REG - GreenX Metals Ltd - Field Program to Commence at ARC in Greenland

GreenX MetalsAnnouncement

20/07/2022 07:00

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RNS Number : 0595T  GreenX Metals Limited  20 July 2022

GreenX Metals Limited

 

News Release | 20 July 2022

 

Field Program to Commence at ARC Project in Greenland

 

 ·               Field program to commence at ARC in the coming weeks with deployment of five
                 geological field teams supported by customised All-Terrain-Vehicles
 ·               Identified "walk-up" native copper and copper sulphide targets to be
                 prioritised through a program of sampling, core drilling and geophysics
 ·               ARC is a significant, large-scale project (5,774km(2) license area) with
                 historical exploration results and recent analysis indicative of an extensive
                 mineral system with potential to host world-class copper deposits
 ·               ARC mineral system is prospective for basalt, fault, and sedimentary
                 rock-hosted copper mineralisation; analogue of the economically significant
                 Keweenaw Peninsula in Michigan, USA
 ·               Strong news flow over the upcoming quarters from the field program and results
                 from ongoing analysis of historical data

 

GreenX Metals Limited (GreenX or the Company) is pleased announce the receipt
of all the permits for the proposed 2022 field program at the Arctic Rift
Copper Project (ARC or ARC Project), which will commence in the coming weeks.
Five geological teams will be deployed in the field supported by
All-Terrain-Vehicles (ATV). The field team and field equipment will be
deployed by ship from Iceland and will access the ARC project via Independence
Fjord.

 

Historical programs and latest analysis have identified a number "walk-up"
native copper and copper sulphide targets that will be the priority for the
upcoming field program including Discovery Zone, Neergaard Dal and the Knuth
Fault. The field campaign is based on a program of sampling, mapping, portable
core-drilling and geophysics including seismic, electro-magnetic (EM) and
radiometrics. Portable XRF will be used in the field and the field team will
have access to satellite internet for real time uploading of field results.
The field program will be led in the field by Dr Jonathan Bell.

 

GreenX expects strong news flow over the upcoming quarters from the field
program and results from ongoing analysis of historical data.

 

ARC Project Summary

 

GreenX consider the observed geological setting and features of ARC to be
indicative of an extensive mineral system capable of hosting copper deposits.

 

The large scale of the mineral system, widespread copper anomalism, combined
with multiple mineralising events are analogous to some of the most
significant copper systems known worldwide. Accordingly, GreenX considers that
ARC has the potential to be a globally significant metallogenic province.

 

Historical field programs identified widespread copper-silver occurrences at
surface:

 

·      geochemical sampling found that 80% of stream sediment samples
contain native copper

·      native copper is found in situ or as float, with individual
clasts of native copper weighing up to 1 kg+

·      high grade copper sulphides, grading up to 2.15% Cu and 35.5g/t
Ag over 4.5m true width, are known from trench sampling of fault zones within
sediments (see GreenX announcement dated 20 January 2022 entitled "New Copper
Targets Identified at ARC")

·      assay results from individual samples are much higher grade,
including:

 

 o  53.8% Cu and 2,480g/t Ag   o  7.9% Cu and   53 g/t Ag
 o  20.7% Cu and 488g/t Ag     o  5.3% Cu and 112 g/t Ag
 o  12.5% Cu and 385g/t Ag     o  5.0% Cu and 304 g/t Ag
 o  9.0% Cu and 112 g/t Ag     o  4.0% Cu and   82 g/t Ag

 

There are multiple targets and favourable geological settings considered to be
prospective within the ARC project area, including the following.

 

·      The highly anomalous basalt is a high priority target that has
not previously been the focus of commercial exploration.  These basalts are
the source of the native copper.

·      The sulphide mineralised faults passing through these basalts
into the overlying sediments have been subject to first pass exploration and
shown to be rich in copper and silver. The high-grade sulphides in these
faults will be the focus of further exploration.

·      The permeable coarse-grained sandstone within the Jyske Ås Fm
has high grade copper that is effectively unexplored. This stratiform
mineralisation adds the potential for significant lateral extension of the
known mineralisation exposed in the faults of the Discovery Zone.

 

As such, the extensive ARC mineral system is known to be prospective for
basalt, fault, and sedimentary rock-hosted ('sediment-hosted') mineralisation
that despite the attractive grades, is virtually unexplored.

