TIDMEEE
RNS Number : 6892C
Empire Metals Limited
24 February 2022
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the following link:
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Empire Metals Limited / AIM: EEE / Sector: Natural Resources
24 February 2022
Empire Metals Limited ('Empire' or the 'Company')
Tribute Agreement Signed and Drilling Commenced at the Highly
Prospective Gindalbie Gold Project
Empire Metals Limited, the AIM-quoted resource exploration and
development company, is pleased to announce that the Company has
now signed a binding Tribute Agreement ('Agreement') with Maher
Mining Contractors Pty Ltd ('Maher Mining') for the Gindalbie Gold
Project ('Gindalbie'), located near historic gold mining town of
Gindalbie, and adjacent to Empire's Eclipse Gold Project
('Eclipse'). The Company has now commenced an exploratory drilling
campaign aimed at testing several priority targets around
historical mine workings.
Highlights:
-- The Agreement gives Empire the exclusive right to explore,
develop and mine within a granted area on Maher Mining's 100% owned
mining lease M27/158, which sits adjacent to the eastern border of
the Eclipse licence area and extends the current area for
exploration targets by over 200% to a total of 943ha.
-- Several historical mine shafts are located within the granted
area, and the ground in close proximity to these shafts has been
subject to recent near surface exploration which has generated a
number of high-grade gold targets from shallow RAB and RC
drilling.
-- The main trend containing the Company's Eclipse and Jack's
Dream deposits aligns with several of the old workings to the
southeast including the Golden Puzzle, Laurel and Bulletin mines.
Other, sub-parallel north-west - south-east striking trends have
been identified which include the Homeward Bound and South
Gippsland #3 mines.
-- Under the Agreement Empire will pay Maher Mining A$250,000
for an initial 6-month exploration term. An additional A$250,000 is
payable to Maher Mining if Empire elects to extend the exploration
period by a further 18 months. Minimum expenditure commitments
during the two stages of exploration are A$250,000 for each period
by Empire.
-- Empire has commenced an RC drilling programme at Gindalbie
with the main objective of testing for high-grade gold lodes within
the transition and fresh rock, immediately below or adjacent to
several of the historic mine shafts (and the small pit at Bud's
Find).
-- The programme consists of 16 RC holes for 1,610m, drilled on
the back of the RC drill campaign at Eclipse, which commenced on 15
February 2022.
Shaun Bunn, Managing Director, said: "The signing of the Tribute
Agreement and commencement of drilling at Gindalbie represents a
significant milestone in our development plans for Empire. We are
continuing to build up a comprehensive portfolio of exploration
projects and mining opportunities here in Australia and with the
likelihood of finding additional high-grade gold mineralisation at
Gindalbie, we see the potential to significantly add to the scale
of our gold mineral inventory at Eclipse.
"A diamond core drilling programme is planned for Eclipse to
build up a better understanding of the structural controls and
improve the geological model, expected to commence early March. By
building a better understanding of the structural geology at
Eclipse, and by identifying highly prospective targets along the
mineralised trends traversing the Gindalbie project area, we will
be able to develop a comprehensive and targeted exploration plan
for both the Eclipse and Gindalbie projects with a view to moving
rapidly to a development phase."
Gindalbie Gold Project Background
The Gindalbie Gold Project lies adjacent to Empire's high-grade
Eclipse Gold Project, a 303ha mining lease located near the
historic gold mining town of Gindalbie, situated 55km north-east of
Kalgoorlie (refer Figure 1). Empire Metals currently holds a 75%
interest in the Eclipse Gold Project, together with an option to
acquire the remaining 25% interest.
Figure 1. Location Map - Location of Eclipse Gold Project (red),
which contains the old Gindalbie townsite, and mining lease ML
27/158 (blue) which contains the Gindalbie Gold Project.
Gindalbie was an active gold mining centre around the turn of
the last century with most gold production being in the period 1887
to 1913, with some in the late 1930s to early 1940s. Total recorded
production up to the end of 1913 was 44,622 tonnes of ore for
40,643 oz Au (at an average grade of 28.33 g/t Au).
The Gindalbie Gold Project consists of the granted area
contained within mining lease M27/158, which sits adjacent to the
eastern border of the Eclipse licence area, and extends the
exploration targets an additional 2km along the Eclipse lodes
trend, plus a further 1km to the north and 3km to the south (refer
Figure 2). The "granted" area covers 643 ha of highly prospective
ground containing a number of historic gold mines located along a
series of northwest-southeast striking mineralised trends.
Figure 2. Granted area within ML27/158 showing major mineralised
sub-parallel trends and location of several of the significant old
mine shafts
The main trend containing the Eclipse and Jack's Dream deposits
aligns with several of the old workings to the south-east including
Golden Puzzle and Bulletin.
Initial Exploration Programme
Empire has commenced an RC drilling programme at Gindalbie with
the main objective of testing for high-grade gold lodes within the
transition and fresh rock, immediately below or adjacent to several
of the historic mine shafts (and the small pit at Bud's Find). The
programme consists of 16 RC holes for 1,610m, drilled on the back
of the RC drill campaign at Eclipse, which commenced on 15 February
2022.
The programme has as initial targets five distinct mineralised
areas, selected based on the location of historical workings, soil
geochemistry mapping and previous RAB/RC drill results, being
Homeward Bound, Laurel-Bulletin, South Gippsland #3, Golden Puzzle
and Bud's Find (Figure 3.)
Figure 3. Plan view of location of planned drill collars and
previous significant drilling intercepts.
