REG - Kendrick Resources - Completion of Airijoki Extension Drill program

Kendrick ResourcesAnnouncement

12/10/2023 07:00

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RNS Number : 8337P  Kendrick Resources PLC  12 October 2023

 

12 October 2023

Kendrick Resources Plc

("Kendrick" or the "Company")

 

Completion of Airijoki Extension Drill program

 

Kendrick Resources Plc (LSE: KEN), a mineral exploration and development
company with vanadium, nickel and copper projects in Scandinavia is pleased to
provide an operational update for its Airijoki Project in Vittangi, Sweden.

 

Highlights

·    8 Holes drilled for 1394 m

·    Vanadium mineralisation confirmed for circa 2km from the northern
boundary of the existing 44.3Mt Mineral Resource comprising >100,000 tonnes
of contained V(2)O(5)

·    Drilling provides fresh core for further metallurgical test work

·    Drilling has now been undertaken on two licences within the greater
land package of seven contiguous licences

·    The remaining 5 licences are prospective for both vanadium and copper
and will be subject to follow up exploration

·    Engagement of an external metallurgical engineer with vanadium
experience working alongside Dr E Kirby Non-Executive director to guide future
test work

 

Colin Bird, Executive Chairman of Kendrick Resources Plc commented: "The
successful completion of the latest drill programme is an important step as we
build a substantial vanadium resource based on the Airijoki Project.  We have
now drill tested two of the seven licences that comprise the project area and
these untested licences have been covered by historic and recent soil
geochemistry and geophysics showing similar characteristics to that which has
so far led to fresh vanadium discoveries. It is our intention to continue to
build a substantial vanadium resource. Further metallurgical test work is
required, and this process will continue as we expand our programme"

 

Drilling Programme

The Airijoki 200 license is located immediately to the northeast of the
Airijoki 100 license in which the 44.3Mt JORC Inferred Vanadium mineral
resource is estimated and is prematurely terminated between the license
boundaries (Figure 1).

 

The drill program targeted the magnetic anomaly produced from a Ground
Magnetic Survey completed in March 2021, which coincided with the inferred
mineral resource and extended through into the Airijoki 200 license.

 

A total of 1394 m were drilled from 8 holes and from visible observations and
portable XRF (pXRF) point measurements taken every meter, the continuity of
the vanadium mineralisation is confirmed. Anomalous vanadium concentrations
were detected by pXRF in 7 out of the 8 holes.

 

The mineralised samples have been dispatched to the laboratory for assay, to
determine the V, and V(2)O(5) concentrations in both whole rock and magnetic
concentrate more accurately. The assay results are expected to confirm
continuity of the Vanadium mineralisation and the potential to significantly
expand the current Vanadium resource at Airijoki and will be announced in due
course once received and assessed by the Company.

 

Figure 1. Map showing magnetic survey, JORC Inferred Resource outline, and
location of recently completed drillholes.

 

Figure 2. Cross-section showing actual locations drilled and suspected
vanadium mineralisation as detected by the pXRF measurements taken every
metre. V measurements by pXRF only provide an indication of the location of
the mineralisation and these results will need to be verified by an accredited
laboratory.

 

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.

 

  Appendix A - Glossary of Technical Terms

 

 "anomaly or anomalous"    something in mineral exploration that geologists interpret as deviating from
                           what is standard, normal, or expected.

 "assay"                   The laboratory test conducted to determine the proportion of a mineral within
                           a rock or other material. For base metals, usually reported as percentage
                           which is equivalent to percentage of the mineral (i.e. copper) per tonne of
                           rock.

 "azimuth"                 the "compass direction" refers to a geographic bearing or azimuth as measured
                           by a magnetic compass, in true or magnetic north.

 "diamond drilling"        A drilling method in which penetration is achieved through abrasive cutting by
                           rotation of a diamond encrusted drill bit. This drilling method enables
                           collection of tubes of intact rock (core) and when successful gives the best
                           possible quality samples for description, sampling and analysis of an ore body
                           or mineralised structure.

 "dip"                     A line directed down the steepest axis of a planar structure including a
                           planar ore body or zone of mineralisation. The dip has a measurable direction
                           and inclination from horizontal.

