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Erris Resources PLC - Further High-Grade Gold Targets Defined

RNS Number : 0385L
Erris Resources PLC
28 April 2020
 

Prior to publication, the information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). With the publication of this announcement, this information is now considered to be in the public domain.

 

Erris Resources plc / EPIC: ERIS.L / Market: AIM / Sector: Mining

 

28 April 2020

Erris Resources plc

 

("Erris Resources" or the "Company")

 

Erris Resources Defines Further High-Grade Gold Targets at the Loch Tay Project

 

Erris Resources, the European focused mineral exploration company is pleased to report new results from recent sampling on the Loch Tay gold project (the "Loch Tay Project" or the "Project") in Scotland.

 

 Highlights:

·    Two highest grade gold results to date with 17.15g/t Au and 14.8g/t Au from Lead Trial Prospect

·    Lead Trial prospect expanded to the east with a cluster of new high-grade mineralised boulders

·    Nine samples returned >5g/t Au between 1.6km and 2.9km southeast of Lead Trial historic workings

·   Sample with 1.61% Cu and 247g/t Ag 3.2km southeast of Lead Trial workings suggests a possible zoned mineral system

 

Erris Resources has received results for a batch of 121 rock samples including three certified reference material samples collected in February and early March on the Company's Loch Tay Project in Scotland. Prospecting and mapping which was underway has ceased temporarily in line with recent restrictions introduced by the UK government to combat the outbreak of Covid-19. The prospecting was focused on the eastern extension of the Lead Trial prospect, the Lead Trial - Dunan valley between 1.4km and 3km southeast of the historic workings, and also on the Lead Trial-Almond valley 2-4km south from Lead Trial.  Out of a total of 118 samples collected, 30 had greater than 0.1g/t Au, 13 had greater than 1g/t Au and 9 samples had between 5g/t Au and a maximum of 17.15g/t Au, the highest grade result to date on the Project. The majority of samples were float or boulder samples with 19 samples taken from outcrop or subcrop including the highest-grade sample which is thought to be subcrop.

 

Erris Resources CEO, David Hall commented "These are highly encouraging results and reveal a large mineralised system in the Lead Trial and adjacent areas. The current restrictions have allowed the team to review all the data and that of the Grampian Gold Belt that includes the nearby Cononish mine and the Curraghinalt deposit in Northern Ireland. We clearly see common characteristics in geochemistry, structure and mineralisation style that lead us to believe that the prospects in the Loch Tay area have the potential to host significant gold mineralisation. We look forward to being able to get back to the field so we can develop these prospects further to drill stage."

 

Further Information

Lead Trial - Dunan Area

The Lead Trial prospect has been significantly expanded to the east to what is now called the Lead Trial - Dunan valley, where a cluster of mineralised boulders has been identified between 1.4km and 3km southeast of the historic workings at Lead Trial. The total mineralised footprint of the prospect has been increased to 3.2km in a northwest-southeast trend along the lower slopes and floor of the glen. Initial sampling prior to the winter identified mineralised float in the southeast area with four samples returning between 1.64g/t Au and 4.67g/t Au. Of the new results reported here, all of the nine samples that returned >5g/t Au were taken in the new eastern area along with 10 other samples with between 0.1g/t Au and 5g/t Au. The two highest grade samples with 17.15g/t Au and 14.8g/t Au were taken 210m apart on the lower slopes of the hill and they are considered proximal to a bedrock source. The sample with 14.8g/t Au is from a cobble of milky white and saccharoidal quartz with minor barite, galena and sphalerite collected in a burn. In addition to high-grade gold, the sample also returned 1.16% Pb, 1.35% Zn, and 10.35g/t Ag.

 

The highest-grade sample with 17.15g/t Au was from chips across a 1m wide vuggy quartz vein hosted in a 1.5m x 1.2m partially buried boulder or possible subcrop of mica schist. The sample also returned 12.15g/t Ag, 0.98% Pb and 0.97% Zn. The size of this boulder along with the clustering of high-grade float suggests that there is a very local bedrock source for this gold mineralisation. The south-eastern limit of the mineralised boulder train has distinct geochemistry with two samples returning low-grade copper (0.15% and 0.21%) and a third sample yielding high-grade copper, lead and silver with 1.61% Cu, 12.7% Pb and 247g/t Ag. This high-grade sample was a brecciated quartz cobble measuring 10cm x 15cm. Further work is required to expand the boulder train and determine the source of this mineralisation.

