TIDMERIS
RNS Number : 2068P
Erris Resources PLC
09 October 2019
Erris Resources plc / EPIC: ERIS.L / Market: AIM / Sector:
Mining
9 October 2019
Erris Resources plc
("Erris Resources" or the "Company")
Scandinavia Projects Update and Expansion into Norway
Erris Resources plc, the European focused mineral exploration
company with a portfolio of zinc and base metals projects in
Ireland and gold projects in Sweden, Finland and now Norway, is
pleased to provide an update on its activities in Scandinavia for
the 2019 field season, which typically runs from May to
September.
Highlights
-- Granted four new exploration permits covering two new gold projects in Northern Norway.
-- Ground truthing of new Norway permits confirms mineralisation
potential ahead of winter season.
-- Completed fieldwork in Finland as part of the strategic
alliance with Centerra Gold including mapping, prospecting and soil
sampling at the Sakiatieva Project in northern Finland.
-- Completed a drone aeromagnetic survey at the Sakiatieva
Project and re-logged historic core as part of a full data review
of the project.
-- Identified new drill targets for gold mineralisation at the Sakiatieva Project.
Erris Resources CEO, Anton du Plessis, said, "Erris Resources
has expanded its activities in Scandinavia into Norway with the
granting of four new 100%-owned permits, for prospects which we
believe are highly prospective for gold while the Company continues
to be active on the ground as part of its strategic alliance with
Centerra Gold in Finland. The new permits in Norway have been
subject to very limited exploration in the past but historical
reports suggest that high-grades and favourable styles of
mineralisation are present and a modern systematic approach to
exploration is warranted to assess the economic potential. The new
permits are in line with the Company's stated strategy to identify
highly prospective gold and base metal targets in safe and
supportive European jurisdictions and to elevate priority targets
to drill-ready status."
Norway - New Gold Exploration Permits
Erris Resources has been granted four new permits, each
totalling 10 square kilometres over the Mauken and Gautelis Gold
prospects in northern Norway. Two permits cover the Mauken prospect
in the county of Troms and two permits cover the Gautelis prospect
in the county of Nordland.
The Mauken project lies in a newly recognised greenstone belt
with mineralisation first described in 2008. Previous exploration
was limited to a private Norwegian company which reported stream
and till anomalies over a large area and gold in rock samples over
1,750m of strike with results from surface exposures ranging from
1.0g/t Au to 5.79 g/t Au. Mineralisation is hosted in siltstone and
sandstone, and quartz stockworks within a contact zone between
pillowed and massive basalts. Gold is associated with
silicification, gold bearing arsenopyrite, en-echelon quartz veins
and a quartz-ankerite alteration system. It is reported that six
holes were drilled at two localities in 2010 before the company
changed the nature of its business to research and development and
abandoned the permits. The drilling results are not known. However,
given the extensive length of the altered and mineralised zone, the
various styles of mineralisation reported and the favourable
structural setting, Erris Resources believes the mineralised
structure has not been sufficiently tested and warrants a thorough
review. Preliminary ground truthing by Erris Resources in September
prior to the winter snows confirmed the location of historic
drilling with drill collars and channel sample locations located
and several altered and mineralised outcrops sampled. Results are
pending for rock samples.
At Gautelis, historic work identified three styles of
mineralisation including high-sulfidation style massive
arsenopyrite with gold that was mined for arsenic on a small scale
in 1916-1920, Carlin style gold mineralisation hosted in carbonates
and narrow sulphide-rich veins with high grades up to 329.66 g/t
Au, 0.52 % Cu, 2.4 % Pb, 0.69 % Zn, 0.08 % As and 61 g/t Ag.
A total of 1,500m of drilling was undertaken in 1984-1985 to
test the mineralised carbonates and the massive arsenopyrite
mineralisation. A historic report states that average gold grades
in the carbonates may reach 6-7ppm over 3m in drill core while hole
2-85 intersected 3m grading 6.66g/t Au from 50-53m and 3m grading
3.3 g/t Au from 44-47m. The upper 26m of hole 4-84 returned 26m
grading 0.58 g/t Au suggesting potential for broad zones of
mineralisation in the carbonates. A historic exploration report
also states that the Gautelis area is underlain by a sizeable
carbonate zone which reached thicknesses of up to 300m. It extends
laterally for about six kilometres giving ample space for a new
gold discovery. The characteristics are similar to Carlin-type
deposits for which knowledge has greatly advanced over the past 35
years; the project warrants further exploration as historic
drilling was shallow and sections indicate mineralisation is open
at depth. Preliminary ground truthing was carried out by Erris
Resources in September with the historic arsenic mine and waste
dumps located along with two in-situ drill collars despite snow
cover obscuring much of the geology. Ten samples were taken and
results are pending.
