TIDMEST
RNS Number : 7437N
East Star Resources PLC
25 January 2023
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25 January 2023
East Star Resources Plc
("East Star" or the "Company")
Substantial copper-lead-zinc deposit identified on Rudny Altai,
Kazakhstan
East Star Resources Plc (LSE:EST), the Kazakhstan-focused
mineral explorer, is pleased to announce that, as a result of a
detailed literature review following its successful 2022 helicopter
electromagnetic ("HEM") survey, it has identified a substantial
copper-lead-zinc-deposit ("Cu-Pb-Zn") located within its 100% owned
'RA3' licence, centrally located in the world-class Rudny Altai VMS
belt. The newly identified polymetallic volcanic and sediment
hosted exhalative sulphide ("VSHMS") deposit (the "Verkhuba
Deposit") is within the greater Verkhuba Ore District which
includes the (previously announced) four Priority 1 HEM anomalies,
and has the potential to become a deposit of regional
significance.
Highlights:
-- The Verkhuba Ore District occurs over 10 km x 3 km and is
comprised of the polymetallic Verkhuba Deposit and several
occurrences identified in historic drilling results and the
Company's 2022 HEM survey, implying a long-lived system producing
multiple high-grade ore bodies from several hydrothermal vents
related to the same metal source
-- The Verkhuba Deposit, delineated in 1990 by >45,000 m of
drilling, has up to seven parallel and several metre thick
high-grade Cu-Pb-Zn layers of massive sulphides in Devonian
sediments formed around large-scale, hydrothermal exhalative
centres
-- Best intercepts include:
o Hole 14: 11.0 m @ 2.8% Cu from 32.9 m; and 6.3 m @ 3.7% Cu
from 60.3 m
o Hole 25: 42.0 m @ 0.5% Cu and 1.3% Zn from 84.5 m (including
16.0 m @ 0.35 % Cu and 2.52% Zn from 84.5 m)
o Hole 27: 9.0 m @ 1.2% Cu from 299.4 m
o Hole 54: 5.0 m @ 0.2% Cu, 1.8% Pb and 3.4% Zn from 221.5 m;
and 7.6 m @ 0.86% Cu and 2.44% Zn from 239.4
o Hole 63: 7.1 m @ 0.8% Cu and 2.6% Zn from 239.4 m; and 5.0 m @
1.57% Cu and 5.48% Zn from 252.7 m
o Hole 245: 10.5 m @ 0.27% Cu, 1.7% Pb and 2.59% Zn from 687.5
m
o Hole 269: 15.0 m @ 0.9% Cu and 3.06% Zn from 155.0 m
(including 4.0 m @ 2.48% Cu and 2.59% Zn from 155.0 m and 2.2 m @
0.7% Cu and 10.5% Zn from 166 m)
-- Historical flotation recovery rates of 94-96% Cu and 60-90% Zn into concentrate
-- Au and Ag reported to concentrate in some metallurgical
samples allowing further upside potential from precious metals
-- Preparation of an independent Mineral Resource Estimate has
commenced and multiple drill-ready targets have been added to the
2023 exploration programme which will aim to establish a JORC
compliant resource
-- The Rudny Altai region is one of the largest VMS provinces in
the world with the Kazakhstan part of the belt hosting major
producers including Glencore and KAZ Minerals
Alex Walker, East Star CEO, commented:
"The Verkhuba Deposit is a game changer for East Star. It
leapfrogs the Company from being a greenfield explorer to a
brownfield resource development company. Part drilled and part
buried beneath thin cover, the Cu-Pb-Zn deposit has huge potential
upside from ore zone extensions within the Verkhuba Ore District as
well as high-priority EM targets.
The Verkhuba Ore District contains volcanogenic-hosted massive
sulphide targets adjacent to sediment-hosted exhalative sulphide
mineralisation, implying a long-lived hydrothermal system
generating multiple high-grade deposits within the same area.
