REG - Kendrick Resources - Scandinavian Nickel Interests

Kendrick ResourcesAnnouncement

09/07/2024 09:30

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RNS Number : 6805V  Kendrick Resources PLC  09 July 2024

 

9 July 2024

Kendrick Resources Plc

("Kendrick" or the "Company")

Scandinavian Nickel Interests

 

Kendrick Resources Plc (LSE: KEN), the mineral exploration and development
company building nickel, vanadium, and copper battery metal projects in
Scandinavia is providing this update on its nickel projects in Norway and
Sweden. Nickel is fundamental to the new battery world with preferred sulphide
nickel deposits being in very short supply.  Nickel derived from laterites
requires significantly more energy  and is extremely complex for
metallurgical recovery compared to nickel sulphide ores. The value of
Kendrick's nickel assets is further strengthened by being in Norway and Sweden
which are considered stable jurisdictions with favourable mining legislation
and overarching European legislation focused on strategic raw materials and
security of supply.

 

Having recognised the issues facing the battery industry, Kendrick has
directed its Scandinavian mission to locate sulphide sources that may meet the
nickel supply shortfall which the Board regards as being inevitable.

 

Highlights

 

General

·    Ratification this month of the European Commission's Critical Raw
Materials Act 2024  should be beneficial for both funding and development of
the projects

·    Kendrick's Swedish Projects are particularly well located being based
in the centre of the Swedish car and battery-making industries

·    Governments are receptive to new mining ventures together with major
mining companies

·    All projects have copper in association with nickel

·    Geological investigation and academia indicate the Swedish projects
may be analogous to the Thompson nickel Belt (Manitoba)

 

Swedish projects

·    The Njuggträskliden and Mjövattnet  projects (acquired in 2023
post Listing) are exceptional in their potential and Kendrick is pleased to
have acquired the properties from its royalty partner EMX  Royalty
Corporation

·    Characterised by wide mineralised intersections at good grades
(Tables 1 & 2 below) and amenable to open pit mining

·    Njuggträskliden currently offering a NiEq grade* of up to 2.42% Ni,
equivalent to $419 per tonne of ore

·    A combined 25km of highly prospective strike length at
Njuggträskliden (10km) and Mjövattnet (15km).

 

Norwegian Projects

·    Espedalen rapidly developing into a nickel camp with two prospects
with resources greater than 1Mt each.

·    Stormyra prospect recently identified an additional 500m of
drill-ready strike length to extend its current 1.16Mt @ 1% Ni, 0.42% Cu &
0.04% Co.

 

*Nickel Equivalent (NiEq) based on the following metal prices: nickel $17,300
per tonne, copper$9,700 per tonne, platinum $32 per gram and palladium $33 per
gram

 

Colin Bird, Executive Chairman of Kendrick Resources Plc said "Our Swedish
nickel projects are exceptional in as much as they offer higher grade nickel
with copper notwithstanding the contributions of PGEs(1) and cobalt.
Njuggträskliden and Mjövattnet  are located a few kilometres from the
battery manufacturer Northvolt and are only 100 kilometres by sea from the
Kokkola nickel smelter that can selectively extract these metals. We are
excited to work this project and test the 25 kilometres of strike to add
significant near-surface resources to the current resource. Work at Espedalen
in Norway will continue with the focus being on the drill-ready additional
strike length expected to add to the existing mineral resource.  We look
forward to keeping shareholders informed of progress with an emphasis on
drilling and expansion of existing mineral resources".

 

(1)Platinum Group Elements

 

Njuggträskliden Ni - Cu - PGE licence

 

Table 1: Njuggträskliden Selected Drill intercepts and Grades

 

 Drillhole  From   To     Width  Ni    Cu    Pt     Pd
            (m)    (m)    (m)    (%)   (%)   (ppm)  (ppm)
 NJU07001   63.4   87.75  24.35  1.01  0.51  1.08   0.56
 NJU79016   15.9   21.69  5.79   1.06  0.31  0.11   0.11
 NJU79031   66.55  89.56  23.01  1.04  0.6   0.51   0.23
 NJU90006   44     56.3   12.3   0.9   0.79  0.3    5.34

 

A magmatic Ni-Cu-Co-PGE Project located on the Nickel Line in central eastern
Sweden with a non-JORC (2012) resource together with a 16km long prospective
strike length defined by historic geochemical surveys and mineralised boulder
fields.

