Update on Canyon Silver Asset

Armadale Capital PLC

02 May 2024

 

Armadale Capital Plc

('Armadale' or 'the Company')

Update on Canyon Silver Asset

36 oz/t Ag, 66% Pb and 10% Zn grades demonstrated in previously hand-sorted stockpiles at 'High-Grade Silver, Lead, Zinc Mine Project' in Burke Canyon, Idaho

Further to the announcement of 24 April 2024, Armadale Capital Plc (TIDM:ACP), an AIM quoted investment company focused on natural resource projects, is pleased to announce further information on the assets relating to Africo American Incorporated ("AAI"), a company incorporated under the laws of the State of Idaho, the holding company of the Canyon Silver lead, zinc and silver exploration asset based in Northern Idaho, USA ("Canyon Silver"), as well as the Board's plan for future development of this asset.

Historic production prior to the mine ceasing operations in 1972 was focused on the number three shaft which produced 25,000 tonnes of ore at a grade of 4 to 6 oz per tonne of silver, 6-13% lead and 2-4% zinc and exposed a further 48,000 metric tonnes of mineralisation within the main vein. The project has an additional three to four more veins to assess.

In 1984 four truckloads of hand sorted ore were trucked to a local mill and returned exceptionally high grades as follows:

Three 25t truck loads averaged.

●     36 oz/t Ag, 66% Pb and 10% Zn

One 25t truck load averaged.

●     50% Zn, 8 oz/t Ag, and 8% Pb.

The high grade mineralisation near existing mine infrastructure presents a possible opportunity to unlock future cashflow for Armadale as we progress renovations of the existing mine infrastructure and advance the exploration prospects.

Work Programme:

The management of AAI will approve a detailed work programme and budget with mining contractors. who have all the equipment, personnel, licenses, training programs and contacts to cater for all the work planned at Canyon Silver, including small underground and surface drill rigs which drill to 150m; which is more than sufficient for Phase 1 drilling. The main objectives at this time are to fully open and renovate the two main ore carrying tunnels.

Tunnel No. 2 was a Formosa vein only and extends 97 Metres into the mountain side with the last 67 Metres believed to have lead, zinc and silver mineralisation.  This may be confirmed when the tunnel is opened and extensive samples have been taken. Armadale's first task is to  clean out any loose rock and sample, measure and model the vein seen in the hanging and footwall to ascertain the grades.

Tunnel No. 3 went 137 Metres into the mountain before intersecting the Formosa vein it followed for over 60 Metres, stopping much of the ground above it along the way. Eventually No. 3, which was still following mineralisation, encountered an additional large, low grade orebody about 30 metres inside the mountain - demonstrating additional potential for the deposit.

Canyon Silver has three tunnels, with shafts extending to veins located below surface at the following depths:

●     42 Metres

●     73 Metres

●     124 Metres

●     182 Metres

●     243 Metres

We look forward to the potential in discovering even higher grade ore at further depths, whilst taking advantage of the lower costs associated with Canyon Silver's mineralisation starting at a very shallow level.

With the shaft vein being the only part previously mined, Armadale is in position to take advantage of the available development, whilst further exploring for additional resources. The East and South veins remain open, with four more veins above adit level.

Armadale recently announced the addition of Greg Entwistle to the Board, who has a tremendous track record in building and operating mining projects - experience that will help move us towards production, and a cashflow positive position for our shareholders.

Armadale continues to look at ways to reduce the burden on shareholders, as we continue to benefit from material cost savings on infrastructure at Mahenge. The Canyon Silver Project is another string in our bow to help reduce our reliance on future dilutions to build cashflow.

Matt Bull, Executive Director of Armadale said:

"In light of the current bear market affecting resource juniors, the Board is encouraged with the support that the Company has received from shareholders in the recent capital raising. The Board intends to minimise any further dilution to shareholders by building near term cashflow to fully realise long term production goals. The Company is excited to explore the potential of Canyon Silver, and to establish how this asset may secure Armadale's route to becoming cashflow positive."

Competent Person statement

The information in this announcement that relates to exploration results is based on information compiled by Mr Matt Bull, a competent person, who is a Member of the Australian Institute of Geoscientists. Mr Bull has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity 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". Mr Bull consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. 

Enquiries:
Armadale Capital Plc Matt Bull, Executive Director Greg Entwistle Non Executive Director Tim Jones, Company Secretary	[phone]
Nomad and Broker: Cavendish Capital Markets Ltd Simon Hicks / Seamus Fricker	[phone]

 

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