Stormyra Final Batch Assay Results

Kendrick Resources PLC

24 May 2023

 

24 May 2023

Kendrick Resources Plc
("Kendrick" or the "Company")

 Stormyra Final Batch Assay Results - Maiden Drill Diamond Drill Programme

Kendrick Resources Plc (LSE: KEN), a mineral exploration and development company with vanadium, nickel and copper projects in Scandinavia is pleased to announce its final set of results from its 19-hole maiden diamond drill programme over the Stormyra nickel - copper deposit in Espedalen, Norway.

Highlights

·    The highly successful drill programme has achieved notable Ni-Cu intercepts over a strike length of 1.2 kilometres.

·    Peak intercepts for the third phase of initial drilling included:

o  Hole ESP2317 - 2.18% Ni Eq. over 3.50m from 61.50m

o  Hole ESP2318 - 0.41% Ni Eq. over 9.20m from 31.50m incl. 1.15% Ni Eq. over 0.90m from 35.20m

o  Hole ESP2319  - 2.43% Ni Eq. over 2.10m from 53.60m incl. 5.53% Ni Eq. over 0.65m from 54.35m and 1.33% Ni Eq. over 2.70m from 62.20m

·    Geophysics and drilling that intersected mineralisation at a grade of 2.43% Ni Eq over 2.1m confirms the untested southerly extension of the Stormyra orebody represents a viable drill target likely to further increase the resource 

Colin Bird, Executive Chairman of Kendrick Resources Plc commented: "Our drill programme over Stormyra has been very successful with impressive peak intercepts reported from the three sets of results including 6.85% Ni Eq over 1.25m, 3.39% Ni Eq over 11.6m and 2.59% Ni Eq over 3.65m. These latest results have continued the trend and more importantly have demonstrated that the proposed southerly extension of the orebody defined by geophysics has been confirmed by our recent drilling.

Based on the geophysical data we have potentially several hundred metres of strike length to test to broadly delineate the Stormyra orebody. We also have a further 10 high quality nickel targets within our licence that all have drill intercepts that exceed 1% Ni. We are investigating each target and prioritising them ahead of further drilling.

We will continue to build a relationship with local stakeholders, and we are sufficiently confident of the continuity of mineralisation to formally engage external engineering advice for the review of future plant design.

Kendrick has several other prospective nickel properties in Norway that are being reviewed in a broader context of a regional nickel programme. The Hosanger Licence hosts the former Litland Ni mine where more than 50 historic boreholes are under investigation ahead of Kendrick defining drill targets. Also, the Sigdal Licence hosts a target with a single drillhole intercept of 0.36% Ni, 0.43% Cu & 10.1g/t Au over 1.48m".    

Drilling Programme

Kendrick's maiden diamond drill programme at the Stormyra Ni-Cu-Co Deposit (see Kendrick's RNS dated: 31 January 2023) concluded on 1 March 2023, encompassing 19 boreholes, comprising infill, step-out, and exploration holes, spanning a total of 1,650 metres (Figure 1.). Figure 1. Drill Hole Location Map for the Stormyra Deposit, Espedalen, Norway

A subset of 225 metres was forwarded to ALS Scandinavia AB for processing. After the core had been logged, the selected drill core intervals were dispatched to the ALS laboratory in Malå, Sweden for preparation and analysed at ALS Loughrea, Ireland.

The third and final batch of samples sent to the laboratory, consisting of five out of the six holes drilled, have been received and are illustrated (Figures 2. - 4.) as well as tabulated (Table 1.) below.

Figure 2. Long Section through the Stormyra Deposit, Espedalen, Norway

Figure 3. Cross section through holes ES2318 and ES2319 showing local geology and mineralised intercepts.

Figure 4. Drill Core Box Photo from hole ES2319 (53.10m - 57.80m) showing sampled intervals, lengths and respective assay grades rounded to two decimal places of the mineralized section.

Table 1. Assay results for the third  batch of samples received from ALS Scandinavia AB in Malå, Sweden.

Hole	From	To	Length (m)	Ni (%)	Cu (%)	Co (%)	Ni Eq. (%)
ES2314	80.00	81.00	1.00	1.26	0.54	0.04	1.53
ES2315	not sent for assay
ES2316	90.10	90.40	0.30	0.87	0.74	0.03	1.21
ES2317	61.50	65.00	3.50	1.73	0.88	0.06	2.18
incl.	61.50	64.20	2.70	1.90	1.07	0.06	2.43
incl.	64.70	65.00	0.30	3.11	0.62	0.10	3.51
ES2318	31.50	40.70	9.20	0.31	0.21	0.01	0.41
incl.	31.50	33.30	1.80	0.45	0.30	0.02	0.60
incl.	34.25	37.20	2.95	0.46	0.18	0.02	0.56
incl.	35.20	36.10	0.90	0.94	0.40	0.04	1.15
incl.	38.50	40.70	2.20	0.29	0.37	0.01	0.46
ES2319	53.60	55.70	2.10	1.25	2.75	0.05	2.43
incl.	54.35	55.00	0.65	2.75	6.58	0.09	5.53
ES2319	62.20	64.90	2.70	1.09	0.47	0.04	1.33
ES2319	69.45	69.90	0.45	1.25	0.66	0.04	1.56

Notes:  

1)    Reported intervals are downhole widths.

