Dempster Vanadium Project Expansion

RNS Number : 9053N

Corcel PLC

07 June 2022

 

Corcel PLC

("Corcel" or the "Company")

Dempster Vanadium Project Expansion

7 June 2022

Corcel, the natural resource exploration and development company with interests in battery metals and flexible energy generation and storage, is pleased to announce that the Company has now, subject to minority investor approval, expanded the focus of the Dempster Vanadium project, in which the Company has a 50 percent interest, to include a review of the nickel potential in addition to the existing vanadium targets and provides an update following the results of an external report on the project.   

Highlights:

o  Results of a Corcel commissioned CSA Global review of the project confirm potential to pursue nickel targets  

o  Historic Corcel efforts have focused on vanadium exploration largely ignoring the nickel potential of the tenements

o  Potential may exist for the NiMo horizon as either a stand-alone development or a by-product for the vanadium focused Canol Formation

o  Project broadening undertaken in light of extended high global nickel prices and issues around security of nickel supply and Russian exports

Nickel Expansion Details:

While an initial focus by previous owners, historically limited work has been done on nickel on the area covered by the Dempster project, and more recently the focus of efforts there have been the vanadium potential.  Following the conclusion of a recent external desktop study conducted by consultants CSA Global, and a larger review of the project, the Company has formally decided to broaden the focus of the project to include both vanadium and the confirmed NiMo (nickel/molybdenum metal bearing, organic-rich black shales with PGMs) horizon that extends across the property.

Historic drilling at Dempster in 2007 confirmed an extensive NiMo layer throughout the property.  The limited drilling conducted did not specifically target areas where the NiMo layer might be expected to thicken, such as structurally complex zones, fold hinges or dome fringes, instead focusing on a nickel sulphide horizon that outcrops further south at the contact between the Canol and Road River formations.  Corcel has already identified a fold hinge in the project's north as one such target. Application of geophysical techniques and structural analysis should aid further target generation in these areas.

The historic results from Dempster's NiMo horizon suggest relatively small zones of NiMo horizon thickening may either prove to be independently economic, or at could be expected to add by-product credits to any production operations built at the project. 

Rich NiMo deposits of small areal extent are known at Minas Ragra, Peru and at the Huangjiawan mine, Guanzhou province, China. High grade NiMo layers have been reported in other Yukon projects such as Pe, Rich, Deer, El and Nick. Nickel has been mined from NiMo horizons within vanadium bearing formations in Songlin, Zunyi, Dayong, Guizhou and Hunan provinces, China.  More broadly, the Talvivaara mine in Finland, demonstrates an example of a similar head grade nickel deposit hosted in black shales, and offers a method of processing that could be applied locally with relatively low capital expenditure.  

The Company believes that this project expansion is appropriate due to nickel's increased recognition as a key battery metal that is essential to creating the lithium-ion battery density demanded by buyers of EVs as well as grid level energy storage installations.  This renewed focus on nickel can be seen in recent nickel prices movements as well as an ongoing race to secure nickel supplies by end users such as Tesla, Inc.  This expanded effort fits well with the Company's existing battery metals led strategy and should ultimately make the Dempster project more valuable and more likely to be progressed to an operating mine in the Yukon. 

Vanadium Workplan:

The project review also suggested a series of next steps as regards vanadium targets outlined below:  

  -Define mineable limits - focus on waterway avoidance

  -Inferred drilling resource definition - with a potential initial program of 5-20km of 400 x 400 spacing  

  -Explore bi-metals that might life project economics

  -Examine remote exploration options for zones of significant thickening

  -Provide material through drilling for metallurgical testwork

  -Explore additional tenement additions in the area

The Company intends to discuss the results and conclusions of its recent studies with its project investors and partners, and following these meetings will update the markets on its future plans in due course. 

For further information, please contact:

Scott Kaintz  020 7747 9960                                                       Corcel Plc CEO 

James Joyce / Andrew de Andrade 0207 220 1666   WH Ireland Ltd NOMAD & Broker

Simon Woods  0207 3900 230        Vigo Communications IR 

The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

 

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