Trading Update & Delay in Publication of Results

RNS Number : 7166D

Eastinco Mining and Exploration PLC

30 June 2021

 

Eastinco Mining and Exploration plc

("Eastinco" or the "Company" or "EME")

Trading Update and Delay in Publication of Results

Eastinco Mining and Exploration plc ("EME" or the "Company") is pleased to announce its trading statement for the quarter ended 30 June 2021.

Musasa JV

A Consulting Processing Engineer from Quiver Ltd ("Quiver"), a South African-based mineral processing consultancy, was on-site in May, resulting in several process flow changes and modification recommendations. As a consequence, we have secured, with delivery pending, additional slurry pumps for the recycling of material for improved recovery rates. The Company has taken the decision not to process any additional material until the new system configuration is completed. Additionally, we have installed an up-current classifier (UCC) below the hydro-cyclone to reduce the amount of clay in the process system.

Laboratory results were received from another sample batch sent to the University of Ljubljana in Slovenia. This gave additional information on the plant feed grade from the open cut at Rich Back (averaging 192 ppm Ta, 117 ppm Sn from 10 samples) and the grain size distribution of the tantalum-bearing minerals. The batch included a set of samples collected at various locations around the wash plant to provide baseline sample data before the next Quiver site visit. 

The Company has made several modifications to the supply water flow, installing a diversion canal around the river dam and pump station to prevent ingress of sediment, which both reduces the process water quality and the capacity of the dam. A wastewater recycling system for this additional water demand has been installed so that no additional water consumption from the dam is required.

Towards the end of the reporting period the Company engaged Dr Benedikt Steiner (CGeol, EurGeol) of UK-based mineral exploration consultancy, Xplore Global Ltd, to undertake a review of the existing assets under Joint Venture and also the new Joint Venture which has been agreed in the South of Rwanda. Dr Steiner has worked for several years on LCT pegmatites, particularly in Rwanda, and the Musasa site visit confirmed sufficient evidence for a mineralised (coltan) pegmatite swarm present on the property, comprising at least five separate pegmatite zones or occurrences with significant extension and therefore anticipated tonnage, once conformational exploration work is completed. 

At the beginning of May an application was submitted to the Rwanda Mines, Petroleum and Gas Board (RMB) for the conversion of the existing small scale mining licence, held by our Joint Venture partner, the Cooperative Kuaka, to a large scale mining licence to be issued in the name of the Joint Venture Company, Musasa Mining Limited. Musasa is held 85% by Eastinco Limited, a 100% owned subsidiary of the Company, and 15% held by the Cooperative Kuaka.

New Joint Venture in Southern Rwanda

In June the Company announced it had signed a new Joint Venture Agreement to explore and develop mineral opportunities over an area covering 2,750 hectares in southern Rwanda.

The licence hosts at least two identified outcropping mineralised occurrences available for immediate geological evaluation. The main occurrence represents an approximately 30m wide, partially artisanally-mined, and kaolinised pegmatite that strikes along an entire NW-SE trending ridgeline with a minimum extension of 650m. Additional extensions of at least 150m to the NW of the ridgeline have been confirmed during a due diligence site visit with an independent geologist.

A second occurrence is an E-W trending, 5-10m wide pegmatite which is currently less well understood, occurring in a structurally complex setting. However, an existing exploration trench at this occurrence, together with artisanal workings proves sufficient upside exploration potential exists, particularly considering possible extensions (artisanal workings) to the NE.

The known pegmatites form an encouraging exploration target with considerable upside exploration potential if the tantalum grade distribution along the strike and depth extensions can be proven. If so, then the Company's landholding in the Huye District will comprise a significant new pegmatite field in Rwanda. Further prospecting is planned over the entire licence area to potentially identify additional mineralised targets.

CSR

The Company is assisting the Impala Foundation in Rwanda with the installation of Naiade Water Purification Units, and by providing ongoing maintenance support. Currently, there are 65 of these solar-powered purification units installed, which provide clean, bacteria-free drinking water to an estimated 26,000 school children and their teaching staff.

The Company presently has available cash and cash equivalents of approximately $300,000. 

Charles Bray, Chairman commented: "We have made some positive gains during the quarter even with COVID restrictions slowing our progress. I am particularly pleased to report on the new JV that has been concluded in the South of Rwanda. We now have a solid portfolio of assets with strong potential for economic discovery of these important and valuable critical metals. The site visit by the Quiver processing expert was invaluable and the changes we are making will provide a solid platform to ultimately commence commercial production. I look forward to having the consultants back on-site to assist us further with our processing and production goals. As a Group, we will continue to seek to broaden our exposure to critical minerals to reap the corresponding positive benefits to all stakeholders."

The Company also announces there will be a delay in the publication of the Company's audited financial results for the year ended 31 December 2020 as a result of the auditors of the Company's subsidiary in Rwanda, Eastinco Limited, requiring additional time to complete its audit work due to Covid-19 related challenges and resource availability. The directors are working closely with the auditors to ensure that the results are finalised and released as soon as possible during July.

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 of Eastinco Mining and Exploration plc accept responsibility for this announcement.

Enquiries:

For further information, please visit http://www.eastinco.com/ or contact:

Eastinco Mining & Exploration Plc:

Charles Bray, Executive Chairman - [e-mail]

AQSE Growth Market Corporate Adviser:

Novum Securities Limited

David Coffman / Lucy Bowden

Tel: [phone]

 

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