Erris Resources PLC Sweden Update (7121D)

TIDMERIS

RNS Number : 7121D

Erris Resources PLC

02 February 2018

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

2 February 2017

Erris Resources plc

('Erris' or 'the Company')

Results of 2017 drilling programmes and update on Centerra Gold Joint Venture Exploration Programme, Sweden

Erris Resources plc, the European focused mineral exploration company with a portfolio of zinc prospects in Ireland and gold projects in Sweden, is pleased to announce the results of the drill programmes undertaken in the second half of 2017 at its Klippen and Käringberget projects in Sweden and to provide an update on the Swedish work programmes being funded by Canadian gold producer Centerra Gold (as defined below) as part of the strategic alliance between the two parties (the "Centerra JV Agreement").

Overview

-- Results from the 2017 drill programmes at Klippen and Käringberget confirmed large alteration systems indicating the prospective nature of the licences

-- New drill targets identified at Klippen and Käringberget following recent magnetic surveys

-- US$1.85m work programme for 2018 agreed with Centerra Gold to advance the Klippen, Käringberget and Brännberg gold projects and for general exploration on new targets

-- Funding is part of the Centerra JV Agreement to explore a portfolio of gold properties within a common area of interest in northern Sweden

-- Work will include ground magnetic, electromagnetic ("EM") and induced polarisation ("IP") surveys, surface sampling, mapping, ground-truthing and drilling

   --    Contract signed with Northdrill Oy for 2,750m of drilling at the Klippen gold project 

Erris CEO, Merlin Marr-Johnson, said, "We are pleased to report that exploration at Klippen and Käringberget has highlighted broad zones of mineralisation and generated a new set of targets which we will now develop with Phase 2 drilling at Klippen due to start shortly. We are delighted that Centerra Gold has agreed the details of the 2018 work programme across the joint venture gold portfolio in Sweden, with a planned total expenditure of U$1.85m for the year.

"We have a highly active work programme across our portfolio, including the Abbeytown zinc project in Ireland. Exploration is integral to growth in the mining industry, something recognised by Centerra Gold and highlighted by its ongoing investment in our projects in Sweden. We have a team that has delivered exploration success and with a blend of commodities being targeted, we believe we are well positioned to build value in our existing portfolio and make further discoveries."

Detailed Information

Further to the work completed during 2017 at the Company's projects in Sweden, Centerra Gold KB Inc, a wholly owned subsidiary of Centerra Gold Inc. a TSX listed gold and copper producer ("Centerra Gold") has agreed the details for a work plan for 2018 totalling $1,850,000 as outlined in Table 1:

Table 1: 2018 work programme agreed by Erris and Centerra Gold with costs

 
 Project              Budget       2018 Activity 
-------------------  -----------  ----------------------------------- 
 Klippen              $600,000     Ground magnetic surveys, Phase 
                                    2 Drilling (2,750m) 
-------------------  -----------  ----------------------------------- 
 Käringberget    $600,000     Ground magnetic and EM surveys, 
                                    followed by Phase 2 drilling 
                                    around mid-year 
-------------------  -----------  ----------------------------------- 
 Brännberg       $400,000     Ground magnetic and IP surveys, 
                                    surface sampling, followed 
                                    by Phase 1 drilling after 
                                    Käringberget drilling 
-------------------  -----------  ----------------------------------- 
 Generative           $250,000     Ground magnetic surveys on 
  Exploration                       selected properties, mapping, 
                                    surface sampling, ground-truthing 
-------------------  -----------  ----------------------------------- 
 TOTAL                $1,850,000 
-------------------  -----------  ----------------------------------- 
 

KLIPPEN

Results from 2017 Phase 1 Drilling, Klippen

Nine NQ2 diamond drill holes were completed within the Klippen project area, totalling 1,797.4m. The maximum hole length was 212.4m. These holes were drilled into the area where the historic work by previous companies was focused.

