Cyprus Joint Venture Update

RNS Number : 7411Y

Caerus Mineral Resources PLC

18 January 2022

 

18 January 2022

Caerus Mineral Resources PLC ("Caerus") & Bezant Resources PLC ("Bezant") 

Cyprus Joint Venture Update  

Caerus Mineral Resources  (LON: CMRS) and Bezant Resources (LON: BZT), the exploration and resource development companies (the "Companies") with a Joint Venture ("JV") focused on the Troulli Mine Development Project and other copper - gold JV targets in Cyprus, are pleased to provide Shareholders with a joint update on the JV Projects and the objectives set for 2022.

As separately announced by the Companies on 2 August 2021, the Companies entered into an 18 month option agreement with effect from  1 August 2021 to allow the Companies to review Caerus extensive portfolio of copper / gold projects in Cyprus with a view to possible joint venture mining operations (the "Option Agreement") .  On 11 November 2021 the companies separately announced the JV in relation to the Troulli, Kokkinapetra and Anglisides projects and the following is a high level summary of information previously announced by Caerus (as referenced below) in relation to these three JV Projects:

Troulli Project : Resource estimation of metal-bearing surface materials is well-advanced with the majority of known targets having been drilled, trenched and sampled during 2021. A sizeable number of samples have been dispatched for laboratory analysis and results are pending. Dumps, ore stockpiles and low-grade mineralised waste represent a suite of easily accessible low-cost sources of early revenue for the Project. New areas of possible mineralised surface material are found weekly and routinely sampled as a possible addition to the Resource inventory.

Hard rock exploration and Resource development is progressing well and a major leap forward in progress can be expected once pending assays results, delayed by Covid issues at the laboratory, are received for both copper and gold mineralisation. Hard rock potential has been targeted in four distinct areas, all of which occur in or around the former open pit.

· Former Open Pit Extensions - Drilling along the immediate strike extensions of the former open pit has resulted in the broad delineation of pervasive mineralisation to a depth of more than 100m below the current pit floor including an intersection of 0.7% Cu over 44m from 8m depth below surface. Strike extensions include the recently announced partial analysis (gold only) for drillhole TR21DD10 returned a grade of 1.4g/t Au over 52.6 metres from surface. Infill drilling and the return of outstanding copper and gold assays for holes completed will be delivered to external consultant, Addison Mining as part of the development of a Mineral Resource model.

· Troulli Gold Zone - Grades from drilling the Gold Zone, located immediately adjacent to the former open pit are well-documented. Grades range from 12m at 5.11g/t Au, 10m at 2.07g/t Au, 22m at 1.93g/t Au, 14m at 1.18g/t Au and 30m at 1.10g/t Au. Further drilling has been undertaken to determine the outer limits of the Gold Zone ahead of an initial Mineral Resource estimation. It is apparent that similar gold zone-type mineralisation probably at one time occurred capping the former open pit. At the time of mine development, this oxide gold material would not have been processed due to a less than favourable in-country gold price offered by the Cypriot government for the purchase of gold in concentrates. As a consequence, and supported by some recent discoveries during exploration, Caerus is of the opinion that this material remains on-site, buried beneath later generations of waste rock and represents a potentially valuable by-product of future dump processing.

· New Discovery Copper Zone - A new copper zone has been discovered beneath the Gold Zone. Drilling has penetrated the copper zone and work is continuing to test the depth extent of this mineralisation as well as the overall footprint of the projected orebody. The origin of this mineralisation remains to be established but a fault separating the former open pit from this new zone suggests the two bodies may, at one time, have been part of the same mineralised breccia pipe. This being the case, Caerus is actively seeking the feeder zone for the pipe which can typically contain high grade mineralisation.

· Strike Extensions from Troulli to Kokkinapetra - The 1.5km strike length represents the possible long-term growth opportunity for the Troulli Project. Compelling evidence has been found for the presence of hydrothermal vents found at the top of a typical Cyprus-type volcanogenic massive sulphide (VMS) deposit and surface grab samples, with gold grades in excess of 1g/t Au and a peak grade of 4.2g/t Au. The JV is contemplating the appointment of an External Contractor to undertake ground geophysical surveys to determine both structure and possible mineralisation along the corridor between the two deposits.