The principal targets of the RC drilling are shear-hosted lodes
which, as observed at Eclipse and elsewhere within the Gindalbie
region, tend to strike 300-340 degrees with sub-vertical to steep
SW dips. Some bucky extensional quartz veining may be centred on
the shear zone and these have oblique orientations as observed from
the near surface workings. This type of veining may or may not be
important economically although important to note that these
structures were partially mined at Gippsland South #3. At Eclipse
however, these bucky vein structures have given low values
(<0.5g/t Au) in the diamond core and hence this drilling is
seeking to intercept more continuous laminated quartz lodes within
the shears. At Eclipse, and also observed at Buds Find pit, there
are centimetre scale shear parallel quartz veinlets, which are
associated with silicification and strong alteration in fresh rock,
and these appear to host the high-grade gold mineralisation.
Another key indicator is arsenopyrite, which may occur in
association with the high-grade gold mineralisation.
The following cross-sections illustrate the key structures
targeted:
Figure 4. A cross-section view of Homeward Bound showing planned
RC drilling in relation to historical drilling intercepts.
Figure 5. View of cross-section at Bud's Find, showing location
of drilling in relation to historical drilling intercepts.
Key Terms of the Tribute Agreement
Empire has entered into a Tribute Agreement with Maher Mining,
giving Empire the exclusive right to explore, develop and mine
within a granted area on Maher Mining's 100% owned mining lease
M27/158, subject to the following key terms:
Ø In consideration of Empire paying an amount of A$250,000
Empire shall have an initial period of six months to explore within
the ' Granted Area ' of the tenement and will commit to an
expenditure of not less than A$250,000 during that period (the '
Exploration Period ').
Ø Empire can elect to extend the Exploration Period by a further
18 months (the ' Extended Period ') to carry out further
exploration and complete mining studies, subject to paying Maher
Mining A$250,000 and committing to a further expenditure of not
less than A$250,000 during the Extended Period.
Ø If, within the Extended Period, an economically mineable
resource is established, as determined by a Pre-Feasibility Study
(as that term is defined in the JORC Code 2012), then Empire may
elect to mine the relevant part or parts of the Granted Area upon
the terms and conditions set out in the Tribute Agreement.
Ø If, at the end of the Extended Period, further exploration and
mining studies are required to complete a Pre-Feasibility Study
then Empire has the option to extend the Extended Period by up to
12 months, subject to paying Maher Mining the amount of
A$250,000.
Ø If Empire elects to commence mining operations and subject to
all statutory approvals being met, then Empire will:
-- pay Maher Mining the amount of A$500,000 within ninety (90)
days of the granting of a mining permit;
-- grant Maher Mining a 2% net smelter royalty on all gold and other commodities produced;
-- guarantee to pay Maher Mining an additional 2% on gross sales
price for any gold production sold between A$2,400/oz and
A$2,799/oz, increasing to 3% on gross sales price for any gold
production sold at A$2,800/oz or above; and
-- guarantee to spend not less than A$250,000 on exploration per
annum on the Granted Area over the subsequent four (4) years;
in consideration for the rights to all ores mined during the
granted term of the mining licence, due to expire 3 November
2034.
Competent Person Statement
The technical information in this report that relates to the
Gindalbie Gold Project has been compiled by Ms Louisa Stokes, an
employee of Eclipse Exploration Pty Ltd, a wholly owned subsidiary
of Empire. Ms Stokes is a Member of the Australian Institute of
Mining and Metallurgy. Ms Stokes is employed in the role of
Exploration Geologist and has been planning the exploration
activities for the Eclipse-Gindalbie project areas. Ms Stokes has
sufficient experience that is relevant to the style of
mineralisation and type of deposit under consideration and to the
activity being undertaken to qualify as a Competent Person as
defined in the 2012 Edition of the 'Australasian Code for Reporting
of Exploration Results, Mineral Resources and Ore Reserves'. Ms
Stokes consents to the inclusion in this release of the matters
based on her information in the form and context in which it
appears.
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, as incorporated into UK law by the
European Union (Withdrawal) Act 2018, until the release of this
announcement.
**ENDS**
For further information please visit www.empiremetals.co.uk or
contact:
Shaun Bunn Empire Metals Ltd Company Tel: 020 7907
9327
Greg Kuenzel Empire Metals Ltd Company Tel: 020 7907
9327
Ewan Leggat S. P. Angel Corporate Nomad & Broker Tel: 020 3470
Finance LLP 0470
Adam Cowl S. P. Angel Corporate Nomad & Broker Tel: 020 3470
Finance LLP 0470
Damon Heath Shard Capital Partners Joint Broker Tel: 020 7186
LLP 9950
Susie Geliher St Brides Partners Ltd PR Tel: 020 7236
1177
Selina Lovell St Brides Partners Ltd PR Tel: 020 7236
1177
About Empire Metals Limited
Empire Metals is an AIM-listed (LON: EEE) exploration and
resource development company with a project portfolio comprising
gold interests in Australia and Austria.
The Company strategy is to develop a pipeline of projects at
different stages in the development curve. Its current focus is on
the high-grade Eclipse Gold Project in Western Australia, with the
goal to expand through the addition of further projects in the
region to develop a viable and compelling portfolio of precious
metals assets.
Empire also holds a portfolio of three precious metals projects
located in an historically high-grade gold production region
comprising the Rotgulden, Schonberg and Walchen prospects in
central-southern Austria.
The Board continues to evaluate opportunities through which to
realise the value of its wider portfolio and reviews further assets
which meet the Company's investment criteria.
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