REG - Kendrick Resources - Airijoki Drill Results
08/02/2024 07:15
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RNS Number : 3845C Kendrick Resources PLC 08 February 2024
8 February 2024
Kendrick Resources Plc
("Kendrick" or the "Company")
Drilling confirms additional vanadium mineralisation to the north of the
existing Airijoki JORC mineral resource initiating the next stage of project
development
Kendrick Resources Plc (LSE: KEN), the mineral exploration and development
company building vanadium, nickel and copper battery metal projects in
Scandinavia is pleased to announce new vanadium assay results from its diamond
drill programme over the Airijoki Vanadium Deposit in Vittangi, Sweden. The
combination of a JORC Mineral Resource, new positive assay results and access
to a further 5 contiguous exploration licences expected to generate additional
vanadium (and copper) targets for follow up and possible future expansion of
the current vanadium resource, has initiated the next step in the development
of the Company's vanadium programme.
The immediate emphasis will be to switch from further drilling to expanding
the Mineral Resource, to focusing on the development and implementation of an
appropriate strategy to build a sustainable vanadium business, this does not
preclude future ongoing exploration. But in the meantime we will be looking to
build strategic alliances with both iron ore and vanadium miners and
processors, together with an alignment with end users of vanadium, principally
in the Vanadium Redox battery sphere. Operating to the highest possible
standards, the Company aims to become a significant contributor to the supply
of vanadium in the Scandinavian battery arena.
Highlights
· Results have been received for whole rock and vanadium magnetite
concentrates produced from eight holes drilled north of the existing Airijoki
vanadium JORC Mineral Resource containing 44.3 Mt @ 0.4% V(2)O(5), in-situ,
containing 5.9 Mt of magnetite averaging 1.7% V(2)O(5).
· Seven out of eight holes drilled intersected Vanadium mineralisation.
· Notable intercepts included:
o 0.52% V(2)O(5) - whole rock (1.77% V(2)O(5) - magnetite concentrate) over
28.80m from 77.55m in hole AIR23-003, incl.
§ 0.72% V(2)O(5) - whole rock (2.15% V(2)O(5) - magnetite concentrate) over
12.00m from 89.50m
o 0.43% V(2)O(5) - whole rock (1.44% V(2)O(5) - magnetite concentrate) over
19.15m from 75.85m in hole AIR23-008
o 0.32% V(2)O(5) - whole rock (1.42% V(2)O(5) - magnetite concentrate) over
28.65m from 174.50m in AIR23-002
§ incl. 0.40% V(2)O(5) - whole rock (1.75% V(2)O(5) -magnetite concentrate)
over 12 m from 186.5m
· Endorsement by the Board of the development of a strategy aimed at
building a sustainable vanadium business in Scandinavia to deliver into future
vanadium demand for battery production.
Colin Bird, Executive Chairman of Kendrick Resources Plc commented: "I am
delighted to see that this drilling campaign testing the northern extension to
the existing 44.3 Mt Airijoki JORC Resource carries good whole rock Vanadium
grades as well as Vanadium magnetite concentrate grades demonstrating the
potential to add to the existing resource at Airijoki. Development of
resources at Airijoki has required evaluation including rock and soil sampling
to both confirm historic anomalies and to define new targets to explain
underlying geophysical anomalies with work programmes confined to certain
times of the year to minimise the impact of exploration. It is always
rewarding to receive highly positive results derived from the exploration
team's hard work and dedication. The fact that we have a number of other
high quality defined drill targets on the as-yet largely untested licences
comprising the Airijoki project, bodes well for future resource growth.
Kendrick is evolving and, having achieved a critical mass in terms of resource
tonnes and grade underpinned by strong evidence to suggest scope for
significant growth, the Board believes now is the right time for the Company
to build alliances and establish long-term commercial cooperation agreements
necessary to ensure a market for future vanadium production. We look forward
to expanding on our proposed strategy and updating shareholders as we evolve
as a company".
