TIDMCHF
RNS Number : 6980X
Chesterfield Resources PLC
06 May 2021
Chesterfield Resources Plc / EPIC: CHF / Market: LSE / Sector:
Mining
6 May 2021
Operational update and large new target identified
Chesterfield Resources is pleased to provide an operational
update on its copper, gold, zinc and silver project in Cyprus. The
company last month commenced an integrated exploration campaign for
the 2021 season.
-- Good progress on percussion drilling and geophysics campaigns
-- Discovery of a compelling large new anomaly, which is now
confirmed as a high-priority drill target
-- Down hole EM (electro-magnetic) campaign to commence imminently
-- Additional new geophysics campaign commissioned
-- Diamond drilling to start within weeks
Said Martin French, Executive Chairman, "We are making excellent
progress with our 2021 exploration campaign in Cyprus. We have
completed both our first phase geophysics programmes and also our
percussion drilling programme of 14 holes. We are excited that the
survey has identified a significant buried geophysical anomaly,
similar in scale to the footprint of the large historic Limni mine
nearby. Results from previous drilling nearby indicate that this
could be a mineralised system. This has now become a new
high-priority target that we have named "Olive".
A specialised survey team will arrive from Germany in a few days
to start the next phase of geophysics work which involves lowering
an electromagnetic probe down various drill holes. A further type
of survey has also just been commissioned. We are very busy on the
ground in Cyprus and are looking forward to our diamond drilling
which is just weeks away."
Completion of first phase of geophysics in 2021 exploration
campaign
In early April the company commenced two types of geophysics
surveys, AMT (Audio-Magnetotellurics) and gravity, to provide
geological data in various areas to help target a diamond drill
core-sampling programme in the summer. The company also commenced a
percussion drill programme to facilitate a subsequent down-hole EM
(electro-magnetic) survey. The exploration programme is running on
schedule with the AMT, gravity and percussion drill programmes now
completed.
Chesterfield has just completed taking readings from 243 probe
stations which covered a combined area of 2.5 km(2) . An AMT survey
works by using a probe to amplify and measure variations in
electrical charges that already exist naturally in the earth's
crust, from an accumulation of lightning strikes globally. AMT is
particularly suited to shallower mineral surveys such as
Chesterfield's exploration project in Cyprus and can also provide a
useful indication of the depth at which mineralised deposits may
occur.
The company has also just completed taking readings from 845
data stations which covered a combined area of 5 km(2) . A gravity
survey involves taking minute measurements of the Earth's
gravitational field with a gravity meter on surface. This data is
used to calculate subsurface densities to model the underlying rock
structures and, most importantly, to indicate possible large,
massive sulphide targets. Both surveys were focussed on the three
main target areas within the company's Troodos West suite of
licences, Evlim, Hillside and KinValley. Some secondary target
areas were also surveyed.
Identification of a large new high-priority target, "Olive"
Following encouraging diamond drilling results in 2020 at
Chesterfield's Hillside target, a gravity survey was conducted in
the area to the west, including around the nearby Orchard target.
The survey grid covered an area of 2.8 km(2) with 297 readings
taken on a 100m x 100m grid. The objective was to identify areas of
excess density to the surrounding host rocks which could indicate
buried VMS mineralisation.
The results of the gravity survey highlighted a compelling
North-South trending structure, manifesting as a residual gravity
high. This anomaly extends 1 km in length and up to 300m in width
and may be indicative of a type of early-forming subsidiary basin
that often host VMS deposits. Similarly, orientated structures are
associated with trapping mineralisation at the nearby historic
Limni mine, which is of a similar scale to the new anomaly. The
Limni mine is recorded to have produced around 8.1 million tons of
ore yielding approximately 90,000 tons of copper.
The large structure lies between the Orchard and Hillside
prospects, which are 500m and 600m away respectively. Prior diamond
drill results at Orchard and Hillside would appear to back up the
theory that this anomaly could be a large VMS deposit. In 2018,
diamond drill hole 18AS01 intercepted a zone of pyrite and chlorite
alteration with anomalous Zn-Pb mineralisation; this geochemistry
is typically found at the periphery of VMS systems. Additionally,
the 2020 drilling campaign at Hillside intercepted polymetallic,
high- grade mineralisation, as seen in the results from diamond
drill hole 20HS02:
-- 16.6m @ 0.36% Cu, 1.07% Zn, 1.14 g/t Au, 9.7 g/t Ag from 137.90m-154.50m
-- Including 2.45m @ 1.37% Cu, 4.41% Zn, 2.90 g/t Au, 37.85 g/t Ag from 143.55m-146.00m
The higher-grade interval within 20HS02 was present as
semi-massive to massive sulphide clasts entrained in a
post-mineralisation fault suggesting that the fault had cut a
nearby massive sulphide body. The proximity of the gravity high to
these two known mineral occurrences makes this a prime target for
follow-up work in locating a possible larger body of mineralization
at depth. The new target has been christened "Olive".
The exploration team has commissioned an infill grid of gravity
points in the survey area to increase resolution of the gravimetric
data to 50m x 100m. This will then be compared with AMT data. Any
coincidence in these independent geophysical signatures will allow
for a greater level of confidence in designing drill holes to test
the target.
Percussion drilling and down-hole EM programmes
The next phase of geophysics can now commence. A specialised
team is due to arrive at the end of the week from Germany to
conduct a down-hole EM programme.
Chesterfield has now drilled 14 percussion holes which have been
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 resistivity 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 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.
Further geophysics programmes commissioned
As a result of data analysed so far, the exploration team has
focussed its attention on a number of areas that warrant closer
investigation. A decision has therefore been taken to commission
another type of survey called surface EM (electro-magnetics). This
electro-magnetic survey is based on the response of the ground to
electromagnetic fields composed of an alternating electric
intensity and magnetizing force. The electrical field is generated
by passing an alternating current through a coil (loop of wire
called a transmitter coil) placed over the ground. This is normally
in the form of a fixed loop, although the company and its
geophysics advisors are considering a "moving loop" survey which
involves taking readings and then repeatedly moving the loop to
form a grid pattern.
This new survey will also commence shortly. Five additional
percussion holes are also planned. In order for the survey results
to be interpreted and used for target vectoring, the company's
diamond drill programme has been re-scheduled slightly and will now
commence in approximately five weeks' time.
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. The campaign is now well underway
and has already delineated a large new drill target called Olive.
The company is
Chesterfield is also actively appraising new business
opportunities within the sector and expects to significantly
enlarge its exploration footprint.
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): Tel: +44 ( 0)20 3884 8450
Daniel Fox-Davies
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