REG - Metals One PLC - Black Schist Project MRE Upgrade

Metals OneAnnouncement

16/07/2024 07:00

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RNS Number : 5586W  Metals One PLC  16 July 2024

 

16 July 2024

 

Metals One Plc

("Metals One" or the "Company")

 

Finland - Black Schist Ni-Cu-Co-Zn Project Mineral Resource Estimate Upgrade

 

Company doubles project resource; prepares for Preliminary Economic Assessment

 

Metals One (AIM: MET1), which is advancing strategic minerals projects in
Finland and Norway, is pleased to announce a maiden JORC Inferred Mineral
Resource ("Resource") for the P5 area of the Finland - Black Schist Project of
29 Mt(1). This brings the total Black Schist Project resource to 57.1 Mt, more
than double the previous estimate.

 

Highlights of P5 Resource

 

·    Maiden JORC Inferred Resource of 29 Mt at 0.18% nickel, 0.08% copper,
0.01% cobalt, and 0.33% zinc;

·    Contained metals of 52kt of nickel, 24kt of copper, 3.5kt of cobalt,
and 96kt of zinc;

·    Resource calculated by independent global mining services provider,
Mining Plus;

·    Orientation and proximity to surface lends itself to cost effective
surface mining;

·    Adjacent to major road and rail infrastructure; and

·    Further Resource expansion opportunities identified across increased
project area.

 

The full report from independent global mining services provider Mining Plus
which undertook the Mineral Resource Estimate will be made available on the
Company's website.

 

Jonathan Owen, CEO of Metals One, commented:

 

"We're delighted to be doubling our Black Schist Project resource and
particularly to have achieved this significant expansion through a low-cost,
low-risk programme, and within only 12 months of listing the Company.

 

The Black Schist Project is key to us achieving our goal of bringing much
needed domestic sources of strategic minerals, such as high-purity copper and
nickel sulphates, to the European market. The addition of the P5 resource to
the project portfolio brings the total value of in-situ metals to $3
billion(2) at today's prices. Our Black Schist Project is on track to becoming
the world-class asset we all believe it could be.

 

Looking ahead, this increased resource base will underpin a Preliminary
Economic Assessment of the project which we expect to commence in the near
future. This represents a major milestone for the Company as we transition to
project development."

 

(1) 27.2 Mt attributable to the Company; 1.8 Mt (6.25%) attributable to
project partner, Gunsynd Plc. Metals One has the option to acquire this 6.25%
from Gunsynd

(2) Based on Table 1 below and today's nickel prices on the London Metal
Exchange. This can in no way be regarded as a guide to the Project's value or
ultimate value of metal extracted

 

Figure 1: Company block model of P5 resource, approximately 9 km west of
Paltamo, in the Kainuu region, central Finland

 

 

 

Figure 2: Metals One's Black Schist Project in Finland

 

 

Background to the P5 Resource

 

The P5 Inferred Resource, previously classified as a JORC Exploration Target,
lies within a highly prospective belt of black schists in the Paltamo area, as
interpreted by Metals One. The existing R1 Inferred Resource and the P5
Inferred Resource together represent the foundation of the Company's Black
Schist Project.

 

Assessment of the P5 JORC Exploration Target historical data highlighted an
opportunity to significantly increase the volume of, and confidence level in,
this mineralised structure. The P5 JORC Exploration Target was originally
estimated by a previous permit holder using portable XRF measurements
correlated to a sample of chemical assays, and the holder did not assay
several of the mineralisation intersections of the cores, which resulted in a
lower category JORC Exploration Target of 16-24 Mt.

 

The Company's work programme has focused on elevating the confidence levels of
P5 by completing the chemical assaying of all mineralised intersections of the
5,555m drilled across the target, which has enabled Metals One to commission
Mining Plus, a global mining services provider, to produce a new mineral
resource estimation, in accordance with the guidelines of the JORC Code,
underpinned by this more accurate data.

 

Previous explorers, including the Geological Survey of Finland, intercepted
similar mineralisation along the belt, suggesting geological and grade
continuity. This offers potential for further expansion of the P5 Resource and
the development of other targets within the belt. The Company holds several
Exploration Licences and Reservations along the belt allowing it to
potentially continue to increase its resource base of important strategic
minerals.

 

Table 1: P5 Maiden JORC Mineral Resource Estimate

 

                       Tonnes  Ni    Cu    Co    Zn    Ni    Cu    Co   Zn

                       Mt      %     %     %     %     kt    kt    kt   kt
 P5 Inferred Resource  29.0    0.18  0.08  0.01  0.33  52.0  24.0  3.5  96.0

 

Table 2: Updated Black Schist Project - Total JORC Mineral Resource Estimate

 

On Gross Company Attributable Basis:

 

                            Tonnes  Ni    Cu    Co    Zn    Ni     Cu    Co   Zn

                            Mt      %     %     %     %     kt     kt    kt   kt
 R1 Inferred Resource(†)    28.1    0.19  0.10  0.01  0.38  53.8   27.9  3.4  180.0
 P5 Inferred Resource       29.0    0.18  0.08  0.01  0.33  52.0   24.0  3.5  96.0
 TOTAL                      57.1    0.18  0.09  0.01  0.35  105.8  51.9  6.9  276.0

 

On Net Company Attributable Basis (93.75%)(1):

 

