TIDMCRTM
RNS Number : 3538X
Critical Metals PLC
19 December 2023
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) No. 596/2014, as
it forms part of UK Domestic Law by virtue of the European Union
(Withdrawal) Act 2018. Upon the publication of this announcement,
this inside information is now considered to be in the public
domain.
Critical Metals plc / EPIC: CRTM / Market: Main Market
19 December 2023
Critical Metals PLC advances the Molulu Copper-Cobalt Project in
DRC
Key Operations, Logistics, and Drilling Update
("Critical Metals" or the "Company")
Critical Metals plc, operator of Molulu copper/cobalt project in
the Democratic Republic of Congo, provides an update on the
delivery of ore to the buyer OM Metals SARL ('OM Metals').
Highlights
-- Permits for trucks to use the public roads received
-- Permission granted to transverse neighbouring property
-- Further road upgrades to begin soon to handle heavier general traffic
-- Ore sales expected to recommence in Q1 2024
-- Areas of 29.41%, 14.59%, and 8.88% copper intercepted using XRF.
-- Advancing diamond drilling campaign in Phases 1, 2, and 4 to
establish JORC resource estimation for copper-cobalt mineralisation
in the area.
-- High-grade copper mineralisation identified in most of the
drilled holes, proved to be of economic potential.
-- A total of 24 holes have been drilled, logged, and sampled.
Russell Fryer, CEO of Critical Metals, remarked: "The outcomes
from our 24-drill-hole campaign have been tremendously encouraging,
revealing high-grade copper mineralization that underscores the
remarkable promise of the Molulu project. This success not only
demonstrates our operational efficiency but also highlights our
strategic focus on enhancing both the logistics and infrastructure
critical to our operations. Our commitment to upgrading road
access, alongside our notable collaboration with OM Metals and the
planned acquisition of a processing plant, are pivotal steps
towards scaling our business. As we prepare for the next drilling
phase in Q1 2024, extending into Phase 3, our goal is to deepen our
understanding of the mineralization's grade, mineralogy, thickness,
and spread. This will be crucial in fulfilling our off-take
commitments and driving sustainable growth. We eagerly anticipate
sharing more updates on our progress and drilling activities with
our shareholders soon."
Operations and Logistics Update:
The recently announced proposed acquisition of a copper-cobalt
processing plant and the sizeable off take agreement with OM Metals
generates positive momentum for Critical Metals moving into 2024.
Ensuring smooth mine logistics and delivery of ore throughout the
year in extreme weather conditions of the DRC is essential. The aim
of the board of the Company is to prepare now for the growth of the
Company's business to create a sustainable and scalable business,
for all shareholders.
As previously reported on 15 May 2023, Critical Metals has
invested in the road at Molulu, including construction of a bridge,
to allow ore to be removed from the mine site and transported to
the off-take purchaser. In addition, the proposed rental and
acquisition of the processing copper-cobalt plant would see a
significant increase in the volume of ore that will be transported
from Molulu.
The ore purchase agreement with OM Metals outlines the use of
ten 40-tonne trucks to transport the copper ore from Molulu to the
OM Metals plant. These trucks have the capacity to deliver 10,000
tonnes of copper ore to the OM Metals plant per month.
After securing the seven necessary road permits to use the ten
trucks for transportation and receiving permission of a neighbour
of the Molulu lease area to pass through their adjacent property,
the first 40-tonne trucks arrived at Molulu with no delays in the
week of November 20th to receive ore. The trucks did have road
delays on their return but arrived and delivered copper ore to the
OM Metals plant.
After consulting with the management of OM Metals , Critical
Metals made the strategic decision now, while the processing plant
transaction is under due diligence and before significant
deterioration of the road occurs, to further invest in the public
road from the Molulu Project during the election and holiday season
to ensure reliable ore delivery at anticipated volumes. These road
improvements also benefit the local community and form a continuing
part of our programme of local stakeholder engagement.
Improvements to the road include additional grading, ground
compacting, with a layer of stones to be placed in the areas of
water collection and heavy usage. Such improvements include
rainwater drainage points.
A road contractor has already been appointed and the time to
improve the road as described above is anticipated to take
forty-five (45) days. Work on the road is scheduled to begin in
late December and with these new improvements, the road is expected
to be useable for the remainder of the rain season which normally
ends in April.