Kokkinapetra Project - Located on end of the Troulli strike extension, Kokkinapetra provides an opportunity to discover a new copper - gold deposit. Impressive alteration in the form of umber (a reddish-brown iron-rich pigment indicative of hydrothermal vents in a VMS system) occupies a large area around the target. A drill programme has been approved by the JV Committee and will be implemented during Q1 2022.

Anglisides Projec t: Anglisides potentially represents a satellite project with future feedstock being delivered to the Troulli hub. The Project was mined in 1936 at an average grade of 5.98% Cu, 24.5g.t Au and 86.4g/t Ag. More recent channel and pit sampling has consistently returned gold grades in excess of 2g/t Au and waste dump sampling has returned peak grades of 50.1g/t Au. More recent scout drilling by Caerus returned a peak intercept of 0.81g/t Au over 38m. Work is required by the exploration team to optimise drilling to outline a high-grade Resource that could be pre-concentrated and transported to Troulli for subsequent treatment.

Metallurgical work related to plant design: Jubilee Metals Group plc is busy completing test work on a wide range of samples predominantly from the Troulli Project. Samples include drill core associated with both copper and gold mineralisation together with a range of metal-bearing surface residual materials. Test work is focused on flotation and milling to confirm the suitability of future ore for the prescribed recovery process and to determine the required size of crushing and milling capacity. The results of test work will determine the future design of a processing plant and, provisional 'sterilisation' drilling will be required at the Troulli site before determining the location of the processing plant and other permanent infrastructure.

The following is a high level summary of information announced by Caerus (as referenced below) in relation to the Pano Lefkara and St. Nicholas projects which are two of Caerus' projects which are the subject of the Option Agreement:

Pano Lefkara Project : The Project is drill-ready. Pano Lefkara is a stand-alone project located midway between the Troulli and Kalavasos Project areas. Historic drill intercepts include 3.13% Cu and 4.1g/t Au over 7.6m in massive sulphide mineralisation together with underlying intercepts of 0.34% Cu and 1.5g/t Au over 18.3m and 0.69% Cu over 27.4m in stockwork-type mineralisation. More recently, two scout drillholes completed by Caerus returned intercepts of 0.63g/t Au over 34m from surface and 8m at 0.6% Cu and 1.03g/t Au in borehole PL21DH01 and 0.45g/t Au over 14m from surface and 0.51g/t Au over 14m from 18m in borehole PL21DH02. Surface trench samples returning gold grades of 3.47g/t Au over 41m and 1.06g/t Au over 24.5m point towards scope for near-surface gold oxide potential to complement underlying sulphide mineralisation. The JV Team is completing planning for a drill campaign and more detailed assessment of the Project. Drilling is expected to commence upon completion of the next round of drilling at Troulli.

St. Nicholas Project: St. Nicholas is a further potential satellite operation but has the scope for the discovery of a more substantial copper - gold deposit subject to planned drilling. The initial targets at St. Nicholas include known partially drilled high-grade copper - gold sulphide bodies with peak intercepts including 5m at 4.82% Cu and 6g/t Au from 11m depth and 1.06% Cu over 28.6m. Drill planning is underway and, the JV intends drilling the Project during Q1 2022.

(Source of the information regarding the Caerus' Cyprus Properties is Caerus announcements dated 11 June 2021, 14 June 2021, 28 June 2021, 13 September 2021, 14 December 2021 and 13 January 2022).

