Natural Resources
13 June 2022
Comment
Lykos Metals Exploration Update.
Hyperbole can often be somewhat of a characteristic of junior mining company announcements, but we think that “outstanding” and “exceptional” are accurate descriptions of some recent updates from Lykos Metals.
We are of course open to accusations of favouritism as RFC Ambrian acted as lead manager and corporate advisor to the company for its ASX listing and A$12m capital raising last year. Nevertheless it’s difficult to ignore the prospectivity being revealed by Lykos’s work.
The three-tenement portfolio in Bosnia and Herzegovina - Sinjakovo, Cajnice and Sockovac - comprises a really exciting package of exploration assets, highly prospective for nickel, copper, cobalt and precious metals and the results over the last couple of weeks have added to the exceptional promise historical exploration results pointed to.
The projects were explored sporadically during the Yugoslav regime in the mid-20th century and have a history of high-grade minerals discovery and extraction, but, until now, have never been subjected to systematic modern exploration.
Sinjakovo - Historic mining of up to 25% copper, > 2km of undrilled copper horizon
Cajnice - Large base metals anomalies in soil with multiple zinc, lead and copper intercepts
Sockovac - 5.1m @7.4% nickel from 60m depth, including at 1.5m @ 15% nickel, in the same hole 2.3m @ 6.1% nickel from 74m depth ending in mineralisation
Historical exploration highlights
The money which was raised at IPO is funding an aggressive two-year technical work program. The company has been busy putting that capital to work in a very rigorous and systematic way, significant results of which are now beginning to be released.
Lykos Metals last week released an update on the Sinjakovo project.
Sinjakovo project location and tenement detail
The map above of the Sinjakovo tenement and the newly granted 31km2 Jezero tenement to the south-east, shows the astonishing breadth of mining potential the project holds, and the potential appears to be getting better with each rock examined as new prospects are revealed.
Historical accounts of mining (RDK old copper mine) at the beginning of the 20th Century indicate material grading up to 25% copper (this is not a typo!) was mined and anything under 3% copper was treated as waste. Copper is hosted in massive chalcopyrite layers, ranging between 2m and 6.5m in thickness, mostly within a series of siderite-ankerite bodies/layers, which vary between 1m and 30m thick, averaging 15m and extending over 2km.
Last weeks’ announcement
The first modern exploration hole (of a 19 hole programme) at Sinjakovo has been completed at the RDK prospect and intercepted a 11.5m thick mineralised horizon – interpreted to be the same lithological sequence as seen at the old mine – fortuitously at a much shallower depth (only 22.5m) than expected, adding validity to previous theories of a reverse fault bringing the favourable rock unit to a much shallower depth, and that the horizons maybe repeated at depth.
The hole terminated in a previously undiscovered sulphide bearing rock. Unfortunately, core recovery at this depth (~ 200m) was compromised and the hole will be redrilled to investigate this new discovery further.
1.5km to the north, positive copper results from soil sampling at Zagradina prospect will now lead to trenching to determine the potential for drilling
Drilling at the Zekil-Erak prospect is a likelihood following the current trenching programme and the amazing polymetallic mineralisation seen in rock chip samples reported this week - up to 6.94g/t gold, 183g/t silver, 4.11% copper and 1.33% antimony.
And there’s more…
Three exciting new outcropping mineralised prospects have been identified, with early indications of potential “Vares-style” barite and silver mineralisation:
- Kovacevac prospect – rock chips assaying up to 12.15 % zinc, 3.93 % lead and 105 g/t silver
- Prisoje prospect – outcropping rocks with visible polymetallic mineralisation in barite veins observed and sampled, results pending
- Krajevi prospect – soil sampling at newly granted tenement Jezero return encouraging results
Last weeks’ news on Sinjakovo followed the previous weeks’ announcement on the Cajnice project where the first two holes at the Gramuscovi prospect hit the shallow copper target as planned and intercepted a porphyry system at depth which will be further investigated with four other planned holes, in addition to identifying two new prospects at Madjan and Braha.
Cajnice project location and tenement detail
It is clearly not hyperbole to say that Lykos’ Managing Director Mlanden Stevanovic and his team have been busy and we very much look forward to further news over the coming months.
More information on the company and its latest results can be found at www.lykosmetals.com
*RFC Ambrian acts as Financial Adviser to this company and holds a significant interest.
Charlie Cryer
Head RFC Ambrian London
+44 (0)20 3440 6834
charlie.cryer@rfcambrian.com
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