TIDMATN
RNS Number : 0663Y
Aterian PLC
02 May 2023
02 May 2023
Operational Update
Exploration, Trading and ESG in Rwanda
Aterian Plc
(" Aterian " or the " Company")
Aterian Plc (LSE: ATN), the exploration and development company
advancing its portfolio of African-focused critical and strategic
metal assets, provides an operational update on its work streams in
the Republic of Rwanda.
HCK Project Highlights:
-- Prospective lithium bedrock potential confirmed by
independent pegmatite fertility analysis of the multi-element
geochemistry.
-- New pegmatite zone discovered. Twenty-three separate target
zones have now been discovered on the southern projects.
-- Multi-method geophysical survey completed over the HCK-1 target area covering c.2.4 km(2) .
o Four sub-cropping pegmatite bodies were identified from the
survey
o Survey highlights the strong structural control on pegmatite
emplacement
o At least three deformation events are interpreted
-- The HCK exploration licence was transferred to the 70%
Aterian-owned Joint Venture Company, Kinunga Mining Limited.
Trading and ESG Highlights:
-- Nationwide site visits to artisanal and small-scale mining
projects are ongoing to develop a supply chain for mineral
trading
o Trading strategy to work with local mining parties to improve
their productivity through mechanisation.
o Construction of the concentrate upgrading facility in Kigali
is progressing well.
-- Independent ESG management consultancy produces its initial stakeholder survey findings.
Charles Bray, Chairman of Aterian, commented:
"I am highly encouraged by these results from HCK-1. The
confirmation of the potential for lithium discovery, in addition to
the identification of additional pegmatites and a new pegmatite
zone, is very exciting. The multi-method geophysical survey has
successfully delineated several sub-cropping pegmatite dykes and
demonstrates its value as an exploration tool in Rwanda. Combined
with the geochemical prospectivity/lithium fertility analysis, this
work clearly demonstrates that the southern projects represent a
strong exploration play with the opportunity for bedrock lithium
discovery hosted by the LCT pegmatites. We now have a clearer
understanding of the controlling structures and will plan a
programme of scout drill holes to test for bedrock lithium (and
tantalum-niobium-tin).
"We continue to build the trading business, and construction
work on the mineral upgrading facility is progressing well. The
trading team has visited over 25 potential mineral suppliers
nationwide with many positive indications that a consistent supply
chain will be established and maintained. We intend to work with
the small-scale miners to provide investment and technical advice
to improve their recoveries and production rates to benefit the
miners and the Company.
"Receiving our first independent ESG report now allows us to
benchmark our progress as an operator and plot a roadmap to improve
and maintain stakeholder engagement. The independent nature of the
work provides excellent insight into the work that needs to be done
in the Musasa area following recent management changes to restore
our relationships with the community. Working in partnership with
existing small-scale producers and creating an environment of
positive engagement with all stakeholders in Rwanda will deliver
substantial productivity gains, benefitting local communities and
the Company."
Projects Summary:
The Company's wholly-owned Rwandan subsidiary, Eastinco Limited
("Eastinco"), is currently engaged in three partnerships within
Rwanda, working with local entities to explore and develop
tantalum, niobium, tin and lithium opportunities. Eastinco holds a
minerals trading licence, which will facilitate the trading of
mineral concentrates within the region. The Company is building a
mineral supply chain for trading by evaluating numerous artisanal
and small-scale operations around the country and constructing a
concentrate upgrade facility in Kigali.
Exploration Update on the Southern Projects
A ground-based multi-method geophysical survey covering an area
of 2.36 km(2) over the HCK-1 target has been completed. The survey,
comprising magnetometry, induced polarisation ("IP"), and
electrical IP tomography ("IPT"), was designed to provide
information on the main geological controlling structures for the
emplacement of the pegmatite bodies, the depth of weathering and
recommended targets for detailed follow-up.
