Rock Chip Results, Rudny Altai, Kazakhstan

RNS Number : 6561X

East Star Resources PLC

31 August 2022

 

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.

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31 August 2022

East Star Resources Plc

("East Star" or the "Company")

Rock Chip Results, Rudny Altai, Kazakhstan

East Star Resources Plc (LSE:EST), the Kazakhstan-focused gold, rare earths and copper explorer, is pleased to announce the results of analysis of rock chips collected across the Company's five volcanogenic massive sulphide (VMS) Rudny Altai belt licences from geological reconnaissance conducted in June 2022 .

Highlights:

· Exceptionally high grades of 17.3% Cu, >10% Pb, 0.4% Zn, 0.37g/t Au and 121.5g/t Ag in rock chips from Talovskaya - an historic mine which operated in 1775, 1782-1783 and 1892-1896

· 4.8% Cu and 29.2 g/t Ag in rock chips from Verkhubinskoye - a deposit which reported non-compliant resources with contained metals of 136,500 t Cu, 24,810t Pb and 173,500 t Zn

· 0.82% Cu, 1.35% Pb and 5.7 g/t Ag in rock chips from Rulyevskoye - an historic gold mine with quartz vein and tourmaline-quartz vein mineralisation which operated in 1938-1940

Alex Walker, East Star CEO, commented:

"Our rock chip analyses verify and provide additional geological context to historical data, confirming the rich nature of these targets. The Talovskaya target for example was originally mined in 1775 with the last mining taking place in 1896 and the last exploration in 1992. The rock chips collected equate to more than 22% CuEq and although it's difficult to know what remains at this target, it is similar to the historical run-of-mine grade and is a further indication of its potential to host un-depleted ore bodies.

The sheer number of now verified targets confirm what we have been hoping to deliver to East Star shareholders: significant optionality on a number of potential company-making discoveries.

We intend to conduct further work focussed on the highest ranked targets in September. We have ordered additional historical reports and continue to process the electromagnetic data for final targeting before drilling, expected to be in H1 2023."

Figure 1 Selected rock chip results in purple showing mineralisation in a number of potential exploration areas

Sample Types and Locations

In June 2022, the Company's geological team conducted reconnaissance visits to historical mines and occurrences within the Company's five licences on the Rudny Altai belt. Rock chip samples were taken and analysed by ICP-MS (see table 1). Samples were collected from surface with specific sampling strategies determined by the nature and extent of outcrop, with some mineralised targets showing poor outcrop.

Amongst many anomalous results, very high base metal concentrations were recorded in samples from Talovskaya and Verkhubinskoe. These targets will be prioritised for further follow-up based on electromagnetic data and geological mapping to eventually produce drill targets.

Table 1: Highlights from June 2022 reconnaissance mapping and rock chip sampling on East Star's licences in Rudny Altai and ICP-MS assay data

Name	Description based on historical report and site visit	Sample Description	Cu	Pb	Zn	Au	Ag
			%	%	%	g/t	g/t
Talovskaya	Found in 1775 as a group of small lenses of Cu-pyrite and Cu-Zn ores. It was mined in 1775, 1782-1783 and 1892-1896.	Basalt sill with malachite vugs and veinlets from a pit.	17.35	>10.0	0.4	0.37	121.5
Solonovskoye occurrence	Found in 1966. Zn is 0.05-3.3%, Cu is  0.05-3.76%, Pb is 0.05-1.14% in sedimentary rock and acid volcanics. There are 6 lenses (1-58m thick) up to 760m length.	Rhyodacitic tuff or granite porphyry with weak phyllic alteration and secondary pyrite and chalcopyrite alteration taken from outcrop.	0.04	0.16	0.10	<0.10	<1
Teplushinskoye occurrence	Found in 1955 in phyllic altered sedimentary rocks and acid volcanics along their contact. There are 2 zones: 1 zone is 10-14m thick with a strike length up to 80m. Zn is up to 5%, Cu is up to 15%, Pb is up to 0.1% (borehole 1); Second zone is 6m x 150m. Zn is up to 5%, Cu is up to 0.2%, Pb is up to 1%. There are many small zones 1-4m thick: Zn is up to 1.37%, Cu is  up to 1%, Pb is up to 0.57% (borehole 339)	Oxidised quartz-pyrite vein taken from subcrop.	0.14	0.08	0.12	0.34	16.1
Verkhubinskoye (Pb-Zn-Cu)	Found in 1949 (vein type) and 1988 (skarn type). Total length is up to 1,500m. There are all combinations of pyrite, chalcopyrite, galena and sphalerite. Historically described "Proved reserves" are 136,500t of Cu, 24,810t of Pb and 173,500t of Zn. Northern zone: Cu 2.5-17.5%; Pb 1.25-14.34%; Southern zone: Cu 0.2-1.8%; Pb 3.36%.	Tuffaceous siltstone and sandstone with brecciation and malachite veinlets taken from a mining shaft.	4.82	0.02	0.03	<0.10	29.2
		Tuffaceous siltstone and sandstone with pyrite-quartz veins and oxidation taken from an open pit.	0.16	0.04	0.0	<0.10	<1
Rulyevskoye occurrence 67	Quartz veins and tourmaline-quartz veins with gold. Mined in 1938-1940. Gold grade is less than that at Polevayevskoye.	Waste rock with quartz remnants.	0.01	0.01	0.0	<0.10	<1
		Quartz block with Fe oxides in a trench.	0.82	1.35	0.02	<0.10	5.7
		Sericite-quartz slates with quartz veinlets and schistosity in a pit.	0.01	0.01	0.0	<0.10	<1
Chudak	Found in 1862. A vein type of sulphide and quartz-sulphide ore body, located inside geological formation of massive sulphide ores. Disseminated sulphides have been redeposited and later enriched during intrusive and tectonic activity. All ore bodies are controlled by faults perpendicular to the strike of bedding. Zn is up to 2.92%. Cu is 1.55-14.61%. Pb is up to 0.33%. Au 0.5 g/t. Mining stopped in 1890.	Rhyodacitic lapilli tuff with strong phyllic alteration in outcrop.	0.02	0.01	0.05	<0.10	<1
		Rhyodacitic lapilli tuff with strong phyllic alteration in outcrop.	0.24	0.32	0.09	<0.10	1.8
Mineralisation point 33	Mineralisation is related to local epidote and limonite alterations in plagioclase porphyry. Zn is 0.12-0.32%.	Magnetite skarn with malachite veinlets taken from a trench.	0.02	0.07	0.85	<0.10	<1

