Empire Resources Limited’s (ASX:ERL) Progressive Exploration In September Quarter Stems Plans for Further Drilling

  • October 31, 2020 01:21 AM AEDT
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Empire Resources Limited’s (ASX:ERL) Progressive Exploration In September Quarter Stems Plans for Further Drilling

Summary

  • Empire Resources Limited has reported substantial progress across the project portfolio during the September 2020 quarter.
  • A broad zone of Cu-Ni-PGM mineralisation was encountered in RC hole YRC20-28 at YT01 prospect, and aircore drilling has been planned for December quarter to test geochemical and geophysical targets.
  • ERL completed six RC holes at Smiths Well, and results indicate the need for further exploration for a definitive assessment.
  • ERL also raised $1.3 million before costs under a placement to professional and sophisticated investors.

Au-Cu focussed exploration and development company, Empire Resources Ltd. (ASX:ERL) has been reporting impressive progress across its two 100% owned highly prospective projects, the Yuinmery Copper-Gold Project and the Penny’s Gold Project.

Related: Empire Resources Reports Significant Results from Drilling Campaigns, Stock Zooms by ~7%

During the recent quarter ended 30 September 2020, ERL had continued to post exceptional results from continued exploration efforts at the two projects.

Under its June 2020 RC program, ERL completed seven RC drill holes at Yuinmery for 1,001m drilled, wherein:

  • Six holes in the RC drill program tested DHEM conductors at Smith Well
  • One hole was drilled at the YT01 prospect to test for continuity of mineralisation at depth

During the September quarter, very encouraging results were received from this June 2020 RC program.  At depth and down plunge in the north-east sector of the Smith Well prospect, drilling has consistently intercepted copper-nickel mineralisation. Additionally, a previously unknown broad zone of elevated PGM mineralisation was encountered in hole YRC20-28 through drilling at YT01.

Related: Empire Resources’ Financials Reflect Green Shoots; Exploration Expenditure Increases By 436%

Drilling Progress at YT01 Prospect

RC hole YRC20-28 at YT01 Prospect was drilled during June 2020 to test for depth extension to the copper-gold mineralisation encountered in previously drilled YRC20-14. Subsequently, ERL received encouraging results, especially with broad widths of Cu-Ni mineralisation and the presence of elevated palladium and platinum values seen towards the bottom of the hole.

The first broad intercept observed outside the Smith Well area is the 20m width of anomalous mineralisation averaging 0.39% Cu and 0.11% Ni from 143m.

For ERL, the area of interest lies in the highly anomalous palladium and platinum values associated with the copper and nickel towards the end of the drill hole. In YRC20-28,

  • 12m downhole intercept averaged 0.11g/t Pt, 0.34g/t Pd, 0.38% Cu, 0.02% Co and 0.11% Ni from 151m
  • 1m composite samples returned palladium and platinum values of up to 0.53g/t Pd & 0.24g/t Pt

Interesting Read: Empire Resources Limited Calls the Tune in Its Significant Landholdings, A Walk Through Its Project Portfolio

Furthermore, the results from the 126 soil samples collected over the YT01 area in September are still pending, and ERL has planned

  • Follow up RC drilling at the area as soon as a suitable RC drill rig becomes available and
  • Aircore drilling to test geochemical and geophysical targets in the YT01 area during December quarter

Encouraging Results Compelling for Further Drilling At Smith Well Prospect

ERL intercepted strong sulphidic mineralisation containing chalcopyrite, pyrrhotite and pyrite of varying tenor through drilling during 2020 so far. Out of the further six RC holes completed at Smiths Well in June 2020, out of which:

  • Four holes, in the north-eastern limb, were drilled to test the scope of modelled DHEM plates in the upper Cu-Ni horizon
  • Two holes, in the south-western limb, were drilled to test the upper Cu-Ni as well as lower Cu-Au horizons

Smith Well Drillhole Locations (Source: ASX Announcement 29 October 2020)

Out of the four holes, holes YRC20-22 and YRC20-23 tested the upper and lower limits of the modelled DHEM plates in the north-eastern limb, where YRC20-22 intercepted

On the other hand, 8m @ 0.29% Cu, 0.22% Ni & 0.03% Co from 149m was intercepted from YRC20-23.

Detailed Discussion at: Empire Resources Cracking Crust at Yuinmery Project With Excellent Exploration Results, Secures Funding Through Placement

While these encouraging results offer a significant course of action for further drilling to assess the extents and depth of mineralisation, ERL believes there is a need for additional exploration for a definitive assessment.

Aircore Drilling Program at Penny’s Gold Project

At the Penny’s Gold project, ERL concluded a 22-hole 1,381m aircore (AC) drilling program in September 2020 that was designed to test the extent of gold mineralisation at the PF09 prospect. Subsequently, the samples were submitted for assay in Perth, the results to be received after the end of the quarter.

PF09 Aircore Drillhole Locations (Source: ASX Announcement 29 October 2020)

Continuously strong gold anomalism was returned through drilling from consecutive holes with peak gold results of 12m @ 0.80g/t Au from 40m, including 4m @ 1.78g/t Au from 48m in hole PAC20-02.

In hole PAC20-17, intercepts of 22m @ 0.45g/t Au from 36m to end of hole (EOH), including 4m @ 0.74g/t Au from 44m were returned from drilling on section 6,626,800mN.

Interesting Read: Skimming Through Empire Resources’ Progress Since January 2020, Well Funded For Exploration Drilling Across Project Portfolio

Further, broad zones of anomalous arsenic zones were also encountered and are of significance as nearby Penny’s Find and Garibaldi deposits are reported to show a strong correlation of gold with arsenic values.

ERL’s planned activities for Penny’s project area include a follow up drilling to test the consistency with the depth of gold mineralisation intersected in AC drilling and for multiple high priority gold targets within the project area.

Funding and Cash Position of ERL

During the quarter, ERL also undertook a placement to professional and sophisticated investors, under which around 108 million new shares were issued at a price of A$0.012 per share to raise approximately A$1.3 million before costs.

Interesting Read: How Is Empire Resources’ Investment In NTM Gold Placed Amid Market Volatility?

The placement received strong support from new as well as existing investors.

By the end of the quarter, ERL’s cash on hand stood at $1,380,000 and held 45,888,708 shares in NTM Gold Limited (ASX:NTM), indicating a 6.76% interest.

ERL share price quoted at $0.013 with a market capitalisation of $11.81 million on 30 October 2020.  

 


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