Rudny Altai is a significant copper producing region with excess
processing capacity from both Glencore and KAZ Minerals. The
identification of the Verkhuba Deposit is yet another validation
our exploration thesis and we are excited to commence resource
delineation drilling with additional updates to be delivered as
digitisation of historic drilling continues and the 2023
exploration programme commences."
Figure 1: Verkhuba Deposit with highlighted intersections
Figure 2: The Verkhuba Ore District incorporating EM targets
from East Star's 2022 HEM survey
Introduction
The Verkhuba Ore District is situated in an anticlinal structure
(Luninskaya Anticline) composed of Devonian volcanogenic and
sedimentary formations. The Verkhuba Ore District hosts more than
24 occurrences of Cu-Pb-Zn mineralisations, including four
VMS/VSHMS deposits where mineral resources have been estimated in
the Kazakhstan GKZ system in the C2 and P1 resource categories. The
Company also delineated several untested EM targets during the 2022
HEM survey programme.
The Verkhuba Ore District covers an area of 10 km x 3 km
elongated principally in an E-W direction. East Star's licence,
1795-EL, covers the eastern and the western part of the Verkhuba
ore field and includes the old Pokrovskoye-2 VMS mine and the
Verkhuba Deposit.
Verkhuba Deposit
Surface outcrops of sulphide ore within the Verkhuba Ore
District have been known since the bronze age with the first
geological description and small-scale mining in the 17(th)
century. The systematic geological study of the area started in the
1920s. The Verkhuba Deposit was delineated between 1970 and 1990
(completing just prior to the dissolution of the Soviet Union) as
part of a greater Verkhuba Ore District exploration programme which
included 9,104.5 m of shallow non-core holes and 142 diamond holes
totalling 67,581.5 m of drilling.
Diamond drilling was conducted across the area on a 200 m x 400
m grid, with infill drilling on 100 m x 200 m grids and 75 m x 100
m grids on the Deposit. Core recoveries were between 40-80% with
average core recovery in mineralisation of 72%.
Mineralisation occurs as stratabound sheet- and ribbon-like
bodies principally striking E-W. Ore bodies pinch and swell,
probably related to paleogeographic controls by the basin
architecture and remobilisation by post-depositional tectonics.
Up to seven parallel high-grade Cu-Pb-Zn sulphide horizons occur
in two lithological units and are mapped on surface over 10 km
strike length. Mineralisation in the lower level is hosted by
carbonaceous siltstone and limestone, while the upper level is tied
to the contact of clayey siltstones and sandstones with felsic
volcanic rocks. High-grade and thick mineralised zones occur within
the ore deposit which are related to Middle Devonian volcanic
centres. Cu-Zn zonation appears to have a spatial control inferred
to be related to proximity to the hydrothermal source of sulphide
brines. Au mineralisation may be related to later stage fluids
infiltrating along post-depositional faults.
East Star is continuing to digitise all available historic
drilling data over the Verkhuba Deposit to build a 3D model. This
model will allow better interpretation of controls on ore
distribution, including structure and paleogeography of the
volcano-sedimentary basin, location of the main lithological
boundaries and faults controlling mineralisation. Results of the 3D
model will also be used to generate a Mineral Resource Estimate and
Exploration Target for the Verkhuba Deposit and guide future
drilling.
Metallurgical test work
According to a historical resource drilling report, 10 bulk
sulphide ore samples from the Verkhuba Deposit were tested in
several metallurgical laboratories of Kazakhstan between 1988-1989,
including by the Institute of Non-Ferrous Metals in Ust-Kamenogorsk
and the processing metallurgical plant of the Berezovskoe VMS
deposit. The studied ores had different mineral composition and
varied in weight from 9.7 kg to 1,500 kg.
Four mineralogical ore types (Cu-Zn, Zn-pyrite, Cu-Pb-Zn, and
Pb-Zn) were defined based on grades of copper, zinc and lead and
content of pyrite. The sulphide mineralisation is simple with a
mineral composition of pyrite, chalcopyrite, galena and
sphalerite.