Rudny Altai Region

East Star's VMS licences (the "Licences") are located in the Rudny Altai region of Eastern Kazakhstan. Administratively, the Licences are within the Shemonaikha district and are extraordinarily well connected to infrastructure. The regional centre of Ust-Kamenogorsk is located 45 km, and its international airport is located 35 km, southeast of the Licences. The railway connecting Ridder and Tomsk cities crosses the Licences from the south to the northwest with two railway stations located on the territory of the Licences. There is a network of dirt roads within the Licences that are suitable for driving all year round. A hard-surfaced road from Ust-Kamenogorsk to Shemonaikha crosses the western part of the Licences.  

The area is characterised by moderately hilly terrain with elevations ranging between 270m and 630m above the mean sea level.

The Rudny Altai region is one of the largest VMS provinces in the world, part of Central Asian Orogenic belt. According to a mineral map, published in the 1960s, the Licences contain more than 20 mineral occurrences (including Cu, Pb, Zn, Au, W) and a significant amount of soil and stream sediment anomalies.

Table 2: Summary of tonnages and grade for some of the known deposits around the Company's licences in Rudny Altai.

Name	(Mt)		Cu (%)	Pb (%)	Zn (%)	Au (g/t)	Ag (g/t)
Tishinskoye	60		0.5	0.9	5.3	0.9	15
Grekhovka	59		0.4	1.4	2.8	0.1	20
Novo-Leninogorsk	53.4		0.16	1.43	4.04	1.54	32.8
Artemyevsky	51.3		1.88	1.97	6.39	1.17	115
Maleevsky	50		2.3	1.3	7.5	0.75	75
Orlovskoye	48		4.7	0.9	3.2	0.8	47
Novo-Zolutushinskoye	48		4.7	0.9	3.2	0.8	47
Nikolayevskoye	40.3		2.4	0.43	3.24	1.13	48.3
Irtysky	30		2.16	0.71	5.12	0.37	82.1
Belousovskoye	30		1.1	1.15	4.74	0.38	51.3
Korbalikha	25		1.46	2.01	9.81
Dolinnoye	22		0.43	0.5	1	2.67	13.7
Kamyshinskoye	15		2.64	1.05	2.77
Rulikha	14.3		1.18	0.44	3.58	0.28	13.5

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

East Star Resources Plc

Alex Walker, Chief Executive Officer

Tel: [phone] (via Vigo Consulting)

Peterhouse Capital Limited (Corporate Broker and Placing Agent)

Duncan Vasey / Lucy Williams

Tel: [phone]

Vigo Consulting (Investor Relations)

Ben Simons / Tara Benniman / Peter Jacob

Tel: [phone]

About East Star Resources Plc

East Star Resources is focused on the discovery and development of gold, rare earth, and copper deposits in Kazakhstan. With an initial nine licences covering 1,687 sq km in three mineral rich districts, 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.

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The person who arranged for the release of this announcement was Alex Walker, CEO of the Company.

Competent Persons Statement

Information and data presented within this announcement has been compiled by Mr Azamat Bizhanov, a Member of the Australian Institute of Geoscientists ("MAIG"). Mr Bizhanov is the Exploration Manager for East Star Resources Plc and has sufficient experience, which is relevant to the style of mineralisation, deposit type and to the activity which he is undertaking to qualify as a Competent Person defined by the 2012 Edition of the Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves (the "JORC" Code). This includes 10 years of Mining, Resource Estimation and Exploration relevant to the style of mineralisation.

 

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