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Erris Resources has an attractive portfolio of zinc and gold exploration licences in Ireland and Sweden

Recent drilling success in Ireland has laid the foundations for further progress

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On the ground at Abbeytown

Shares in Erris Resources PLC (LON:ERIS) ticked up by more than 5% in morning trade following the announcement of the latest round of drilling results from the company’s Abbeytown project in Ireland.

The market was cheered by more high-grade intersections in one of the world’s premier zinc mining destinations, in results that Erris’s chief operating officer Aiden Lavelle called “excellent.”

The numbers do look good and include 15.63% zinc plus lead and just over 90 grams per tonne silver over 4.1 metres, and 15.57% zinc and lead, 1.9% copper and 51.5 grams silver over 2 metres.

Further high-grade copper occurrences were also reported.

Mineralisation remains open to the north and south.

“The additional surface drill holes have further improved our understanding of the controls on mineralisation and expanded the project potential with good continuity of mineralisation demonstrated south of the old Abbeytown mine,” continued Lavelle.

“It is now planned to test the gap between the underground mine and this recent surface drilling by focused drilling from two underground drill pads to give maximum information on continuity and grade.

Historic mine likely to yield more riches

Abbeytown is a near-surface brownfields project with potentially low-cost underground development, centred on a historic lead-silver mine. The old mine is itself situated within an active limestone quarry operated by the Harrington Group. Ore was extracted over centuries before an industrial-scale lead mine was operated between 1951 and 1961, initially as an open pit, and then as an underground mine.

This means Abbeytown is in an industrial setting, with a fully permitted quarry operating around it, with industrial infrastructure present. Road, power, rail and port are all available nearby.

Erris Resources has rehabilitated access underground and is exploring for extensions to known mineralisation via surface and underground drilling, and channel sampling

Swedish assets offer additional upside in gold, with Centerra as partner

Meanwhile, in Sweden, Erris Resources is working with joint venture partner Centerra Gold (TSE:CG) to develop the Brännberg project in the Skellefteå mining district of northern Sweden.

Brännberg comprises five permits acquired via a direct application from the government and a sixth permit, Grundtrask #7, acquired from Beowulf Mining.

Previous drilling has had a high success rate. Twenty-one shallow holes were drilled, and seventeen were assayed, of which fourteen returned greater than one gram per tonne gold over more than one metre. Mineralisation is open at depth and along strike.

Among the better results were 28 metres grading 2.0 grams gold and 33 metres at 1.8 grams.

Centerra is earning into 70% of the project with a US$3mln spending commitment

100%-owned assets add bluesky

Erris also controls the Nordgruven project in Värmlands, Sweden, where multiple historic workings and gold occurrences have been identified.

It also controls Enåsen, in central Sweden, the ground surrounding the historic Enåsen mine that produced 1.7 mln tonnes at three grams per tonne gold from 1984 to 1991. The area surrounding the mine is largely unexplored and covers an area potentially prospective for gold mineralisation.

Experienced team provides strength in depth

Erris was put together by experienced mining entrepreneurs Jeremy Martin, who remains as non-executive chairman, and David Hall, who continues to provide input as a technical advisor. These two have a track record of building value in the small-cap mining space, most notably with Horizonte Minerals (LON:HZM).

Newly appointed chief executive Anton du Plessis has over 20 years' experience in the finance sector. He has held senior positions at several international investment banks including CIBC, Bank of America Merrill Lynch and Morgan Stanley. His focus was on advising natural resources companies on the execution of strategic and financing transactions. He has worked on transactions across a range of commodities and for a number of leading global players including Anglogold Ashanti, Rio Tinto and BHP Billiton. Before that he worked for the Anglo American group in a corporate finance and business development capacity.  David Hall was also at Anglo.   

 

 

 

 

 

 

 

 

Quick facts: Erris Resources PLC

Price: 4.95 GBX

LSE:ERIS
Market: LSE
Market Cap: £1.54 m
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Erris Resources updates on met tests and soil sampling at Abbeytown zinc project

Erris Resources PLC (LON:ERIS) CEO Anton du Plessis and technical adviser David Hall update Proactive London on recent work undertaken at their Abbeytown zinc project in County Sligo, Ireland. This week Erris delivered positive results from 527 closely spaced soil samples - three new...

on 27/3/19

4 min read