Grimeli Drilling Update

RNS Number : 4734C

Kodal Minerals PLC

19 January 2015

 

Kodal Minerals plc

("Kodal Minerals" or the "Company")

Grimeli Drilling Update

2,000 metres of diamond drilling to start in February

Kodal Minerals, the mineral development and exploration company owning extraction and exploration licences in Norway, is pleased to announce the signing of a contract to undertake a 2,000 metre diamond drill programme at the Grimeli Project. The Grimeli Project is a Copper ("Cu") project located in western Norway approximately 150km north of Bergen. The Company has previously announced in November 2014 the results of assays from a series of underground channel samples taken from the Grimeli Upper Mine that showed high grade copper mineralisation.

Highlights

·      A contractor has been engaged to complete 2,000 metres of diamond drilling at the Grimeli Project.

·     It is expected that drilling will start in early February 2015 with 18 holes planned.

·     The programme will target 3 mineralised horizons, two of which were areas of historic mining activity

·     Drill holes will target strike extensions and down dip extensions of the previously mined horizons.

·     The  un-mined horizon is a magnetic anomaly identified by ground geophysics in 2014.

·     A land access agreement has been signed with the landowner.

·     Authorisation has been obtained from the local municipality to access the high drill locations  located in off-road areas.

·     The contractor will also reinstate 900 metres of historic access track over an elevation gain of approximately 190 metres.

Luke Bryan, CEO of Kodal Minerals, commented: "The planned drilling will test three horizons, two of which have been mined previously and one which has been identified by the Company through ground geophysical surveys.  In the previously mined areas, the drilling will target inferred strike and depth extensions of the mineralisation. In the third target area the first aim is to locate the structure responsible for the geophysical anomaly identified.

"This drilling will provide the Company with its first access to the full width of the mineralised structures; previously we have been limited to mine pillars and areas where we could safely access old underground workings. "

Contact details:

Kodal Minerals plc
Luke Bryan, Chief Executive Officer                                                        Tel: [phone]

Allenby Capital Limited, Nominated Adviser                                      Tel: [phone]

Jeremy Porter/Nick Harriss

SP Angel Corporate Finance LLP, Financial Adviser & Broker       Tel: [phone]

John Mackay/Laura Harrison

Yellow Jersey PR Ltd, Financial PR                                                           Tel: [phone]

Dominic Barretto/Kelsey Traynor

Further information

The Grimeli Project

The Company holds exploration permits over an area of 30 sq km, referred to as the Grimeli Project, which includes two previously producing copper mines, the Grimeli mine and the Vågendal mine. The two mines are located on opposite sides of a long hill forming a peninsular on the western coast of Norway and are approximately 7km apart. The copper mines were operational at various times between 1759 and 1920.

The Company has previously reported the results of channel samples taken from the lower mine at Grimeli as well as a geophysical anomaly extending for 3,200 metres.

Sampling results

The mineralised results from the Grimeli Upper Mine channel sampling is as follows:

Copper Grade (%)	Sample Width (m)
7.24	1.75
4.89	1.02
4.19	0.5
3.73	0.93
2.45	0.7
1.83	1.4
1.65	0.88
1.43	1.19
1.07	0.74

Multi element acid digest assays were completed by SGS Mineral Services on the ten reported channel samples. The assays returned relatively low arsenic of less than 3 ppm in all cases. These samples were taken from a mixture of pillars in a sub level connection to the 170 level and in in-situ ore in the vertical connection between the 150 level and the sub-level. The Company now has access to a significant exposure of in-situ ore from which  a sample will be extracted for mineral processing test work in due course.

The samples taken in the Grimeli upper mine further support the view that the historic workings were targeting high grade copper mineralisation. The combined old workings at Grimeli have now been sampled over an approximate vertical extent of 225 metres and an approximate horizontal extent of 350 metres. Samples from the extents of the workings have returned copper assays approaching five percent copper with one result returning 7.24% Cu.

 

END

 

 

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