Connemara Mining Company plc (LON: CON), the Irish gold and zinc exploration company, is very pleased to to announce a maiden Inferred Resource Estimate at its Stonepark Zinc Project located in Limerick, Ireland. This independent estimate is NI43-101 compliant and was conducted by CSA Global (UK) Ltd. (“CSA Global”), in collaboration with SLR Consulting Ireland (“SLR”). Connemara’s joint venture partner, Group Eleven Resources Corp. (“Group Eleven”), commissioned the work based on drilling conducted by Teck Resources Limited from 2007 to 2011 (Connemara’s previous joint venture partner).
Highlights
· Mineral Resource estimate of 5.3 million tonnes grading 11.15% Zn+Pb combined (8.55% zinc and 2.60% lead)
· The deposit is relatively shallow deposit occurring at depths ranging from 190m to 395m;
· The deposit consists of flat-lying, stratiform (1.0 to >7.5m thick) lenses of mineralisation;
· SLR and CSA Global comment that the mineralisation is open along and across strike;
· Connemara holds 23.44% of the Project.
Patrick Cullen, Chief Executive Officer of Connemara, commented: “This is a very exciting and important milestone for Connemara and for joint venture partner, Group Eleven. The work underlies Stonepark’s status as an advanced project and as a key asset to the Company. This maiden Mineral Resource demonstrates attractive grades but is also significant in terms of tonnage.
“The Stonepark deposit was first discovered in 2007 by Connemara and with Teck and activity has been low in recent years. It has been very encouraging to see the work recommence in earnest with Group Eleven’s acquisition of Teck’s share. Connemara continue to support the joint venture and look forward to results from the drilling currently underway at Stonepark North.“
Stone Park Zinc Project
The Stonepark Zinc Project is a joint venture between Group Eleven (76.56% interest) and Connemara (23.44% interest). Drilling at Stonepark has recently re-commenced to improve the understanding of the structural controls on mineralisation. Subsequent drilling will be based on results from initial drilling and regional fieldwork.
Group Eleven, in joint venture with Connemara aim to determine if exploration success at the adjacent Pallas Green Project (owned by Glencore plc and hosting a JORC 2012-compliant Inferred Mineral Resource Estimate of 44 million tonnes grading at 8.0% Zn&Pb as at 31-Dec-2016) can be replicated within the same Waulsortian Limestone Units located within adjoining areas. Group Eleven aims to expand all three established mineralised zones (Stonepark, Stonepark North, and Stonepark West; drilled by Teck Resources Ltd between 2007 and 2011), test five existing regional prospects and re-examine the entire Limerick Basin to ascertain potential for carbonate replacement deposit type mineralisation, as well as, seek large regional feeder structures and corridors. The Limerick Basin underlies the Stonepark joint venture as well as Group Eleven’s contiguous PG West Property.
Group Eleven’s announcement which contains further comprehensive details, tables and map are available on the Connemara website at www.connemaramc.com/stonepark-zinc/
Further Notes:
· Classification of the MRE was completed based on the guidelines presented by Canadian Institute for Mining (CIM), adopted for Technical reports which adhere to the regulations defined in Canadian National Instrument 43-101 (NI 43-101).
· Effective date as at 15 March, 2018.
· The estimation method used was ‘ordinary kriging’.
· Inferred Mineral Resources are at 4.5% zinc equivalent cut-off grade.
· Zinc Equivalent (ZnEq) = (NSRPb+NSRZn+Mc+Pc)/(RZn*PZn*(PrZn-ScZn)-RZn*PZn*PrZn*(RoyZn/100))
· ZnEq cut-off grade (calculated from Net Smelter Return) using the following parameters:
o Zinc price of US$3,284/t, recovery 88%; Lead price of US$2,425/t, recovery 80%
o Concentrate grade 14.2% zinc, 4% lead
o Processing cost of US$21.25/t; Mining cost of US$46.50/t; Treatment charges of US$1.00/t of concentrates
o Payable zinc 85%, lead 96%, with selling cost zinc US$1,162/t metal and lead US$796/t metal
o Royalty of 4.5%
· The Mineral Resource estimates are not considered to be materially affected by any known environmental, permitting, legal, title, taxation, socio-economic, marketing or political, factors.
· Average silver grade for the Inferred Mineral Resource is 1.97 g/t.
· The Inferred Mineral Resource classification is based on geology, trends in mineralisation, drilling spacing, estimation search pass number and number of samples, and zinc equivalent grade.
· Tonnages and metal are rounded to the nearest 100,000 to reflect this as an estimate.
· Average In Situ Dry Bulk Density for mineralised material is 3.24 t/m3, based on available data.
· Mineralisation wireframes were constructed using a minimum true thickness of 2.0 m, at 2% Zn+Pb natural cut-off.
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.
This announcement has been reviewed and approved by Gavin Berkenheger (CGeol) in his capacity as the Qualified Person for the purposes of the AIM Guidance Note for Mining, Oil and Gas Companies issued by the London Stock Exchange.
INFORMATION FOR EDITORS
Connemara is a diversified exploration company with principal assets in gold and zinc exploration licences across Ireland. Connemara currently holds interests in a total of 41 licences, including joint ventures with Teck at the Oldcastle Zinc Project and with Group Eleven Resources Corp at the Stonepark Zinc Project.
Further information can be sourced from the Company website: www.connemaramc.com
ENDS
