REG - Kendrick Resources - Espedalen Update

Kendrick ResourcesAnnouncement

07/02/2024 07:00

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RNS Number : 2481C  Kendrick Resources PLC  07 February 2024

 

7 February 2024

 

Kendrick Resources Plc
("Kendrick" or the "Company")

Discovery of new drill targets and

Extensions of mineralisation at the Espedalen nickel complex

 

Kendrick Resources Plc (LSE: KEN), a mineral exploration and development
company with Nickel, Copper and Vanadium projects in Scandinavia is pleased to
announce the delineation of new nickel drill targets at Stormyra based upon
positive findings from ground magnetic and electromagnetic ("EM") surveys
conducted at the Company's Espedalen Nickel Complex (the "Complex").

 

Highlights

·    Ground magnetic survey identifies two prospective areas with a
magnetic signature similar to the near-surface main zone of the known
mineralisation.

·    The survey confirms an extra 500 metre of untested south easterly
extension of the Stormyra orebody that can be drilled with the objective of
increasing the existing in-house resource tonnage.

·    In addition, a transient electromagnetic ("TEM") survey identified a
strong conductive body at depth further to the southeast which could
potentially represent deeper mineralisation reflecting the source of
nickel-bearing fluids in the Complex.

·    The geophysical anomalies represent viable drill targets likely to
add to the existing mineral resource.

·    A further 10 drill-defined anomalies remain to be thoroughly tested
within the Complex.

 

Colin Bird, Executive Chairman of Kendrick Resources Plc commented:

"The successful 2023 diamond drill programme achieved notable Ni-Cu intercepts
over a strike length of 1.2 kilometres. These new geophysical survey results
provide the evidence and motivation to expand the resource at the Stormyra
deposit located within the Espedalen nickel and copper complex. The results
will form part of further technical studies leading to drilling. The
opportunity to build on the historical mineral resource of 1.1Mt at 1.1% Ni
and 0.50% Cu is looking extremely likely, placing Stormyra as the forefront
deposit within the Espedalen Complex for development.

 

Based on the successful outcome of the geophysical study at Stormyra, we are
now minded to roll out this programmeme across the rest of the Espedalen
Complex where a further 10 prospects have been identified and tested with
drilling, with some returning intercepts greater than 1% Ni, and where further
targeted exploratory studies are likely to add additional resources to the
Complex.

 

Our preliminary investigations over the Complex have enhanced the Espedalen
project and provide clear evidence for the development of an as yet
undetermined resource tonnage most likely at cumulative grades exceeding 1% Ni
with a significant copper and possibly cobalt by-product. "

 

Introduction

The successful 2023 drilling programmeme was followed up by two ground
geophysical surveys to provide insight into the potential extent of the
mineralized zones at Stormyra. The recently completed interpretation of the
geophysical survey results supports the premise that mineralisation extends
beyond the current resource area where there has been no drilling.

 

Ground Magnetic Survey

The interpretation of the ground magnetic survey has revealed several linear
magnetic anomalies. Two dominant fault orientations, striking
northwest-southeast and north-northwest-south-southeast, were recognized that
can be explained by the main regional deformation events. A comparison with
the outline of the known mineralisation indicates that the mineralisation zone
strikes parallel to delineated northwest-southeast linear structures. Notably,
an intense linear magnetic anomaly in the northwestern part of the area aligns
with the known shallow occurrence of the main mineralized zone. Based on the
spatial coherence of known mineralisation relative to magnetic anomalies, two
prospective areas have been identified (see Figure 1). Like the known
mineralisation, these zones coincide with northwest-southeast striking linear
magnetic anomalies within an intermediate-low background magnetic field. One
of the prospective areas occurs about 500m southeast of the nearest drill
hole. This confirms the results of a historic ground EM survey over the area
that indicated a similar extent of the mineralisation of about 500m towards
the southeast. The other prospective area occurs about 150m to the southwest
parallel to the currently drilled mineralized trend and could be indicative of
the mineralisation extending to surface.

 

In response to these encouraging findings, a diamond drilling programme is
planned to test the strike extent of mineralisation towards the southeast and
assess the width of the zone both up and down dip.

Figure 1. Map over the Stormyra mineralization displaying the results and
interpretation of the 2023 ground magnetic survey and planned drill holes.

 

 

 

Electromagnetic (EM) Survey

In addition to the ground magnetic survey, a transient electromagnetic (TEM)
survey was conducted. The historic UTEM survey indicated a mineralisation
extent of approximately 500 metres towards the southeast. The new TEM survey
focused on investigating an airborne EM anomaly east of this historic anomaly,
aiming to explore a potential extension of mineralisation even further
southeast.

