RNS Number : 4040W
East Star Resources PLC
12 December 2023
 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION 2014/596/EU WHICH IS PART OF DOMESTIC UK LAW PURSUANT TO THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS (SI 2019/310) ("UK MAR"). UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION (AS DEFINED IN UK MAR) IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

 

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION.

 

12 December 2023

East Star Resources Plc

("East Star" or the "Company")

Verkhuba Copper Deposit Drill Results Update

 

Open pit potential confirmed

 

East Star Resources Plc (LSE:EST), which is defining mineral resources in Kazakhstan for the energy revolution, is very pleased to provide an update on the assays from drilling at the Verkhuba Copper Deposit on the Rudny Altai volcanogenic massive sulfide ("VMS") belt, which confirm the potential for resource development by way of open pit mining.

 

Highlights:

 

·     

92.5m of mineralisation recorded above a cut-off grade of 0.38% copper equivalent (CuEq being Cu, Pb, Zn and Ag)

·     

Thick and high-grade intersections within the conceptual open pit shell modelled by independent consultants including:

·     

VU_23_DD_001

·   2.9m @ 2.07% CuEq from 19.4m

·    15.0m @ 1.56% CuEq from 27.4m (including 10m @ 2% CuEq from 30.4m)

VU_23_DD_002

·   11.8m @ 1.41% CuEq from 171.0m

·   10.3m @ 1.77% CuEq from 186.8m

VU_23_DD_003

·    2.4m @ 2.45% CuEq from 74.0m

·    5.0m @ 0.86% CuEq from 101.4m

VU_23_DD_004

·    10.7m @ 0.79% CuEq from 55.8m (including 4.4m @ 1.26% CuEq from 55.8m, and 0.5m @ 2.71% CuEq from 62.0m)

VU_23_DD_005

·   8.0m @ 0.55% CuEq from 225.7m

·     

High-grade mineralised zones match well with high-grade zones identified in >42,000m of historical drilling

·     

Extensive previously unidentified lower-grade mineralised envelopes around higher-grade intersections

·     

Predominantly copper mineralisation with up to 6.6% zinc identified in some intersections

·     

Gold offers potential for additional upside once assays are complete

 

Alex Walker, East Star CEO, commented:

 

"We are delighted with the results of high-grade assays from our recent Verkhuba drilling campaign. We can now definitively demonstrate that the Verkhuba Deposit has multiple copper-rich ore grade intervals at mineable depths. Grades are relatively consistent with the 1.4 - 1.8% copper grade range derived from the 5-6Mt open-pit resource calculated from the independent resource model. This gives confidence in the accuracy of the more than 42,000m of historical drilling used in calculating our JORC-compliant exploration target. Additional ore lenses and lower grade halos not reported in historical drilling, and therefore not a part of the existing resource model, should increase the total tonnes of ore expected in future resource models.

 

The vast majority of the ore is copper; however, it is good to see zinc as well as silver in intersections. Silver grades, not included in the previous resource model, indicate the potential for gold credits that could further improve the project's economics - which are already compelling given existing regional infrastructure.

 

Kazakhstan continues to be a fantastic jurisdiction for resource exploration, with strong support for new projects being demonstrated at the federal and local levels.  There's a lot to be excited about in East Star's future."

 

Next Steps

 

The Company is in the process remodelling the historical drilling and will undertake a geostatistical analysis of the results against the historical results to understand what additional work is required to progress Verkhuba to a JORC-compliant resource.

 

This remodelling is expected to be undertaken over the holiday period with an updated resources model expected in early 2024. The updated model will also inform the follow up drill programme which will be planned with the purpose of progressing the open pit development concept through to a stage where economic feasibility can be demonstrated, and a mining licence application can begin.

 

East Star's geological team has also been undertaking additional desktop work on targets within the existing licences in the Rudny Altai belt. Field work will commence as soon as possible in 2024 to advance these exciting targets to drill ready status.