The magnetic and IP surveys were completed along 33 NE-SW
orientated profiles (24-line km and 23.3-line km, respectively)
with 100 m profile spacing and data points captured every 10 m
along the profile. The IP survey used a gradient array to provide
subsurface lithological resistivity and chargeability
(polarizability) observations. Resistivity maps can help to
identify conductive ore bodies, fractures, faults, and lithological
variations. Chargeability maps, however, allow for identifying
electron-conductive minerals, such as sulphides, magnetite, and
graphite. Since Rwandan pegmatites are deeply weathered and
kaolinised, they were expected to be characterised by low
resistivity and have higher polarizability than the host rocks.
Based on the overall combined geophysical response, it has been
possible to subdivide the surveyed area into four distinct
domains.
A B C
Four geophysical domains separated by NE-SE boundaries interpreted
from (A) the local component of the anomalous magnetic field
reduced to pole, (B) apparent resistivity, and (C) apparent
chargeability.
Domain 1 is characterised by low values (-45 to +45 nT) during
the magnetic field RTP (reverse to pole) analysis, with a series of
intensive apparent resistivity anomalies (400 - 1,200 Ohm m) having
widths of 25 - 90 m and orientated in an NW-SE direction. The
average apparent chargeability values of 2-3 % correspond to the
background values for the entire surveyed area, with the Domain
mapped as being underlain by quartz-rich phyllites.
Domain 2 hosts the HCK-1 target with the apparent resistivity
data showing a symmetrical structure. The background values range
from 60 - 180 Ohm m, with two 30 - 140 m wide prominent ridges
having apparent resistivity values of 500 - 1,100 Ohm m. These
ridges are separated by a 20 - 110 m wide zone of relatively low
apparent resistivity (150 - 250 Ohm m) that coincides with the
known pegmatite occurrences. The observed symmetry in the structure
suggests a folded sequence with the resistivity highs occurring
within the fold axis, indicating the possible structural control
for HCK-1. Low resistivity and relatively high apparent
chargeability values (3.0 - 5.5 %) on the flanks of this fold
structure are associated with outcrops of graphitic schists. The
high-resistive ridges surrounding the main pegmatite body are
mainly composed of yellow and grey micaceous schists [1] . The
described combination of graphitic and yellow-grey schists is
characteristic of the pegmatite-bearing Uwinke Formation 2 .
[1] A single grab sample of the graphitic schist analysed by
Intertek Genalysis returned a total graphitic carbon value of 2.2 %
Carbon.
2 The Uwinka formation represents the lower basal unit of the
Pindura Group, which forms part of the Mesoprotoerozoic Akanyaru
Supergroup.
Two low-resistive and structurally-controlled anomalies with
widths between 25 and 80 m are observed along the southwestern
boundary of Domain 3. Recent geological reconnaissance has
confirmed the presence of the pegmatite associated with these
anomalies. The anomaly related to the Kigarama pegmatite trends for
c. 1,100 m in an NW-SE direction remains open-ended to the SE.
A B
Analysis of tilt derivatives of the apparent resistivity
and apparent chargeability, (A) Isolated structural units
with high (TDR > 15deg) and (B) low apparent resistivity (TDR
< -15deg) showing the locations of the IPT profiles and known
pegmatite occurrences.
Domain 4 is located in the NE part of the surveyed area and is
comparable to Domain 1. Based on the geophysical response and
available geological data, it is assumed that quartz-rich phyllites
and quartzites predominate within this Domain, with little evidence
to suggest the presence of sub-cropping pegmatite.
Four electrical IP tomography ("IPT") profiles were completed
over the main topographic ridge at HCK-1 for 964-line meters. IPT
was performed using induced polarisation with a pole-dipole array
to produce vertical resistivity and chargeability cross-sections
indicating the subsurface geology and the depth of expected
weathering.
