Erris Resources PLC High Grade Underground Drill Results at Abbeytown (4648O)

TIDMERIS

RNS Number : 4648O

Erris Resources PLC

30 January 2019

Prior to publication, the information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). With the publication of this announcement, this information is now considered to be in the public domain.

Erris Resources plc / EPIC: ERIS.L / Market: AIM / Sector: Mining

30 January 2019

Erris Resources plc

("Erris Resources" or the "Company")

High Grade Underground Drill Results at the Abbeytown Project

Erris Resources plc, the European focused mineral exploration company with a portfolio of zinc and base metals projects in Ireland and gold projects in Sweden, is pleased to provide an update on its activities at the Abbeytown zinc-lead-silver-copper project in County Sligo, Northwest Ireland, including the results for 11 holes out of the 12-hole underground drill programme.

Highlights

   --    Grades intersected in underground drilling include: 

o 12.66 % Zn+Pb combined and 21.05g/t Ag over 2.0m in ABUG004

o 14.37 % Zn+Pb combined and 67.25g/t Ag over 2.0m in ABUG009

o 10.43 % Zn+Pb combined and 34.73g/t Ag over 2.7m in ABUG009

o 5.33 % Zn+Pb combined and 21.44g/t Ag over 5.0m in ABUG010

o 9.32 % Zn+Pb combined and 60.4g/t Ag over 4.0m in channel sample pillar AB-PL-10

o 7.88 % Zn+Pb combined and 48.86g/t Ag over 3.0m in channel sample pillar AB-PL-11

-- Continuity of mineralisation confirmed between historic underground mine and mineralisation intersected in recent surface drilling 300m south of mine completed by Erris in late 2018

-- New target areas identified to extend the known footprint of mineralisation further south from the area drilled 300m south of the mine

Erris Resources CEO, Anton du Plessis, said, "We are delighted with the results of the underground work programme at Abbeytown, which has extended the mineralistion south to join with the surface drilling we completed last year, expanding the overall size and potential of the mineralised system. The combination of underground mapping and drilling has allowed us to advance the project more efficiently and develop new targets in the extended area south of the mine. The ground conditions at Abbeytown appear to be very good and the team has gained valuable experience in underground operations which will aid future work. We look forward to updating the market in the upcoming months with the results of the preliminary metallurgical study and new soil surveys."

Further Information

Access to the Abbeytown underground mine was rehabilitated during the summer of 2018 in preparation for underground mapping, sampling and drilling in Q4 2018. These works have now been completed and assay results from the underground drill programme have been received along with additional channel sampling results. Results for one hole which did not intersect significant mineralisation are pending. A video showing the underground work is available on the Company's website https://www.errisresources.com/ireland.

The drilling has resulted in a much better understanding of the controls and distribution of mineralisation in the project area and has confirmed that mineralisation is continuous between the mine and the location of surface drilling south of the mine, results of which were announced on 24 October 2018.

Two mineralised structures were intersected east of the mine on trend with mineralisation intersected in hole ERAB010 on surface (ERAB010: 5m grading 4.7% Zn+Pb combined, 1.12% Cu and 29.3 g/t Ag from 119.5m to 124.5m). East-west orientated normal faults are now recognised as important for controlling mineralisation and results have demonstrated that where these intersect north-northeast trending structures is typically where the highest-grade mineralisation is developed. Considering these new observations, the Company is actively reviewing its exploration model and has identified new target areas to extend the known footprint of mineralisation further south from the workings and the area drilled 300m south of the mine. Close-spaced soil sampling is underway over these areas to confirm the presence of the structures and to upgrade them to drill targets. Results of a preliminary metallurgical study involving a bench flotation test and bond mill test on material collected from the underground pillars are expected within the next two months.

The underground drilling programme consisted of 12 holes for a total or 1,004.5m. Many of the holes were near flat or shallow dipping and drilled out through the crinoidal limestone unit to seek additional mineralised structures. Five holes were drilled from the most-southwest part of the mine. ABUG001 drilled at -13deg to the southeast from pad 1 encountered two zones of mineralisation at 70m and 102m downhole. ABUG002 was drilled steeper at -28deg and tested the first zone in the permeable lower grit vertically beneath the first intersection in ABUG001. Holes ABUG003 and ABUG004 were drilled towards the south but did not encounter significant mineralisation beyond the wall of the mine which had 2.0m @ 12.66 % Zn+Pb combined and 21.05g/t Ag from 0.0 to 2.0m.