Erris plans to conduct further data reviews during the winter
period and fieldwork on both projects in the next field season to
determine the full potential of these projects. It should be noted
that all of the information and results outlined above cannot be
verified by the Company and are merely an indication that
mineralisation is present within the permit areas with preliminary
site visits confirming the presence of mineralisation.
Centerra Gold ('Centerra') Alliance - Finland and Sweden
The Company's geologists completed mapping, prospecting and soil
sampling at the Sakiatieva project in northern Finland in June.
Prospecting and mapping were limited by glacial overburden in the
main prospect area and it was necessary to carry out soil sampling.
An ionic leach soil survey consisting of 301 samples taken on a
100m x 30m grid across the main prospect area was completed in late
June. The results yielded four new strong copper +/- gold
anomalies, which are priority targets and three additional gold
(+/- multielement) anomalies. The ionic soil leach results show a
very good correlation of anomalies over the drilled prospect for
elements associated with gold mineralisation in the core assays,
namely Au, Cu, Mo, Pd and Te. Three of the anomalies, along with
the main drilled occurrence, define an east-west trend inferred to
be a structure. In August, a drone aeromagnetic survey was carried
out over an area of 10sq.km centred on the drilled prospect. The
survey had a 30m line spacing with approximately 407 line
kilometres of data collected. The quality of data was good,
allowing better interpretation of some structures. An east-west
break coincident with some of the new soil anomalies is apparent
and is interpreted as a fault or shear zone. Historic core from the
Sakiatieva project was reviewed at the GTK core archive facility in
Loppi, south Finland, and this gave some new insights into the
controls on mineralisation which was useful for evaluating
geochemistry targets and understanding the new aeromagnetic data.
Erris Resources and Centerra will consider the ranking of these
targets for future drill testing.
Sampling and mapping at the Pirunkoukka reservation permit in
Central Finland and on new target areas in North Sweden resulted in
the projects being downgraded. No further work is warranted since
none of the samples taken returned anomalous gold. Two permits in
Sweden were relinquished prior to the first anniversary with
refunds of approximately EUR11,800 returned to the Company. This
will be used to fund other targeting work for the Erris-Centerra
alliance.
The work outlined above was fully funded as part of the
Company's strategic alliance with Centerra. Erris Resources aims to
rapidly and efficiently identify and evaluate new targets then
either relinquish downgraded permits or advance the most
prospective permits to drill-ready status, which may lead to
Centerra electing a Designated Project Area for earn-in as per the
agreement signed between the two parties in December 2015.
Outlook
At the end of September, the Company held approximately EUR1.65
million in cash and maintains a disciplined approach to expenditure
on its 100%-owned projects. The Board and Management continue to
review projects in low risk jurisdictions internationally that fit
its investment criteria. The Board believes that current market
conditions are favourable for gold which is reflected in the
performance of the gold price in recent months and enhances the
relevance of the Company's portfolio of gold-related exploration
properties.
The technical information in this announcement has been compiled
on behalf of Erris Resources by Aiden Lavelle. Aiden Lavelle (BSc
(Hons), MSc, MIGI, P.Geo) is Erris' chief operating officer. Mr
Lavelle has sufficient experience 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
in accordance with the guidance note for Mining, Oil & Gas
Companies issued by the London Stock Exchange in respect of AIM
Companies, which outlines standards of disclosure for mineral
projects. Mr Lavelle consents to the inclusion in this announcement
of the matters based on his information in the form and context in
which it appears.
*S*
For further information visit www.errisresources.com or
contact:
Anton du Plessis /Aiden
Lavelle Erris Resources plc +353 (0) 94 902 8481
Allenby Capital (Nominated
David Hart/Liz Kirchner Adviser) +44 (0) 20 3328 5656
------------------------------- ---------------------
Shard Capital (Joint
Erik Woolgar Broker) +44 (0) 20 7186 9952
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Turner Pope Investments
Andy Thacker (TPI) Ltd (Joint Broker) +44 (0) 20 3621 4120
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Isabel de Salis/Beth St Brides Partners (Financial
Melluish PR) +44 (0) 20 7236 1177
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Notes
Erris Resources plc (EPIC: ERIS.L) is an AIM quoted, European
focused, discovery driven exploration company. Supported by
Canadian mining majors, Osisko Gold Royalties, which has a 18.9%
interest in the Company, and Centerra Gold KB Inc, a wholly owned
subsidiary of TSX listed Centerra Gold Inc., the Company has an
established portfolio of zinc and base metals assets in Ireland and
gold projects in Sweden, Finland and Norway which it is looking to
further build on. Led by a highly qualified team with extensive
corporate and sector experience, Erris Resources' strategy is to
create shareholder value through commercial discovery of base or
precious metal assets in proven mineral districts and in favourable
European jurisdictions.
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END
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