Richland Resources Ltd Maiden JORC Resource Estimate (2184N)

TIDMRLD

RNS Number : 2184N

Richland Resources Ltd

07 August 2017

7 August 2017

Richland Resources Ltd

("Richland" or the "Company")

Maiden JORC Resource Estimate for EPM 25973 Exploration Licence

Richland (AIM: RLD), the gemstones producer and developer, is pleased to announce a maiden independent JORC resource estimate for the group's wholly owned EPM 25973 exploration licence, located in Queensland, Australia.

Highlights:

-- Maiden independent inferred JORC resource estimate of 5 million loose cubic metres ("lcm") of sapphire bearing gravel at an estimated average grade of 3.5 grammes per lcm (17.5 carats per lcm) for Capricorn Sapphire Pty Ltd's ("Capricorn") exploration licence EPM 25973.

o Resource estimation equates to approximately 87.5 million carats in the ground

Background

The Company is pleased to announce that it has received an independent Maiden JORC resource estimate in respect of exploration licence EPM 25973, held by its wholly owned subsidiary, Capricorn, which was commissioned earlier this year. As announced previously, the exploration licence was granted by the Queensland Government in November 2015 and is located adjacent to known sapphire producing areas and RA1 Areas (restricted areas earmarked for sapphire mining and fossicking with the grant of exploration licences within the area prohibited). This exploration licence, together with the EMP 25978 licence awarded at the same time, were previously identified and selected as hosting sapphire bearing palaeo-alluvial terraces with adjoining reworked colluvial and alluvial deposits. Historical sampling of the terraces by third parties recovered sapphire samples from the basal gravels.

Licence EPM 25973 has an exploration area of 39 sub-blocks (133 square kilometres) located within the Anakie sapphire deposit in Central Queensland which is within 45km of the Company's existing Capricorn Sapphire mining operations.

Maiden JORC Resource Estimate for EPM 25973 Exploration Licence

Earlier this year, the Company commissioned a review of the historic third party exploration work conducted on the licence area and has now received a maiden independent JORC Inferred Resource estimate of 5 million loose cubic metres ("lcm") of sapphire bearing gravel at an estimated average grade of approximately 3.5 grammes per lcm (17.5 carats per lcm) for exploration licence EPM 25973. This Resource estimation equates to approximately 87.5 million carats in the ground.

The Resource volume is based on 1m thick basal gravels with 2-5 metres of overburden; the palaeo-alluvial deposits are elevated and hence dry to dig. Average grade is approximately 3.5 grammes rough sapphire per lcm (17.5 ct per lcm) using 2 grammes per lcm (10 carats per lcm) grade as a lower cut-off grade and is based on results of 25 historic pilot samples each of 2 loose cubic metres raw volume.

Qualified Person

The resource statement contained in this announcement has been prepared and reviewed by Mr Ross McMaster, who has sufficient relevant experience of the style of mineralisation and type of deposit under consideration to qualify as a Competent Person as defined in the JORC Code (2012). Mr McMaster is an independent geological consultant to Capricorn and a Member of the Australasian Institute of Mining and Metallurgy, and meets the criteria of a qualified person under the AIM guidance note for mining and oil & gas companies. He has compiled and approved the technical disclosures in this announcement.

For further information, please contact:

 
 Bernard Olivier          Edward Nealon       Mike Allardice 
  Chief Executive          Chairman            Group Company secretary 
  Officer                  [phone]         [phone] 
  [phone]           955 
 Laurence Read            Nominated Adviser   Broker (AIM) 
  Corporate Development    (AIM)               Shore Capital Stockbrokers 
  and Communications       Strand Hanson       Ltd 
  Officer                  Limited             Jerry Keen (corporate 
  [phone]           James Harris        broking) 
  9923                     Matthew Chandler    Toby Gibbs / Mark 
                           James Dance         Percy (corporate 
                           [phone]     finance) 
                           3494                [phone] 
                                               4090 
 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014.

Note to Editors:

Further information is available on the Company's website: www.richlandresourcesltd.com. Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

Glossary of technical terms:

 
 "g"                  grammes; 
 
 "g/lcm"              grammes per loose cubic metre; 
 
 "Inferred            that part of a Mineral Resource 
  Resource"            for which tonnage, grade and 
                       mineral content can be estimated 
                       with a low level of confidence. 
                       It is inferred from geological 
                       evidence and assumed but not 
                       verified geological and/or grade 
                       continuity. It is based on information 
                       gathered through appropriate 
                       techniques from locations such 
                       as outcrops, trenches, pits, 
                       workings and drill holes which 
                       may be limited or of uncertain 
                       quality and reliability; 
 
 "JORC"               the Australasian Code for Reporting 
                       of Exploration Results, Mineral 
                       Resources and Ore Reserves, as 
                       published by the Joint Ore Reserves 
                       Committee of The Australasian 
                       Institute of Mining and Metallurgy, 
                       Australian Institute of Geoscientists 
                       and Minerals Council of Australia; 
 "JORC (2012)"        the 2012 edition of the JORC 
                       code; 
 "km"                 kilometres; 
 
 "LCM"                loose cubic metre; 
 "Mineral Resource"   concentration or occurrence of 
                       material of economic interest 
                       in or on the earth's crust in 
                       such form and quantity that there 
                       are reasonable and realistic 
                       prospects for eventual economic 
                       extraction. The location, quantity, 
                       grade, continuity, and other 
                       geological characteristics of 
                       a Mineral Resource are known, 
                       estimated from specific geological 
                       evidence and knowledge, or interpreted 
                       from a well-constrained and portrayed 
                       geological model; 
 "m"                  metre; 
 
 "Sapphire"           a gem quality corundum (Al(2) 
                       O(3) ) other than ruby. Especially 
                       the blue transparent and coloured 
                       varieties of crystalline corundum 
                       containing small amounts of oxides 
                       of cobalt, chromium and titanium. 
 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

DRLFMGGRRVZGNZM

(END) Dow Jones Newswires

August 07, 2017 02:00 ET (06:00 GMT)