Grimeli Project Drilling Results

RNS Number : 6808W

Kodal Minerals PLC

21 August 2015

 



21 August 2015

Kodal Minerals plc

("Kodal Minerals" or the "Company")

Grimeli Project Drilling Results

Kodal Minerals, the mineral development and exploration company owning extraction and exploration licences in Norway, is pleased to announce the final results of the current drilling programme at the Grimeli Project. The Grimeli Project is a copper ("Cu") and zinc ("Zn") project located in western Norway approximately 150km north of Bergen.

Complete Programme Drilling Results (including previously announced)

On 14 May 2015, the Company announced its first set of results from its 2,000 metre diamond drilling programme at the Grimeli Project.  The programme has now been completed and the full results back from the laboratory, the highlights of which are set out below.

Highlights

·     High grade copper and zinc occurrences confirmed at Grimeli

·     Best copper grade 8.39%

·     Best zinc grade 6.98%

·     Sample assay results returning greater than 1% Cu or greater than 1% Zn :

o  0.97m @ 6.39%Cu and 0.82%Zn (including 0.53m @ 8.39% Cu), BH04

o  0.50m @ 4.29%Cu and 6.98%Zn, BH03

o  0.51m @ 4.92%Cu and 0.82%Zn, BH05

o  0.48m @ 2.77%Cu and 1.1%Zn, BH08

o  1.0m @ 0.26%Cu and 2.44%Zn, BH01

·     Drilling results prove the presence of previously unmined mineralised bodies

·     The identified mineralised lens is not constrained down dip or along strike

Drill Hole Details including significant assay results*:

	Collar Coordinates			Hole depth	Azimuth	Dip	From	To	Interval	Cu	Zn
BHID	X	Y	Z	metres	degrees	degrees	metres	metres	metres	%	%
BH08	290802.9	6818557.3	34.4	80	149.8	-52.8	73.55	74.03	0.48	2.77	1.1

Drill Hole Details - BH01-BH06 as previously announced:

	Collar Coordinates			Hole depth	Azimuth	Dip	From	To	Interval	Cu	Zn
BHID	X	Y	Z	metres	degrees	degrees	metres	metres	metres	%	%
BH01	290706.8	6818464.3	37.5	63	140.4	-55.5	40	41	1	0.26	2.44
BH02	290727.9	6818486	36.538	65	155.4	-55	45.34	46	0.66	0.17	0.61
BH03	290727.9	6818486	36.538	67.9	155.4	-80	44.25	44.75	0.5	4.29	6.98
BH04	290859.8	6818544.4	44.27	151.6**	190	-54	67.31	68.28	0.97	6.39	0.82
BH05	290859.4	6818544.7	44.38	82.7	224.6	-78	70.38	70.89	0.51	4.92	0.82
BH06	290861.9	6818546.7	44.53	92.5	89.5	-70	70.45	71.53	1.08	0.21	0.15

*True widths of the mineralised body are unknown at this time

** Depth of BH04 was previously incorrectly reported as 63 metres

The Company has received assay results from twenty one holes (2,000 metres) drilled from two groups of positions. The first group (BH01 - BH08) are adjacent to the access road to the site. The second group (BH09 - BH21) are on a plateau approximately 200 vertical metres above the first location.

The holes in the first group were targeting a geophysical anomaly identified by ground geophysics completed by the Geologic Survey of Norway ("NGU") in a period around 1978.  The NGU classified this as a weak anomaly. Of the 8 holes, five intersected massive sulphides.

The holes in the second group were targeting a number of geophysical anomalies identified by ground geophysics completed by the NGU and classified as strong or very strong.  In all cases the holes encountered gradational increases in disseminated iron sulphides (pyrhhotite) over varying distances up to a maximum of approximately 15m, the mineralisation displaying banding to varying degrees. The iron mineralisation explains the response obtained by the NGU geophysics.

Luke Bryan, Chief Executive Officer of the Company, commented:

"Overall the drill programme was successful in locating the first new high grade mineral occurrence, which has been defined over a strike length of 150 metres and remains open down dip and to the west. The drilling was quite challenging due to both the topography and the weather conditions in western Norway over winter.

The programme was designed to test a number of horizons defined by historic geophysics and in the process to provide the Company with information to guide future exploration efforts. The first holes delivered the most exciting results while the drilling higher up the mountain returned wide intersections of iron sulphides with negligible copper or zinc. The drilling seems to confirm that the mineralisation occurs in lenses separated by barren material with, apparently, quite abrupt transitions.

While the current geophysics can guide the drilling onto the mineralised trend we need better information to target the potential zones of economic mineralisation. With the current information it is difficult to distinguish high grade massive sulphide zones from non-economic disseminated pyrhhotite zones.  A combination of ground based electromagnetic ("EM") and high resolution magnetic may offer potential. Now that we have located both a massive sulphide copper zinc lens and a number of disseminated pyrhhotite horizons we have locations to conduct orientation surveys. The Company is assessing this approach.

With only a very small portion of many kilometres of potential target zone tested the Grimeli project remains a very interesting early stage exploration project.

In recent months the Company has received a number of approaches to participate in new exploration projects. These are being assessed on merit and the Company continues to discuss various options both in Norway and elsewhere."

Further information

Assays were completed by SGS Laboratory Services in Ankara, Turkey using a four acid digest and atomic absorption spectroscopy with a quoted detection limit of 10ppm for Cu and Zn up to 50% and 5% respectively.

The drilling results contained in the announcement have been reviewed by Mr. Galen White - Principal Geologist, CSA Global (UK) Ltd. Mr White is a Fellow in good standing of the Australasian Institute of Mining and Metallurgy (FAusIMM) and a Fellow of the Geological Society of London (FGS) with sufficient experience to act as Competent Person under the JORC Code (2012). Mr White has reviewed the information contained herein, alongside drill logs, sampling information, core photography and SGS laboratory analysis data. Mr White consents to the disclosure of drilling results in the form and context in which they appear.

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

 

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