In all cross-sections, pegmatite is identified in the upper
weathered horizon by a combination of resistivity values of 200-300
Ohm m and chargeability of less than 1 %. Within the fresh rock,
the resistivity and chargeability response of the pegmatites shows
little contrast with the country rock, which makes it difficult to
define these targets reliably. However, the loss of contrast in the
electrical properties of pegmatites and country rock can be used as
a sign for distinguishing the approximate boundary between
weathered and fresh pegmatite. The depth of the top of fresh
pegmatites varies from 44 m (line C) to 65 m (line B) across
HCK-1.
IP Tomography data interpretation along profile C
The geophysical survey results indicate that the combined survey
method is appropriate for future regional exploration. Four
pegmatite bodies were identified, with the survey highlighting the
strong structural control on their emplacement. At least three
deformation events are interpreted, but only the D1 and D2 events
are considered pegmatite-controlling. The D1 is fold-related with
an NW-SE trending axial plane, and D2 structures are inferred as
regional NW-SE trending faults located close to domain boundaries.
D3 structures are defined by elongated dipole magnetic RTP
anomalies and low-resistive zones cross-cutting structural units
within the domains. These structures are interpreted as N-S and
NE-SW trending faults and shears exhibiting zones of low
resistivities with widths of 30 - 110 m.
Interpretation Map of t he Main Geophysical Elements
New Pegmatite Identified on HCK Licence
Geological prospecting has identified a new pegmatite target in
the southeastern part of the HCK licence. The zone known as Gatwaro
occurs as patchy outcrops of kaolinised pegmatite with
centimetre-sized crystals of columbite recovered from the
surrounding soils. The geological team will conduct further
prospecting to confirm the extent of this new target. The addition
of the Gatwaro zones brings the total number of identified targets
on the southern projects to 23.
Sample Results and Analysis
HCK-1 and Regional Pegmatite Samples
The geochemical results from 18 surface grab samples have been
received from the initial sampling of discovered pegmatite zones
across the HCK licence (with the addition of 8 QA/QC samples), and
31 samples from the exploration pitting completed over the HCK-1
target (with the addition of 3 QA/QC samples and the inclusion of a
sample of both a graphitic schist and granite). Of the HCK-1
samples, 6 reported > 100 ppm Ta, with a high of 297 ppm Ta. The
maximum Sn reported was 1,856 ppm (0.186 % Sn), associated with 246
ppm Ta, 303 ppm Nb and 229 ppm Li. 25 samples reported > 100 ppm
Li. In addition, two HCK-1 samples returned 394.5 and 316.1 ppm Ta,
respectively, from the licence-wide reconnaissance sampling. A
sample from the Murambi target reported 287 ppm Li from a clay-rich
pegmatite.
Dr B. Steiner of Xplore Global Ltd, a UK-based geological
consultancy specialising in rare metal pegmatites, conducted a
pegmatite fertility analysis of the multi-element geochemistry. The
study involved an analysis of the data by assessing various metal
ratios and metal associations to predict the lithium prospectivity
of the pegmatites occurring on the licence.
A summary of the study indicates that the HCK-1 pegmatite shows
encouraging evidence for Li-Ta enrichment, even though the Ta
grades generally seem to be < 200 ppm. The Ta grades are not
unexpected given the irregular metal distribution within these
weathered and kaolinised pegmatites, with the samples being
collected from the near-surface environment. Given the deep
tropical weathering, the enrichment of Li (16 samples > 150 ppm)
is seen as encouraging for locating Li pegmatites at depth (below
the weathering zone). The indicated presence of tourmaline and
beryl from several localised zones along the strike of the HCK-1
pegmatite may imply internal zonation and/ or that the bedrock
source pegmatite comprises more 'complex' pegmatites (which are
generally the targets in LCT pegmatite exploration). The low Rb
levels associated with anomalous Li may imply a non-mica lithium
source and the low levels of phosphorus vectors toward a more
spodumene-rich bedrock target.
The regional pegmatite samples are occasionally enriched in Li,
Ta and Cs and require further investigation, given that only one
surface sample was collected per occurrence during initial
prospecting. The presence of tourmaline and beryl in the regional
samples should be seen as positive pathfinders minerals for field
follow-up. Overall, the results of the recent sampling campaign are
encouraging, particularly concerning the possible presence of Li
below the weathering horizon.