 

Notes

 

CuEq grades are calculated using the below metal prices and recoveries:

 


Cu

Pb

Zn

Ag

Price ($)

8430.5/t

2275.0/t

2563.5/t

23.78oz

Recovery

1

0.7

0.7

0.5

 

All intersections above 0.38% CuEq cut-off are listed in Annex A.

 

Drilling within the Verkhuba Deposit totalled 1,084.1m. The drill programme was lower than the originally intended 3,000m as the Company believed the potential to achieve a sufficient comparison to the historical drill results, specific to the most likely development option, being the primary open pit, could be achieved from fewer drill metres and therefore decided to conserve capital until the comparison is complete and an updated resource model can be produced to better inform the next drill programme. 

 

Laboratory Process

 

Samples were prepared by ALS in Ust-Kamenogorsk and then sent to ALS in Karaganda (the "Lab") to initially undergo assay by ICP Aqua Regia (AR) digest (ME-ICP41). 23 blanks, 20 certified reference materials (CRM), and 21 duplicates were inserted into the batch of 388 samples from the core. A statistical analysis of the results confirmed blanks and standards were within acceptable error limits. In 62 samples from the batch, copper or zinc grades were above the upper detection limit of the method (10,000 ppm).

 

ICP 4 acid digest with a higher upper detection limit (ME-OG62) was then applied to the 62 samples sent for re-assay for copper and zinc. 3 blanks, 3 CRM, and 3 duplicates were inserted into the batch. 1 CRM within this batch failed, being more than 3 standard deviations from the certified copper and zinc content. 10 samples and the failed CRM were then re-assayed by the Lab.

 

Re-assay results were within expected range with regards to the CRM and are considered accurate, however, in 9 of the 10 samples, reported copper grades were up to 10% higher than in the original assays reported by ALS. The Company is discussing with the Lab the processes and potential for a re-assay of the 62 high-grade samples to ensure the most precise measurements are used for future resource calculations.

 

East Star Resources Plc

Alex Walker, Chief Executive Officer

Tel: +44 (0)20 7390 0234 (via Vigo Consulting)

 

SI Capital (Corporate Broker)

Nick Emerson

Tel: +44 (0)1483 413 500

 

Peterhouse Capital Limited (Corporate Broker)

Peter Greensmith

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 strategic minerals required for the energy revolution. With an initial nine licences covering 1,321.5 km² in three mineral rich districts of Kazakhstan, 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

 

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.

 

Competent Persons Statement

The information in this release that relates to Exploration Results has been reviewed by Mr Mikhail Tsypukov. Mr Tsypukov is a Fellow of the Institute of Materials, Minerals and Mining (FIMMM, Reg. No 459707). He has a PhD in geology from A.P. Vinogradov Institute of Geochemistry Siberian Branch Russian Academy of Sciences with over 30 years of experience of gold and base metal exploration in Russia, Kazakhstan, Mongolia, Rwanda and Islamic Republic of Mauritania.

Mr Tsypukov has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and the activity being undertaken to qualify as a Competent Person as defined in 2012 Edition of the "Australasian Code for Reporting of Exploration targets, Exploration Results, Mineral Resources and Ore Reserves", also known as the JORC code. The JORC code is a national reporting organisation that is aligned with CRIRSCO. Mr Tsypukov consents to the inclusion in the announcement of the matters based on his information in the form and context in which they appear.

 

 

 

 

 

 

 

 

 

Annex A - Drill Results Table

Drill Hole

From (m)

To (m)

Length (m)