Once the road is rehabilitated, ore sales to OM Metals can
resume and the Company aims to fulfil its off-take contract
commitment. It is anticipated that ore sales to OM Metals will
restart once the road upgrade is complete. OM Metals has indicated
they will purchase as much copper oxide ore as Molulu can produce
once the road is ready for the 40-tonne trucks to resume
deliveries.
Critical Metals is actively engaging with OM Metals and will
provide additional information and updates on operations to the
market as appropriate.
Drilling Update
Details
-- Notable drill results from all three phases using the handheld Niton XRF include:
Phase 1 (Figure 3)
o Hole DD1-01 recorded an average of 1.01% of copper at a depth
of 12.20m
Phase 2 (Figure 4)
o Hole DD2-05BIS recorded an average of 1.57% of copper at a
depth of 22.65m
o Hole DD2-6BIS recorded an average of 1.39% of copper at a
depth of 16.80m
o Hole DD2-07 recorded an average of 2.15% of Cu at a depth of
7.40m
Phase 4 (Figure 5)
o Hole DD4-01BIS recorded an average of 5.97% of copper at a
depth of 32.85m
o Hole DD4-09BIS recorded an average of 7.35% of Cu at a depth
of 36.05m
o Hole DD4-10 recorded an average of 4.53% of Cu at a depth of
49.65m
Excellent higher grade copper intercepts in Phase 4 include:
DD4-09BIS intercepted a copper zone with a grade of 29.41%,
DD4-01BIS intercepted a copper zone with a grade 14.59%,
DD4-10 intercepted a copper zone with a grade of 8.88%.
-- Extension of the drilling plan into Phase 3 is set to commence in Q1 2024
Drilling Overview
Molulu Project has undertaken diamond drilling in Phases 1, 2,
and 4, for resource estimation of the copper-cobalt mineralisation
in the area in order to update a JORC compliant report.
The planned drill holes were placed in high signature zones
shown by magnetics and IP surveys done within the project area. A
total of 24 holes have been drilled, logged, and sampled at the
Molulu Mine in the Democratic Republic of Congo ('DRC').
The Molulu Project
The Molulu project area is approximately 100 km north of
Lubumbashi City, within the Kasenga Administrative District (Figure
1 below).
Figure 1 : Molulu copper-cobalt project location showing the
scale of the northern copper-anomaly and drilled holes in each
Phase. The copper ore body is believed to be at least 3 kilometers
long.
Diamond Core Drilling Update
The diamond core drilling exploration program for Phases 1, 2,
and 4 (announced 23 July 2023) focused on areas where highly
chargeable-highly resistive anomalies from an Induced Polarisation
(IP) gradient ground geophysical survey were previously identified.
These anomalies were sourced to a stratabound copper-mineralisation
hosted within a structurally controlled, bedded succession of
metasedimentary rocks, composed of interbedded siltstone and shale
(Figure 2).
A total of 24 drill holes have been drilled, logged, and scanned
using a handheld XRF analyser to identify mineralised zones within
the core. Logging the core has indicated two types of
mineralisation; rock-type-specific mineralisation hosted with the
siltstone and shale, and structurally controlled mineralisation.
The identified mineralised zones are associated with traces of
malachite within fracture zones.
The handheld XRF analyser has aided in identifying high-grade
mineralised zones and low-grade mineralised zones within each
Phase. The high-grade copper-mineralisation, identified in most of
the drilled holes, proved to be of economic potential. However,
sampling the core and taking the samples to an accredited
laboratory will increase the level of confidence in the results
given by the XRF analyser.
A senior geologist at the Molulu mine has also carried out a
Quality Assurance/Quality Control ("QA/QC") oversite, including
re-logging of the core to quantify data provided throughout the
drilling program. A sampling protocol was implemented on 20(th)
November 2023, alongside drilling, logging, and scanning using the
handheld XRF analyser, of the drilled holes in Phases 1, 2, and
4.
The drill holes in Phases 1, 2, and 4 were strategically
positioned at an incline to intercept the mineralised layer.
Adjustments to a vertical position have been made to a few drill
holes where the mineralized layer was not intercepted at an
inclined angle.
