Cadence Minerals PLC EMH - Drill Results, Appointment and Equity Issue (1590O)

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RNS Number : 1590O

Cadence Minerals PLC

16 August 2017

Cadence Minerals Plc

("Cadence Minerals"or "Cadence")

Drill Results and Appointment of DFS Study Manager

Cadence (AIM/NEX: KDNC; OTC: KDNCY) is pleased to announce that European Metals Holdings Limited ("EMH" or "the Company") has reported on its ongoing infill drilling program and announced analytical results for the first drillhole CIS-4 at the Cinovec Lithium-Tin Project ("the project" or "Cinovec").

In addition, the Company is pleased to announce the appointment of Mr Craig Reimer as the Project Manager of its Definitive Feasibility Study.

The full EMH release is available at: http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/EMH/13331231.html

In addition and as a result of the announced issue of equity by EMH of 351,448 new ordinary shares (represented by Chess Depositary interests or "CDI's") in EMH at a price of AUD0.7327, Cadence now holds a 20.5% economic interest in Cinovec, via its interest in EMH.

The full EMH release is available at: http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/EMH/13331576.html

Highlights - Drill Program Announcement

-- Infill drilling continues in the southwest section of the deposit, targeting two 'gaps' in the resource model that could potentially be mined in the initial years.

-- Altogether, five out of 6 planned drillholes have been completed this year, for a total of 2163.1m.

-- Assays have been received for the first drillhole CIS-4, which returned a continuous mineralized intercept of 148.30m averaging 0.40%Li(2) O, starting at 297.7m drill string depth.

-- In addition, the upper section of the main lithium interval contains significant tin and tungsten mineralization: 15.85 meters averaging 0.70% Li(2) O, 0.29% tin and 0.073% tungsten.

-- Experienced Project Manager, Craig Reimer has been appointed to head the Company's Definitive Feasibility study.

Drill Program

The current six-hole drill program at Cinovec South is planned to focus on infill drilling in two areas where data density is low and 'gaps' in the resource model occur. There are the expectations this will add to the high grade resource at Cinovec South in critical areas where mining will start. It will also assist in the conversion of resources from Inferred to Indicated category, and delivery of material for metallurgical testing. So far five diamond core holes have been completed, and one is underway.

The drill hole information is listed in Table 1 below:

Table 1 - Completed drillholes, Cinovec South

 
  Hole       North           East       Elevation   Depth   Azimuth    Dip      Comments 
   ID                                      (m)       (m) 
-------  -------------  -------------  ----------  ------  --------  -------  ----------- 
                                                                                Infill, 
 CIS-4    -966605.9(1)   -778582.9(1)      863       448     16.6     -84.6     completed 
-------  -------------  -------------  ----------  ------  --------  -------  ----------- 
                                                                                Infill, 
 CIS-5    -966607.8(1)   -778585.1(1)     862.8     458.8    271.8    -81.28    completed 
-------  -------------  -------------  ----------  ------  --------  -------  ----------- 
                                                                                Infill, 
 CIS-6    -966516.0(1)   -778544.1(1)     866.2      456     28.8     -86.97    completed 
-------  -------------  -------------  ----------  ------  --------  -------  ----------- 
                                                                                Infill, 
 CIS-7    -966454.0(1)   -778655.3(1)     864.4     450.3    0(3)     -90(3)    completed 
-------  -------------  -------------  ----------  ------  --------  -------  ----------- 
                                                                                Infill, 
 CIS-8    -966570.0(2)   -779163.0(2)      805       350    340(3)    -70(3)    completed 
-------  -------------  -------------  ----------  ------  --------  -------  ----------- 
 CIS-9    -966570.0(2)   -779163.0(2)      805        0      25(3)    -68(3)    ongoing 
-------  -------------  -------------  ----------  ------  --------  -------  ----------- 
 

Hole locations are recorded in the local S-JTSK Krovak grid, (1) Coordinates surveyed, (2) Coordinates determined by GPS, (3) Planned, no inclinometry yet

After geological logging, drill core is cut in half with a diamond saw. Quarter core samples are selected (honouring geological boundaries) and dispatched to ALS (Romania) for preparation and assay; the 3/4 of the core is returned to the core box and stored securely on site. Samples are being prepared and analysed by ALS using ICP and XRF techniques following standard industry practice for lithium and tin deposits. Strict QAQC protocols are observed, including the insertion of a Li standard in random fashion for every 10 core samples.

Mineralized Intercepts and Lithology in CIS-4

The CIS-4 drill hole is collared in rhyolite in the eastern area of the Cinovec South deposit. The main characteristics is the presence of massive greisen/greisenized zone in granite just below its contact with the overlying rhyolite.

In CIS-4, the Li-mineralized greisen and strongly greisenized granite start immediately bellow the rhyolite/granite contact at a depth of 279.7m. Below the contact, variably altered granite with two major and several minor greisen zones were intersected. Underlying albite granite with lithium mica starts at 320.6m and continues to 338.9m drill string depth. The section from 338.9m up to 426m is formed mostly by greisenized Li-mica rich granite. The tin and tungsten mineralization is spatially associated with the strong to pervasive greisen style alteration in the upper 75.3m of the hole. If no Sn cutoff is applied, the interval grades 0.14% Sn, 0.035%W and 0.42% Li(2) O.

Table 2 below provides summary of the results. According to the geological and block model the greisen bodies (and the mineralized zones) dip to the south, although this fact could not be fully confirmed by core angles observations in the core. The CIS-4 drillhole was angled 16.6 degrees toward NE, with dip -84.6 and the reported intercepts appear close to true thicknesses.

