Operational Update

RNS Number : 2265H

Eastinco Mining and Exploration PLC

05 April 2022

 

5 April 2022

Eastinco Mining and Exploration plc

("Eastinco" or the "Company")

Operational Update, Rwanda

Eastinco Mining and Exploration plc (AQUIS: EM.P), the exploration and development company developing its portfolio of African focused critical and strategic metal assets, announces an operational update on its tantalum-tin projects in Rwanda.

Highlights:

· 16 new pegmatite zones discovered during the geochemical soil sampling on the HCK joint venture in southern Rwanda.

· A total of 18 pegmatite zones now identified on this project, supporting the previous evidence from artisanal mining activity indicating the presence of extensive tantalum-niobium mineralisation.

· Prospecting on the HCK-1 target confirms pegmatite zone striking over 1,500m, with widths up to 100m in places. Work is continuing on the licence.  

· Environmental Management Plan completed over the HCK joint venture licence.

· Musasa plant modifications implemented focusing on recycling material through the plant for improved recoveries and reducing power and water requirements.

· Surface geological exploration is underway at Musasa to provide additional plant feed material.

· International Tin Supply Chain Initiative ("ITSCI") membership application submitted.

Charles Bray, Chairman of Eastinco, stated:

"I am pleased to provide this operational update on the projects in Rwanda and report that we have geological fieldwork underway at both the Musasa Mine and the southern joint ventures. Early observations from the completed work are encouraging. The extensive occurrence of potential tantalum-niobium bearing pegmatite zones across the HCK licence is very positive. We will now seek to establish an operating hub in the area to service the two joint ventures we have in the south.

"Joining ITSCI will help us demonstrate that we are part of a responsible mineral supply chain, and also to implement our plans to establish a metal trading operation, and hence a second revenue stream. This will supplement revenue from production at the Musasa Mine, which we expect to come fully online shortly.

"I look forward to updating our shareholders as we continue our work in Rwanda, building a vertically integrated operation. This will bring added value to the Company and our shareholders, as well as  enabling us to ensure our operations deliver tangible benefits to our local communities."

Exploration Progress Update, HCK Joint Venture

General Prospecting

The geochemical soil sampling programme is now complete, with sample results pending. Of importance is the discovery of multiple new pegmatite zones identified during this exercise. When entering the joint venture, we knew of two occurrences or zones referred to as HCK-1 and HCK-2. We have now identified a further 16 zones of pegmatite, bringing the total to 18 locations on the project that require further assessment and evaluation. Two further discoveries were made that potentially indicate the strike extension to the northwest and southeast of the main HCK-1 target.

The importance of these discoveries is that, in Rwanda, pegmatite dykes are the primary host rock for the Tantalum-Niobium mineralisation.

HCK-1 Exploration

The Company is currently conducting a shallow exploration pitting programme along the strike of the HCK-1 pegmatite zone. The pits are excavated along sections, spaced approximately 100m apart, orientated perpendicular to the general strike trend of HCK-1, and separated roughly 50m along the section lines. To date, we have completed 40 shallow pits for a total of 238.30m, focusing on the southeast extension. Of those completed, 23 pits intersected pegmatite, 10 failed to hit pegmatite, and 7 pits encountered ground too resistant to manually excavate.

Earlier reconnaissance of HCK-1 had estimated the strike length to be c. 650m. The current work indicates that the pegmatite zone continues for at least 1,500m. Although additional infill work is required, the width of the zone in places is more than 100m.

The Company will continue to operate on the HCK-1 target to further resolve the overall geometry and scale of this mineralised system, with the field team progressing the programme on the northwest extension.

Environmental Management Plan

The Company commissioned a local, Rwandan government registered, environmental consultancy to undertake an Environmental Management Plan (EMP) over the licence area. Although not a government requirement for an exploration project, the Company undertook the survey to outline the baseline conditions over the area, including the outcomes resulting from previous artisanal operations.

Musasa Mining

Wash Plant

Based on the recommendation of our on-site processing consultants, Quiver Limited, we have made several significant changes to the plant. More recently, the removal of the duplex jig circuit, with material now screened after the trommel to sub 1mm in size for processing through the hydrocyclone, separation spirals and shaking tables. Material coarser than 1mm is fed into the cone crusher on a continuous feed circuit to reduce the material to sub 1mm. An outcome of these modifications is an estimated reduction in power demand by 15% and water by 45% (these numbers may vary slightly as commissioning proceeds). The material flow circuit around the 16 shaking tables has been re-routed to ensure the product is recycled to maximise recovery.