All the drill holes intersected displayed significant alteration and sulphide veining and localised gold mineralisation. The gold mineralisation is present in a variety of structural and alteration settings and the controlling emplacement factors are as yet unclear. Alteration includes massive biotite with low grade gold, strong silicification with low sulphides, sericite, apatite, and pyrrhotite which is mainly hosted in sediments with associated copper. Erris is working to establish a genetic model.

Given the distribution of the drill holes, covering approx. 1.5km along strike, it is evident that the Klippen area contains a large hydrothermal mineralising system. Surface till and bottom till anomalies along with boulder and outcrop samples outline a mineralising system with a strike of 11km.

Holes KP001-006 were drilled along two sub-parallel sections approximately 200 metres apart in the Thor Zone. The holes were all drilled at 45deg to the northeast and intersected sub-vertical lithologies, predominantly sediments and volcanics. Best intersections included 8.65m @ 0.60 g/t Au, 6.80 g/t Ag and 0.42 % Cu from 27.30m in hole KP003. Hole KP004 intersected 6.42m @ 0.52 g/t Au from a depth of 35.28m in intensely silicified volcanics.

Holes KP007-008 were drilled 1.8 km west of holes KP001-006 in the Odin Zone, where historic drilling from Terra in 1984 returned 19 m @ 2.3 g/t Au. Hole KP007 intersected 3.78m @3.37 g/t Au within a broader (6m) zone of shearing. The fault zone itself lies within a broader silicified mineralised zone of 20m @ 0.82 g/t Au from 66.00m.

Hole KP009 was drilled between the two zones and targeted a discrete magnetic high 800m along a linear feature, identified in an airborne geophysical survey flown in 2016. The hole intersected mineralised intervals within altered siltstones, the upper zone being 2.34m @ 1.12 g/t Au from 177.46m depth, the lower zone being 4.5m @ 0.22g/t Au from 193.4m.

2018 Work Programme, Klippen

A detailed ground magnetic ('ground mag') survey started in late 2017 and has continued into 2018 covering an area approximately 2.5km by 2.0km. This data has proven useful in identifying new targets by improving the resolution of magnetic lithologies and alteration bodies. It has also helped in correlating magnetism, alteration and mineralisation intersected in drilling.

A drill contract has been signed with NorthDrill Oy to complete a 2,750m drill programme which will start shortly. This Phase 2 drill programme, comprising 15-18 holes, will test features observed in the ground mag survey and targets identified in earlier prospecting rounds, including the 2017 drilling. The proposed holes cover approximately 4.0km of strike length, extending the previous drilling to the northwest by 2.1km and to the northeast by 350m.

Further work on the licence will be contingent on the results of Phase 2 drilling.

KÄRINGBERGET

2017 Diamond Drilling, Käringberget

A total of nine NQ2 diamond drill holes were completed in the Malådalen zone within the northern part of the Käringberget project area. The drilling totalled 1,655.8m drilled over a strike length of 650m. The maximum hole length was 206.8m and all holes were angled to the south-southwest to intersect a shallow northeast-dipping package of volcanic rock.

In drill holes KB001-KB004 low-grade zinc (with variably elevated Au+Ag+Cu) mineralisation associated with magnetic pyrrhotite was encountered. Holes KB001-KB003 were completed along a drill fence close to a historic trench where a single historic drill hole of unknown depth was also found. These holes intersected relatively shallow NE-dipping volcanics and flat-lying granite sills. Sulphide mineralisation including, pyrite, pyrrhotite, minor chalcopyrite and trace sphalerite was intersected in all holes but is visibly strongest in hole KB003. Best results were in holes KB002 and KB004. Hole KB002 intersected 1.34m @ 0.01 g/t Au, 11.10 g/t Ag, 1.77% Zn and 0.34% Pb from 34.06m. Hole KB004 intersected 2.21m @ 0.05 g/t Au, 4.92 g/t Ag, 0.45% Cu, 0.37% Zn and 0.16% Pb.