2)    Reported intervals are calculated for zones assaying > 0.25% Nickel Equivalent and containing less than 3 meters of internal waste.

3)    The Nickel equivalent values are estimated using prevailing metal prices of $22000/t Nickel, $8,800/t Copper and $35,000/t Cobalt and are presented for ease of interval comparison only. Metallurgical factors are assumed to be 100% although the recovery factors for the respective metals may vary significantly.

4)    The Nickel equivalent values may differ slightly due to rounding.

Quality Assurance/Quality Control (QA/QC)

The diamond drilling program was executed by Arctic Drilling AS. The rig was aligned using a DeviSight rig aligner and the hole was surveyed with a DeviFlex Rapid at 3m intervals after the completion of a hole. Collar coordinates were taken from the Devisight rig aligner which uses both types of navigation satellites (Glonass and GPS) and had an average accuracy of <1m.

The NQ2 sized core from the diamond drill programme was logged, marked, and photographed, and RQD and magnetic susceptibility measurements were taken by experienced geologists and technicians from EMX royalty.

The drill core was sampled at minimum 0.3 metre up to 2.5 metre intervals and sent to ALS in Malå, Sweden. The samples were cut, and the split (½ core or two quarter core) samples were crushed, split, and pulverized (using ALS methods CRU-31, SPL-22Y, PUL-31).

A pulp split was sent to ALS Loughrea, Ireland, an ISO accredited laboratory for assaying, for final chemical analysis using the ALS methods ME-MS61, ME-OG62, and PGM-ICP23. Standards, blanks and duplicates were inserted regularly in the sample stream and checks were done for Nickel and Copper.

This announcement contains information which, prior to its disclosure, was inside information as stipulated under Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310 (as amended).

For additional information please contact:
Kendrick Resources Plc: Chairman	Tel: [phone] Colin Bird
Novum Securities	Tel: [phone]
Financial Adviser Joint Broker	David Coffman / George Duxberry Jon Bellis
Shard Capital Partners LLP Joint Broker	Tel: [phone] Damon Heath / Isabella Pierre

Qualified Person

The technical information contained in this announcement has been reviewed, verified, and approved by Colin Bird, CC.ENG, FIMMM, South African and UK Certified Mine Manager and Director of Kendrick Resources plc, with more than 40 years' experience mainly in hard rock mining.

About Kendrick Resources Plc

Kendrick Resources Plc is a mineral exploration and development company with projects primarily based across Scandinavia. The principal of its business is to explore the opportunities within the natural resources sector with a focus on battery, base, and precious metals including but not limited to vanadium and nickel. In doing so, the Company is looking to build a long-term energy metals business in Scandinavia which delivers energy metals to Europe to help enable its renewable energy transformation by building a top tier energy metals production business.

The Espedalen Project

The Espedalen Project is located approximately 50km north-west of Lillehammer in southern central Norway, 3 hours' drive north of Oslo. The project is well served with transport infrastructure being accessible by tarmac roads and is close to rail links to ports in southern Norway and to Glencore's Nikkelverk nickel refinery located 350km to the south.

The known nickel mineralisation on the Espedalen Project is hosted within differentiated mafic and ultramafic bodies which have intruded anorthositic country rocks collectively referred to as the Espedalen Complex and range in age from 1698 - 1250 Ma. This age range is similar to the age of the rocks hosting the giant Voisey's Bay nickel deposit in Labrador, Canada. Further evidence supporting the analogy between Espedalen and Voisey's Bay are tectonic plate reconstructions which place southern Norway in relatively close proximity during the time of formation of Voisey's Bay and with the two regions undergoing similar tectonic developments.

Mining in the Espedalen area dates from 1666. Total production from the Espedalen region is estimated at 100,000t @ 1.0% Ni, 0.4% Cu and 0.06% Co. Significant exploration has been undertaken in the area. The majority and most recent work having been completed by Falconbridge Limited and Blackstone Ventures Limited having completed 134 drill holes across the Espedalen project area, defining significant accumulations of nickel sulphides at the Stormyra and Dalen prospects and generating numerous other quality targets.

In 2009, Blackstone published a NI 43-101 report detailing Inferred Mineral Resources at the Stormyra and Dalen prospects. Blackstone relinquished the Espedalen Project in 2011 following the preceding financial crisis. ASX listed Drake Resources Limited (now renamed Ragnar Metals Limited) acquired the Espedalen Project in 2012. Drake refined the Mineral Resources at Stormyra (1.16Mt @ 1% Ni, 0.42% Cu & 0.04% Co) and Dalen (7.8Mt @ 0.28% Ni, 0.12% Cu & 0.02% Co) prospects in accordance with JORC (2012).

