Erris Resources PLC - Option to Acquire 80% of Scottish Gold Project
Prior to publication, the information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). With the publication of this announcement, this information is now considered to be in the public domain.
("Erris Resources" or the "Company")
Agreement Signed with
Erris Resources, the European focused mineral consulting and exploration company with a portfolio of zinc and base metals projects in
· Option Agreement signed with GreenOre to explore for gold on the area covered by the Loch Tay Licence in
· Project area comprises 237 square kilometres of highly prospective ground within the Grampian Gold Belt
· Two priority target areas, Ardtalnaig and
o 10 gram nugget in the Glen Almond river within the Glen Almond target area discovered in
· Option Agreement provides Erris Resources with a low risk option for discovery on an exciting and new gold project within a stable jurisdiction
· Erris Resources maintains its robust cash position with approximately
· Erris Resources continues to review projects in low risk jurisdictions internationally that fit its investment criteria
Erris Resources CEO,
Erris Resources and GreenOre entered into an Option Agreement on
The Project area comprises 237 square kilometres of highly prospective ground within the Grampian Gold Belt, a region of Dalradian rocks, which host several significant mineral occurences and deposits of high-grade gold, base metals and baryte across
An initial due diligence review, which involved preliminary prospecting and mapping by Erris Resources, has identified two priority target areas, Ardtalnaig and
The main terms of the Option Agreement are as follows:
· The Option Agreement is conditional on Erris Resources issuing an option notice to GreenOre following satisfactory completion by Erris Resources of a due diligence review of the Project by no later than
· Following the issue of the Option Notice, Erris Resources will have the option to earn 80% of the Loch Tay Project consisting of the Loch Tay Mines Royal Option from GreenOre by defining a minimum inferred resource of 250,000 ounces gold, to be defined by an Independent Competent Person, within four years of the date of the Option Notice.
· Upon defining 250,000 ounces within the required time frame, the ownership of the licence shall be allocated as to 80% Erris Resources and 20% GreenOre and any subsequent funding shall be on a pro-rata basis.
· In the event of either party failing to fund their respective portion, they will be diluted according to a standard industry formula. If either party shall dilute to less than 10% then that party shall forfeit all ownership and be entitled to a 2% Net Smelter Return Royalty ("NSR").
· Erris Resources shall have the option to purchase 50% of the NSR for
· Erris Resources will be the operator and will manage the exploration programme.
Targets on the
Following the initial due diligence review by Erris Resources including the review of 87 samples previously collected by GreenOre, two new target areas for gold have been outlined on the Ardtalnaig and
Ardtalnaig Target: In the Ardtalnaig area, small-scale workings for lead, which are hosted in felsites, have been mapped and include several trenches and a possible adit with associated dumps. The felsites intruded the Dalradian schists following the main regional metamorphic events such that they are unaffected by deformation. The felsites are interpreted to be part of a sill complex and are essentially subvolcanic rhyolite intrusives; elsewhere in the licence area, outcropping flow banded rhyolite has been found which resembles the felsite. The felsites indicate the presence of late-orogenic magmatic activity which could have driven hydrothermal activity and mineralisation of gold and base metals. Recent sampling by GreenOre has yielded high-grade gold associated with quartz-stockwork breccias within these felsites. Quartz stockworks in felsite containing variable amounts of galena, sphalerite and baryte have been found within an area of intermittent outcrop measuring 1.7km x 1km while mineralised boulder trains increase the length of the zone to approximately 2.4km. The stockwork zones are thought to range from 0.5m to several metres in width and there could be several parallel structural zones present based on the distribution of mineralised boulders. The trend of the mineralised zones is approximately 160 degrees and is consistent with other occurrences in the wider licence area. Samples taken by GreeOre from the historic workings returned encouraging results for gold, silver lead and zinc. Two samples from separate workings returned the following: sample K06789 - 5.97g/t Au, 8.9g/t Ag, 2.21% Pb and 4.2% Zn and sample K24526 - 7.58 g/t Au, 16.9 g/t Ag, 4.43% Pb and 3.99% Zn. A boulder sample taken uphill from the workings returned a result of 8.74g/t Au, 11.85g/t Ag and 1.66% Pb. Most samples show strong correlations between gold, lead and baryte. The sulphides occur in vuggy quartz veins and stockworks indicative of shallow epithermal-style mineralisation. Further mapping, rock sampling and soil surveys are planned. The association of mineralisation with felsites and major structures in the area is important and this will guide exploration going forward.
The licence area, including the two main prospects, has good access, nearby infrastructure and is located in a region which has seen acceptance for mining projects. Recently, operations at the Cononish deposit owned by Scotgold (43 km to the west) commenced and a planning application was approved by
The Company believes that the joint venture terms with GreenOre give Erris Resources a low risk option for discovery on an exciting and new gold project within a safe jurisdiction. Erris Resources believes that the
At the end of
The technical information in this announcement has been compiled on behalf of Erris Resources by
For further information visit www.errisresources.com or contact:
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+353 (0) 94 902 8481
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+44 (0) 20 3328 5656
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+44 (0) 20 7186 9952
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+44 (0) 20 3657 0050
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+44 (0) 20 7236 1177
This information is provided by RNS, the news service of the
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