TIDMEST
RNS Number : 1713V
East Star Resources PLC
08 August 2022
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8 August 2022
East Star Resources Plc
("East Star" or the "Company")
New Licence Awarded at Talairyk Rare Earths Project,
Kazakhstan
East Star Resources Plc (LSE:EST), the Kazakhstan-focused gold,
rare earths and copper explorer, is pleased to announce the award
of a new exploration licence comprising 59 blocks ("Talairyk 1") at
the Talairyk Heavy Rare Earth Elements ("HREE") Project in the
Kostanay region of Kazakhstan (the "Project"), into which the
Company is farming in for up to 90%.
Highlights:
-- Talairyk 1 covers 134.7 sq km and is contiguous with the 10 sq km Talairyk Licence
-- Talairyk 1 is highly prospective for Ionic Adsorption Clay
(IAC) hosted heavy rare earth elements:
o Geological mapping at 1:50,000 scale shows granites the same
as those generating the Talairyk HREE deposit (19,962 tonnes of
contained Total Rare Earth Oxides (TREO) averaging 786g/t up to
58.6m thick)
o Historic grab samples within Talairyk 1 contain pathfinder
elements
-- Talairyk 1 will be included in the farm-in agreement with
Phoenix Mining announced on 18 May 2022, with East Star expenditure
on Talairyk 1 also contributing towards the agreed earn-in
milestones
Alex Walker, East Star CEO, commented:
"Rare earth elements are classed by the UK as representing the
highest global supply risk and the third highest UK economic
vulnerability. We are therefore very pleased to extend our HREE
footprint in the region by over tenfold and secure access to
additional prospective ground for IAC hosted minerals - the same
geology as the rare earths of South China on which the world
currently substantially depends.
We will immediately begin the application process to commence
field work so the exploration programme can align with that of the
Talairyk deposit, where we aim to be drilling in H1 next year.
The size of the Talairyk deposit is already significant and
could provide the scale required for feasibility work, however,
considering the demand growth and lack of security of supply for
rare earth elements, coupled with the location providing direct
rail access to Europe via the Caspian Sea, growing the resource
could make this deposit globally strategic."
Figure 1 light pink granites map on a 1:50,000 scale provide the
best indicator for a potential continuation of the Talairyk
orebody
Ionic Adsorption Clays (IACs)
Potentially economically extractible IACs are rarely found
outside of South China with only a few in South East Asia in
production today and exploration/development projects in Australia,
Brazil, Chile and Uganda. IAC deposits are comparatively rich in
HREEs and are a primary source of China's and therefore the world's
HREE production. IAC deposits offer several advantages to the more
commonly occurring hard rock REE deposits where the rare earths are
mostly hosted in complex mineral associations. These advantages
include:
o Lower CAPEX: Deposits are shallow and free dig clays, keeping
the footprint small, the pre-strip ratio low and with simple,
conventional machinery and material handling methods. Processing
generally requires no grinding or milling, removing these costly
and energy intensive mills from the processing circuit
o Lower OPEX: Generally, the deposits are amenable to standard
leaching techniques with weak electrolyte solutions, such as
ammonium sulphate ( widely used as a fertilizer for alkaline soils)
and sodium or magnesium chloride
o Negligible radioactivity: Radioactive elements such as uranium
and thorium occur commonly in hard rock REE projects. In IACs, the
radioactive elements have been mostly removed by the weathering
process along with the lower value light rare earth elements
o High-value basket of product: The heavy rare earth element
market is small and commercial production is restricted to very few
companies while the demand in the high-tech industry has
expanded
HREE Supply, Demand and the UK Critical Minerals Strategy
Rare Earth Elements (REEs) are required for several high-tech
devices like high performance magnets for wind turbines or lighting
products for instance energy saving bulbs. Especially, the more
valuable Heavy Rare Earth Elements (HREEs) like Dysprosium and
Terbium are a critical resource.
On 22 July 2022, the UK Government published its first ever
critical minerals strategy that aims to improve the security of
supply of critical minerals with the intention to improve the
resilience of critical minerals supply chains. Key points from the
report, important to East Star Resources, include:
1. Collaborate with international partners:
a. Diversify supply across the world so it becomes more
resilient as demand grows
b. Support UK companies to participate overseas in diversified
responsible and transparent supply chains
c. Develop diplomatic, trading and development relationships
around the world to improve the resilience of supply to the UK
2. Enhance international markets:
a. Boost global environmental, social and governance performance
(ESG), reducing vulnerability to disruption and levelling the
playing field for responsible businesses
b. Develop well-functioning and transparent markets, through
improved data and traceability
c. Champion London as the world's capital of responsible finance
for critical minerals
Historical Exploration
East Star Resources continues to collect additional data on the
awarded licences and the region generally and will keep the market
updated with further progress ahead of drilling which is targeted
for H1 2023.
For further information visit the Company's website at
www.eaststarplc.com , or contact:
East Star Resources Plc
Alex Walker, Chief Executive Officer
Tel: +44 (0)20 7390 0234 (via Vigo Consulting)
Peterhouse Capital Limited (Corporate Broker and Placing
Agent)
Duncan Vasey / Lucy Williams
Tel: +44 (0) 20 7469 0930
Vigo Consulting (Investor Relations)
Ben Simons / Tara Benniman
Tel: +44 (0)20 7390 0234
About East Star Resources Plc
East Star Resources is focused on the discovery and development
of gold, rare earth, and copper deposits in Kazakhstan. With an
initial five licences covering 1,442 km2 in three mineral rich
districts, East Star is undertaking an intensive exploration
programme, applying modern geophysics to discover minerals in
levels that were not previously explored. The Company also intends
to further expand its licence portfolio in Kazakhstan. East Star's
management are based permanently on the ground, supported by local
expertise, and joint ventures with the state mining company.
Follow us on social media:
LinkedIn:
https://www.linkedin.com/company/east-star-resources/
Twitter: https://twitter.com/EastStar_PLC
The person who arranged for the release of this announcement was
Alex Walker, CEO of the Company.
Competent Persons Statement
Information and data presented within this announcement has been
compiled by Mr Azamat Bizhanov, a Member of the Australian
Institute of Geoscientists ("MAIG"). Mr Bizhanov is the Exploration
Manager for East Star Resources Plc and has sufficient experience,
which is relevant to the style of mineralisation, deposit type and
to the activity which he is undertaking to qualify as a Competent
Person defined by the 2012 Edition of the Australasian Code for
Reporting Exploration Results, Mineral Resources and Ore Reserves
(the "JORC" Code). This includes 10 years of Mining, Resource
Estimation and Exploration relevant to the style of
mineralisation.
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