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Arkle Resources PLC - Stonepark Strategic Review

RNS Number : 4450U
Arkle Resources PLC
25 November 2019
 

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

 

25 November 2019

 

Arkle Resources PLC

 

("Arkle" or the "Company")

 

Stonepark Strategic Review

 

Review of options relating to 23.44% holding in the Stonepark Zinc Project

 

Arkle Resources PLC (LON: ARK), the Irish gold and zinc exploration and development company, announces that, following interest in the Company's Stonepark Zinc Project by other industry participants, the Board has commenced a formal review of the various strategic options available for this project to maximise value for shareholders.  Arkle holds a 23.44% stake in the project, free from encumbrances.

 

Patrick Cullen, Chief Executive Officer of Arkle, commented, "There is significant interest in the Stonepark Zinc Project, we believe because of the high grade and relatively shallow position of the established Inferred Resource and its strategic location adjacent to the far larger Pallas Green zinc-lead deposit.

 

"We also believe there is significant upside potential for a major discovery along the 'Pallas Green Corridor' in line with the model proposed by our partners at Stonepark, Group Eleven Resources Corp.  The southern part of the project block is sparsely explored and our recent drilling there has revealed the potential for further discovery.  Newly reviewed airborne geophysical is assisting in refining the new targets as well as revealing newly prospective features in this area of the Stonepark block.

 

"In addition to our share of the project, we currently hold offtake rights on 23.44% of any production.  In the event of a sale by our partner we hold equivalent pre-emption rights.  In 2017, when the original partners Teck Ireland Ltd. sold their majority stake, we elected to maintain our share and contribute accordingly.  The Board believes now is an excellent time to review that decision: zinc prices remain robust well above the $2,000 per tonne range, and there is interest in Stonepark."

 

Overview of Stonepark Zinc Project

This joint venture with Group Eleven Resources Corp. in County Limerick, contains a maiden Inferred Mineral Resource totalling 5.1 million tonnes at 11.3% zinc and lead combined (8.7% Zn and 2.6% Pb), occurring at depths from 190m to 395m below surface.  The project lies adjacent to Glencore's Pallas Green deposit which contains 45.1 million tonnes at 8% zinc and lead combined (Glencore; Resources and Reserves as at 31 December 31 2018).

 

Drilling announced 7 May 2019 identified the outer margin of a potential new Irish-Type zinc system 10 kilometres southeast of Glencore's Pallas Green deposit, along the postulated 'Pallas Green corridor'.  Drill hole G11-450-02 ('Kilteely') intersected a 230m thick hydrothermal system displaying abundant sulphide mineralisation with elevated zinc.

 

Competent Person

This announcement has been reviewed and approved by Gavin Berkenheger (CGeol), who has sufficient experience relevant to the style of mineralisation under consideration and to the activities undertaken to qualify as Qualified Person for the purposes of the AIM Note for Mining, Oil and Gas Companies issued by the London Stock Exchange.

 

Information for Editors

Arkle is a diversified exploration company with principal assets in gold and zinc exploration licences across Ireland.  The Company currently has two 100% owned gold projects (Mine River and Inishowen) and is in joint venture with Teck Ireland Ltd. at the Oldcastle Zinc Project and with Group Eleven Resources Corp. at the Stonepark Zinc Project.

 

ENDS

 

Enquiries:

 

Arkle Resources PLC


John Teeling, Chairman

+353 (0) 1 833 2833

Patrick Cullen, CEO

+353 (0) 87 272 1748


+44 (0) 755 237 8208





SP Angel Corporate Finance LLP


Matthew Johnson/Soltan Tagiev

+44 (0) 203 470 0470





First Equity Limited


Jason Robertson

+44 (0) 207 374 2212



Blytheweigh

+44 (0) 207 138 3204

Megan Ray


Jane Lenton




Teneo

 

Luke Hogg

+353 (0) 1 661 4055

Alan Tyrrell

+353 (0) 1 661 4055

 

 

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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