Arc Minerals Limited High Grade Cobalt drill results from shallow oxide (2533H)

TIDMARCM

RNS Number : 2533H

Arc Minerals Limited

14 November 2018

Arc Minerals Ltd / Epic: ARCM / Market: AIM / Sector: Mining & Exploration

14 November 2018

Arc Minerals Ltd

('Arc' or the 'Company')

High Grade Cobalt results from shallow oxide drilling

Arc Minerals is pleased to report reverse circulation drilling results from the oxide portion of its Kalaba Cobalt-Copper Project ("Zamsort"). These short holes were drilled to confirm the grade of the oxide material intended for processing through the Commercial Scale Demonstration plant ('CSD Plant' or the 'Plant'). Significantly higher cobalt grades up to 0.35% have been intersected together with copper grades up to 1.50%.

Highlights:

   --    Cobalt grades averaging over 0.20% over mineable widths 

-- Mineralisation hosted in a saprolitic horizon that can be easily mined without the need for drilling and blasting

   --    Low strip ratio to access the near surface ore 

Drilling intercept highlights include:

   --    KGC003: 23m at 1.16% Cu Eq. from 2m 

o including from 13m; 10m at 0.81% Cu and 0.15% Co for 2.00% Cu Eq.

o including from 17m; 4m @ 1.17% Cu and 0.22% Co for 2.90 Cu Eq.

   --    KGC005: 16m at 1.28% Cu Eq. from 9m 

o including from 13m; 9m at 0.83% Cu and 0.11% Co for 1.74% Cu Eq.

   --    KGC012: 15m at 1.29% Cu Eq. from 10m 

o Including from 14m; 6m at 0.51% Cu and 0.20% Co for 2.11% Cu Eq.

Progress at the CSD Plant

Commissioning of the plant is on track for December 2018. Given the prevalence of cobalt in the oxide ore, the plant is also being tested to ensure that the plant is able to maximise cobalt recovery and process a separate cobalt concentrate as well as a separate copper concentrate. Two cost efficient systems are being tested with encouraging early results. A further update will be provided once a decision is taken on the route going forward for the Plant.

Nick von Schirnding, Executive Chairman of Arc Minerals commented:

"These results are very encouraging, in particular the high-grade cobalt mineralisation intersected in this round of drilling. These results from the pit areas immediately adjacent to the CSD plant show mineralisation that is near surface and hosted in weathered material that can be mined without the need to drill and blast, which should provide for low strip ratios and correspondingly very low mining costs.

As a result of higher than expected Cobalt grades encountered, Kalaba is becoming a cobalt project along with copper and as such work is underway to maximise the cobalt recoveries to ensure that full value is extracted.

We look forward to further updates soon including further drilling results as well as results from our recently completed Airborne Geophysical programme carried out to highlight further geological structures associated with known zones, potential new zones of mineralisation and to prioritise areas for further drilling from our large-scale Zamsort Copper-Cobalt Project."

Investor Conference Call

To discuss these results and to update upon general strategy and progress to date, an investor conference call is planned for 12:30pm on Wednesday 14 November 2018.

Participants can access the call by dialling the following number prior to the start of the call.

UK (Local): [phone]

Guest Dial-in Code: 1053446#

For further information or for overseas dial-in numbers, please email [e-mail]

Drilling Results

The table below sets out the results of the holes for which assays have been received by Zamsort from SGS Inspection Service Ltd in Kalulushi, Zambia.

