Armadale Capital
Plc
('Armadale' or 'the
Company')
Update on Canyon Silver
Asset
36 oz/t Ag, 66% Pb and 10%
Zn grades demonstrated in previously hand-sorted stockpiles at
'High-Grade Silver, Lead, Zinc Mine Project' in Burke Canyon,
Idaho
Further to the announcement of 24
April 2024, Armadale Capital Plc (TIDM:ACP), an AIM quoted
investment company focused on natural resource projects,
is pleased to announce further information on the
assets relating to Africo American
Incorporated ("AAI"), a company incorporated under the laws of the
State of Idaho, the holding company of the Canyon Silver lead, zinc
and silver exploration asset based in Northern Idaho, USA ("Canyon
Silver"), as well as the Board's plan for future development of
this asset.
Historic production prior to the
mine ceasing operations in 1972 was focused on the number three
shaft which produced 25,000 tonnes of ore at a grade of 4 to 6 oz
per tonne of silver, 6-13% lead and 2-4% zinc and exposed a further
48,000 metric tonnes of mineralisation within the main vein. The
project has an additional three to four more veins to
assess.
In 1984 four truckloads of hand
sorted ore were trucked to a local mill and returned exceptionally
high grades as follows:
Three 25t truck loads
averaged.
●
36 oz/t Ag, 66% Pb and 10% Zn
One 25t truck load
averaged.
●
50% Zn, 8 oz/t Ag, and 8% Pb.
The high grade mineralisation near
existing mine infrastructure presents a possible opportunity to
unlock future cashflow for Armadale as we progress renovations of
the existing mine infrastructure and advance the exploration
prospects.
Work Programme:
The management of AAI will approve a
detailed work programme and budget with mining contractors. who
have all the equipment, personnel, licenses, training programs and
contacts to cater for all the work planned at Canyon Silver,
including small underground and surface drill rigs which drill to
150m; which is more than sufficient for Phase 1 drilling. The main
objectives at this time are to fully open and renovate the two main
ore carrying tunnels.
Tunnel No. 2 was a Formosa vein only
and extends 97 Metres into the mountain side with the last 67
Metres believed to have lead, zinc and silver mineralisation.
This may be confirmed when the tunnel is opened and extensive
samples have been taken. Armadale's first task is to clean
out any loose rock and sample, measure and model the vein seen in
the hanging and footwall to ascertain the grades.
Tunnel No. 3 went 137 Metres into
the mountain before intersecting the Formosa vein it followed for
over 60 Metres, stopping much of the ground above it along the way.
Eventually No. 3, which was still following mineralisation,
encountered an additional large, low grade orebody about 30 metres
inside the mountain - demonstrating additional potential for the
deposit.
Canyon Silver has three tunnels,
with shafts extending to veins located below surface at the
following depths:
●
42 Metres
●
73 Metres
●
124 Metres
●
182 Metres
●
243 Metres
We look forward to the potential in
discovering even higher grade ore at further depths, whilst taking
advantage of the lower costs associated with Canyon Silver's
mineralisation starting at a very shallow level.
With the shaft vein being the only
part previously mined, Armadale is in position to take advantage of
the available development, whilst further exploring for additional
resources. The East and South veins remain open, with four more
veins above adit level.
Armadale recently announced the
addition of Greg Entwistle to the Board, who has a tremendous track
record in building and operating mining projects - experience that
will help move us towards production, and a cashflow positive
position for our shareholders.
Armadale continues to look at ways
to reduce the burden on shareholders, as we continue to benefit
from material cost savings on infrastructure at Mahenge. The Canyon
Silver Project is another string in our bow to help reduce our
reliance on future dilutions to build cashflow.
Matt Bull, Executive Director of Armadale
said:
"In light of the current bear market
affecting resource juniors, the Board is encouraged with the
support that the Company has received from shareholders in the
recent capital raising. The Board intends to minimise any further
dilution to shareholders by building near term cashflow to fully
realise long term production goals. The Company is excited to
explore the potential of Canyon Silver, and to establish how this
asset may secure Armadale's route to becoming cashflow
positive."
Competent Person statement
The information in this announcement
that relates to exploration results is based on information
compiled by Mr Matt Bull, a competent person, who is a Member of
the Australian Institute of Geoscientists. Mr Bull has sufficient
experience which is 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 in the 2012
Edition of the "Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves". Mr Bull consents to
the inclusion in the report of the matters based on his information
in the form and context in which it appears.
Enquiries:
|
|
Armadale Capital Plc
Matt Bull, Executive
Director
Greg Entwistle Non Executive
Director
Tim Jones, Company
Secretary
|
+44 (0) 20 7236 1177
|
Nomad and Broker: Cavendish Capital Markets
Ltd
Simon Hicks / Seamus
Fricker
|
+44 (0) 20 7220 0500
|