Kassava Prospect - Musasa Project
Although the geochemical analysis indicates a degree of
fertility in the Kassava pegmatite, an overall metal enrichment is
not observed in the data. The highest tantalum value reported was
107 ppm, associated with 260 ppm Nb. The large opening (a 20 m x 30
m wide cut into the ridge to a depth of c. 13 m) from earlier
artisanal miners suggests that further work is required to fully
evaluate this prospect and determine the main driver for the
earlier mining activity.
Sampling Methodology and Analysis
All sample preparation was conducted in Rwanda at the Company's
facility in Musasa, with analysis of the pulps undertaken by the
Intertek Genalysis Laboratory, an accredited laboratory in Perth,
Western Australia. All samples were analysed for a multi-element
suite of 55 metals using a sodium peroxide fusion (in nickel
crucibles) and hydrochloric acid to dissolve the melt and analysed
by a combination of Inductively Coupled Plasma Mass Spectrometry
and Inductively Coupled Plasma Optical (Atomic) Emission
Spectrometry.
HCK Licence Transfer
A request from our partners, HCK Mining Company Limited, to
transfer the exploration licence into the name of the joint venture
company, Kinunga Mining Limited, was approved and completed by the
Rwanda Mines, Petroleum and Gas Board ("RMB").
Metal Trading Update
Over the past two months, the trading team has visited potential
suppliers of 3Ts mineral concentrates across Rwanda to build a
supply chain before physical trading commences. Most of the 28
sites visited have expressed an interest in working with the
Company, and the intention is to sign the first agreements in May
and June this year.
Mine shaft at one of the potential small-scale partner mine
sites
Aterian intends to partner with several suppliers in Rwanda to
support their mining operations by providing mining and processing
equipment, capital investment and training. The first partner
project has been identified, and the Company is now conducting
additional due diligence and technical planning to start in June
this year officially. This initial project will evaluate the
installation of basic mineral processing systems under a lease
agreement and the development of new access tunnels into the deeper
levels of the mining area. The new infrastructure should result in
an immediate uplift in production by processing existing tailings
material and a longer-term sustainable production uplift from
accessing the deeper mineralised structures.
Mineral upgrade building under construction at the Kicukiro
compound in Kigali.
Construction of the mineral upgrading facility in Kicukiro,
Kigali, is progressing. The steel structure, roof and concrete
floor have been completed, with the walls nearing completion. The
concrete is due to cure over the next few weeks, ready for heavy
mineral processing equipment to be positioned around the middle of
May. The facility will include rock crushers to reduce the size of
the ore material, high-intensity magnetic separation to remove iron
ore and separate the cassiterite (tin) from the coltan
(tantalum/niobium), shaking tables to remove free quartz from the
cassiterite ore, an assay lab to measure the percentage of
contained metals, a drying facility to remove excess moisture, and
a mineral mixing area for homogenising the material before
sampling. This facility will therefore allow Aterian to purchase,
assay, upgrade, blend and export material to the international
market.
As a member of the ITSCI programme, Aterian is committed to
respecting the best international standards and regulations around
supply chain and traceability, and on 26(th) April attended the
OECD's "2023 Forum on Responsible Mineral Supply Chains" in Paris.
The conference focused on new conflict risks, corruption and
environmental risks in mineral supply chains, drivers of
responsible trade, and systemic issues like regulatory developments
and taking responsible finance to scale, all of which are critical
to Aterian's vision to provide ethically sourced minerals for a
responsible and reliable supply, essential for energy transition
and modern technology industries.
ESG
The Company has received its first "Headline Risk Report" from
Munday (formerly called 1Villager), who was recently engaged to
provide ESG support to our operations in Rwanda. Mundaly provides a
science and AI-driven SaaS platform for business whistleblower
management, social license reporting and stakeholder engagement.
