REG - Kendrick Resources - Exploration Update

Kendrick ResourcesAnnouncement

30/11/2022 07:00

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RNS Number : 9745H  Kendrick Resources PLC  30 November 2022

30 November 2022

Kendrick Resources Plc

("Kendrick" or the "Company")

Exploration Update

 

Kendrick Resources Plc (LSE: KEN), the mineral exploration and development
company with nickel, vanadium and copper projects in Norway, Sweden and
Finland is pleased to provide an update on its activities in Scandinavia where
its broad focus is on nickel, vanadium and copper across the region.

 

Highlights

 

Espedalen Nickel

·    Drill contractors have been invited to tender for drilling of the
Espedalen nickel Project in Central southern Norway

·    Both an independent evaluation of Espedalen geophysics data and a
mineralogical study have been completed and reports are pending

 

Airijoki Vanadium - Copper

·    Soil and rock chip samples collected on 4 of the Airijoki Vanadium -
Copper project licences have been submitted for analysis

·    Three styles of copper mineralisation have been recognised at
Airijoki and potential for additional vanadium mineralisation has been
observed

·    Approval of the Scope of Work provided by the external metallurgical
consultant for Airijoki vanadium metallurgical test work has been granted by
the Company

·    The results of exploration at Airijoki warrant a drill programme.
Applications will be made to the relevant local and regional authorities for
permission to drill.

·    Review of geophysical data for the Sumåssjön Vanadium Project in
Sweden has been authorised along with the purchase of historic geophysical
data

 

Colin Bird, Executive Chairman commented "I am particularly pleased by the
investigations ongoing for nickel and feel there is much more potential than
previously reported. We will be targeting drilling to extend the existing
resource and to test new targets at Espedalen and elsewhere. I also remain
convinced that vanadium will play a significant role in static energy storage
in the near future and as a result we are pursuing our vanadium projects
vigorously. We are analysing and working on the combination of historic and
in-house generated raw data, executing further metallurgical test work and
scheduling more drilling of known extensions to Airijoki all with a view to
increasing our existing mineral resource."

 

Espedalen Nickel

The Company engaged an independent consultant to re-log the drill core from
the advanced stage Stormyra deposit (55 shallow holes; <300m), to verify
the loggable lithological units specifically to enable good geological control
on 3D modelling for mineral resource estimation. The result of the relogging
was to identify areas of mineralisation within drill core that had not been
recognised previously and which had not been sampled. In addition, areas of
lower grade mineralisation were also identified which again had not been
sampled which at the current nickel price may constitute economic
intersections and increase the overall mineralised package width. A drill
programme has been designed to improve the confidence of and expand on the
already defined 1.16Mt @ 1% Ni, 0.42% Cu & 0.04% Co and classified as
Inferred in accordance with JORC (2012) resource at Stormyra.

 

Meetings have been held with interested and affected parties in the area
around Espedalen where drilling is planned and the Company has provided
information relating to future exploration plans.

 

In addition to Stormyra, the Company has identified the Megrund prospect as a
priority target for follow up with potential to host massive sulphides based
on the Ni tenor being on par with Stormyra, together with the prospect having
the highest PGE grades recorded at Espedalen.

 

The review also noted that several other prospects within the Espedalen
Project area that had been tested with only 1 to 3 drillholes, all intersected
nickel sulphide mineralisation. No follow-up was undertaken on these prospects
and the Company intends to review the original geophysics results over these
targets before deciding on further evaluation.

 

The process of selection of a drilling contractor is underway and the relevant
local authority will be provided with documentation including a request to
undertake drilling. Subject to drill rig availability, the proposal remains to
drill in late January 2023 when ground conditions are considered optimal to
limit damage to the local environment. The drill plan has been submitted to
the Director of Mines, off road permits are being processed and meetings with
the local landowners have been scheduled.

 

Airijoki Vanadium - Copper

At the time of acquisition, the Airijoki Project in N Sweden comprised 4
exploration licences focused on vanadium mineralisation in the Vittangi
greenstones. An Inferred mineral resource estimate has been calculated
totalling 44.3 Mt at an in situ grade of 0.4% V2O5, containing 5.9 Mt of
magnetite averaging 1.7% V2O5 (in magnetite concentrate) for 100,800 t of
contained V2O5 based on a 13.3% mass recovery of magnetite concentrate and a
0.7% V2O5 cut-off grade.

 

A significant amount of historic geophysical survey data had been obtained
that has been reinterpreted by Kendrick based on  more recent assessment of
the local geology.

 

Consistent with this reinterpretation, the Company identified the potential
for copper mineralisation in the same general geological setting as the
vanadium resource and acquired two additional exploration licences deemed to
be prospective based on available historic geochemistry and have embarked on a
wide-ranging programme of soil sampling and detailed mapping across the 5
licences that make up the Project.

 

It is important to note that the abovementioned mineral resource estimate of
44.3Mt is confined to Licence Nr 100 and that the remaining 5 licences held by
Kendrick host similar geochemical and geophysical signatures to that found on
Licence Nr 100. Kendrick considers the 5 licences where no drilling or
resource estimation has been undertaken to be highly prospective for vanadium
mineralisation and, subject to the results of the recently completed soil
survey, also copper.

 

The Airijoki Project is located in a region of Sweden with significant mining
activity including some of the largest mines in Europe. A progressive mining
legislation and a long history of production offers an environment conducive
to future mine development.

 

Kendrick is working closely with a well-established Swedish geological
consulting group with specialist expertise in permitting and liaison with
central and local government and, the community.

 

Airijoki Metallurgical Test Work

Kendrick has appointed Wardell Armstrong International ("WAI") to undertake
metallurgical test work on drill core from historic diamond drilling at
Airijoki. The core was generated during the programme to define the initial
mineral resource estimate for vanadium on licence Nr 100.

WAI will complete the following test work:

                Phase 1: Sample Preparation & Rougher Low
Intensity Magnetic Separation ("LIMS") Testwork

                Phase 2: Cleaner LIMS Optimisation test work at
3 Grind Sizes

                Phase 3: Cleaner LIMS at Optimum Grind Size
determined from Phase 2 programme

 

Low Intensity Magnetic Separation ("LIMS") is a physical process whereby
magnetic material is separated from non-magnetic material. Strong magnetic
minerals such as the magnetite associated with vanadium can be recovered using
LIMS.

 

Vanadium-bearing magnetite whilst carrying relatively low concentrations of
vanadium remains the main raw material for vanadium extraction.

 

Sumåssjön Vanadium

The Sumåssjön project area contains two major mafic units, an eastern and a
western one, both containing vanadium mineral occurrences and areas of
historic mining activity. A programme has been put in place to get a better
understanding of the known vanadium mineralisation in this license and acquire
further field data.

 

Further information on the Company's projects can be found on the Company's
website at: https://www.kendrickresources.com/
(https://www.kendrickresources.com/)

 

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).

 -ENDS-

 For additional information please contact:
 Kendrick Resources Plc:     Tel: +44 203 961 6086

 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 African Pioneer 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 nickel,
vanadium and copper. 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.

 

 

 

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