target
 CMRC21-001   34          41        7             0.5          Teglio North
 CMRC21-002   46          49        3             0.36         Teglio North
 CMRC21-005   45          48        3             0.86         Teglio
 CMRC21-013   44          47        3             0.47         Teglio South
 CMRC21-015   48          49        1             4.44         Nugget Patch
 CMRC21-016   61          63        2             0.81         Nugget Patch
 CMRC21-020   7           10        3             0.53         Nugget Patch
              49          51        2             1.51         Nugget Patch
 CMRC21-023   50          52        2             1.18         Nugget Patch
 CMRC21-026   43          45        2             0.9          Nugget Patch

Table 1. Significant Intercepts from Phase 1 drilling with an Incremental
cut-off grade >0.3g/t Au and >1g Au*m intervals.

 

Figure 1. Central Menzies Project drill hole location plan with the recent
drilling collar locations in green and the recent soil sampling in brown.
Historic drill intersections with significant grade*metres are also
highlighted.

 

Phase 2 RC Drilling Programme

 A second phase of RC drilling was carried out in December 2021, focused on
testing the 500m long Nugget Patch gold trend where a coherent zone of
supergene gold mineralisation was previously delineated close to the base of
strong weathering during the initial RC drilling programme in September 2021.
At Teglio additional holes were drilled to confirm historic high grade gold
intersections closely associated with the main workings, plus an additional
traverse to test under a strong gold-in-soil anomaly recently defined by
Empire some 300m northwest of the previous drilling.

 

The drilling programme consisted of 13 RC holes for a total of 1,422 metres
with nine RC holes drilled at Nugget Patch, for 1,1,112 metres, and a further
four holes drilled at Teglio, for 310 metres (refer Figure 2), with the
following significant intercepts reported:

o  1m @ 1.35 g/t Au from 81m downhole at Nugget Patch

o  2m @ 1.41 g/t Au from 90m downhole at Nugget Patch

o  3m @ 3.1 g/t Au from 13m downhole at Teglio

o  4m @ 112 g/t Au from 36m downhole at Teglio

 

 

Figure 2. Phase 2 RC drill hole collar locations highlighted in red, Phase 1
in grey. Historic drill intersections with significant grade*metres are also
highlighted.

 

 

Competent Person Statement

The technical information in this report that relates to the Eclipse Gold
Project has been compiled by Mr Andrew Bewsher, a full-time employee of BM
Geological Services. Mr Bewsher is a Member of the Australian Institute of
Geoscientists. Mr Bewsher has been engaged as a consultant by Empire Metals
Limited. Mr Bewsher 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 Bewsher 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:

 

 Shaun Bunn                                                         Empire Metals Ltd                                                                             Company                                                                 Tel: 020 7907 9327
 Greg Kuenzel                                                       Empire Metals Ltd                                                                             Company                                                                 Tel: 020 7907 9327
 Ewan Leggat                                                        S. P. Angel Corporate Finance LLP                                                             Nomad & Broker                                                          Tel: 020 3470 0470
 Adam Cowl                                                          S. P. Angel Corporate Finance LLP                                                             Nomad & Broker                                                          Tel: 020 3470 0470
 Damon Heath                                                        Shard Capital Partners LLP                                                                    Joint Broker                                                            Tel: 020 7186 9950
 Susie Geliher /Ana Ribeiro                                         St Brides Partners                                                                            PR                                                                      Tel: 020 7236 1177
                                                                    Ltd
 Selina Lovell                                                      St Brides Partners                                                                            PR                                                                      Tel: 020 7236 1177
                                                                    Ltd

 
 

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 strategy is to develop a pipeline of projects at different stages in the development curve. Its current focus is on the high-grade Eclipse Gold Project and the Central Menzies Gold Project in Western Australia, with the goal to expand through the addition of further projects in the region to develop a viable and compelling portfolio of precious metals assets.

 

Empire also holds a portfolio of three precious metals projects located in an 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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