Table 1. Drilling intercepts

 
  BHID     From   To   Length    Cu     Co    Cu. Eq. 
 KGC002     0     25     25     0.38   0.09    1.10 
          -----  ---  -------  -----  -----  -------- 
  incl.     8     25     17     0.53   0.11    1.44 
--------  -----  ---  -------  -----  -----  -------- 
            16    25     9      0.73   0.14    1.86 
--------  -----  ---  -------  -----  -----  -------- 
            18    21     3      0.82   0.20    2.43 
--------  -----  ---  -------  -----  -----  -------- 
 KGC003     2     25     23     0.41   0.09    1.16 
          -----  ---  -------  -----  -----  -------- 
  incl.     10    22     12     0.67   0.15    1.85 
--------  -----  ---  -------  -----  -----  -------- 
            13    23     10     0.81   0.15    2.00 
--------  -----  ---  -------  -----  -----  -------- 
            17    21     4      1.17   0.22    2.90 
--------  -----  ---  -------  -----  -----  -------- 
 KGC004     0     25     25     0.29   0.09    0.99 
          -----  ---  -------  -----  -----  -------- 
  incl.     14    23     9      0.66   0.15    1.84 
--------  -----  ---  -------  -----  -----  -------- 
            17    22     5      0.87   0.18    2.32 
--------  -----  ---  -------  -----  -----  -------- 
 KGC005     9     25     16     0.56   0.09    1.28 
          -----  ---  -------  -----  -----  -------- 
  incl.     13    22     9      0.83   0.11    1.74 
          -----  ---  -------  -----  -----  -------- 
 KGC006     0     25     25     0.25   0.07    0.78 
          -----  ---  -------  -----  -----  -------- 
  incl.     12    21     9      0.45   0.12    1.39 
--------  -----  ---  -------  -----  -----  -------- 
            18    25     7      0.66   0.08    1.34 
--------  -----  ---  -------  -----  -----  -------- 
 KGC008     4     25     21     0.28   0.05    0.71 
          -----  ---  -------  -----  -----  -------- 
 KGC012     10    25     15     0.28   0.13    1.29 
          -----  ---  -------  -----  -----  -------- 
  incl.     14    20     6      0.51   0.20    2.11 
          -----  ---  -------  -----  -----  -------- 
 KGC017     0     15     15     0.36   0.06    0.81 
          -----  ---  -------  -----  -----  -------- 
  incl.     0     10     10     0.50   0.08    1.11 
--------  -----  ---  -------  -----  -----  -------- 
            7     10     3      0.74   0.12    1.71 
--------  -----  ---  -------  -----  -----  -------- 
 

Notes:

   1)    Reported intervals are downhole widths, which are similar to the true widths. 

2) Reported intervals are calculated for zones assaying > 0.2% copper or 0.02% cobalt and containing less than 3 meters of internal waste.

3) The copper equivalent values are estimated using current metal prices of $6200/t copper and $50,000/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 copper equivalent values may differ slightly due to rounding. 

Figure 1 - location Map of Zamsort. To view the image, please click on the following hyperlink http://www.arcminerals.com/gal.php?gID=148

Drilling Programme

These diamond and reverse circulation drill holes have been collared so that they test the strike and down dip extensions to the mineralisation that is exposed on surface at the Kalaba open pit.

The mineralisation is hosted by a magnesite unit which crops out on surface in the south and dips in a northerly direction below an overlying schistose unit. The mineralisation at present has been tested down dip for 600m and along strike for 500m and remains open to the north and west, bounded by a fault to the east and Kalaba river to the south.

An 11,000-metre drilling programme (4,400m of diamond and 6,600m of Reverse Circulation drilling) is currently underway at the Kalaba prospect, part of Zamsort. Part of the drilling programme is designed with the view to create a shallow oxide resource for the Commercial Scale Demonstration Plant ("CSD plant") that is currently in the process of being completed. The principal aim is to establish a Maiden Mineral Resource Estimate at the Kalaba prospect.

To date, 33 diamond holes have been completed totalling over 5,000 meters and 21 RC holes for over 1,900 meters. Assays for the remaining drill holes are expected during the coming weeks and months.

The spatial location of the samples is derived using GPS collar survey pickups. True widths have not been determined as the level of detail required to calculate accurate true widths is not yet available, as a result down hole widths have been reported. However true widths are not expected to differ significantly from the down hole widths reported.

Quality Assurance/Quality Control (QA/QC)

The core from the diamond core was sampled at up to 1.5m metre intervals with the split core (PQ - 1/4 core; HQ - 1/2 core) bagged and sent to SGS Inspection Service Ltd in Kalulushi, Zambia, an ISO accredited laboratory for assaying.