 

Lead Trial - Almond Area

A total of 31 samples were taken along a burn and a vehicle track on the Lead Trial - Almond valley 2-4km south from Lead Trial. No gold mineralisation was identified although two small float samples taken 1km apart yielded distinct Ag-Bi-Pb-Te mineralisation. One small float sample of milky white quartz float with visible galena returned 112g/t Ag, 222ppm Bi, 0.66% Pb and 6.45ppm Te. The other sample from a breccia with quartz fragments in mica schist returned 72.7g/t Ag, 212ppm Bi, 0.6% Pb and 2.61ppm Te. The source of this float is unknown but it could be the Corrie Buidhe silver mine located approximately 2km to the southwest; limited samples from Corrie Buidhe have the same distinctive high Ag-Bi-Pb-Te signature. Further work is warranted in the upper reaches of this glen which was above the snow line when the work was carried out.

 

Other Works

While fieldwork is not permitted under the current restrictions as a result of the COVID-19 pandemic, Erris Resources has taken the opportunity to further review historic reports, papers and data relating to the Loch Tay Project and regional geology. Lineament analysis was carried out using free satellite imagery to identify potential structures relating to mineralisation and this has identified several features of interest that require ground truthing. A review of BGS stream sediment data indicates a potential new target area in the south of the licence area where strong multi-element anomalies exist. The anomaly consists of high Ag-As-Ba-Bi-Pb-Zn and weak Mo which makes it a priority area for prospecting since these are elements that have been recognised at Lead Trial. This area has not yet been traversed by the Company's geologists.

 

A review of the lithogeochemistry for all 331 rock samples collected to date on the Project has also been carried out. This work has allowed the Company to identify new areas that require more detailed prospecting such as at Invergeldie in the south of the licence where four out of seven samples collected last year contained low-grade gold and a fifth sample returned 8.86g/t Au with associated high tellurium. The samples have not yet been followed up with further work. Where sufficient rock sample data exists at Lead Trial, a zoned mineralisation system is becoming apparent with the data suggesting that there is a possible outer barite zone to the northwest, a middle zone with variable Pb-Zn-Au-Hg-Mo and limited data for a zone with Cu-Bi-Te and higher-grade silver at the southeast end of the prospect. Gold mineralisation appears to increase towards the southeast where the new samples reported here were found, however it should be noted that outcrop is sparse in many areas and determining zonation from float samples is difficult. The geochemical signatures indicating the presence of multiple auriferous polymetallic veins in the Project area is very encouraging as this is a characteristic feature of the known gold deposits in the Grampian Gold Belt, such as the 6.09M Oz Curraghinalt gold deposit in Northern Ireland. The high-tellurium response from many samples on the Loch Tay Project is also a feature in common with the Cononish gold deposit, owned by Scotgold, 43km to the west of the Lead Trial prospect. The Company will continue to review the geochemistry for the multiple gold prospects across the 237 sq.km licence area to vector towards prospective drill targets. Following further prospecting, the Company anticipates that soil geochemical grids will allow it to better develop these new high-grade gold targets for drilling.

 

Outlook

At the end of March 2020, the Company held approximately €1.2 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 in order to identify potential new assets for the Company. Like all companies, Erris is also currently impacted by the Covid-19 pandemic and has taken all necessary steps to protect the well-being of its staff, stakeholders and local communities while reducing costs. We have suspended field work in Scotland but we look forward to restarting this as soon it is safe to do so. Erris Resources wishes all its shareholders and stakeholders the best of health during the current outbreak.

 

This announcement with maps showing sample and prospect locations will be available on the website  at https://www.errisresources.com/technical-reports

 

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.

 

*ENDS*

 For further information visit www.errisresources.com or contact:

 

David Hall/Aiden Lavelle

Erris Resources plc

+353 (0) 94 902 8481

David Hart/Liz Kirchner

Allenby Capital (Nominated Adviser)

+44 (0) 20 3328 5656

Erik Woolgar

Shard Capital (Joint Broker)

+44 (0) 20 7186 9952

Zoe Alexander/Andy Thacker

Turner Pope Investments (TPI) Ltd (Joint Broker)

+44 (0) 20 3657 0050

Isabel de Salis/Beth Melluish

St Brides Partners (Financial PR)

+44 (0) 20 7236 1177

 

Notes

Erris Resources plc (EPIC: ERIS.L) is an AIM quoted, European focused, discovery driven consulting and exploration company, supported by the Canadian mining major, Osisko Gold Royalties, which has a 18.9% interest in the Company. The Company has a portfolio of gold projects in Scotland, Sweden and Norway and zinc and base metals assets in Ireland, which it is looking to further build on. Led by a highly qualified team with extensive corporate and sector experience, Erris's strategy is to create shareholder value through commercial discovery of base or precious metal assets in proven mineral districts and in favourable European jurisdictions. 


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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