Drill hole ABUG006, ABUG007 and ABUG008 were drilled on azimuth 208deg along a fence to test the footwall beneath a high-grade channel sample which returned 4m grading 18.40% Zn+Pb combined with 116.85 g/t Ag from Pillar 4 in the Index Bed. Hole ABUG007 encountered strong mineralisation in the lower grit beneath the high-grade pillar. The mineralisation is controlled by intersecting east-west striking and north-northeast striking fracture zones with mineralisation best developed in the permeable Index Bed and lower grit units. Mineralisation was not well developed in the crinoidal limestone between the Index Bed and lower grit.

Drill hole ABUG009 was located in the west side of the mine and drilled northwards on azimuth 024deg at -51.5deg to test an east-west orientated fault zone in the shale west of the lower workings. The hole encountered good mineralisation in the floor of the mine from 0 to 2.0m (2.0m @ 14.37 % Zn+Pb combined) and in the lower grit unit at 43.5m to 46.2m (2.7m @ 10.43 % Zn+Pb combined). Drill hole ABUG010 was from the same location but directed towards the south (azimuth 200deg) to test another east-west fracture zone. The hole encountered mineralisation in the floor and a broad zone of calcite-pyrite alteration including 5.0m grading 5.33 % Zn+Pb combined and 21.44g/t Ag.

Drill hole ABUG011 was drilled to the west on azimuth 275deg at -15deg from the most westerly drive in the upper Index Bed Workings. The aim was to test for parallel altered structures and to test the west fault at depth near the lower grit. The hole failed to intersect significant mineralisation.

Drill hole ABUG012 was drilled to the north on azimuth 350deg at a dip of -50deg from the same pad as ABUG011 to test the strike extension of the east-west fault intersected in ABUG009. The hole intersected only minor mineralisation indicating that both north-northeast trending fracture zones and east-west fracture zones are required for development of high-grade mineralisation.

The conclusions of the above mapping, sampling and drilling are as follows:

-- Dolomite alteration is more consistently developed around the mineralised zones at depth and in the crinoidal limestone compared to that observed from surface drilling.

   --    There are several steep to vertical dipping north-northeast trending structural zones hosting mineralisation in the mine area with new parallel structures identified in ABUG001 and ABUG002. Mineralisation is continuous along these structures. 

-- Mineralisation occurs on east-west trending structures and fracture zones which are north dipping extensional structures with moderate dip.

-- The highest-grade mineralisation is developed in feeder zones where the two trends intersect creating strong fracturing and the grade is generally higher in the more permeable lithologies.

-- Mineralising fluids travel outwards from the feeder zones within the permeable lower grit unit and the Index Bed calcarenite.

-- Strong pyrite-calcite alteration is peripheral to Zn-Pb mineralisation both at depth in the lower grit and at shallower levels in the Index Bed as seen on section ABUG006-ABUG008.

These new observations will guide the exploration model at Abbeytown and work to expand the footprint of the mineralisation from the current underground and surface drilled areas to date.

The next phase of work at Abbeytown will involve soil sampling south of the mine site to determine the potential extension of the mineralised structures towards the Ox Mountain fault located approximately 1,200m south of the mine. Soil sampling at 10m intervals across structures has shown to be very effective for pinpointing the location of mineralised faults which can then be tested by drilling.

Table 1 Highlighted intersections from underground drill holes and four channel samples.

 
                 Length                                                     Pb % + 
 Hole ID          m       From     To       Ag g/t   Cu %   Pb %    Zn %     Zn % 
 ABUG001           2.00    75.60    77.60    21.70   0.00    0.99    2.53     3.51 
                -------  -------  -------  -------  -----  ------  ------  ------- 
 ABUG001           3.00   103.00   106.00    26.13   0.01    0.91    3.06     3.97 
                -------  -------  -------  -------  -----  ------  ------  ------- 
 ABUG002           3.00    76.00    79.00     8.88   0.01    1.41    1.50     2.91 
                -------  -------  -------  -------  -----  ------  ------  ------- 
 inc. ABUG002      2.00    76.00    78.00    11.48   0.01    1.95    1.86     3.81 
                -------  -------  -------  -------  -----  ------  ------  ------- 
 ABUG003           2.00    16.00    18.00     3.35   0.01    0.46    1.74     2.19 
                -------  -------  -------  -------  -----  ------  ------  ------- 