Cu

Pb

Zn

Ag

CuEq

CuEq

%

%

%

ppm

 

with recovery

VU_23_DD_001

19.4

20.6

1.2

3.23

0.02

0.14

24.4

3.28

3.27

VU_23_DD_001

20.6

21.5

0.9

1.77

0.04

0.06

10.6

1.79

1.78

VU_23_DD_001

21.5

22.3

0.8

0.60

0.02

0.09

15.2

0.63

0.62

VU_23_DD_001

27.4

28.4

1

1.86

0.01

0.16

6.3

1.91

1.89

VU_23_DD_001

29.4

30.4

1

0.57

0.01

0.17

3.9

0.63

0.61

VU_23_DD_001

30.4

31.9

1.5

1.06

0.01

0.16

1

1.11

1.10

VU_23_DD_001

31.9

32.8

0.9

0.92

0.04

0.12

3.7

0.97

0.95

VU_23_DD_001

32.8

33.3

0.5

2.57

0.06

0.07

11.8

2.61

2.60

VU_23_DD_001

33.3

34.3

1

2.03

0.02

2.03

10

2.65

2.47

VU_23_DD_001

34.3

35.3

1

1.43

0.01

0.05

7.6

1.45

1.44

VU_23_DD_001

35.3

36.4

1.1

1.74

0.00

0.04

6

1.75

1.74

VU_23_DD_001

36.4

37.4

1

4.34

0.08

0.32

23.8

4.46

4.43

VU_23_DD_001

37.4

38.4

1

1.07

0.02

0.07

5.3

1.09

1.08

VU_23_DD_001

38.4

39.4

1

2.54

0.02

0.18

10.6

2.60

2.58

VU_23_DD_001

39.4

40.4

1

1.41

0.01

0.08

4.9

1.43

1.42

VU_23_DD_001

41.4

42.4

1

0.45

0.00

0.02

1.5

0.45

0.45

VU_23_DD_001

48.9

49.7

0.8

1.50

0.00

0.02

4.2

1.50

1.50

VU_23_DD_001

52.7

54.2

1.5

0.72

0.00

0.02

2.6

0.73

0.73

VU_23_DD_001

56.4

56.9

0.5

0.77

0.00

0.02

1.8

0.78

0.78

VU_23_DD_001

56.9

57.6

0.7

0.61

0.00

0.02

2

0.62

0.62

VU_23_DD_001

57.6

58.6

1

2.35

0.00

0.04

7.8

2.36

2.36

VU_23_DD_001

58.6

59.6

1

0.75

0.00

0.04

2.9

0.76

0.75

VU_23_DD_001

59.6

60.6

1

0.98

0.01

0.04

4.6

0.99

0.99

VU_23_DD_001

60.6

61.6

1

0.63

0.02

0.11

4.2

0.67

0.66

VU_23_DD_001

61.6

62.6

1

0.93

0.01

0.12

6.6

0.97

0.96

VU_23_DD_001

64.6

65.6

1

0.36

0.00

0.25

1.7

0.43

0.41

VU_23_DD_001

65.6

67.6

2

0.66

0.00

0.03

1.6

0.67

0.67

VU_23_DD_001

68.6

69.1

0.5

2.13

0.00

0.07

7.9

2.15

2.15

VU_23_DD_001

88.3

88.9

0.6

2.50

0.01

0.05

6.5

2.52

2.51

VU_23_DD_001

88.9

89.5

0.6

2.39

0.00

0.03

5.8

2.40

2.40

VU_23_DD_002

105.1

106

0.9

0.42

0.00

0.01

0.9

0.42

0.42

VU_23_DD_002

162.7

163.7

1

0.45

0.00

0.02

2.5

0.45

0.45

VU_23_DD_002

163.7

164.7

1

1.15

0.00

0.04

4.8

1.16

1.16

VU_23_DD_002

166.7

167.4

0.7

1.67

0.01

0.12

9.4

1.71

1.69

VU_23_DD_002

171

172

1

0.42

0.00

0.02

1.6

0.43

0.43

VU_23_DD_002

172

173

1

0.30

0.00

6.60

2.7

2.30

1.70

VU_23_DD_002

173

174

1

0.25

0.00

6.17

3.7

