TIDMEST
RNS Number : 4901Q
East Star Resources PLC
21 February 2023
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21 February 2023
East Star Resources Plc
("East Star" or the "Company")
Talairyk Rare Earths Project Update, Kazakhstan
East Star Resources Plc (LSE:EST), the Kazakhstan-focused
minerals exploration company, is pleased to provide an update for
the Talairyk heavy rare earth elements ("HREE") project in East
Kostanay, Kazakhstan.
Highlights:
-- All 966 recovered samples from the 1,001 m / 30 borehole
initial RC drilling programme in November 2022 have undergone
analysis by a pXRF analyser to provide an indication of rare earth
element grades
-- The element yttrium was used as a proxy for HREE
mineralisation and was reported in all samples from the prospective
kaolinitic clay horizon with 12 boreholes recording grades above
500 ppm
-- In consultation with The MSA Group - Minerals Consulting Ltd
("MSA"), individual and composite samples were selected and sent
for sample preparation at ALS laboratories in Karaganda and have
now arrived at ALS laboratories in Ireland where assay work has
begun
-- Additional composite samples will be sent for five stage
sequential leach test work, which will be a major indicator of the
liberation qualities of the ore and the first step in producing a
process flow sheet and understanding potential project
economics
Alex Walker, East Star CEO, commented:
"We are very excited to be moving towards the results stage of
initial exploration on the Talairyk HREE project. The kaolinitic
clays seen in drilling, when combined with the yttrium pXRF results
and historical reports, provide us confidence in the presence of
HREE elements with a geochemical signature resembling those of the
producing mines in South China. Positive results from pending assay
and leach tests will give us the confidence to move rapidly into
resource drilling of the historical deposit, exploration of the
significant granitic trend, and more detailed metallurgical work
required for a scoping study."
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 / Peter Jacob
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 nine licences covering 1,687 square kilometres in three
mineral rich districts, East Star is undertaking an intensive
exploration programme, applying modern geophysics and
out-of-the-box geological concepts to discover minerals under cover
and at depths 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:
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https://www.linkedin.com/company/east-star-resources/
Twitter: https://twitter.com/EastStar_PLC
Subscribe to our email alert service to be notified whenever
East Star releases news:
www.eaststarplc.com/newsalerts
The person who arranged for the release of this announcement was
Alex Walker, CEO of the Company.
Appendix
Summary of Talairyk HREE Project
-- Potential for low-cost entry to a geologically de-risked
Ionic Absorption Clay (IAC) hosted Heavy Rare Earth (HREE)
deposit
-- Historical database includes 128 core holes and 61 auger
holes for 3,755 samples. East Star drilling aims to verify the
historical grades
-- Historical estimates suggest the presence of elevated grades
of Total Rare Earth Oxides including yttrium oxide (TREO) in a zone
approximately 20 m thick at an average of 7.5 m from surface (1994,
estimates are unverified GKZ estimates and not compliant and should
not be relied upon until verified - East Star aims to verify and
further expand on the historical GKZ resource estimate)
-- Using the recent reverse circulation (RC) drilling
information, East Star aims to establish whether the Talairyk
deposit is similar in nature to the deposits of South China from
where most of the world's HREEs are currently produced
-- Exploration upside exists within the project area across
similar weathering profiles over prospective basement lithologies
and with potential for regional expansion
-- IAC peers generally have lower CAPEX and lower OPEX than hard rock rare earth projects
-- Farm-in terms up to 90% ownership:
o No cash payments
o First tranche of US$250,000 in shares for 51% after
expenditure of US$500,000 including recent drilling and initial
metallurgical test work
o Second tranche of US$250,000 in shares for 75% after
expenditure of a further US$500,000 which will include scoping
study level assessment
o Additional expenditure secures up to 90% of the project on a
'contribute or dilute' basis
Deposit
According to historical reports, the thickness of the deposit
varies along the historically tested sections from 5.88 m to 58.6
m, averaging 19.46 m. The average overburden thickness is 7.38 m.
Historical reports suggest that elevated grades of yttrium oxide
and other rare earth oxide elements occur (unverified historical
GKZ exploration information and estimates) in broad kaolinitic clay
zones similar to the IACs of South China.
Historical Exploration
Geological surveys of the site have been done since 1916,
however, the first prospecting work was not carried out until 1972.
In 1988-89, a magnetic survey on a scale of 1:5000 and a gravity
survey at a scale of 1:10000 were conducted over a 50 m by 10 m and
200 m by 50 m grid. From 1987-1991 prospecting work was carried out
resulting in discoveries of yttrium and REEs. From 1991-1994
prospecting was carried out to establish the size of the
mineralised zone in plan and in depth, the morphology and
conditions of occurrence of mineralised zones, the qualitative
characteristics of mineralisation, and the hydrogeological
conditions. This latest work was conducted by the State Holding
Company "Marzhan" and the Joint Stock Company "Turgai Geological
Exploration Expedition".
Vertical diamond drillholes across the strike of the mineralised
zone were drilled on a 200 m by 50 m grid to an average depth of up
to 75 m including three hydrogeological wells. 128 holes were
drilled by core drilling for 6,022 m and 61 holes by auger drilling
for 903 m. 3,755 samples were taken. On average, the core recovery
ranged from 68% to 76%.
Samples were subjected to the following types of analyses:
-- Semi-quantitative spectral analysis for 19 elements
-- XRF analysis for yttrium, zirconium, tin, and niobium
-- Approximate quantitative analysis for the sum of rare earth oxides
-- Grain-size analysis of weathering crust
-- Lithological analysis of weathering rocks
Geology
The project area is situated in the northern part of the Ulutau
meganticlinorium which consists of Middle Proterozoic gneisses,
minor Late Proterozoic mafic rocks, and Paleozoic granitoids.
The REE mineralisation is located within the weathering crust of
the lower part of the Middle Proterozoic Talairyk suite, composed
of mica gneisses, two-mica-plagioclase gneissic schists, thick
(100-300m) units of amphibolite, garnet amphibolite, and
plagioclase-amphibolite schists. The thickness of this unit is
600-800 m.
The average thickness of the weathering crusts is 20 m. In some
areas, the depth of fresh rock is up to 100 m. The minerals in the
weathering crust are quartz (approximately 40%), kaolinite
(approximately 42%), and sericite (approximately 18%). In the
weathering crust, the main minerals hosting yttrium and rare earth
elements are kaolinite, hydromuscovite, and to a lesser degree,
plagioclase.
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