The samples from the reverse circulation drill programme were collected at one metre intervals following which they are weighed. Samples were split at the drill site using a riffle splitter with the split sample bagged separately and reject inserted back in the original sample bag. The split RC sample of approximately 2kg was sent to SGS Inspection Service Ltd in Kalulushi, Zambia, an ISO accredited laboratory for assaying.

The samples were sorted, dried, crushed and pulped before final chemical analysis using ICP-OES methods. Standards, blanks and duplicates were inserted regularly in the sample stream and checks were done for copper and cobalt.

Qualified Persons

The information in this press release is based on information provided by Zamsort Limited on behalf of Arc Minerals. Mr Vassilios Carellas (BSc (Hons), MAusIMM) is the Chief Operating Officer for Arc Minerals and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined under the JORC Code (2012). Mr Carellas consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

Notes to the Editors

Arc Minerals is an AIM listed exploration and mine development company focused on a diversified portfolio of mining projects with interests in Slovakia, Eritrea, the Democratic Republic of the Congo and Zambia.

ARC Minerals current holdings include:

-- 100% interest in CASA Mining Limited, a private company that has a 71.25% interest in the 3-million-ounce inferred Resource Akyanga gold deposit in the DRC.

-- A 66% equity interest in Zamsort Limited ("Zamsort"), a private company focused on a prospective copper and cobalt licence in the Zambia Copperbelt, together with a convertible loan to Zamsort which converts into approximately a five percent additional equity interest in Zamsort, with interest on the convertible note being rolled forward to the end of 2018;

-- 100% ownership of the Kremnica Mining Licence Area in Slovakia which host the 1.3Moz AuEq Au PFS stage turec Gold Project.

For more information visit www.arcminerals.com

**ENDS**

Contacts

 
 Arc Minerals Ltd 
  Nick von Schirnding (Chairman)    [phone] 
 SP Angel (Nominated Adviser 
  & Broker) 
  Ewan Leggat / Lindsay Mair / 
  Soltan Tagiev                     [phone] 
 

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

Forward-looking Statements

This news release contains forward-looking statements that are based on the Company's current expectations and estimates. Forward-looking statements are frequently characterised by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will" occur. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Such factors include, among others: the actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; possible variations in ore grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing; and fluctuations in metal prices. There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.

Technical Glossary

 
 Assay                          the laboratory test conducted to determine 
                                 the proportion of a mineral within 
                                 a rock or other material. 
 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 
                                 the collection of tubes of intact rock 
                                 (core) 
                               --------------------------------------------- 
 Dip                            a line directed down the steepest axis 
                                 of a planar structure including a planar 
                                 ore body or zone of mineralization. 
                                 The dip has a measurable direction 
                                 and inclination from the horizontal 
                               --------------------------------------------- 
 Grade                          the proportion of a mineral within 
                                 a rock or other material which for 
                                 gold is usually measured in g/t 
                               --------------------------------------------- 
 JORC Resource                  Resource estimated according to 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 
                               --------------------------------------------- 
 M                              metre, a unit of length as per the 
                                 International System of Units 
                               --------------------------------------------- 
 Mineralisation                 the process or processes by which a 
                                 mineral is introduced into a rock, 
                                 resulting in a valuable or potentially 
                                 valuable deposit. It is a general term, 
                                 incorporating various types; e.g., 
                                 fissure filling, impregnation, and 
                                 replacement 
                               --------------------------------------------- 
 Mineral Resource               Mineral 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 
                               --------------------------------------------- 
 QA/QC                          Quality Control and Quality Assurance, 
                                 a set of defined procedures in all 
                                 aspects of the mineral deposit evaluation 
                                 to ensure the best possible confidence 
                                 in resultant mineral Resource and Reserve 
                                 estimates are achieved; the quality 
                                 of an estimate is dependent on the 
                                 quality of the data used 
                               --------------------------------------------- 
 Reverse Circulation Drilling   Or RC drilling - uses rods with inner 
                                 and outer tubes, the drill cuttings 
                                 are returned to surface inside the 
                                 rods. The drilling mechanism is a pneumatic 
                                 reciprocating piston known as a hammer 
                                 driving a tungsten-steel drill bit. 
                               --------------------------------------------- 
 

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November 14, 2018 02:00 ET (07:00 GMT)