Mundaly measures a company's whistleblowing and social license
risks using its proprietary, research-backed scales.
The report findings are based on survey answers from 312
employees and partner communities, collected from a secure and
confidential mobile app, where participants can report any
misconduct and give feedback on the company's operations.
The overall Headline Risk score was 83/100, comprising two
components, a social licence and a whistleblower risk score. The
overall score is weighted more towards the social licence score
(60%) than the whistleblower risk score (40%).
The social licence score measures public acceptance and approval
of the Company's operations and practices. As the Company strives
to operate sustainably and responsibly, we must understand and
manage social licences. The social licence score achieved in the
survey was 73/100 and requires improvement. Recent in-country
management changes and establishing a mechanism that encourages
dialogue amongst employees and partner communities will
significantly improve facilitating grievance and feedback
reporting.
The whistleblower risk score is a scale measuring the likelihood
of unethical behaviours by asking respondents what they know about
the severity of specific behaviours of the Company. The categories
breakdown comprises 1.) labour, ethics and human rights, 2.)
criminal and security concerns, 3.) bribery, corruption, and
financial embezzlement, and 4.) environmental concerns. The
Whistleblower Risk score was 97/100. We strive to achieve 100%.
Qualified Person
The technical disclosure in this regulatory announcement has
been approved by Simon Rollason, Chief Executive Officer of Aterian
Plc. A graduate of the University of the Witwatersrand in Geology
(Hons). He is a Member of the Institute of Materials, Minerals and
Mining, with over 30 years of experience in mineral exploration and
mining. The section in this announcement about mineral geochemistry
and analysis has been reviewed and approved by Dr B Steiner, a
director of Xplore Global Ltd and a chartered fellow of the
Geological Society of London (CGeol) and European Federation of
Geologists (EurGeol). Dr Steiner is a practising geologist with
fourteen years of continuous experience in mineral exploration
across Europe, Africa, South America and Asia.
-S -
This announcement contains information which, prior to its
disclosure, was inside information as stipulated under Regulation
11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310
(as amended).
For further information, please visit the Company's website:
www.aterianplc.com or contact:
Aterian Plc:
Charles Bray, Executive Chairman -
charles.bray@aterianplc.com
Simon Rollason, Director - simon.rollason@aterianplc.com
Financial Adviser and Broker:
Novum Securities Limited
David Coffman / George Duxberry
Colin Rowbury
Tel: +44 (0)207 399 9400
Financial PR:
Yellow Jersey PR - aterian@yellowjerseypr.com
Charles Goodwin / Bessie Elliot
Tel: +44 (0)20 3004 9512
Notes to Editors:
About Aterian plc
www.aterianplc.com
Aterian plc is an exploration and development company with a
diversified African portfolio of critical and strategic metals
projects.
Aterian plc seeks to acquire and develop new critical and
strategic metal resources to strengthen its existing asset base
whilst supporting ethical and sustainable supply chains. The supply
of these metals is vital for developing the renewable energy,
automotive, and electronic manufacturing sectors, which are playing
an increasing role in reducing carbon emissions and meeting climate
ambitions globally.
The Company currently has three partnerships in Rwanda,
exploring and developing small-scale tantalum-niobium-tin mining
opportunities and recently acquired Aterian Resources Ltd, which
owns a portfolio of 15 copper and silver projects with a project
area of 762 km(2) in the Kingdom of Morocco.
The Company's strategy is to seek new exploration and production
opportunities across the African continent and to develop new
sources of strategic and critical mineral assets for exploration,
development, and trading.
Summary information on Rwandan Projects
HCK Joint Venture
Eastinco has a Joint Venture Agreement Agreement with HCK Mining
Company Limited, a private non-related Rwanda registered entity and
the holder of a 2,750-hectare exploration licence in southern
Rwanda. Eastinco will fund and manage the exploration activities
over the project and will retain a 70% share in the net operating
profits with the right to purchase 100% of the Ta-Nb-Sn from any
future production.
