Last checked at 18 Jun 2018 13:01
18 June 2018
Connemara Mining Company plc
("Connemara" or the "Company")
First new hole at Stonepark intersects 32.2% combined Zinc and Lead over 5.4m
Connemara Mining Company plc (LON: CON), the Irish gold and zinc exploration company, is pleased to announce results from hole G11-2638-01 at the Stonepark Zinc Project ("Stonepark"). This hole was drilled into a key area of known high-grade mineralisation on the presumed eastern edge of the recently announced maiden Inferred Mineral Resource Estimate (RNS dated 17 April 2018). Connemara's joint venture partner, Group Eleven Resources Corp. ("Group Eleven"), is the project operator.
Highlights:
· G11-2638-01 intersected 5.40m of 25.0% zinc and 7.2% lead (32.2% Zn+Pb combined) and 12.2 g/t silver (true width is estimated at 4.9m), verifying one of the high-grade zones within the Stonepark Resource;
· Robust mineralisation interpreted to be open eastwards toward Glencore's neighbouring Pallas Green deposit1.
Patrick Cullen, Chief Executive Officer of Connemara, commented: "We are very pleased with these grades from the first new hole at Stonepark since 2012 and with progress following on from the recent announcement of a maiden Resource. The results underline the high grade nature of the deposit.
"The decision to drill inclined holes has yielded immediate results by giving better structural information. This has opened the deposit eastwards, presenting opportunity to increase the Resource towards Glencore's Pallas Green deposit.
"The strategic value of the location of Stonepark should not be overlooked, it lies adjacent to Pallas Green. These deposits are Ireland's two largest undeveloped zinc-lead Resources by metal contained."
Stonepark Zinc Project
The Stonepark Zinc Project is a joint venture between Connemara (23.44% interest) and Group Eleven (76.56% interest). The NI43-101 independent report on Stonepark has been uploaded to SEDAR by partner Group Eleven and a copy of this report is available on the Connemara website.
A maiden Inferred Mineral Resource at Stonepark (which has been updated) totaling 5.1 million tonnes at 11.3% Zn+Pb combined (8.7% Zn and 2.6% Pb)2.
Glencore's nearby Pallas Green deposit contains 44.2 million tonnes of 7.2% Zn + 1.2% Pb (8.4% combined) in the Inferred Category (Glencore Resources & Reserves, 31 December 2017). Based on the above disclosures, the Stonepark deposit is shallower and higher-grade than the Pallas Green deposit.
Further Details
The re-evaluation of interpretations supporting the recent Resource estimate at the Stonepark project demonstrated that near-vertical faults had been historically used to define the boundaries of mineralisation. The presence of these faults, however, was never adequately tested, reflecting the fact most drilling at Stonepark was vertical.
Angled hole G11-2638-01 was drilled to test one of these faults previously thought to truncate the eastern side of high-grade mineralisation and separate Stonepark from Glencore's adjoining Pallas Green property located approximately 1km to the east. The hole first verified a lobe of the Inferred Resource envelope (described above), then continued to the east but never encountered the postulated fault. This suggests Stonepark mineralisation is indeed open to the east towards the Pallas Green deposit, increasing the prospectivity of Stonepark and highlighting its importance in the larger regional system.
Hole G11-2638-01 was diamond drilled to a depth of 456m with an azimuth of 065° and dip of -65°. Core was oriented using a Reflex Act II tool. This hole intersected mineralisation close to an historic hole3 hosting similar thickness and grade.
Exhibit 1. Results from hole G11-2638-01 at Stonepark Project, Ireland
From | To | Interval | Zinc | Lead | Zinc+Lead | Silver |
(m) | (m) | (m) | (%) | (%) | (%) | (g/t) |
234.05 | 239.45 | 5.40 | 24.97 | 7.20 | 32.17 | 12.22 |
Source: Group Eleven Resources Corp. Note: This intercept is not true width but estimated to be about 90%, assuming mineralisation is sub-horizontal as per the Inferred Mineral Resource Estimate dated 26 April 2018.
A second zone of much weaker sulphide mineralisation (approximately 8.75m in down-hole thickness) was intersected 18.7m below the main intercept described above. Assays are expected over the next 1-2 weeks. This second zone is another indication that drilling is still very much within the mineralising system.
Quality Assurance / Quality Control (QA/QC)
Drill-core samples were prepared and assayed in the ALS Minerals' OMAC Laboratory in Loughrea, Ireland. Samples were fine-crushed (CRU-31) to 70% < 2mm and pulverized and riffle-split to 85% < 75 µm. Zinc, lead and silver assays were obtained by multi-acid (4-acid) digestion/ICP-AES Package (48 Elements). Ore grade samples were analyzed by code MS61 multi-element and OG62 standard ore-grade. Two samples assaying greater than 30% zinc were analyzed under code OG62h. Analytical accuracy and precision are monitored by the submission of a blank and a standard inserted into the sample train of 17 samples by Group Eleven personnel. No duplicate samples were sent to the lab. ALS inserted four standards, one blank and ran two pulp duplicates for MS61 and OG-62 and three standards, one blank and one pulp duplicate for OG62h.
This announcement has been reviewed and approved by Gavin Berkenheger (CGeol) in his capacity as the Qualified Person for the purposes of the AIM Guidance Note for Mining, Oil and Gas Companies issued by the London Stock Exchange.
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.
Information for Editors:
Connemara is a diversified exploration company with principal assets in gold and zinc exploration licences across Ireland. Connemara currently holds interests in a total of 39 licences, including joint ventures with Teck at the Oldcastle Zinc Project and with Group Eleven Resources Corp at the Stonepark Zinc Project.
Further information can be sourced from the Company website: www.connemaramc.com
ENDS
Enquiries:
Connemara Mining Company Plc | ||
John Teeling, Chairman | +353 (0) 1 833 2833 | |
Patrick Cullen, CEO | +353 (0) 87 272 1748 +44 (0) 755 237 8208 | |
Northland Capital Partners Limited | ||
Matthew Johnson / Edward Hutton | +44 (0) 203 861 6625 | |
John Howes | ||
First Equity Limited | ||
Jason Robertson | +44 (0) 207 374 2212 | |
Blytheweigh | +44 (0) 207 138 3204 | |
Nick Elwes | +44 (0) 783 185 1855 | |
Simon Woods | +44 (0) 781 784 1793 | |
Teneo PSG | ||
Luke Hogg | +353 (0) 1 661 4055 | |
Alan Tyrrell | +353 (0) 1 661 4055 |
[1] 44.2 million tonnes of 7.2% Zn+ 1.2% Pb in the Inferred Category (Glencore; 31 December 2017)
2 Connemara's RNS news release dated April 17, 2018 relied on CSA Global's original Mineral Resource Estimate of 5.3Mt @ 8.55% Zn + 2.60% Pb (11.15% combined). This estimate has since been updated to 5.1mt @ 8.7% Zn+ 2.6% Pb (11.3% combined), reflecting an adjustment to the calculation of cut-off grade. In the opinion of CSA Global, the adjustment did not make a material difference to figures quoted. Note, contained metal before and after the adjustment remains at 1.3 billion lbs Zn+Pb.
3 G11-2638-01 was collared 98m from historic hole TC-2638-045 (vertical) which intersected an interpreted true width of 7.45m of 19.2% Zn, 8.5% Pb (27.8% combined) and 6.6 g/t Ag, starting at a depth of 209.1m. Group Eleven estimates the mineralized intercept in G11-2638-01 is 10-20m away from the intercept in hole TC-2638-045.