TEM measurements along six profiles revealed a significant EM anomaly with a
slow signal decay, indicative of a well-conducting body. The field data were
modelled, revealing a large sub-horizontal plate at depth measuring 660 x 840
metres, gently dipping towards the northwest. The southern corner of the plate
is around 250 metres below ground surface, and the northern corner is
approximately 400 metres below ground surface.

 

This depth is greater than expected for the continuation of the Stormyra
mineralisation, suggesting the possibility of an offset mineralisation at
depth. Alternatively, the anomaly may represent a conductive layer within the
underlying sedimentary basement. To further investigate these findings, a
single drillhole targeting the centre of the plate is planned to test the
anomaly.

Figure 2. Map over the Stormyra mineralization displaying the potential
southeast extension,  the results and interpretation of the TEM survey and
planned drill hole.

 

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 Espedalen Complex

The Espedalen Complex is located approximately 50km north-west of Lillehammer
in southern central Norway, 3 hours' drive north of Oslo. The project is well
served with transport infrastructure being accessible by tarmac roads and is
close to rail links to ports in southern Norway and to Glencore's Nikkelverk
nickel refinery located 350km to the south.

 

The known nickel mineralisation on the Espedalen Complex is hosted within
differentiated mafic and ultramafic bodies which have intruded anorthositic
country rocks collectively referred to as the Espedalen Complex and range in
age from 1698 - 1250 Ma. This age range is similar to the age of the rocks
hosting the giant Voisey's Bay nickel deposit in Labrador, Canada. Further
evidence supporting the analogy between Espedalen and Voisey's Bay are
tectonic plate reconstructions which place southern Norway in relatively close
proximity during the time of formation of Voisey's Bay and with the two
regions undergoing similar tectonic developments.

 

Mining in the Espedalen area dates from 1666. Total production from the
Espedalen region is estimated at 100,000t @ 1.0% Ni, 0.4% Cu and 0.06% Co.
Significant exploration has been undertaken in the area. The majority and most
recent work having been completed by Falconbridge Limited and Blackstone
Ventures Limited having completed 134 drill holes across the Espedalen project
area, defining significant accumulations of nickel sulphides at the Stormyra
and Dalen prospects and generating numerous other quality targets.

 

In 2009, Blackstone published a NI 43-101 report detailing Inferred Mineral
Resources at the Stormyra and Dalen prospects. Blackstone relinquished the
Espedalen Project in 2011 following the preceding financial crisis. ASX listed
Drake Resources Limited (now renamed Ragnar Metals Limited) acquired the
Espedalen Project in 2012. Drake refined the Mineral Resources at Stormyra
(1.16Mt @ 1% Ni, 0.42% Cu & 0.04% Co) and Dalen (7.8Mt @ 0.28% Ni, 0.12%
Cu & 0.02% Co) prospects in accordance with JORC (2012).

 

In addition to defining JORC (2012) compliant mineral resources at Stormyra
and Dalen, Drake identified 10 prospects where drilling by Blackstone had
intersected at least 5 metres percent Ni, which were never followed up. A
detailed compilation of all past mineral exploration and drilling data
recognised that the Stormyra Mineral Resource is not closed off and several
intersections warrant follow up drilling, to determine if the Mineral Resource
can be expanded, including:

·    12.18m @ 2.39% Ni, 0.95% Cu & 0.07% Co from 64m in hole ES2005-20

·    7.15m @ 2.68% Ni, 1.26% Cu & 0.08% Ni from 29.35m in hole
ES2005-22

·    14.6m @ 1.74% Ni, 0.79% Cu & 0.06% Co from 80.4m in hole
ES2004-09

 

The Stormyra Mineral Resource contains a high-grade core, with assays of up to
8.2% Ni. The high-grade core is not fully defined by drilling. Additional
investigation of this high-grade core is warranted along with drill testing a
ground geophysical conductor, directly associated with the nickel
mineralisation, which extends 500m to the south-east of the currently defined
limits of the Stormyra Mineral Resource.

 

 

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.

 "dyke"                    A magmatic dyke is a tabular or sheetlike igneous body that intruded
                           preexisting rocks, often at a steep angle.

 "fault"                   A planar fracture or discontinuity in a volume of rock across which there has
                           been significant displacement.
 "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 parametres, 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 parametres, 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.

 

 

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