Table 2 - Mineralised intercepts in CIS-4

 
                                    CIS-4 
---------------------------------------------------------------------------- 
 From      To     Interval   Li2O    Sn    W (%)             Note 
                     (m)      (%)    (%) 
------  -------  ---------  -----  -----  ------  -------------------------- 
                                                     incl. 4.6m@0.76%Li2O 
                                                         (282.4-287m), 
                                                    5m@0.82%Li2O (289-294m), 
                                                    5m@0.76%Li2O (313-318m) 
                                                              and 
 279.7    428      148.3     0.40                   2m@1.01%Li2O (424-426m) 
------  -------  ---------  -----  -----  ------  -------------------------- 
 279.7   295.55    15.85     0.70   0.29   0.073 
------  -------  ---------  -----  -----  ------  -------------------------- 
                                                      incl. 0.7m@1.036%W 
 288.3    294       5.7      0.80   0.40   0.197          (288.3-289m) 
------  -------  ---------  -----  -----  ------  -------------------------- 
 298.5   303.5       5       0.45   0.10   0.061 
------  -------  ---------  -----  -----  ------  -------------------------- 
 302.5    305       2.5      0.34   0.23   0.039 
------  -------  ---------  -----  -----  ------  -------------------------- 
 310.3    313       2.7      0.57   0.27   0.003 
------  -------  ---------  -----  -----  ------  -------------------------- 
  315     317        2       0.76   0.05   0.188 
------  -------  ---------  -----  -----  ------  -------------------------- 
  318     325        7       0.32   0.18   0.012 
------  -------  ---------  -----  -----  ------  -------------------------- 
 329.5   332.5       3       0.32   0.31   0.048 
------  -------  ---------  -----  -----  ------  -------------------------- 
  331    332.5      1.5      0.34   0.30   0.074 
------  -------  ---------  -----  -----  ------  -------------------------- 
  342     343        1       0.62   0.03   0.096 
------  -------  ---------  -----  -----  ------  -------------------------- 
  351     355        4       0.32   0.17   0.002 
------  -------  ---------  -----  -----  ------  -------------------------- 
 

As required under the 2012 JORC Code, details of the current drill program are appended (Table 1).

Definitive Feasibility Study Project Manager and Team

The Company is pleased to welcome Craig Reimer to the position of Project Manager. Craig has over 25 years' experience in project management, engineering management and business management, and has delivered successful international mining projects for previous clients. Craig is a Mechanical Engineer, a registered Professional Engineer and has held senior leadership positions with Jacobs, UGL, Honeywell International and SNC Lavalin.

He has previously worked on projects for BHP, Vale Inco, Atlas Iron, ENK, Lynas Rare Earths, Newmont and Alcoa. The projects range from scoping and feasibility studies, to front-end engineering and detail design, and on to construction and commissioning. Craig has previously worked on projects in Australia, UK, USA, Canada, Indonesia, Phillipines and Malaysia.

The Company is also pleased to have retained the services of Grant Harman as Metallurgical Consultant to the DFS. Grant is one of the world's foremost lithium metallurgist and played a significant role in the Company's successful PFS.

Grant was previously Manager Lithium Chemicals for Talison Lithium and was involved in the management of the Talison Lithium Carbonate Plant from Scoping Study to Definitive Feasibility Study. He was involved in the design and technical direction of the Talison Test Facility and has more recently been a technical consultant on the Sonora Lithium Project in Mexico. Grant has had previous roles with UGL, SNC Lavalin, CleanTeq and Ausenco.

The expertise and experience of Craig and Grant will be complimented well by the Company's Czech based team, led by Executive Director Richard Pavlik.

 
For further information please contact 
 
Cadence Minerals plc                     [phone] 
Andrew Suckling 
Kiran Morzaria 
 
WH Ireland Limited (NOMAD & Broker)      [phone] 
James Joyce 
James Bavister 
 
Square1 Consulting                       [phone] 
David Bick 
Brian Alexander 
 

Qualified Person

Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information contained in this announcement. Kiran holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance) from CASS Business School.

About Cadence Minerals:

Cadence is dedicated to smart investments for a greener world. The planet needs rechargeable batteries on a global scale - upcoming supersized passenger vehicles, lorries and buses - require lithium and other technology minerals to power their cells. Cadence is helping find these minerals in new places and extracting them in new ways, which will meet the demand of this burgeoning market. With over GBP35 million vested in key assets globally, Cadence is helping us reach tomorrow, today.

Cadence invests across the globe, principally in lithium mining projects. Its primary strategy is taking significant economic stakes in upstream exploration and development assets within strategic metals. We identify assets that have strategic cost advantages that are not replicable, with the aim of achieving lower quartile production costs. The combination of this approach and seeking value opportunities allows us to identify projects capable of achieving high rates of return.

The Cadence board has a blend of mining, commodity investing, fund management and deal structuring knowledge and experience, that is supported by access to key marketing, political and industry contacts. These resources are leveraged not only in our investment decisions but also in continuing support of our investments, whether it be increasing market awareness of an asset, or advising on product mix or path to production. Cadence Mineral's goal is to assist management to rapidly develop the project up the value curve and deliver excellent returns on its investments.

This information is provided by RNS

The company news service from the London Stock Exchange

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August 16, 2017 05:53 ET (09:53 GMT)