Drilling Programme and Results
Kendrick Resources Plc has received geochemical results from all the diamond
drill holes completed at Airijoki towards the end of 2023 with all but one
hole intersecting Vanadium mineralisation.
The eight hole 1,394m scout diamond drilling program in the Airijoki 200
license is located immediately to the northeast of the Airijoki 100 license in
which the 44.3Mt JORC compliant Inferred Vanadium resource is estimated.
The whole rock, as well as results for vanadium magnetite concentrates,
produced by Davis Tube Recovery ("DTR"), confirm the possibility to extend the
current JORC compliant inferred Vanadium resource to the north for
approximately a further circa 2 km.
Figure 1. Drill Hole Location Map for the Airijoki Vanadium Deposit, Vittangi,
Sweden
Figure 2. Cross section through hole AIR23-003 and AIR23-002 displaying the
local geology and mineralized intercepts.
A subset of 712.7 metres was forwarded to ALS Scandinavia AB for processing.
After core logging, the selected drill core intervals were sent to the ALS
laboratory in Malå, Sweden for preparation and analysed at ALS Loughrea,
Ireland. Significant results for the sampled diamond drill holes drill holes
are listed in the Table below.
Hole From To Width (m) (Downhole Depth) V(2)O(5) % (in Whole Rock) V(2)O(5) % (in Magnetite Concentrate) Mass Recovery %
AIR23-001 53.00 53.95 0.95 0.18 0.90 12.00
58.40 59.50 1.10 0.28 1.39 10.85
62.25 65.25 3.00 0.29 1.37 12.87
113.30 114.30 1.00 0.23 1.04 12.30
154.70 173.80 19.10 0.28 1.20 15.70
includes from 165.9 6.10 0.33 1.33 17
.1
1
AIR23-002 32.60 37.95 5.35 0.19 0.87 15.17
105.75 110.55 4.80 0.23 0.89 15.26
174.50 203.15 28.65 0.32 1.42 11.77
AIR23-003 77.55 106.35 28.80 0.52 1.77 19.57
includes from 89.50 12.00 0.72 2.15 24
.1
3
AIR23-004 62.00 77.70 15.70 0.25 1.01 15.84
84.10 99.75 15.65 0.31 1.12 17.76
AIR23-005 41.85 76.55 34.70 0.33 1.00 22.19
AIR23-006 148.00 154.00 6.00 0.22 0.83 20.18
159.80 184.90 25.10 0.31 1.09 20.65
AIR23-007 No significant intercepts recorded
AIR23-008 64.55 68.55 4.00 0.20 0.69 23.80
75.85 95.00 19.15 0.43 1.44 21.73
103.10 107.75 4.65 0.25 1.09 17.99
Notes:
1) Reported intervals are downhole widths.
2) Reported intervals are calculated for zones analysing >
0.1% V (Whole Rock)
3) V% to V2O5% element-stoichiometric oxide conversion factor of
1.7852 used
4) The V(2)O(5) values may differ slightly due to rounding.
Figure 3. Core Photo from hole AIR23-003 showing high grade mineralisation
Quality Assurance/Quality Control (QA/QC)
The diamond drilling program was executed by Norse Diamond Drilling AS. The
rig was aligned using a DeviAligner and the hole was surveyed with a DeviGyro
at 3m intervals after the completion of a hole. Collar coordinates were taken
with a Garmin GPS.
The NQ2 sized core from the diamond drill programme was logged, marked, and
photographed, and RQD, magnetic susceptibility and XRF measurements were taken
every meter by geologists and technicians from EMX royalty.
The drill core was sampled at minimum 0.25 metre up to 2.65 metre intervals
and sent to ALS in Malå, Sweden. The samples were cut, and the split (½ core
or two quarter core) samples were crushed, split, and pulverized (using ALS
methods CRU-31, SPL-22Y, PUL-31).
A pulp split was sent to ALS Loughrea, Ireland, an ISO accredited laboratory
for assaying, for final chemical analysis using the ALS method ME-XRF21n.
