Chesterfield Resources / EPIC: CHF / Market: LSE / Sector: Mining

27 January 2022

Chesterfield announces positive results of an extensive field survey and data re-modelling at its Adeline copper project in Labrador, with the development of a high-quality target pipeline

Chesterfield Resources is pleased to report positive copper and silver assay results from widespread occurrences in its recent field exploration and mapping programme on various targets within its Adeline copper project in Labrador, Canada. The company also reports encouraging historical surface sampling results and drill intersections determined from its six-month desktop and data compilation study of the Adeline Project. The company will now use this information to generate ranked targets and detailed design for its forthcoming initial diamond drill programme.

·    A recent three-month field programme completed at the Adeline Project has returned locally high-grade copper and silver assay results from chip and rock samples from multiple targets. Planning is now underway for follow-up exploration and drilling to determine the project's resource potential

·    The dominant copper minerals are chalcocite and bornite, often disseminated in fine grained matrices that demonstrate a higher tenor of copper mineralisation compared with chalcopyrite. Some historical grab samples have been observed of between 10% to 30% copper.

·    Chesterfield has completed the first comprehensive desktop review and compilation of the historical Adeline project dataset that includes the results from historical geophysics, rock and trench sampling programmes, and various drilling programmes dating as far back as the 1950s

·    The detailed compilation and desktop study has identified highly encouraging historical drill intersections including 1.76% Cu and 56.2 g/t Ag over 7.9m within the Ellis target

·    Remodelling of numerous geophysical datasets has also identified several entirely new target areas for exploration

·    A detailed exploration and drilling plan is now being finalised by the company commencing in H1 2022 leading to the potential for resource estimation

Executive Chairman Martin French commented, "Over the past six months our technical team have completed the first comprehensive review of several decades worth of historical mapping, sampling, and drilling data. In tandem, a geophysics team has remodelled a considerable bank of historical geophysical data compiled from past programmes run by previous operators. This was completed using the more recent modelling and  visualisation software. From July to September 2021, Chesterfield also conducted an extensive field programme at Adeline.

The Adeline Project is unusual in that while there has been extensive sampling and geophysics work completed, there has comparatively been very little drilling completed, in part due to a lack of direct road access. The recent field programme re-sampled the key known target areas for verification of historical results. It was also able to use the results of the technical team's geological and geophysical re-interpretation to map entirely new target areas for further exploration.

The combination of historical re-appraisal and new survey work has produced some compelling data and targeting, some of which is itemised below. The Company is now finalising a series of ranked drill targets and detailed drill design which will be announced soon."

Adeline Project - Recent Programme Results

Chesterfield has recently completed a maiden field programme and data compilation study for its 297 km² Adeline Project located in south-central Labrador, Canada. The work programme was comprised of a comprehensive historical data review and GIS compilation and analysis, in conjunction with detailed geophysical remodelling of historical data sets, followed by two fieldwork phases from early July to August 2021. The field programme focused on detailed mapping and verification sampling of the key prospects. A remodelling of high-quality aerial and ground-based geophysical data was also used to vector the field team to previously unmapped new target areas. On the back of encouraging field observations, an additional third phase was added, taking the exploration programme into mid-September 2021.

Historical data from the Adeline Project, along with the company's field observations suggest local areas of thickening at shallow depths that, if confirmed by drilling over the coming months, provide the potential to advance the project to the initial resource estimation relatively quickly.

Highlights of historical shallow drilling and trenching results for the project by previous operators since the 1950s and determined from recent compilation work completed by the Company include:

Ellis prospect

·    Historical drill hole SL11-10 (a twin of historic hole K10) completed in 2011 by Playfair Mining intercepted 1.76% Cu and 56.2 g/t Ag over 7.9m from 90.6m hole depth.

·    Historical drill hole K10 completed in the 1950s intercepted 1.69% Cu and 51.8 g/t Ag over 4.3m from 57.6m hole depth.

·    Historical trench result: averaged grade of several channel samples collected across the same mineralised bed over 60m length of trench was 1.35% Cu and 49.8 g/t Ag with an average thickness of 7.5m, including a highest individual channel sample result of 2.50% Cu and 94.3 g/t Ag over 4.5m.

Whiskey Lake prospect

·    Historical trench result: averaged grade of several channel samples collected across the same mineralised bed over 60m length of trench was 1.25% Cu with an average mineralised  thickness of 7.5m. No silver results were reported.