 

Structural Geology Review

 

A structural review of the currently available datasets regarding ARC's
geology was recently conducted by specialist consultant Dr Mark Munro (see
GreenX announcement dated 20 January 2022 entitled "New Copper Targets
Identified at ARC"). It was confirmed that the known copper mineralisation,
including the native copper and Discovery Zone copper sulphides, is associated
with reverse faults. Reverse faults are an important structural control on
mineralisation at ARC, with the recent study both extending the known reverse
faults (Eigil Fault) with associated mineralisation and identifying new
reverse faults (Knuth Fault and Neergaard Valley Fault).

 

This demonstrates known mineralised structures intersecting the Zig-Zag flood
basalts, and further strengthens the ARC's analogy with the prolific and
economically significant Keweenaw Peninsula.  At this analogy in Michigan,
the mineralised reverse faults are the fluid transport conduits for the strata
bound native copper deposition in flood basalts, and copper sulphides in the
overlying sediments. The Keweenaw Peninsula contained a pre-mining endowment
of +7 Mt of copper contained in sulphides and 8.9 Mt of native copper.

 

Identified Targets and Prospects

 

Discovery Zone

 

The most advanced prospect within ARC is the copper-silver bearing Discovery
Zone, located at the northern end of Neergaard Dal. The Discovery Zone was
identified in 2010 as a follow up to a geochemical anomaly identified by the
government geologists in 1994.

The Discovery Zone is comprised of at least three parallel breccia faults
trending northwest-southeast. The faults are traced for a minimum of 2km along
strike before they disappear underneath moraine. The Discovery Zone is open in
both directions.

 

The width of the fault breccias is variable, ranging from 1m to 25m thick. The
host lithology is red sandstones of the lower Jyske Ås Fm, and they are
proximal to outcrops of Zig-Zag Fm.  The breccias have copper sulphide and
copper oxide mineralisation. The copper-bearing species include chalcocite,
brochantite, bornite, chalcopyrite, and malachite. The mineralisation is
expressed in two main forms, within which there are two sub-forms:

 

1.   Breccia bound.  Mineralisation occurs in thin quartz-dominated veining
within the fault breccia and contains disseminated copper sulphides. Assays
from this material grades up to 53.8% Cu and 2,480g/t Ag.

 

Within the breccia-bound mineralisation are intensely potassic, unconsolidated
materials known as 'Black Earth'. The multiple but discontinuous 0.7m to 3m
horizons have lengths between 2m to 50m. The Black Earth material contains
high grades of copper and silver, with reported true widths of 4.5m grading
2.15% Cu and 35.5g/t Ag (Chip Line #7, sampled interval 5.25m, estimated true
width 4.5m).

 

2.   Stratiform. Mineralisation occurs immediately adjacent to the faults
and comprises lenses and blebs of chalcocite and bornite measuring from
mm-scale to 15cm long.

 

Within the stratiform mineralisation is a poorly consolidated sandstone that
is identified as a potentially vast target horizon within the Jyske Ås Fm.
The outcrop shows pervasive interstitial chalcocite, bornite and chalcopyrite.

 

Zig-Zag Formation

 

Native copper float frequently occurs near the Zig-Zag Fm in the area around
the Discovery Zone and Neergaard Valley. Outside of ARC a 1.5m long chip
sample returned a significant grade of 1.97% Cu, and a grab sample returned
3.17% Cu from chalcocite filled vesicles. The Company and Greenfields
Exploration Limited (GEX) consider the widespread occurrence of low-grade
copper mineralisation, the frequent presence of sizeable native copper, and
the sampled grades within the licence to be very significant.

 

Valuable new information about sites of native copper was gained from recently
obtained field notebooks from the Government's reconnaissance field work that
was performed in the area in 1979 and 1980 (see GreenX announcement dated 20
January 2022 entitled "New Copper Targets Identified at ARC"). The field work
identified numerous examples of native copper in association with the basalt
rocks in Neergaard Valley, the main north-south oriented feature of the Minik
Anomaly.

 

What is particularly striking is that in the centre of this anomaly there is a
historical description of native copper occurring in both breccias (fissures)
and gas-cavities occurring near one another. At the Keweenaw Peninsula, native
copper specimens weighing over 500 tonnes were mined from fissures and
underpinned the original 'gold'-rush. However, it was the copper found in
gas-cavities within the flood basalts that underpinned much of the 99-year
mining history of the district. The historical description of fissure copper
next to cavity-hosted copper within ARC adds support to the Keweenaw analogy
as well as evidence of a vigorous (favourable), breccia inducing
mineralisation event. The JV partners will investigate this site as a matter
of priority during the 2022 field program.