In addition to defining JORC (2012) compliant mineral resources at Stormyra and Dalen, Drake identified 10 prospects where drilling by Blackstone had intersected at least 5 meters percent Ni, which were never followed up. A detailed compilation of all past mineral exploration and drilling data and recognised that the Stormyra Mineral Resource is not closed off and a number of intersections warrant follow up drilling, to determine if the Mineral Resource can be expanded, including:

·    12.18m @ 2.39% Ni, 0.95% Cu & 0.07% Co from 64m in hole ES2005-20

·    7.15m @ 2.68% Ni, 1.26% Cu & 0.08% Ni from 29.35m in hole ES2005-22

·    14.6m @ 1.74% Ni, 0.79% Cu & 0.06% Co from 80.4m in hole ES2004-09

The Stormyra Mineral Resource contains a high-grade core, with assays of up to 8.2% Ni. The high-grade core is not fully defined by drilling. Additional investigation of this high-grade core is warranted along with drill testing a ground geophysical conductor, directly associated with the nickel mineralisation, which extends 500m to the south-east of the currently defined limits of the Stormyra Mineral Resource.

  Appendix A - Glossary of Technical Terms

"anomaly or anomalous"	something in mineral exploration that geologists interpret as deviating from what is standard, normal, or expected.
"assay"	The laboratory test conducted to determine the proportion of a mineral within a rock or other material. For base metals, usually reported as percentage which is equivalent to percentage of the mineral (i.e. copper) per tonne of rock.
"azimuth"	the "compass direction" refers to a geographic bearing or azimuth as measured by a magnetic compass, in true or magnetic north.
"diamond drilling"	A drilling method in which penetration is achieved through abrasive cutting by rotation of a diamond encrusted drill bit. This drilling method enables collection of tubes of intact rock (core) and when successful gives the best possible quality samples for description, sampling and analysis of an ore body or mineralised structure.
"dip"	A line directed down the steepest axis of a planar structure including a planar ore body or zone of mineralisation. The dip has a measurable direction and inclination from horizontal.
"geochemical"	Refers to geological information using measurements derived from chemical analysis.
"geophysical"	Refers to geological information using unit measurements derived from the use of magnetic and electrical readings.
"geophysical techniques"	include the exploration of an area by exploiting differences in physical properties of different rock types. Geophysical methods include seismic, magnetic, gravity, induced polarisation and other techniques; geophysical surveys can be undertaken from the ground or from the air
"grade"	The proportion of a mineral within a rock or other material. For copper mineralisation this is usually reported as % of copper per tonne of rock.
"g/t"	grams per tonne; equivalent to parts per million ('ppm').
"Indicated Resource"	An "Indicated Mineral Resource" is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics, can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed.
"Inferred Resource"	An "Inferred Mineral Resource" is that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.
"intercept"	Refers to a sample or sequence of samples taken across the entire width or an ore body or mineralised zone. The intercept is described by the entire thickness and the average grade of mineralisation.
"massive"	In a geological sense, refers to a zone of mineralisation that is dominated by sulphide minerals.  The sulphide-mineral-rich material can occur in centimetre-scale, metre-scale or in tens of metres wide veins, lenses or sheet-like bodies containing sphalerite, galena, and / or chalcopyrite etc.
"Measured Resource"	A "Measured Mineral Resource" is that part of a Mineral Resource for which quantity, grade or quality, densities, shape, and physical characteristics are so well established that they can be estimated with confidence sufficient to allow the appropriate application of technical and economic parameters, to support production planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough to confirm both geological and grade continuity.
"Mineral Resource"	A "Mineral Resource" is a concentration or occurrence of diamonds, natural solid inorganic material, or natural solid fossilised organic material including base and precious metals, coal, and industrial minerals in or on the Earth's crust in such form and quantity and of such a grade or quality that it has reasonable prospects for economic extraction. The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge.
"mineralisation"	In geology, mineralisation is the deposition of economically important metals (copper, gold, lead, zin etc) that in some cases can be in sufficient quantity to form mineral ore bodies.
"outcrop"	A section of a rock formation or mineral vein that appears at the surface of the earth.  Geologists take direct observations and samples from outcrops, used in geologic analysis and creating geologic maps. In situ (in place) measurements are critical for proper analysis of the geology and mineralisation of the area under investigation.
"veins"	A vein is a sheet-like or anastomosing fracture that has been infilled with mineral ore (chalcopyrite, covellite etc) or mineral gangue (quartz, calcite etc) material, within a rock. Veins form when minerals carried by an aqueous solution within the rock mass are deposited through precipitation and infill or coat the fracture faces.

 

END