2.13

1.57

VU_23_DD_002

174

175

1

1.80

0.00

3.14

7.1

2.75

2.46

VU_23_DD_002

175

175.7

0.7

0.67

0.00

0.04

2.3

0.69

0.68

VU_23_DD_002

176.4

176.9

0.5

1.02

0.00

2.16

10.7

1.67

1.48

VU_23_DD_002

176.9

177.5

0.6

1.73

0.00

3.27

16

2.73

2.43

VU_23_DD_002

177.5

178.1

0.6

0.63

0.02

2.48

20.1

1.39

1.16

VU_23_DD_002

178.1

178.7

0.6

0.44

0.00

1.64

9.3

0.94

0.79

VU_23_DD_002

178.7

179.5

0.8

0.50

0.01

1.98

14.8

1.11

0.92

VU_23_DD_002

179.5

180.1

0.6

0.35

0.00

0.29

6.4

0.44

0.41

VU_23_DD_002

180.1

180.6

0.5

1.65

0.00

1.67

19.6

2.16

2.00

VU_23_DD_002

180.6

181.2

0.6

3.07

0.01

3.98

33.9

4.28

3.92

VU_23_DD_002

181.2

181.8

0.6

1.01

0.00

0.11

4

1.05

1.03

VU_23_DD_002

181.8

182.8

1

0.87

0.00

0.02

1.4

0.88

0.88

VU_23_DD_002

186.8

187.8

1

2.07

0.00

0.39

3.1

2.19

2.15

VU_23_DD_002

187.8

188.4

0.6

3.93

0.00

3.47

10.2

4.99

4.67

VU_23_DD_002

188.4

189.2

0.8

1.68

0.00

1.44

5.9

2.11

1.98

VU_23_DD_002

189.2

189.7

0.5

1.04

0.00

6.19

8.2

2.92

2.35

VU_23_DD_002

189.7

190.2

0.5

0.25

0.00

4.79

2.2

1.71

1.27

VU_23_DD_002

190.2

190.8

0.6

2.69

0.00

5.78

9.5

4.45

3.92

VU_23_DD_002

191.8

192.3

0.5

0.89

0.00

1.57

5.8

1.36

1.22

VU_23_DD_002

192.3

193

0.7

0.45

0.00

3.06

4

1.39

1.11

VU_23_DD_002

193

193.8

0.8

0.65

0.00

4.12

7.1

1.90

1.52

VU_23_DD_002

193.8

194.4

0.6

0.14

0.00

4.44

1.6

1.49

1.08

VU_23_DD_002

194.4

195.1

0.7

1.17

0.00

2.41

4

1.90

1.68

VU_23_DD_002

195.1

196.1

1

0.79

0.00

0.53

1.7

0.95

0.90

VU_23_DD_002

196.1

197.1

1

0.59

0.00

0.75

1

0.82

0.75

VU_23_DD_002

250.6

251.3

0.7

0.69

0.00

5.13

4.6

2.25

1.78

VU_23_DD_002

251.3

251.9

0.6

0.39

0.00

5.60

4.8

2.10

1.58

VU_23_DD_003

74

74.8

0.8

3.28

0.01

0.04

8.4

3.29

3.29

VU_23_DD_003

75.4

76.4

1

3.13

0.00

0.07

8.1

3.15

3.15

VU_23_DD_003

77.9

78.7

0.8

0.56

0.00

0.02

1.7

0.57

0.56

VU_23_DD_003

81.6

82.6

1

0.91

0.00

0.04

5

0.92

0.91

VU_23_DD_003

89.2

90.2

1

0.49

0.00

0.04

2.6

0.50

0.50

VU_23_DD_003

101.4

102.4

1

1.86

0.00

0.03

4.2

1.87

1.87

VU_23_DD_003

102.4

103.4

1

0.91

0.00

0.02

2

0.91

0.91

VU_23_DD_003

103.4

104.4

1

0.79

0.00

0.02

1.8

0.79

0.79

VU_23_DD_003

105.4

106.4

1

0.41

0.00

0.02

0.5

0.42

0.42

VU_23_DD_003

113.8

114.8

1

0.81

0.00