 ABUG004           2.00     0.00     2.00    21.05   0.01   11.05    1.61    12.66 
                -------  -------  -------  -------  -----  ------  ------  ------- 
 ABUG004           2.00     3.00     5.00     7.76   0.00    2.34    0.41     2.75 
                -------  -------  -------  -------  -----  ------  ------  ------- 
 ABUG004           4.00    94.00    98.00     6.79   0.01    0.31    1.84     2.15 
                -------  -------  -------  -------  -----  ------  ------  ------- 
 Inc. ABUG004      2.00    96.00    98.00     9.78   0.01    0.48    2.32     2.80 
                -------  -------  -------  -------  -----  ------  ------  ------- 
 ABUG004           2.00   100.00   102.00    20.22   0.01    1.04    3.13     4.17 
                -------  -------  -------  -------  -----  ------  ------  ------- 
 ABUG006           2.00    14.00    16.00     9.53   0.01    2.89    1.00     3.89 
                -------  -------  -------  -------  -----  ------  ------  ------- 
 ABUG007           2.15    55.70    57.85    29.69   0.04    9.40    2.80    12.20 
                -------  -------  -------  -------  -----  ------  ------  ------- 
 ABUG008           2.55    54.35    56.90    15.44   0.01    1.58    2.11     3.70 
                -------  -------  -------  -------  -----  ------  ------  ------- 
 ABUG009           2.00     0.00     2.00    67.25   0.01    3.59   10.78    14.37 
                -------  -------  -------  -------  -----  ------  ------  ------- 
 ABUG009           3.00     4.00     7.00     8.66   0.00    0.61    1.42     2.03 
                -------  -------  -------  -------  -----  ------  ------  ------- 
 ABUG009           2.70    43.50    46.20    34.73   0.05    6.17    4.26    10.43 
                -------  -------  -------  -------  -----  ------  ------  ------- 
 ABUG010           3.00     0.00     3.00    13.65   0.00    0.87    2.27     3.14 
                -------  -------  -------  -------  -----  ------  ------  ------- 
 ABUG010           2.00     5.00     7.00    13.48   0.01    0.54    1.92     2.46 
                -------  -------  -------  -------  -----  ------  ------  ------- 
 ABUG010           5.00     8.00    13.00    21.44   0.07    0.95    4.38     5.33 
                -------  -------  -------  -------  -----  ------  ------  ------- 
 ABUG011           2.00     0.00     2.00     8.88   0.01    0.68    1.93     2.61 
                -------  -------  -------  -------  -----  ------  ------  ------- 
 ABUG011           2.00    92.00    94.00    11.28   0.00    0.29    2.06     2.34 
                -------  -------  -------  -------  -----  ------  ------  ------- 
 Channel Samples 
 AB-PL-09          2.00     2.00     4.00    15.80   0.06    1.41    0.84     2.25 
                -------  -------  -------  -------  -----  ------  ------  ------- 
 AB-PL-10          4.00     0.00     4.00    60.40   0.00    3.65    5.67     9.32 
                -------  -------  -------  -------  -----  ------  ------  ------- 
 AB-PL-11          3.00     1.00     4.00    48.86   0.01    2.31    5.57     7.88 
                -------  -------  -------  -------  -----  ------  ------  ------- 
 AB-PL-12          4.00     0.00     4.00    34.90   0.00    1.67    3.05     4.72 
                -------  -------  -------  -------  -----  ------  ------  ------- 
 

The true thickness of mineralised intervals is interpreted to be approximately 60-90% of the sampled thickness depending on the drill hole orientation and style of mineralisation intersected.

The technical information in this announcement has been compiled on behalf of Erris by Aiden Lavelle. Aiden Lavelle (BSc (Hons), MSc, MIGI, P.Geo ) is Erris' chief operating officer. Mr Lavelle 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 in accordance with the guidance note for Mining, Oil & Gas Companies issued by the London Stock Exchange in respect of AIM Companies, which outlines standards of disclosure for mineral projects. Mr Lavelle consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

*ENDS*

For further information visit www.errisresources.com or contact:

 
 Anton du Plessis /Aiden 
  Lavelle                   Erris Resources plc              [phone] 
                            Allenby Capital (Nominated 
 David Hart/Liz Kirchner     Adviser)                        [phone] 
                           -------------------------------  --------------------- 
                            Shard Capital (Joint 
 Erik Woolgar                Broker)                         [phone] 
                           -------------------------------  --------------------- 
                            Turner Pope Investments 
 Andy Thacker                (TPI) Ltd (Joint Broker)        [phone] 
                           -------------------------------  --------------------- 
 Isabel de Salis/Gaby       St Brides Partners (Financial 
  Jenner                     PR)                             [phone] 
                           -------------------------------  --------------------- 
 

Notes

Erris Resources plc (EPIC: ERIS.L) is an AIM quoted, European focused, discovery driven exploration company. Supported by Canadian mining majors, Osisko Gold Royalties, which has a 18.9% interest in the Company, and Centerra Gold KB Inc, a wholly owned subsidiary of TSX listed Centerra Gold Inc., the Company has an established portfolio of zinc and base metals assets in Ireland and gold projects in Sweden, which it is looking to further build on. Led by a highly qualified team with extensive corporate and sector experience, Erris Resources' strategy is to create shareholder value through commercial discovery of base or precious metal assets in proven mineral districts and in favourable European jurisdictions.

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January 30, 2019 02:00 ET (07:00 GMT)