REG - Neo Energy Metals - Resource Expansion Drill Program Tender Underway

Neo Energy MetalsAnnouncement

01/12/2023 11:00

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RNS Number : 4026V  Neo Energy Metals PLC  01 December 2023

Neo Energy Metals plc / EPIC: NEO / Market: Main Market of the London Stock
Exchange

 

1 December 2023

Neo Energy Metals plc

('Neo Energy' or 'the Company')

 

Resource Expansion Drill Program Tender Underway

 

Neo Energy Metals plc, the near term, low-cost uranium developer, is pleased
to announce that it has commenced the tender process with a number of
short-listed South Africa based drilling contractors for a major resource
expansion and resource upgrade drill program ("Drill Program") to be completed
at its advanced Henkries Uranium Mine ("Henkries") located in the Northern
Cape Province of South Africa.

 

OVERVIEW

·    Tender and enquiry documents issued to a number of short-listed South
African based drilling contractors for the planned resource expansion and
resource upgrade drill program

·    The Drill Program aims to increase the existing JORC Code 2012
compliant Mineral Resource of 4.7 million pounds ('Mlbs') of uranium

·    The Drill Program will comprise of approximately 6,500m of aircore
drilling

o  350 drill holes with an average drill hole depths of between 15m to 20m

·    Infill drilling and resource expansion drilling will be completed on
both the Henkries Central and Henkries North deposits which extend over 6km of
the 37km defined paleochannel that hosts the uranium mineralisation

·    On the 6km strike length of the Henkries Central and Henkries North
deposits, approximately 2,000m of infill drilling will be undertaken at drill
spacings of 100m

o  The aim is to upgrade the resource category to a Measured status

·    A further 2,000m of resource extension drilling will be completed on
this 6km of strike length at drill spacings of 200m.

o  The aim is to increase the existing JORC Code 2012 compliant Mineral
Resources by targeting potential extensions to the existing Henkries Central
and Henkries North deposits

·    An additional 2,500m of exploration drilling is planned for Henkries
South, which offers significant potential for an increase in JORC Code 2012
compliant Mineral Resources

o  Extends for over 25km of the 37km defined paleochannel that hosts the
Henkries Central and Henkries North deposits

·    The appointment and mobilisation of the drilling contractor is
expected in early Q1 2024

·    The Drill Program is scheduled to commence in Q1 2024 and is expected
to be completed by early Q3 2024

·    Recently appointed Regional Manager, Mr Cloete will oversee the
resource expansion drill program and has already mobilised to site to commence
the necessary site preparations

 

Neo Energy CEO Sean Heathcote said,

"We are now issuing a series of tender and enquiry documents as part of our
strategy to accelerate the mine development of our Henkries Uranium Project.

 

"Over recent weeks I have been working with our new Regional Manager, Jerry
Coete, to advance discussions and making preparations for the resource
expansion drilling contract. Our plan is to appoint and mobilise the drilling
contractor early in the New Year with the  infill and exploration drill
program commencing in Q1 2024 and completed in early Q3 2024.

 

"We are confident that we are able to increase our JORC Code 2012 compliant
Mineral Resources to over 10Mlbs of contained uranium through this drilling
program. This will underpin and further strengthen the attractiveness of the
Project and its underlying project economics.

 

"We look forward to appointing the drilling contractor shortly and providing
further updates on their progress at Henkries in early 2024."

 

DETAILS

The Company is focused on fast-tracking the development of its advanced
Henkries Uranium Project ('Henkries' or the 'Project') towards production
having raised £5.4m and re-admitted its shares to trading on the Main Market
of the London Stock Exchange in November 2023.

 

Henkries, a 742km(2) uranium project in the Northern Cape of the Republic of
South Africa, has a current estimated mineral resource of 4.7 million pounds
('Mlbs') of uranium and has been subject to extensive historical exploration
activities as well as a feasibility study ('FS').  Utilising historical data
and newly generated data from the planned drilling programmes, Neo aims to
increase the Mineral Resources Estimate ('MRE') to +10Mlbs contained uranium,
update the FS, and move to mine development decision as soon as possible.

 

Henkries includes two key deposits; Henkries Central and Henkries North, and
an advanced exploration target at Henkries South. Infill drilling is planned
to increase the mineral resource base, with explorations drilling to test all
potential extensions to the existing Henkries Central, as well as at Henkries
North.  Additional exploration drilling will be undertaken at Henkries South,
which offers significant potential for an increase in project resources,
extending over 25km of the 37km defined paleochannel that hosts Henkries
Central and Henkries North resources.

 

This announcement contains inside information for the purposes of the UK
Market Abuse Regulation, and the Directors of the Company are responsible for
the release of this announcement.

 

ENDS

 Sean Heathcote    CEO                      sean@neoenergymetals.com

                   Neo Energy Metals plc

 Paul Dulieu       Financial PR             neo@stbridespartners.co.uk

 Isabel de Salis   St Brides Partners Ltd

 Isabelle Morris

 

 

Notes

Neo Energy Metals plc aims to become an important supplier to the fast-growing
uranium sector.  Its initial focus is on its 70% owned Henkries Uranium
Project, an advanced, low-cost uranium project in the Northern Cape Province
of South Africa with a clear pathway to production. +US$30m of historical
exploration, drilling, test pitting and mining, metallurgical testwork and
pilot plant work has been undertaken at the Project, culminating in a
published feasibility study.

 

Headquartered in Nairobi, Kenya, Neo Energy is now focused on increasing the
mineral resources at Henkries from the current estimated 4.7 million pounds of
uranium, which is highly probable as less than 10% of prospective ground is
fully tested, and completing an updated feasibility study ahead of reaching a
development decision by November 2025.

 

Led by a proven board and management team with uranium and other mineral
project development experience in Southern Africa, Neo Energy's strategy is
layered on a two-year development approach to generate cashflow from Henkries
with a view towards building a longer term exploration and portfolio growth
strategy to develop the highly prospective Northern Cape Region of South
Africa and, potentially, broader regional expansion into energy metal property
holdings globally.

 

The team includes:

·    Jason Brewer, Non-Executive Chairman: c.30 years' experience in
international mining, financial markets, and investment banking with a
particular focus in Africa.

·    Sean Heathcote, CEO: +30 years' experience in the mining and
exploration industry in Africa across a broad range of commodities.

·    Jackline Muchai, Non-Executive Director: one of the few Kenyan women
serving on a board within London's Main Market on the London Stock Exchange,
and CEO of Gathoni Muchai Investments.

·    Bongani Raziya, Non-Executive Director: +20 years' experience in oil
and gas and mining in Africa with various directorships held in
well-established profitable companies.

·    James Longley, Non-Executive Director: +30 years' experience in
finance, whose career has been focused on venture capital, private equity and
building growth companies.

·    Charles Tatnall, Non-Executive Director: a seasoned advisor and
fundraiser, specialising in small and medium-sized enterprises across diverse
industries.

 

 

 

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