REG - Metals One PLC - Black Schist Project Strategy Update

Metals OneAnnouncement

22/02/2024 07:00

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RNS Number : 0135E  Metals One PLC  22 February 2024

 

22 February 2024

Metals One Plc

("Metals One" or the "Company")

 

Black Schist Ni-Zn-Cu-Co Project Strategy Update

 

Metals One (https://metals-one.com/) (AIM: MET1), which is advancing critical
minerals projects in Finland and Norway, is pleased to announce an update to
its Black Schist Ni-Zn-Cu-Co Project strategy.

 

Following recently announced significant intersections of mineralisation in
the black schists of the Kainuu Schist Belt, Finland (see below), Metals One
intends to expand its portfolio of high-quality assets within this
economically important style of mineralisation. As announced on 12 February
2024, the results included the following:

 

·    Hole RAU0002 intercepted 14.7m of mineralised black schists from 50m
(0.18% Ni, 0.11% Cu, 0.01% Co, 0.57% Zn) 1  (#_ftn1)

·    Hole RAU0003 intercepted 11m of mineralised black schists from 199.5m
(0.22% Ni, 0.10% Cu, 0.01% Co, 0.55% Zn)  2  (#_ftn2)

 

The strategy is for the Company to show a clear path to the economic
extraction of its assets. This includes a longer-term ambition of potentially
defining a 200 Mt resource in the Paltamo area, the scale of which could
underpin a significant supply of critical minerals to the European market at
what Metals One expects to be a low cost of production.

 

Black Schist Ni-Zn-Cu-Co Project strategy

 

Highlights

 

·    Increase volumes and geological and grade confidence in the R1 and P5
targets through a programme of infill and step-out drilling, as well as
further assaying of existing cores

·    Rapidly secure additional targets across the Kainuu Schist Belt using
the Company's innovative new prospectivity model for mineralised black
schists. The model aims to speed up and de-risk the identification and
development of critical minerals in this mineralised system

·    Systematically drill and model these new targets

 

Metals One holds several exploration licences and reservations across the
Kainuu Schist Belt (the "Belt"), including Talvivaara-style mineralisation
targets with an existing JORC Inferred Resource (at the R1 target) of 28.1 Mt
at a grade of 0.19% Ni (53,800t), 0.10% Cu (27,900t), 0.01% Co (3,400t) and
0.38% Zn (180,000t) 3  (#_ftn3) , and a JORC Exploration Target (at the P5
target) of 16-24 Mt. The Belt is economically significant as it is the host
geological sequence to black schists extracted by the nearby Talvivaara mine,
considered to be one of Europe's largest nickel-zinc-copper-cobalt producers.

 

Black schist nickel-zinc-copper-cobalt ore is considered to be one of the
lower-cost sources of critical minerals, both economically and environmentally
given its amenability to the low cost, low carbon intensive bio heap leaching
extraction method which is actively being deployed in Finland. Metals One's
objective, through its Black Schist Project, is to identify and define
economic resources of Talvivaara-style mineralisation that the Company may
take into production directly, through a joint-venture, or sell to an existing
mine operator.

 

New target acquisition

 

In Q4 2023, Metals One undertook a regional assessment of the Belt to identify
additional mineral targets. Through the analysis of historical assays and
geophysical data, and by applying the prospectivity model, the Company
identified several highly prospective targets in proximity to its existing R1
resource in Rautavaara and P5 target in Paltamo. Metals One moved quickly to
secure these targets with the submission of three exploration applications and
three reservation applications, totalling almost 15,000 hectares.

 

Table 1: Metals One permit status at time of publication

 

 Name          Status                                          Area, ha
 Haapaselkä    Exploration Permit Extension Granted  Existing  95.64
 Haapaselkä2   Exploration Application               New       586.88
 Hankamäki     Exploration Application               New       549.73
 Korpimäki     Exploration Application               New       589.01
 Kirkkosuo     Reserved                              New       72.56
 Paltamo       Reserved                              New       7543.73
 Perakorpi     Reserved                              New       1145.12
 Rauta 9-11    Exploration Permit Granted            Existing  234.91
 Rautavaara    Reserved                              New       4517.1
 Rautavaara S  Exploration Permit Granted            Existing  373.32

 

 

 Figure 1: Rautavaara licences/reservations      Figure 2: Paltamo licences/reservation

 

Prospectivity model

 

The Company's prospectivity model integrates the discrete geophysical,
lithological, and petrological characteristics recently identified at the
Rautavaara and Paltamo areas and is a living model that will evolve as it
receives new information and insights. Its purpose is to increase the speed
and confidence of early mineralisation discovery, maximising the return on
exploration expenditure.

 

Shortly after listing, Metals One built the first iteration of the model using
the geological and geophysical information held by the Company on both the R1
and P5 targets. The insights provided by the model subsequently fed into the
regional new target acquisition exercise, explained below.

