Erris Resources PLC (LON:ERIS) sees potential for a small to mid-sized gold producer to drill the Brännberg Project in Sweden after initial partner Centerra Gold elected not to continue drilling due to the mineralised system not demonstrating the size to host a gold deposit of over 1mln ounces.
The project reverts 100% back to the AIM-listed European-focused mineral exploration company, which said it will now undertake follow- up work to determine the resource potential of the project and consider whether it can be advanced on its own or potentially in partnership with a junior gold developer.
Erris Resources CEO, Anton du Plessis, said: "While the results at Brännberg did not return the potential for a plus million ounce gold deposit in line with Centerra's size criteria, there is still potential for a smaller gold deposit that could be suitable for a small to mid-size gold producer. This is low cost exploration whereby targets are tested in a rapid and efficient way, and if they do not deliver the required criteria we move onto the next target.”
He added: “As part of this ongoing exploration work, we are delighted to continue our strategic alliance with Centerra Gold and have its support as we continue to generate new exploration opportunities in Northern Sweden and expand the remit into Finland for 2019.
“The continuation of the Centerra programme acknowledges the cost-efficient testing of targets by Erris and the ability to continue to generate new targets - a key factor for exploration success.”
The CEO concluded: “We remain focused on creating shareholder value through commercial discovery of base or precious metal assets in proven mineral districts and in favourable European jurisdictions and look forward to updating the market as we advance the 2019 programmes."
In early morning trading, Erris Resources shares were 3.3% lower at 7.25p.