Figure 2 : Magnetics map overlain by gradient IP survey results
with indicative highest density zones (solid purple outlines) and
locations of diamond core drill holes.
PHASE 1 Highlights
-- Notable 2023 positive results of copper from the handheld XRF
analyser recordings in the following drilled holes of Phase 1, 2
and 4:
o Phase 1 (Figure 3 below)
- Hole DD1-01 recorded an average of 1.01% of copper at a depth of 12.20m.
Figure 3: Phase 1 Diamond Drill Hole Positions with Copper
Intersection Weight Percentage.
PHASE 2 Highlights
o Phase 2 (Figure 4 below)
- Hole DD2-05BIS recorded an average of 1.57% of copper at a depth of 22.65m.
- Hole DD2-6BIS recorded an average of 1.39% of copper at a depth of 16.80m.
- Hole DD2-07 recorded an average of 2.15% of copper at a depth of 7.40m.
Figure 4 : Phase 2 Diamond Drill Hole Positions with Copper
Intersections Weight Percentage and planned drill holes at the
white pins.
PHASE 4 Highlights
o Phase 4 (Figure 5 below)
- Hole DD4-01BIS recorded an average of 5.97% copper at a depth of 32.85m.
- Hole DD4-09BIS recorded an average of 7.35% copper at a depth of 36.05m.
- Hole DD4-10 recorded an average of 4.53% copper at a depth of 49.65m.
Although the above Phase 4 grades are averages, the XRF has
recorded copper grades well in excess of the averages over multiple
meters.
Examples of the excellent copper intercepts in Phase 4
include:
- DD4-09BIS intercepted a copper zone with a grade of 29.41%,
- DD4-01BIS intercepted a copper zone with a grade 14.59%,
- DD4-10 intercepted a copper zone with a grade of 8.88%.
These copper intercepts in Phase 4 are outstanding and support
the July 2023 decision by management to pivot to the Phase 4
sulphide pit area and deemphasize drilling on the Phase 1 area.
Figure 5: Phase 4 Diamond Drill Hole Positions with Copper
Intersections Weight Percentage and planned drill holes at the
white pins.
Future Activities
Drilling is anticipated to restart in January 2024 with core
logging, scanning XRF analysis, QA/QC, and sampling to begin soon
after. An extension of the drilling plan into Phase 2 and 3 is set
to also commence in the first quarter of 2024. The key factors to
this drilling program are to scale out the mineralised zones in all
the Phases, and to get the grade, mineralogy, thickness, and extent
of the mineralised beds in each Phase.
The drilling data and information is planned to be inserted into
the JORC report which is expected to be released in Q1 2024.
Once the further drilling of the Phase 4 area is completed, the
next phase is for a new drill programme be designed in the cobalt
area that is located south of the current drilling areas. See
Figure 6 below.
Figure 6: Copper Anomalies found in the Cobalt area are the blue
dots.
Processing Plant Update
Due diligence of the Kastro SARL plant assets (announced 10
October 2023) continues with both parties committed to working to a
positive outcome. These complex discussions not only encapsulate
the plant assets, but also the tailings waste facility and property
where the Kastro SARL assets reside. The Company will update the
market on developments when appropriate.
**ENDS**
For further information on the Company please visit
www.criticalmetals.co.uk or contact:
Critical Metals plc
Russell Fryer, CEO Tel: +44 (0)20 7236 1177
Peterhouse Capital Limited
Corporate Broker
Lucy William / Charles Goodfellow Tel: +44 (0)20 7469 0936 / +44
(0)20 7220 9797
St Brides Partners Ltd
Financial PR
Catherine Leftley /Ana Ribeiro/Isabelle Tel: +44 (0)20 7236 1177
Morris
About Critical Metals
Critical Metals PLC has acquired a controlling 100% stake in
Madini Occidental Limited, which holds an indirect 70% interest in
the Molulu copper/cobalt project, a producing asset in the Katangan
Copperbelt in the Democratic Republic of Congo.
The Company will continue to identify future assets that are in
line with its stated acquisition objective of low CAPEX and OPEX
brown-field projects with near-term production and cash-flow,
whilst concentrating on minerals that have strategic importance to
future economic growth thereby generating significant value for
shareholders.
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