                       Tonnes  Ni    Cu    Co    Zn    Ni     Cu     Co    Zn

                       Mt      %     %     %     %     kt     kt     kt    kt
 R1 Inferred Resource  26.3    0.19  0.10  0.01  0.38

                                                       50.4   26.2   3.2   168.8

 P5 Inferred Resource  27.2    0.18  0.08  0.01  0.33

                                                       48.8   22.5   3.3   90.0

 TOTAL                 53.5    0.18  0.09  0.01  0.35  99.2   48.7   6.5   258.8

 

* Metals One is the Operator of the Black Schist Project

** Cut-off grade of 0.11% Ni used

*** Tonnages have been rounded to reflect the relative uncertainty of the
estimate

† Previously announced within Kainuu Schist Belt Projects - Competent
Persons Report No. R489.2021, CSA, 2 June 2023

 

 

Enquiries:

 

 Metals One Plc                                via Vigo Consulting

 Jonathan Owen, Chief Executive Officer        +44 (0)20 7390 0234

 Beaumont Cornish Limited (Nominated Adviser)  +44 (0)20 7628 3396

 James Biddle / Roland Cornish                 https://www.beaumontcornish.com

 Shard Capital Partners LLP (Joint Broker)     +44 (0)20 7186 9952

 Damon Heath / Erik Woolgar                    https://shardcapital.com

 SI Capital Limited (Joint Broker)             +44 (0)14 8341 3500

 Nick Emerson                                  https://sicapital.co.uk

 Capital Plus Partners Limited (Joint Broker)  +44 (0)20 3821 6169

 Keith Swann                                   https://www.capplus.co.uk

 

About Metals One

 

Metals One is developing strategic metals projects in Finland (Black Schist
Project) and Norway (Råna Project), with approximately £9 million of
exploration carry exposure through a farm-in agreement. Metals One is aiming
to help meet the significant demand for strategic minerals by defining
resources on the doorstep of Europe's major electric vehicle OEMs and battery
manufacturers. Metals One's Black Schist Project in Finland, totalling 706
km(2) across three licence areas, has a total Inferred Resource of 57.1 Mt
nickel-copper-cobalt-zinc and is located adjacent to one of Europe's largest
strategic minerals producers, Terrafame. Metals One's fully carried Råna
Project in Norway covers 18.14 km² across three contiguous exploration
licences, with significant opportunity for exploration of the Råna Intrusion,
and proven potential for massive sulphide nickel-cobalt-copper mineralisation.

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Glossary

 

 Co                  cobalt

 Cu                  copper

 Exploration Target  a statement or estimate of the exploration potential of a mineral deposit in a
                     defined geological setting where the statement of estimate, quoted as a range
                     of tonnes and a range of grade, relates to mineralisation for which there has
                     been insufficient exploration to estimate a Mineral Resource

 JORC                The Joint Ore Reserve Committee code (JORC code) is the Australasian Code for
                     Reporting of Exploration Results, Mineral Resources and Ore Reserves and is a
                     professional code of practice that sets minimum standards for public reporting
                     of minerals exploration results, mineral resources and ore reserves

 Inferred Resource   that part of a Mineral Resource for which quantity and grade (or

                     quality) are estimated on the basis of limited geological evidence and
                     sampling. Geological evidence is sufficient to imply but not verify geological
                     grade (or quality) continuity. It is based on exploration, sampling and
                     testing information gathered through appropriate techniques from locations
                     such as outcrops, trenches, pits, workings and drill holes. An inferred
                     Mineral Resource has a lower level of confidence than that applying to an
                     Indicated Mineral Resources and must not be converted to an Ore Reserve. It is
                     reasonably expected that the majority of Inferred Mineral Resources could be
                     upgraded to Indicated Mineral Resources with continued exploration

 Ni                  nickel

 Mt                  million tonnes

 Kt                  thousand tonnes

 schist              a medium-grade metamorphic rock formed from mudstone or shale

 XRF                 X-Ray Fluorescence

 Zn                  zinc

 

Qualified Person Statement

 

The information in this release that relates to the Estimation and Reporting
of Mineral Resources on the Black Schist P5 deposit has been compiled by Kate
Kitchen BSc. Kate Kitchen is a full time employee of Mining Plus Ltd and has
acted as an independent consultant on the Black Schist - P5 deposit Mineral
Resource estimation. Kate Kitchen is a registered member of The Australasian
Institute of Mining and Metallurgy (AUSIMM number 3123488) and the Australian
Institute of Geoscientist (AIG number 4920) and has sufficient experience with
the commodities, style of mineralisation and deposit type under consideration
and to the activities undertaken to qualify as a Competent Person as defined
in the 2012 Edition of the "Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves" (The JORC Code). Kate Kitchen
consents to the inclusion of the contained technical information relating the
Mineral Resource Estimation in the form and context in which it appears.

 

Nominated Adviser

 

Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated
Adviser and is authorised and regulated by the FCA. Beaumont Cornish's
responsibilities as the Company's Nominated Adviser, including a
responsibility to advise and guide the Company on its responsibilities under
the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed
solely to the London Stock Exchange. Beaumont Cornish is not acting for and
will not be responsible to any other persons for providing protections
afforded to customers of Beaumont Cornish nor for advising them in relation to
the proposed arrangements described in this announcement or any matter
referred to in it.

 

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