TIDMCHF
RNS Number : 5137V
Chesterfield Resources PLC
15 April 2021
Chesterfield Resources Plc / EPIC: CHF / Market: LSE / Sector:
Mining
15 April 2021
Chesterfield announces commencement of percussion drilling in
its 2021 exploration campaign
Chesterfield Resources is pleased to announce that it has
commenced its programme of percussion drilling as part of its 2021
exploration campaign in Cyprus. The company is exploring for
further copper, gold, zinc and silver, after its successful diamond
drill programme of late 2020.
Approximately 15 percussion drill holes are planned during April
and May, to test target zones for presence of blind sulphide
mineralisation and to provide boreholes for a downhole EM
(electro-magnetic) survey. To increase the scope of these surveys,
the percussion holes will be drilled generally deeper than those
last year, at around 150-250m. The holes will be lined to enable
the team to winch a high precision probe down the hole which acts
as a receiver to an electrically charged copper loop on the
surface. VMS deposits typically act as good electrical conductors
whose conductivity can be picked up by the downhole receiver.
Interpretation of the electromagnetic data gathered will allow the
survey to potentially identify sulphide deposits some 50m to 100m
distance from around the hole. This dramatically increases the
search area of each hole. Downhole EM is a well-proven discovery
tool used at this detailed stage of VMS exploration.
Said Martin French, Executive Chairman, "Our enlarged
exploration campaign this year continues to gather pace with the
commencement of this important new work-stream. AMT and gravity
geophysics surveys are already underway at our Troodos West licence
area in Cyprus. The percussion holes will provide important
information on underground rock systems, and prepare the way for a
third type of geophysics survey, downhole EM. This will quickly be
followed by our main diamond drill programme in May. We have a very
busy three months ahead to expand on our discovery of high grade
polymetallic mineralisation."
What is percussion drilling?
Given the relatively low-cost of percussion drilling
(approximately 15% of the cost of a comparable diamond drilling per
meter) it is an excellent cost-effective method of testing for
target stratigraphy and presence of sulphides up to a limited
depth. In this campaign the samples will be split and dried and
assayed by a portable XRF. Drilling is quick; a hole typically
takes only one day to complete. Because the percussion drill is
located in Cyprus, there are no mobilisation costs.
Percussion drilling is not considered reliable enough to report
accurate mineralisation widths and grades to the market due to the
contaminated nature of the sample collection. The rock chips
produced by the drilling may fall deeper into the hole and
contaminate or dilute subsequent samples. It can however
successfully identify the presence of minerals such as copper and
zinc, and their stratigraphic position along with an indication of
the thickness of mineralisation. Percussion drilling results can
therefore significantly de-risk follow-up diamond drilling
campaigns.
Chesterfield regards percussion drilling as an excellent final
test prior to diamond drilling (coring) programmes. If the
percussion drilling intercepts sulphides this helps greatly in
accurately planning diamond drill holes. Important information is
also learned about structures, traps and the causes of anomalies.
This means that targets can be ranked more effectively to increase
the chances of discovering the mineralised sulphides that the
company is seeking.
About Chesterfield Resources
Chesterfield Resources is a copper, gold, zinc, silver
exploration company active in Cyprus, where it holds the largest
mineral exploration licence area of any operator on the island.
Polymetal International, the FTSE100 mining group, recently
announced it had taken a 23% strategic investment in Chesterfield
via a placing of new shares, and has appointed a director to the
board.
Cyprus is regarded as a high quality exploration location. It is
a member of the EU, and its legal system is based on English common
law. An opportunity exists because there has been minimal
exploration activity on the island in the last 46 years since the
invasion by Turkey in 1974 put a halt to what had been a very
active mining industry.
Since that time, exploration technology and geological knowledge
has improved significantly. The company is exploring for VMS
(Volcanognic Massive Sulphide) deposits, which typically occur in
stacks and clusters. Historically only those deposits which were
visible from surface have been mined. It is believed that many more
deposits remain undiscovered buried near surface, and the company
is using modern techniques to locate them.
While copper is the main exploration target, it is noteworthy
that gold was not historically exploited in Cyprus as its price was
pegged to just $35 per ounce when the mining industry was active in
the 1960s and 1970s (less than 50 times today's price). Gold has
been encountered in several locations in the exploration target
area and is an important part of the exploration objective.
The exploration team is led by senior geologists: Neil O'Brien,
formally Head of Exploration, Lundin Mining, Dave Cliff, previously
Head of Exploration Europe, Rio Tinto, and Mike Parker who
previously worked for First Quantum mining for 20 years.
The current focus of exploration is in the Troodos West group of
licences belonging to the company, with around 30 defined targets
in an area measuring 10km by 10km. The objective is to discover
several VMS deposits in close proximity to each other to create a
mining project with a centralised processing unit.
The company announced high grade results from its late season
2020 drilling campaign. These will be used for targeting an
enlarged integrated 2021 geophysics, percussion and diamond
drilling exploration campaign, which has just commenced. The
company is also appraising new business opportunities within the
sector.
Chesterfield Resources is committed to world-class environmental
standards in all of its operations to mine copper, which is
essential to developing clean technology projects worldwide. The
company hopes to develop
industry and opportunities for the benefit of the Republic of Cyprus.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
**ENDS**
For further information, please visit
www.chesterfieldresourcesplc.com or contact:
Chesterfield Resources plc:
Martin French, Executive Chairman Tel: +44(0) 7901 552277
Panmure Gordon (UK) Limited Tel: +44 (0)207 886 2500
(Joint Broker):
John Prior & Hugh Rich
Fox-Davies Capital Limited (Broker):
Daniel Fox-Davies Tel: +44 ( 0)20 3884 8450
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