Martyn Churchouse, Chief Executive Officer of Caerus said "The partners to the JV have set some ambitious targets for the year ahead with a focus on the rapid development of the Troulli Mine Project. In parallel, aggressive programmes have been approved by the JV Committee for the development of a maiden Mineral Resource at the Pano Lefkara Project together with the delineation of Mineral Resources at St. Nicholas and Anglisides, both of which have the potential to act as satellite operations providing high-grade feedstock to the Troulli mine and processing hub. Whilst the JV focus is clearly on the development of Troulli with a processing plant to be developed based on the metallurgical work being undertaken by Jubilee Metals Group ("Jubilee"), the Partners agree that the JV must ensure that sufficient exploration and Resource development work is done on other high priority projects to ensure the next in-line is ready for development. The JV plans to make use of in-house expertise available within Bezant as well as Caerus but will also look to import relevant skill sets, particularly in the field of mine development and construction. This will complement Caerus' already strong technical team based permanently in Cyprus. The JV has an opportunity to develop a new mining operation in Cyprus, underpinned by world-class expertise provided by Jubilee, and Caerus will make every effort to ensure the successful completion of the Project".

Colin Bird, Executive Chairman of Bezant said :  "Following our initial review and work on the former Troulli mine, we have gained much confidence that a mine can be developed from multiple sources.  It appears that the pit can be deepened and extended.  The standalone oxide cap adjacent to the known fault, has the potential to support a small gold extraction process or be included as part of the general feed to a new plant.  In addition, former waste rock and other secondaries indicate that they have copper/gold values to be part of the feed to the proposed new processing plant.

Work to be completed is the final process route, tonnes and grade, together with sequencing and pit deepening design.  On completion of the aforementioned, we can quickly make the decision whether to proceed to the construction and development of our first joint venture mine. The drilling and investigation results to date, are not finite and as such we will ensure that any plant built has the ability to accept increased feed should circumstances require.  The intent, is to develop a mine, from the various feed sources that will sustain proper concentrate production of at least 7,000 tonnes per year for a minimum period of 8 years. Our initial work, strongly suggests that whilst Troulli, is a good start to our joint venture plans, considerable potential exist for repeat type operations within the Cyprus portfolio.

The combination of Bezant and Caerus, represents partners who have the capability and experience to execute these plans.  It is becoming increasingly obvious that World copper demand is outstripping supply and that the situation is unlikely to get better as the decade advances.  When the two companies agreed to combine their expertise, it was against this scenario and we intend to employ our joint forces, recruiting other capability where necessary to accelerate our plans. The board of Bezant is delighted with the progress and is confident that our joint venture will go from strength to strength, positioning us very well in the small copper mine space. "

For further information , in relation to the Companies  please visit  www.caerusmineralresources.com  or contact:

	Caerus Mineral Resources plc	Bezant Resources plc
Website	www.caerusmineralresources.com	www.bezantresurces.com
Company Contact	Martyn Churchouse Chief Executive Officer [e-mail] [phone]	Colin Bird Executive Chairman [e-mail] [phone]
Broker	Novum Securities Jon Bellis [phone]	Novum Securities Jon Bellis [phone]
Nominated Adviser	Not applicable	Beaumont Cornish Roland Cornish [phone]

Qualified Person The content of this news release has been reviewed, verified, and approved by Mr. Nigel Chapman who is the exploration manager of Caerus. Mr. Chapman has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity to which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves and as a qualified person under the AIM Note for Mining, Oil and Gas Companies. Mr. Chapman is an employee of Mineral Exploration Management Limited, an independent geological consultancy established in 2005 and is a Member of the Australasian Institute of Geoscientists (A.I.G.) 

Mr. Chapman consents to the inclusion in this Announcement of such information in the form and context in which it appears.

About Caerus Mineral Resources : Caerus Mineral Resources is a European focused copper-gold resource development and exploration company with a portfolio of mineral exploration licences located in Cyprus. The Country has a well-developed infrastructure and history of mineral exploration and production, which has been dormant over the last 50 years and provides significant undiscovered value and can be followed on Twitter at @CaerusMineral.

 About Bezant Resources: Bezant Resources is a focused on developing its pipeline of copper gold projects to provide a new generation of economically and socially sustainable mines and in addition to its joint venture with Caerus Mineral Resources in relation to Cyprus has copper projects in Namibia, Zambia, Philippines and Argentina and a manganese project in Botswana.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018 ("UK MAR").

 

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