 "geochemical"             Refers to geological information using measurements derived from chemical
                           analysis

 "geophysical"             Refers to geological information using unit measurements derived from the use
                           of magnetic and electrical readings

 "geophysical techniques"  include the exploration of an area by exploiting differences in physical
                           properties of different rock types. Geophysical methods include seismic,
                           magnetic, gravity, induced polarisation and other techniques; geophysical
                           surveys can be undertaken from the ground or from the air

 "grade"                   The proportion of a mineral within a rock or other material. For copper
                           mineralisation this is usually reported as % of copper per tonne of rock.

 "g/t"                     grams per tonne; equivalent to parts per million ('ppm')

 "Indicated Resource"      An "Indicated Mineral Resource" is that part of a Mineral Resource for which
                           quantity, grade or quality, densities, shape and physical characteristics, can
                           be estimated with a level of confidence sufficient to allow the appropriate
                           application of technical and economic parameters, to support mine planning and
                           evaluation of the economic viability of the deposit. The estimate is based on
                           detailed and reliable exploration and testing information gathered through
                           appropriate techniques from locations such as outcrops, trenches, pits,
                           workings and drill holes that are spaced closely enough for geological and
                           grade continuity to be reasonably assumed.

 "Inferred Resource"       An "Inferred Mineral Resource" is that part of a Mineral Resource for which
                           quantity and grade or quality can be estimated on the basis of geological
                           evidence and limited sampling and reasonably assumed, but not verified,
                           geological and grade continuity. The estimate is based on limited information
                           and sampling gathered through appropriate techniques from locations such as
                           outcrops, trenches, pits, workings and drill holes.

 "intercept"               Refers to a sample or sequence of samples taken across the entire width or an
                           ore body or mineralised zone. The intercept is described by the entire
                           thickness and the average grade of mineralisation.

 "massive"                 In a geological sense, refers to a zone of mineralisation that is dominated by
                           sulphide minerals.  The sulphide-mineral-rich material can occur in
                           centimetre-scale, metre-scale or in tens of metres wide veins, lenses or
                           sheet-like bodies containing sphalerite, galena, and / or chalcopyrite etc.

 "Measured Resource"       A "Measured Mineral Resource" is that part of a Mineral Resource for which
                           quantity, grade or quality, densities, shape, and physical characteristics are
                           so well established that they can be estimated with confidence sufficient to
                           allow the appropriate application of technical and economic parameters, to
                           support production planning and evaluation of the economic viability of the
                           deposit. The estimate is based on detailed and reliable exploration, sampling
                           and testing information gathered through appropriate techniques from locations
                           such as outcrops, trenches, pits, workings and drill holes that are spaced
                           closely enough to confirm both geological and grade continuity.

 "Mineral Resource"        A "Mineral Resource" is a concentration or occurrence of diamonds, natural
                           solid inorganic material, or natural solid fossilised organic material
                           including base and precious metals, coal, and industrial minerals in or on the
                           Earth's crust in such form and quantity and of such a grade or quality that it
                           has reasonable prospects for economic extraction. The location, quantity,
                           grade, geological characteristics and continuity of a Mineral Resource are
                           known, estimated or interpreted from specific geological evidence and
                           knowledge.

 "mineralisation"          In geology, mineralisation is the deposition of economically important metals
                           (copper, gold, lead, zin etc) that in some cases can be in sufficient quantity
                           to form mineral ore bodies.

 "outcrop"                 A section of a rock formation or mineral vein that appears at the surface of
                           the earth.  Geologists take direct observations and samples from outcrops,
                           used in geologic analysis and creating geologic maps. In situ (in place)
                           measurements are critical for proper analysis of the geology and
                           mineralisation of the area under investigation.

 "veins"                   A vein is a sheet-like or anastomosing fracture that has been infilled with

                         mineral ore (chalcopyrite, covellite etc) or mineral gangue (quartz, calcite
                           etc) material, within a rock. Veins form when minerals carried by an aqueous

                         solution within the rock mass are deposited through precipitation and infill
                           or coat the fracture faces.

                           A non-destructive analytical technique used to determine the elemental

                         composition of materials. XRF analysers determine the chemistry of a sample by
                           measuring the fluorescent (or secondary) X-ray emitted from a sample when it

                         is excited by a primary X-ray source.
 "XRF"

 

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