Samples with an analysis result of >0.1%V in whole rock, underwent
beneficiation by David Tube Recovery (method MAG-DTR) and the resulting
magnetic concentrate was analysed (method ME-XRF21c). Selective samples were
analysed for gold, platinum, and palladium (method PGM-ICP23). Standards,
blanks, and duplicates were inserted regularly every 10(th) sample in the
sample stream.
This announcement contains information which, prior to its disclosure, was
inside information as stipulated under Regulation 11 of the Market Abuse
(Amendment) (EU Exit) Regulations 2019/310 (as amended).
For additional information please contact:
Kendrick Resources Plc: Tel: +44 2039 616 086
Chairman Colin Bird
Novum Securities Tel: +44 7399 9400
Financial Adviser David Coffman / George Duxberry
Joint Broker Jon Bellis
Shard Capital Partners LLP Tel: +44 207 186 9952
Joint Broker Damon Heath / Isabella Pierre
Qualified Person
The technical information contained in this announcement has been reviewed,
verified, and approved by Colin Bird, CC.ENG, FIMMM, South African and UK
Certified Mine Manager and Director of Kendrick Resources plc, with more than
40 years' experience mainly in hard rock mining.
About Kendrick Resources Plc
Kendrick Resources Plc is a mineral exploration and development company with
projects primarily based across Scandinavia. The principal of its business is
to explore the opportunities within the natural resources sector with a focus
on battery, base, and precious metals including but not limited to vanadium
and nickel. In doing so, the Company is looking to build a long term energy
metals business in Scandinavia which delivers energy metals to Europe to help
enable its renewable energy transformation by building a top tier energy
metals production business.
The Airijoki Project
The Airijoki Project lies within the Vittangi Greenstone Group (VGG) of
northern Sweden, in relative proximity to established infrastructure as well
as several significant mines (i.e. Kiruna, Svappavaara, Leveäniemi and
Mertainen) and other new energy mineral projects (i.e. Talga Group's Vittangi
graphite project). Geologically, the Project is centred on a laterally
continuous, northeast trending gabbroic (locally termed diabase) intrusion
which hosts vanadium-magnetite mineralisation along with lesser base metal
(predominantly copper mineralisation).
Airijoki is currently supported by an Inferred Mineral Resource comprising
44.3 Mt at an in-situ grade of 0.4% V(2)O(5), containing 5.9 Mt of magnetite
averaging 1.7% V(2)O(5) (in magnetite concentrate) for 100,800 t of contained
V(2)O(5) based on a 13.3% mass recovery of magnetite concentrate and a 0.7%
V(2)O(5) cut-off grade, on a 100% equity basis (and net attributable basis).
Subsequent Davis Tube Recovery (DTR) and low-intensity magnetic separation
(LIMS) test work indicated that vanadium magnetite concentrates grading over
2% V(2)O(5) and more than 65% Fe are possible at mass recoveries over 20% from
the vanadium mineralisation at Airijoki. Overall, vanadium recoveries in
excess of 70% can be achieved using a relatively coarse grind size of 355 µm
and using LIMS without the need for further treatment.
Conceptual studies completed in 2019 envisage that Airijoki will be developed
by bulk open pit mining techniques from four open pits using standard drill
and blast, load/haul, and crusher feed/magnetic separation to produce a
vanadium magnetite concentrate. The conceptual techno-economic studies
demonstrated the Project has the potential to be financially robust. Further
metallurgical test work, extensional and infill drilling and optimisation
studies are warranted at Airijoki prior to more advanced techno-economic
analysis.
Vanadium
Technological advances are expected to positively influence the demand for
vanadium. Principally used as an alloy in steel and aluminium production, its'
ability to make materials stronger and lighter offers important benefits
particularly for weight-to-strength ratio, an important consideration
particularly for EVs'. Vanadium pentoxide is also an important component in
REDOX flow batteries used for energy storage associated with solar and wind
farms. With the projected increased use of vanadium in EV batteries, demand
for the metal is expected to grow.
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