 

arc - Geological Analogues

 

In terms of exploration targeting at ARC, the known mineralisation is ascribed
to two distinct deposit types:

 

o  Sediment-hosted stratiform copper - within this family of deposit types,
ARC is analogous to the super-giant Katangan Basin ('Copperbelt'), the
Zechstein ('European Kupferschiefer') and the White Pine-Presque Isle ('White
Pine') deposit models. Such deposit models account for a large proportion of
the world's highest quality mineral deposits due to their potential favourable
size and grade combinations.

 

o  Basaltic native copper - which is a comparatively poorly understood
deposit type. Such deposits occur around the world however, documentation of
the American and Canadian deposits is most readily available (e.g., Keweenaw,
Michigan; Kennecott, Alaska; Sustut, British Columbia). Of the historical
native copper districts, the Keweenaw Peninsula dominates the literature and
production statistics are available. The Keweenaw Peninsula had a pre-mining
endowment of 8.9Mt of native copper, of which 6.5Mt was mined for ~100 years
from the 1840's. Most of the commercial production of native copper was from
stratiform deposits, which facilitated high production rates and early
introduction of mechanisation. Notably, mining from 'fissures' produced masses
of native copper weighing hundreds of tonnes.

 

The closest geological analogue to ARC based on present understanding is the
Keweenaw Peninsula which had a known pre-mining copper endowment including
both native and sulphidic copper of over 16Mt and was a prolific mining
district as noted above. Whilst the Keweenaw Peninsula is notable for its
native copper, the sulphidic sediment-hosted mineralisation is also
significant. The endowment of the copper sulphide mineralisation contained in
two well-known deposits is around 4.5Mt Cu. The copper sulphide deposits also
contain substantial amounts of silver, with the White Pine deposit having
yielded 50Moz of silver, as part of the 2.0Mt of copper that was mined with
average grades of 1% Cu and 12g/t Ag. The White Pine mine was in production
between 1953 and 1996. The other known deposit is the Copperwood copper
sulphide deposit which is subject to current economic evaluation.

 

In addition to copper mining, the Michigan mineral province also contains a
high-grade magmatic nickel-copper sulphide-bearing deposit, Eagle Mine,
discovered by Rio Tinto and now operated by Lundin Mining. Commercial
production commenced from Eagle Mine in 2014. The mine is expected to produce
163Kt of nickel, 134Kt of copper and accessory platinum, palladium, and cobalt
over its estimated nine-year mine life.

 

About The Arctic Rift Copper Project

 

ARC is an exploration joint venture between GreenX and GEX.  GreenX can earn
80% of ARC by spending A$10 M by October 2026. The ARC Project is targeting
large scale copper in multiple settings across a 5,774 km(2) Special
Exploration Licence in eastern North Greenland. The area has been historically
underexplored yet is prospective for copper, forming part of the newly
identified Kiffaanngissuseq metallogenic province.  This province is thought
to be analogous to the Keweenaw Peninsula of Michigan, USA, which contained a
pre-mining endowment of +7 Mt of copper contained in sulphides and 8.9 Mt of
native copper.  Like Keweenaw, ARC is known to contain at surface, high-grade
copper sulphides, 'fissure' native copper, and native copper contained in what
were formerly gas bubbles and layers between lava flows.

 

-ENDS-

 

Competent Persons Statement

 

The information in this announcement that relates to the Exploration Results
is extracted from the announcements dated 6 October 2021 and 20 January 2022.
The announcements are available to view on the Company's website at
www.greenxmetals.com. (http://www.greenxmetals.com.) GreenX confirms that a)
it is not aware of any new information or data that materially affects the
information included in the announcements; b) all material assumptions
included in the announcements continue to apply and have not materially
changed; and c) the form and context in which the relevant Competent Persons'
findings are presented in this report have not been materially changed from
the announcements.

 

Forward Looking Statement

 

This release may include forward-looking statements, which may be identified
by words such as "expects", "anticipates", "believes", "projects", "plans",
and similar expressions. These forward-looking statements are based on
GreenX's expectations and beliefs concerning future events. Forward looking
statements are necessarily subject to risks, uncertainties and other factors,
many of which are outside the control of GreenX, which could cause actual
results to differ materially from such statements. There can be no assurance
that forward-looking statements will prove to be correct. GreenX makes no
undertaking to subsequently update or revise the forward-looking statements
made in this release, to reflect the circumstances or events after the date of
that release.

 

To view this announcement in full, including all illustrations and figures,
please refer to www.greenxmetals.com.

 

(1) Munro, Mark (2021). "Structural Review of the Arctic Rift Copper Project,
Greenland", Munro Geoscience Pty Ltd

 

 

 

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