Mineral recoveries in the tested ore types were good with
preliminary flotation tests indicating high recoveries from
polymetallic ore:
-- Type 1 (Cu-Zn):Recoveries of Cu 84-87%, Zn 84-93%, pyrite (FeS) 27-81%
-- Type 2 (Zn-pyrite): Recoveries of Cu 71-94%, Pb 76%, Zn 61-68%, pyrite 48%
-- Type 3 (Cu-Pb-Zn): Recoveries of Cu 93-97%, Pb 83% and Zn 47-68%, pyrite 41-60%
-- Type 4 (Pb-Zn): Recoveries of Cu 75%, Pb 84%, Zn 92%, pyrite 23-62%
Au grade in nine of those ore samples was reported within
0.1-0.4 g/t, and Ag grade as 4.2-22.9 g/t, however, no information
of Au and Ag grade in concentrates and recovery of precious metals
was provided. In previous metallurgical studies Au and Ag grades in
polymetallic concentrates reported from 6-20 g/t and 46-496 g/t
respectively with best Ag grades associated with high grade Pb.
Additional data is required to understand grade distribution and
potential upside of byproduct Au and Ag within a precious-metal
mineralised system.
EM Targets within the Verkhuba Ore District
East Star conducted a HEM survey between May and July 2022. In
total, 50 anomalies were identified across the Rudny Altai licence
areas, with priority targets defined by size, continuity, and
association with known geochemical anomalies, magnetic or IP
anomalies, and association with favourable structural or
lithological indicators such as the presence of rhyolite, which is
a common footwall indicator for the region.
A region of untested priority targets were identified in the NE
of the Rudny Altai area. Based on additional geological
information, these untested HEM targets are now interpreted to be
spatially related to the Verkhuba Ore District. These include:
-- HeliTEM _A_11 target is a strong, narrow, double peak, strike
extensive and very shallow anomaly (from about 25 m) coinciding
with a very strong magnetic anomaly.
-- HeliTEM_A_12 target is a strong single peak late time
response, coinciding with a strong magnetic anomaly, at about 100 m
deep and associated with phyllic alteration zone in granite
porphyries, rhyolitic lava and siltstones mapped at surface.
Two anomalies are adjacent to the historic Pokrovskoye Mine. The
massive sulphide ore body was reported as 150 m long by 200 m wide
and up to 22 m thick with average ore grades of 11.5% Cu, 3.3% Pb
and 12% Zn. The ore body was mined in open pit to 70 m depth until
1979.
-- HeliTEM_AA_9 target is a large, shallow, highly conductive,
strike-extensive, strong north-east striking and moderately dipping
conductor, coinciding with a moderate magnetic anomaly and big
enough to represent a large ore zone, with no known prior
exploration history.
-- HeliTEM_A_9 target is a large, shallow, strike-extensive,
double peak anomaly dipping towards the east, also with no known
prior exploration history.
A site visit in October 2022 found these targets to be expressed
as depressions with river systems, with the lack of geological
surface expression making a discovery by mapping very
difficult.
Verkhuba Ore District
The presence of multiple anomalies within a 10 km x 3 km area
including; a historic high-grade VMS open pit deposit
(Pokrovskoye), the drilled Verkhuba Deposit, and several untested
EM, IP and magnetic anomalies, implies a long-lived system
producing multiple high-grade ore bodies from several hydrothermal
vents related to the same metal source.
VMS deposits form in subaqueous environments from circulating
hydrothermal fluids heated by volcanic activity. These deposits
form as sulphide mounds, stratiform exhalative and/or replacive
bodies and commonly have stockwork/vein mineralisation in their
immediate footwall. These various styles are essentially facies of
mineralisation, each one being the product of a particular set of
conditions that control the ore-forming processes and the
consequent geometry and architecture of the deposits. Long lived
VMS systems therefore typically contain a number of deposit styles
as vent conditions and location changes over time.
The style of exhalative deposits is controlled by the salinity
of the vented fluids and the redox state at the seafloor.
Hydrothermal fluids with salinities less than twice that of
seawater that vented into open, oxidic oceanic environments,
typically formed small mound and chimney complexes. The massive
sulphides were rapidly oxidised and partly dissolved by seawater.