 

Thanks to advances in exploration technology in the decade since R1 and P5
were last drilled, Metals One has recognised the opportunity to further refine
the model with new data. In addition, several unknowns remain in terms of the
geological characteristics of the mineralisation, including its magnetic
susceptibility.

 

This would involve a limited drill campaign in proximity to known
mineralisation with geological continuity. The Company identified the R1-Hook
anomaly as an excellent opportunity to update the model and to potentially
provide a future extension to the R1 Inferred Resource.

 

In November 2023, Metals One was granted an extension to its Rauta 9-11
exploration permit, which provides the Company with the right to prospect on
all land within the licence for an additional three years until November 2026.
Subsequently, in December 2023, Metals One completed a diamond core drill
programme on the R1-Hook target which intercepted mineralised black schists in
all eight drill holes and showed geological continuity with the Company's
existing resource at R1, supporting possible future expansion of that
resource.

 

The Company applied its new geological and geophysical insights to the
prospectivity model, which has helped the Company refine its work programme
with an expected reduction in discovery risk on new targets, such as K1 in the
Korpimäki area.

 

Resource development

 

Rautavaara area

 

R1 resource and R1-Hook target

 

The R1 Talvivaara-style mineral resource, with an existing JORC Inferred
Resource of 28.1 Mt 4  (#_ftn4) , is a cornerstone asset of Metals One's Black
Schist Project. It lies within the Rautavaara area, a highly prospective area
for mineralised black schists within which the Company is evaluating several
targets.

 

Metals One identified the R1-Hook target, a strong electromagnetic ("EM")
anomaly next to R1, as an opportunity to both refine the prospectivity model
and potentially expand the R1 mineral resource. Given its proximity to a known
mineralised structure, and the direct comparisons that could be drawn, the
Company made the R1-Hook a priority target.

 

Following the extension of the Rauta 9-11 licence in November 2023, in which
both the R1 resource and R1-Hook target are located, the Company moved to
execute its drilling programme for the R1-Hook in December 2023.

 

The objectives of the programme were to confirm the structure and its
potential to host Talvivaara-type Ni-Cu-Co-Zn mineralisation. Talvivaara is
one of Europe's largest and lowest-cost producers of critical minerals,
located just 25km to the north of this target.

 

The Company drilled 1,551m along what, according to ground and airborne
geophysical surveys, appeared to be a fold structure to the east of the
Company's R1 resource.

 

As announced on 12 February 2024, all drill holes intercepted mineralised
black schists, with the best thickness and grades intersected on the eastern
limb of the main R1 Hook fold. This observation, together with a confirmation
of the synform nature of the limb dipping steeply to the south, suggests a
significant potential for further mineralisation to the east, beyond the
boundary of the Company's existing permit. The Company has lodged a permit
application to secure this area, known as Kirkkosuo, intending to confirm the
extension of the structure and mineralisation with a limited diamond drill
programme in due course.

 

Figure 3: Eight drill locations superimposed on the EM survey of the R1-Hook
target at the Black Schist Project

 

 

Figure 4: EM survey of the R1-Hook anomaly and its proximity to the existing
mineral resource at the Rauta 9-11 licence area

 

 

Figure 5: Mineralised black schist intersection for drill hole RAU001

 

 

K1 target

 

As Metals One continues to develop the prospectivity model, it is already
helping to identify additional targets to support the Company's resource
expansion in both the Rautavaara and Paltamo areas. One of the key targets
identified is K1, which is within the Korpimäki licence application. Past
explorers dismissed this target, despite intercepting high grades. With the
Company's improved understanding of these strata-bound contiguous orebodies,
it believes that this target potentially represents significant volumes of
mineralised black schists.

 

Metals One is currently 3D-modelling the historical drill data with a view to
further defining the resource with an initial drill programme. The Company has
secured landowner consent to drill, allowing it to drill ahead of the licence
application being granted.

 

In addition, the Company has several similar highly prospective targets in the
Rautavaara area that it is currently evaluating and prioritising for further
investigation.

 

 

Figure 6: Korpimäki prospect (K1 target). EM overlaid with historical drill
holes and assays.

 

 

Figure 7: Preliminary structural model of the K1 target

 

 

Paltamo area

 

P5 target

 

The Company's ambition is to define a 200 Mt resource in the Paltamo area. The
P5 mineralisation follows a black schist belt that has been folded, as
interpreted by Metals One. Previous explorers intercepted mineralisation along
the belt, suggesting geological and grade continuity.

 

Talvivaara showed that this type of ore can be readily processed with low-cost
bio heap leaching, with this nearby mine achieving metal recoveries of 99% at
a tenth of the carbon cost of processing lateritic ores, such as those of
Indonesia.

 

Assessment of the P5 JORC Exploration Target historical data highlights an
opportunity to significantly increase the volume of, and confidence level in,
this mineralised structure. The previous permit 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 5  (#_ftn5) . By correlating
existing assays with pXRF measurements of un-assayed intersections recently
taken by the Company, as well as completing the assays of all intersections.
With a modest drill campaign of around 3,000m to confirm grade continuity, it
may be possible to define a Mineral Resource.

