REG - Kendrick Resources - Stormyra Second Batch Assay Results, Maiden Drill
04/05/2023 07:00
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RNS Number : 3303Y Kendrick Resources PLC 04 May 2023
4 May 2023
Kendrick Resources Plc
("Kendrick" or the "Company")
Stormyra Second Batch Assay Results
Maiden Diamond Drill Programme
Kendrick Resources Plc (LSE: KEN), a mineral exploration and development
company with vanadium, nickel and copper projects in Scandinavia is pleased to
announce its second set of results from its maiden 19 hole diamond drill
programme over the Stormyra Deposit, part of the Espedalen Project, Norway.
The first set of results were announced on 20 April 23 and assay results are
pending for 6 holes.
Highlights
· High-grade nickel intercepts achieved in a number of boreholes
drilled across the Stormyra deposit:
o Hole ESP2308 - 3.39% Ni Eq. over 11.60m from 52.40m including 5.80% Ni Eq
over 4.9m from 59.1m
o Hole ESP2307 - 2.59% Ni Eq. over 3.65m from 37.80m including 4.85% Ni Eq.
over 1.80m from 38.50m
o Hole ESP2312 - 2.29% Ni Eq. over 4.15m from 92.35m
o Hole ESP2313 - 1.98% Ni Eq. over 3.55m from 79.60m including 3.86% Ni Eq.
over 1.70m from 79.60m
· Downhole optical televiewer (OTV) structural mapping survey completed
on 13 holes
· Ground based TEM survey completed with the aim of tracing the
Stormyra deposit to the southeast where mineralisation is open ended
Colin Bird, Executive Chairman of Kendrick Resources Plc commented: "Assays
received for the current programme are the highest individual assays ever
recorded for this deposit and the intercept in Hole ES2308 is one of the best
drilled to date. The Stormyra orebody is shaping up to be a potential shallow
underground operation with minimal surface impact. Results to date have
exceeded expectations and the mineralised widths of recent intercepts are
particularly encouraging especially when linked to grades of more than 1% Ni.
These recent intercepts reinforce our decision to continue to evaluate the
southern untested extension of Stormyra deposit and it is important to
reiterate that we have a further 10 prospects within the Espedalen Project all
containing nickel intersections of at least 5m at grades >1% Ni".
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 (Figure 1.).
Figure 1. Drill Hole Location Map for the Stormyra Deposit, Espedalen, Norway
A subset of 225 metres was forwarded to ALS Scandinavia AB for processing.
After the core had been logged, the selected drill core intervals were
dispatched to the ALS laboratory in Malå, Sweden for preparation and analysed
at ALS Loughrea, Ireland.
The second batch of samples sent to the laboratory, consisting of six out of
the seven holes drilled, have been received and are illustrated (Figures 2. -
4.) as well as tabulated (Table 1.) below.
Figure 2. Long Section through the Stormyra Deposit, Espedalen, Norway
Figure 3. Cross section through holes ES2307 and ES2308 showing local geology
and mineralised intercepts.
Figure 4. Drill Core Box Photo from hole ES2308 (60.35m - 65.10m) showing
sampled intervals, lengths and respective assay grades rounded to two decimal
places.
Hole From To Length (m) Ni (%) Cu (%) Co (%) Ni Eq. (%)
ESP2307 37.80 41.45 3.65 2.18 0.77 0.06 2.59
incl. 38.50 40.30 1.80 4.17 1.30 0.10 4.85
ESP2308 52.40 64.00 11.60 2.85 1.04 0.08 3.39
incl. 52.40 56.00 3.60 2.43 0.83 0.07 2.88
incl. 59.10 64.00 4.90 4.88 1.79 0.13 5.80
ESP2309 Not sent for assay
ESP2310 75.35 80.65 5.30 0.42 0.21 0.1 0.52
incl. 80.3 80.65 0.35 3.85 1.22 0.09 4.48
ESP2310 91.20 92.50 1.30 1.07 0.36 0.04 1.28
ESP2310 103.30 104.80 1.50 1.74 1.19 0.05 2.29
ESP2311 103.00 107.30 4.30 0.57 0.17 0.02 0.67
incl. 105.5 107.30 1.8 0.88 0.16 0.04 1.00
ESP2312 92.35 96.50 4.15 1.74 1.14 0.06 2.29
ESP2313 79.60 82.15 3.55 1.62 0.69 0.06 1.98
incl. 79.60 81.30 1.70 3.17 1.30 0.10 3.86
Table 1. Assay results for the second batch of samples received from ALS
Scandinavia AB in Malå, Sweden.
Notes:
1) Reported intervals are downhole widths.
2) Reported intervals are calculated for zones assaying >
0.25% Nickel Equivalent and containing less than 3 meters of internal waste.
3) The Nickel equivalent values are estimated using prevailing
metal prices of $22000/t Nickel, $8,800/t Copper and $35,000/t Cobalt and are
presented for ease of interval comparison only. Metallurgical factors are
assumed to be 100% although the recovery factors for the respective metals may
vary significantly.
4) The Nickel equivalent values may differ slightly due to
rounding.
Results for the final batch of drill core sent for assay, consisting of the
final 6 holes, are still pending.
Downhole Optical Televiewer
In the month of April, an optical televiewer (OTV) survey was conducted on the
newly drilled boreholes. Of the total of 19 boreholes, 13 were successfully
logged, while the remaining 5 were inaccessible due to obstructions from snow,
ice, or rock debris, impeding the insertion of the device. Additionally, one
borehole was omitted due to time-constraints. The interpretation of the images
obtained from the survey is currently underway, and it is expected to provide
valuable insights into any structural factors that may have influenced the
mineralization.
Geophysical Surveys
Following the drilling, a magnetic survey was conducted on the ground in
March, and its interpretation is ongoing (see Kendrick's RNS dated: 20 April
2023). Additionally, a transient electromagnetic (TEM) survey was carried
out to investigate the presumed south-eastward extension of the Stormyra
mineralization in an area that remains to be drill tested. Historic TEM
surveys led to the discovery of the Stormyra deposit and it is a proven method
to pick up the conductive orebody. Anomalism has been detected southeast of
the known drill-tested mineralization, and the survey data is currently being
interpreted.
Quality Assurance/Quality Control (QA/QC)
The diamond drilling program was executed by Arctic Drilling AS. The rig was
aligned using a DeviSight rig aligner and the hole was surveyed with a
DeviFlex Rapid at 3m intervals after the completion of a hole. Collar
coordinates were taken from the Devisight rig aligner which uses both types of
navigation satellites (Glonass and GPS) and had an average accuracy of <1m.
The NQ2 sized core from the diamond drill programme was logged, marked, and
photographed, and RQD and magnetic susceptibility measurements were taken by
experienced geologists and technicians from EMX royalty.
The drill core was sampled at minimum 0.3 metre up to 2.5 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 methods ME-MS61,
ME-OG62, and PGM-ICP23. Standards, blanks and duplicates were inserted
regularly in the sample stream and checks were done for Nickel and Copper.
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: +44 203 961 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 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 Project
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).
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 meters percent Ni, which were never followed up. A
detailed compilation of all past mineral exploration and drilling data and
recognised that the Stormyra Mineral Resource is not closed off and a number
of 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.
"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.
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