In contrast, stratiform sheet-like deposits are typically formed in
anoxic bottom waters, ponded in depressions such as second- or
third-order basins to form a sulphide brine pool. Deposits formed
in anoxic environments can be significantly larger than those in
oxidic settings. This is attributed to several factors that include
longer-lived hydrothermal circulation, more efficient sulphide
precipitation and reduced or inhibited oxidation thereof.
Replacement of volcanic and sedimentary strata by sulphide
typically occurs within the feeder zones beneath the exhalative
mineralisation. However, successions with abundant porous,
permeable and/or reactive rocks such as glassy and/or pumiceous
volcaniclastic rocks, and in some cases limestone, favoured the
development of large replacive deposits.
Additional studies are required to identify and test different
mineralisation styles and exhalation centres and determine a
genetic model to benefit interpretation of geophysical data and
direct future drilling.
Rudny Altai region
The Rudny Altai region is one of the largest VMS provinces in
the world, part of the Central Asian Orogenic Belt. The Company's
newest 1794-EL, 1795-EL and 1799-EL licences are located adjacent
to the Company's existing 847-EL and 914-EL licences (together, the
"Licences"). Administratively, the Licences are within the
Shemonaikha District and are extraordinarily well connected to
infrastructure. The regional centre of Ust-Kamenogorsk is located
45 km, and its international airport is located 35 km, southeast of
the Licences. The railway connecting Ridder (Kazzinc Mine) and
Tomsk cities crosses the Licences from the south to the northwest
with two railway stations located on the territory of the Licences.
There is a network of dirt roads within the Licences that are
suitable for driving all year round. A hard-surfaced road from
Ust-Kamenogorsk to Shemonaikha crosses the western part of the
Licences.
The area is characterised by moderately hilly terrain with
elevations ranging between 270 m and 630 m above the mean sea
level.
For further information visit the Company's website at
www.eaststarplc.com , or contact:
East Star Resources Plc
Alex Walker, Chief Executive Officer
Tel: +44 (0)20 7390 0234 (via Vigo Consulting)
Peterhouse Capital Limited (Corporate Broker and Placing
Agent)
Duncan Vasey / Lucy Williams
Tel: +44 (0) 20 7469 0930
Vigo Consulting (Investor Relations)
Ben Simons / Peter Jacob
Tel: +44 (0)20 7390 0234
About East Star Resources Plc
East Star Resources is focused on the discovery and development
of gold, rare earth, and copper deposits in Kazakhstan. With an
initial nine licences covering 1,687 sq km in three mineral rich
Ore Districts, East Star is undertaking an intensive exploration
programme, applying modern geophysics to discover minerals in
levels that were not previously explored. The Company also intends
to further expand its licence portfolio in Kazakhstan. East Star's
management are based permanently on the ground, supported by local
expertise, and joint ventures with the state mining company on
certain projects.
www.eaststarplc.com
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The person who arranged for the release of this announcement was
Alex Walker, CEO of the Company.
Competent Persons Statement
The information in this release that relates to Exploration
Results has been reviewed by Mr. Mikhail Tsypukov. Mr. Tsypukov is
a Fellow of the Institute of Materials, Minerals and Mining (FIMMM,
Reg. No 459707). He has a PhD in geology from A.P. Vinogradov
Institute of Geochemistry Siberian Branch Russian Academy of
Sciences with over 30 years of experience of gold and base metal
exploration in Russia, Kazakhstan, Mongolia, Rwanda and Islamic
Republic of Mauritania.
Mikhai Tsypukov has sufficient experience that is relevant to
the style of mineralisation and type of deposit under consideration
and the activity being undertaken to qualify as a Competent Person
as defined in 2012 Edition of the "Australasian Code for Reporting
of Exploration targets, Exploration Results, Mineral Resources and
Ore Reserves", also known as the JORC code. The JORC code is a
national reporting organisation that is aligned with CRIRSCO. Mr
Tsypukov consents to the inclusion in the announcement of the
matters based on his information in the form and context in which
they appear.
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