 

The Company has completed petrological measurements of the historical cores
and is currently preparing and sending samples of un-assayed intersections for
assay at a nearby laboratory. It expects to receive the assay results in late
March 2024, after which it will update the block model and resource estimate.
Metals One expects to share its findings in Q2 2024.

 

Figure 8: P5 block model based on historical assays and latest XRF

 

 

Figure 9: EM image showing conductive material in the bedrock. Mineralised
black schists below interpretation overlayed in blue. P5 block model included
top centre

 

 

 

Jonathan Owen, Chief Executive Officer of Metals One, commented:

 

"Our strategy for the Black Schist Project, recently updated and outlined
today, unlocks the potential to provide high-quality sources of critical
minerals. The European market is seeking to secure such critical minerals from
within the security of its own shores, and at the lowest economic and
environmental cost. Recent European legislation enhances these considerations,
such as the Critical Raw Materials Act, which pursues indigenous supply, and
the Battery Regulation, a directive requiring passports for large batteries,
stating their material provenance and carbon footprint.

 

Our strategy includes rapidly converting our P5 Exploration Target to a
Mineral Resource, followed by an expansion programme with an ambition to
realise, in the longer term, a resource in the order of 200 Mt. It is our view
that a resource of that scale could support an economic case for a long-term
producing asset."

 

Metals One has published a new corporate presentation to reflect this update
to its Black Schist Project strategy, together with recent updates on the
progress of its SRH Råna Project (nickel, copper, cobalt) in Norway. This is
available to view on the Company's website here:

https://metals-one.com/investors/#financial-reports-&-presentation
(https://metals-one.com/investors/#financial-reports-&-presentation) .

 

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

 www.beaumontcornish.com (http://www.beaumontcornish.com)

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

 Damon Heath / Erik Woolgar

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

 Nick Emerson

 Fortified Securities (Joint Broker)                                +44 (0)20 3411 7773

 Guy Wheatley, CFA

 www.fortifiedsecurities.com (http://www.fortifiedsecurities.com)

 Vigo Consulting (Investor Relations)                               +44 (0)20 7390 0234

 Ben Simons / Kendall Hill

 metalsone@vigoconsulting.com

 

Qualified Person Statement

 

Craig Moulton is an Independent Non-Executive Director of the Company and the
Qualified Person who reviewed and approved the technical disclosures in this
news release. Mr Moulton has over 30 years' experience in the mining industry,
having worked for Rio Tinto, Cliffs and Wood Mackenzie, and is a trained
Geologist and Mineral Economist. Mr Moulton holds a BSc (Hons) in Geology and
a MSc in Mineral Economics and is a qualified person under the AIM Rules. Mr
Moulton consents to the inclusion of the technical information in this release
and context in which it appears.

 

About Metals One

 

Metals One is developing critical minerals projects in Finland (Black Schist
Project) and Norway (SRH Råna Project), with approximately £9 million of
exploration carry exposure through farm-in agreements. Metals One is aiming to
help meet the significant critical 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 an Inferred Resource of 28.1 Mt nickel-zinc-copper-cobalt
and is located adjacent to Talvivaara, Europe's largest operating nickel mine.
Metals One's fully carried SRH Råna Project in Norway covers 18.14 km²
across three contiguous exploration licences, with significant opportunity for
brownfield exploration of the Råna intrusion, and proven potential for
massive sulphide nickel-cobalt-copper mineralisation.

 

Follow us on social media:

 

LinkedIn: https://www.linkedin.com/company/metals-one-plc/
(https://www.linkedin.com/company/metals-one-plc/)

Twitter: https://twitter.com/metals_one (https://twitter.com/metals_one)

 

Subscribe to our news alert service on the Investors page of our website at:
www.metals-one.com (http://www.metals-one.com)

 

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.

 1  (#_ftnref1) Refer to RNS announcement dated 12 February 2024

 2  (#_ftnref2) Refer to RNS announcement dated 12 February 2024

 3  (#_ftnref3) Refer to Admission Document -
https://metals-one.com/wp-content/uploads/2023/07/Metals-One-Plc-Final-Admission-Document-25.7.23.pdf
(https://metals-one.com/wp-content/uploads/2023/07/Metals-One-Plc-Final-Admission-Document-25.7.23.pdf)

 4  (#_ftnref4) Refer to Admission Document -
https://metals-one.com/wp-content/uploads/2023/07/Metals-One-Plc-Final-Admission-Document-25.7.23.pdf
(https://metals-one.com/wp-content/uploads/2023/07/Metals-One-Plc-Final-Admission-Document-25.7.23.pdf)

 5  (#_ftnref5) Refer to Admission Document -
https://metals-one.com/wp-content/uploads/2023/07/Metals-One-Plc-Final-Admission-Document-25.7.23.pdf
(https://metals-one.com/wp-content/uploads/2023/07/Metals-One-Plc-Final-Admission-Document-25.7.23.pdf)

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