Six additional slurry pumps were imported and installed to ensure better material flow and, more importantly, the recycling of washed material, particularly the tailings, to allow for multiple passes through the separation process and better overall recoveries. Work was completed to improve the quality of the process wash water, which previously had a high clay content, with the installation of 2 Up-Current Classifiers. The clay-rich water has the effect of stripping out and robbing the ultra-fine mineralisation, resulting in metal losses.

Quiver is providing a Plant Manager, based on site to control and manage the daily operations and a metallurgical consultant to develop short- and long-term process improvements and associated plant upgrade strategies to increase and optimise plant production, with additional material testing and analysis at approved laboratories.

Kassava Exploration

In March, we commenced surface exploration over the Kassava Prospect, one of the five currently identified areas of mineralisation known on the project. The Kassava Prospect is located only 300m south of the wash plant and is a northwest to southeast trending, rare-metal hosting pegmatite dyke, occurring along a ridge, which was initially estimated to be c.450m in strike length, with widths up to 30m exposed in an artisanal working.

Shallow vertical pits are being manually excavated to define the margins of the main pegmatite dyke, with 39 pits for a total of 193.90m having been completed to date. Of these 23 intersected the host pegmatite with approximately 50kg of sample collected from each of these pits. A 3kg sub-sample is being prepared for shipping to an external laboratory. From the completed work the Kassava pegmatite is interpreted to be lens-shaped with a maximum width of 80m, with pits covering a strike length of 250m. The geological team has identified several positive geological indicators, such as very coarse-grained muscovite, in addition to outcropping pegmatite, covering a distance of c. 500m to the east of Kassava.

CSR

The Company continues to work with an NGO in Rwanda for the installation and maintenance of solar-powered water filtration units that are placed in schools around the country to provide a source of clean potable water. There are currently 23 operational units in-country, and we expect to soon have a new unit installed at a school located on the HCK JV licence.

ITSCI

The Company is pleased to announce that it has initiated the membership application process to join ITSCI (International Tin Supply Chain Initiative). ITSCI monitors supply chains to allow metal users to demonstrate they source responsibly with the ITSCI principles guided by the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas (2016). The process of membership approval is expected to take between 2 and 3 months. Thereafter we intend to activate our government-issued metal Trading Licence in Rwanda, which will allow us to legally purchase metal from third parties and sell, together with our own production, either to Kigali based metal buyers or directly internationally. Tantalum prices in Kigali are currently more than $180,000 per tonne. The strong pricing for tantalum bodes well for both mining and trading operational revenues.

This announcement contains information which, prior to its disclosure, was inside information as stipulated under Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310 (as amended).

The Directors take responsibility for this announcement.

Enquiries:

For further information, please visit the Company's website www.eastinco.com or contact:

Eastinco Mining & Exploration Plc:

Charles Bray, Executive Chairman - [e-mail]

Simon Rollason, Director - [e-mail]

AQSE Growth Market Corporate Adviser:

Novum Securities Limited

David Coffman / Lucy Bowden

Tel: [phone]

Financial PR:
Yellow Jersey PR - [e-mail]
Tom Randell / Henry Wilkinson / Laurie Gellhorn
Tel: [phone]

Notes to Editors:

About Eastinco Mining and Exploration plc

www.eastinco.com  

Eastinco Mining and Exploration plc is an exploration and development company developing its portfolio of African focused critical and strategic metal assets, listed on the AQUIS Market in London.

We are actively seeking to acquire and develop new critical and strategic metal resources to strengthen our existing asset base, whilst supporting ethical and sustainable supply chains. The supply of these metals is vital for the development of the renewable energy, automotive and electronic manufacturing sectors that are playing an increasing role in reducing carbon emissions and meeting climate ambitions globally.

In 2019, we acquired Eastinco Limited, our Rwandan based subsidiary exploration, development, and trading company. We currently have three joint ventures in Rwanda where we are exploring for and developing small-scale tantalum-niobium-tin mining operations.

 

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