 

Njuggträskliden resource of 0.6Mt @ 0.71% Ni, 0.26% Cu & 0.04% Co.
Consistently wide peak Njuggträskliden drill intercepts of 24.35m @ 1.01% Ni,
0.51% Cu, 1.0g/t Pt & 0.56g/t Pd, 23.01m @ 1.04% Ni, 0.6% Cu, 0.51g/t Pt
& 0.23g/t Pd and 12.3m @ 0.9% Ni, 0.79% Cu, 0.3g/t Pt & 5.34g/t Pd.
Assay data indicates the presence of PGEs that have typically been overlooked
in terms of their recoverability and value as a by-product.

 

                Conduit-style magmatic mineralisation featuring
intrusive breccias and phased mafic - ultramafic host rocks (gabbro,
pyroxenite and peridotite) indicative of multiple pulses of magmatic activity.
Mineralisation occurs as massive and disseminated sulphides, veinlets and
brecciation. Regionally and at the project scale, host lithologies have
undergone at least two phases of intense folding resulting in greenschist to
amphibolite facies metamorphism.

 

Mjövattnet  Ni - Cu - PGE licence

 

Table 2: Mjövattnet Selected Drill Intercepts and Grades

 

 Drillhole  Width  Ni
            (m)    (%)
 BRA-07001  25.73  0.58
 BRA-07515  11.6   0.82
 BRA-07002  76.18  0.6
 BRA-76015  27.7   0.64

 

Mjövattnet was one of the first nickel sulfide discoveries made along the
Nickel Line. Discovered in 1971, the nickel sulfide deposit occurs along a
structural corridor of similar mineralised bodies, including the Lappvattnet,
Brannorna, and Lappbacken zones to the southwest, each of which have drill
defined zones of mineralization, with the latter two also lying within the
Mjövattnet Licence (Lappvattnet is currently held by a third party).

 

Two drill-defined zones of mineralisation hosting a non-JORC (2012) resource
of 0.17Mt @ 1.29% Ni, 0.19% Cu and 0.02% Co and a further 15km of prospective
strike length to be tested. Impressive wide drill intercepts at Mjövattnet
including 76.18m @ 0.60% Ni, 27.7m @ 0.64% Ni & 11.6m @ 0.82% Ni

 

Described as syn-deformation or feeder-style Ni - Cu mineralisation, the known
deposits remain open at depth. Migmatised paragneiss host rock interbedded
with graphitic schist with intrusive breccias and unlike Njuggträskliden, an
absence of compositional layering results in a complex intrusive morphology.

 

The combination of drill defined nickel sulfide mineralisation, which remains
open in multiple directions, and the upside potential near the clusters of
mineralised boulders makes the Mjovattnet project particularly attractive for
further exploration.

 

 

Espedalen Ni-Cu licence

The Espedalen Project 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 Project 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).

 

Drilling Programme

Kendrick's maiden diamond drill programme at the Stormyra Ni-Cu-Co Deposit
(see Kendrick's RNS dated: 31 January 2023) concluded on 1 March 2023,
encompassing 19 boreholes, comprising infill, step-out, and exploration holes,
spanning a total of 1,650 metres. The Stormyra Mineral Resource contains a
high-grade core, with assays of up to 8.2% Ni. The high-grade core remains to
be 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.

 

European Union and Scandinavian Strategic and Critical Raw Materials
Initiatives

Reliable and unhindered access to Strategic and Critical Raw Materials is a
growing concern for the EU. In 2011 the European Commission produced its first
Critical Raw Materials ("CRMs") lists comprising 20 CRMs. The most recent
updated list produced in 2023 contains 34 CRMs.

 

The main parameters used to determine the criticality of a material are
ECONOMIC IMPORTANCE to the EU and SUPPLY RISK. Copper and nickel do not meet
the CRM thresholds but are included on the CRM list as Strategic Raw
Materials in line with the Critical Raw Materials Act ("CRMA"). The European
Green Deal triggered the development of the CRMA specifically to strengthen
production, processing, and recycling of strategic raw materials in Europe to
diversify supply chains.

 

The CRMA came into force on 24 May 2024 after a relatively short period of
review which is thought to reflect the growing urgency in new legislation
aimed at securing long-term supply of CRMs.  Upon advancement of both Nickel
Line projects, Kendrick will apply for Strategic Project status under the
Critical Raw Materials Act. An Eu initiative, granting of the status is
expected to streamline permitting procedures and provide support in securing
project finance.

 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: +44 207 399 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.

 

 

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