Dynasty Construction Joint Venture
Eastinco entered a Joint Venture Agreement and Operating
Agreement with Dynasty Construction Ltd, a private non-related
Rwanda registered entity and the holder of a 400-hectare
exploration licence in the Huye District of southern Rwanda. A
renewal of the exploration licence is pending approval with the
Rwanda Government. Eastinco holds a 50% interest in the proposed
joint venture company, with Eastinco and Dynasty to provide future
capital expenditure in proportion with their shareholding at the
time of any potential future mine build.
Musasa Joint Venture
A Joint Venture and Operating Agreement with the Kuaka
Cooperative ("Kuaka"), the holder of a small-scale mining licence
in western Rwanda. An application for a new 400-hectare licence in
the name of the joint venture company, Musasa Mining Limited, is
pending approval with the Rwanda Government. Eastinco will retain
an 85% interest in the joint venture company holding the new
licence, with the right to purchase 100% of the Ta-Nb-Sn from any
future production.
Glossary of Terms
The following is a glossary of technical terms:
"3Ts" means Tin (cassiterite), Tungsten (wolframite),
and Tantalum (coltan)
"Coltan" means a metallic ore from which the elements niobium
and tantalum are extracted
"Cs" means Cesium, an alkali group metal found in LCT
pegmatites
"Dyke" means a sheet of rock that is formed in a fracture
of a pre-existing rock body
"ERT" means Electrical Resistivity Tomography. A geophysical
method for imaging sub-surface structures
from electrical resistivity measurements
made on the surface
"Grades" means the quantity of ore or metal in a specified
quantity of rock
"Gradient array" means geophysical mapping tool providing information
about the subsurface, in the interval from
a particular depth to the surface. The results
are typically maps of the apparent resistivity
and chargeability
"IP" means Induced Polarisation
"IP Survey" means a geophysical survey technique where electrodes
induce and measure a potential field in the
ground. From this data, the soil chargeability
and apparent resistivity can be measured
"km" means kilometres
"LCT" means Lithium-Cesium-Tantalum pegmatite
"Li" Means lithium
"Ma" Means Mega-annum, which is equal to one million
years
" Magnetic survey" means a survey mapping the magnetism of the underlying
rock and is used to understand the general
structure of these rocks
"mm" means mill imetres
"Mt" means millions of tonnes
"NI 43-01" means National Instrument 43-101 Standards of Disclosure
of Mineral Projects of the Canadian Securities
Administrators
"Niobium" means a chemical element with the chemical symbol
Nb that is very resistant to corrosion due
to a layer of oxide on its surface. Niobium
is used in alloys, including stainless steel
"nT" means nanotesla, a unit of measure of earth's magnetic
field
"Ohm m" means The SI unit of electrical resistivity
"Outcrop" means a rock formation that is visible on the surface
"Pegmatite" means an igneous rock showing a very coarse texture,
with large interlocking crystals usually
greater in size than 1 cm (0.4 in) and sometimes
greater than 1 meter (3 ft). Most pegmatites
are composed of quartz, feldspar, and mica,
having a similar silicic composition to granite
"ppm" means Parts per million (equivalent to g/t)
"Prospect" means an area that is a potential site of mineral
deposits, based on preliminary exploration
"Rb" means rubidium, a chemical element with the symbol
Rb and atomic number 37. Classified as an
alkali metal commonly associated with rare
metal pegmatites and lithium micas
"Schist" means a medium-grained, strongly foliated crystalline
metamorphic rock
"Sn" means tin
"Tantalum" or means a chemical element with the symbol Ta, typically
"Ta" found in the ore columbite-tantalite (usually
referred to as coltan) and characterised
by its high density. One of the primary uses
of tantalum is in the production of electronic
components
"QA/QC" means Quality Assurance/Quality Control
"Qualified Person" means a person that has the education, skills,
and professional credentials to act as a
qualified person under NI 43-101
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