Hole KB007 was a step-out hole to the northeast and did not intersect altered geology; the hole appears to be in the footwall of the shallow-dipping mineralised package. It was terminated at a depth of 119m and did not return any mineralised intervals.

Hole KB008 (225m east of KB003) hit several strong massive sulphide intervals dominated by pyrite, pyrrhotite, and lesser fine sphalerite and chalcopyrite. Despite the intersection of massive sulphide grades were low, returning 5.98m @ 0.12 g/t Au, 1.07 g/t Ag and 0.10% Cu from 148.62m.

Hole KB009 intersected 3.81m @ 8.02 g/t Ag and 0.84% Zn from 92.11m in silicified volcanics with pyrite. Hole KB009 is the northernmost hole drilled and mineralisation at Käringberget is open to the north, west and southeast. This hole demonstrates that zinc mineralisation is not necessarily correlated with the abundance of massive pyrite or pyrrhotite and there may be a zonation of metals in the hydrothermal system.

2018 Work Programme, Käringberget

A ground mag survey started in late 2017 and continued in 2018 has assisted in defining magnetic bodies containing pyrrhotite which are related to the low-grade gold and zinc mineralisation intersected in drilling. In Q1 2018, a ground EM survey will be carried out, followed by surface till sampling. Phase 2 drilling is planned for June 2018, once this new exploration data has been incorporated into the geological model.

Technical Background

Drilling at Klippen and Käringberget in 2017 was undertaken by Kati OY. Core diameter was NQ2 (50.6 mm). Core recoveries were excellent and averaged close to 95-100% in fresh rock. After photographing and logging, core intervals averaging 1-2 metre for mineralised samples were cut in half at Erris' core facilities in Storuman, Sweden.

Samples for assay were transferred by Erris personnel to the MS Analytical sample preparation facility in the same building as the Erris logging facility. Representative pulps were shipped to the MS Analytical Laboratory in Vancouver, Canada. The Erris QA/QC programme, agreed by Centerra Gold, consists of the systematic insertion of certified reference materials supplied by Geostats Pty, quarter core duplicates, and blanks. In addition, MS Analytical inserts blanks and standards into the analytical process.

Ground magnetic surveys were carried out with a line spacing of 50m but this was reduced to 25m in the vicinity of known significant mineralisation to better characterise the magnetic response of the mineralisation. The data was processed by Williams Geophysics Ltd. in the UK.

See the Company website (www.errisresources.com/ technical-reports) for maps, plans, and sections.

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.

The information contained within this announcement is 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 via a Regulatory Information Service, this inside information is now considered to be in the public domain.

*ENDS*

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

 
                         Erris Resources            +44 (0) 7803 
 Merlin Marr-Johnson      plc                        712 280 
 David Hart/Liz          Allenby Capital            [phone] 
  Kirchner                (Nominated Adviser)        5656 
                         Shard Capital (Joint       [phone] 
 Erik Woolgar             Broker)                    9952 
                         Turner Pope Investments 
                          (TPI) Ltd (Joint          [phone] 
 Andy Thacker             Broker)                    4120 
 Isabel de Salis/Gaby    St Brides Partners         [phone] 
  Jenner                  (Financial PR)             1177 
 

Notes

Erris Resources plc (EPIC: ERIS.L) is an AIM quoted, European focussed, discovery driven exploration company that has an established portfolio of zinc 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 and supported by Canadian mining majors, Osisko Gold Royalties, which has an 18.9% interest in the Company, and Centerra Gold KB Inc., a wholly owned subsidiary of TSX listed Centerra Gold Inc., Erris' strategy is to create shareholder value through commercial discovery of base or precious metal assets in proven mineral districts and in favourable European jurisdictions.

This information is provided by RNS

The company news service from the London Stock Exchange

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February 02, 2018 02:00 ET (07:00 GMT)