0.03

3.2

0.82

0.82

VU_23_DD_003

114.8

115.8

1

0.61

0.00

0.04

2.7

0.62

0.61

VU_23_DD_003

115.8

116.8

1

0.22

0.00

1.38

1.7

0.64

0.51

VU_23_DD_003

116.8

117.4

0.6

0.34

0.00

1.71

1.7

0.85

0.70

VU_23_DD_003

129.9

130.6

0.7

2.17

0.00

0.03

3.6

2.18

2.18

VU_23_DD_003

160.8

161.6

0.8

4.99

0.00

2.80

16.7

5.84

5.59

VU_23_DD_004

52.2

52.7

0.5

0.77

0.00

0.02

2.2

0.77

0.77

VU_23_DD_004

55.8

56.8

1

1.17

0.00

0.05

3.4

1.19

1.18

VU_23_DD_004

56.8

57.8

1

1.11

0.00

0.03

2.4

1.12

1.12

VU_23_DD_004

57.8

58.8

1

2.12

0.00

0.05

6.5

2.14

2.13

VU_23_DD_004

59.5

60.2

0.7

1.23

0.00

0.05

3.9

1.25

1.24

VU_23_DD_004

62

62.5

0.5

2.70

0.00

0.04

8.7

2.71

2.71

VU_23_DD_004

64.5

65.5

1

0.65

0.00

0.04

3.2

0.66

0.66

VU_23_DD_004

65.5

66.5

1

0.48

0.00

0.40

2.5

0.60

0.56

VU_23_DD_004

70.5

71.5

1

0.56

0.00

0.49

2.7

0.71

0.66

VU_23_DD_004

74.5

75.5

1

0.18

0.00

1.26

1.5

0.56

0.44

VU_23_DD_004

75.5

76.5

1

0.47

0.00

0.03

1.7

0.48

0.47

VU_23_DD_004

77.5

78.5

1

0.69

0.00

0.13

3

0.73

0.72

VU_23_DD_004

83.5

84

0.5

0.47

0.00

0.03

1.3

0.47

0.47

VU_23_DD_004

85.3

85.8

0.5

0.47

0.00

0.03

1.2

0.48

0.48

VU_23_DD_004

96.9

98.4

1.5

0.45

0.00

0.07

1.2

0.48

0.47

VU_23_DD_005

66.6

67.1

0.5

0.85

0.00

0.01

2.2

0.85

0.85

VU_23_DD_005

76.5

77

0.5

0.68

0.00

0.03

3.1

0.69

0.69

VU_23_DD_005

88.5

89.2

0.7

0.84

0.00

0.02

3.4

0.84

0.84

VU_23_DD_005

114.4

115

0.6

0.96

0.00

0.03

20.1

0.97

0.97

VU_23_DD_005

136.2

137.2

1

0.41

0.00

0.02

1.1

0.41

0.41

VU_23_DD_005

137.2

138

0.8

0.58

0.00

0.02

1.2

0.59

0.59

VU_23_DD_005

147.9

148.4

0.5

1.01

0.00

0.04

1.8

1.02

1.01

VU_23_DD_005

225.7

226.7

1

0.40

0.00

0.01

1.4

0.40

0.40

VU_23_DD_005

228.5

229.5

1

0.66

0.00

0.01

1.8

0.67

0.66

VU_23_DD_005

230.2

230.8

0.6

0.60

0.00

0.02

1.4

0.60

0.60

VU_23_DD_005

230.8

231.8

1

1.07

0.00

0.03

3.5

1.08

1.08

VU_23_DD_005

232.8

233.7

0.9

0.88

0.00

1.83

3.3

1.44

1.27

VU_23_DD_005

276.2

276.7

0.5

0.58

0.00

0.02

1.3

0.59

0.59

VU_23_DD_005

278.6

279.1

0.5

0.82

0.00

0.01

2.5

0.83

0.82

VU_23_DD_005

280.3

280.8

0.5

0.63

0.00

0.02

1

0.64

0.64

VU_23_DD_005

290.8

291.4

0.6

0.65

0.00

0.02

1.7

0.66

0.66

 

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