South Adeline Mountain prospect

·    Grab samples grading 13.55% Cu and 199 g/t Ag and 9.28% Cu and 122 g/t Ag

Seal Lake No. 1 prospect

·    Grab sample grading 26.90% Cu and 16.45 g/t Ag.

Extensive, modern re-modelling of historical geophysical survey data has taken place on both a regional and prospect-level scale. The historical regional work included an airborne EM (electromagnetic) survey alongside helicopter-borne radiometrics and magnetics collected over 3,435-line km at a 200m line spacing. Reinterpretation of this data has refined the wider structural understanding of the area and associations to known copper occurrences. More detailed and targeted historical ground geophysics took place at the prospect-level scale and included IP (induced polarization), SP (self-potential), VLF-EM (very low frequency electromagnetic) and magnetic surveys. Using present-day software, it has been possible to digitize some of these historical data sets and model these in 3D space, displaying them together with historical drilling and geological mapping, along with rock, soil and lake bed geochemical samples. This desktop process has optimized the interpretation of the geophysical results and geological observations by georeferencing to better assure the overall interpretation.

The first phase of field work in July 2021 focused on initial site visits to the most historically significant prospects and targets areas of the more than 250 known copper showings across the Seal Lake basin. Follow-up mapping of selected target areas was undertaken, and locations of geophysical anomalies were also investigated in the field. The objective of this initial phase was to help define a ranked list of targets from the numerous known showings for subsequent field work.

In the second phase, further visits to the higher ranked targets were undertaken. A programme of focused stratigraphic and structural mapping was completed on the most promising of these localities. The aim of the geological mapping was to identify key structures responsible for concentrating copper-silver mineralization within the targeted "grey bed" host stratigraphy. In conjunction, a programme of geochemical rock sampling was completed to help characterize host rocks relatively proximal and distal to copper-silver mineralization and to assess the copper and silver values that could be expected from mineralized zones at surface.

A total of 114 systematic chip samples, over varying widths of 0.30m to 7.60m, were collected along 28 transects at 11 different localities. An additional 41 selective grab samples were also taken at sites of mineralisation and alteration.

Assay highlights from the 2021 chip and grab sampling programmes include:

The third and final phase of the 2021 field programme consisted of follow-up field investigations of the most prospective target areas, thereby allowing integration of detailed geological, geochemical and geophysical data sets, and historical drill results which led to the generation of an extensive ranked target list with defined future follow-up work programmes. Additionally, this helped develop an optimized exploration approach, including the use of leading-edge geophysical modelling techniques that were not available during the previous, historical exploration campaigns when the data was collected.

The entire 2021 field season helped develop a ranked target list including identified priority drill targets which the team is now finalising for a diamond drilling programme to commence in the first half of 2022.

About the Adeline Copper Project

In July 2021, Chesterfield acquired 100% of the Adeline copper project from Altius Minerals in return for a 10% equity stake, a three-year warrant over a further 10% of equity at a strike price of 20p, and the granting of a 1.6% revenue royalty. In addition, Altius Minerals has agreed to assist the Company as a strategic project partner providing valuable on-the ground assistance and project management.

The Adeline project is located within the western half of the Central Mineral Belt, a 260 km long metal-rich belt located in Central Labrador within the Province of Newfoundland and Labrador in Eastern Canada. The Adeline Project is comprised of ten contiguous mineral licences totalling 29,725 ha (297.3 km²) covering the full extent of the Seal Lake Basin, an approximate 40 km long by 10 km wide geological structure that contains approximately 250 copper prospects. The Adeline Project is located close to the regional service hub of Goose Bay, Labrador which can provide a base of operations for field and drilling programmes including air support.

The Seal Lake Basin has seen extensive regional exploration over the years resulting in a rich exploration database. Trenching and channel sampling has established the presence of laterally continuous high-grade copper beds. However, there has been relatively little historical drill testing, largely due to the lack of direct road access. Historically, where sulphide mineralisation has become highly concentrated as chalcocite and bornite the grades have reached 10 to 30% copper.

The company has recently completed the compilation and re-analysis of all historical regional exploration datasets with the latest geophysical modelling and visualisation software tools, and it has assembled a team of expert consultants who have decades of experience in this belt.

An initial field season, which has just been completed, focused on both previously identified, as well as new prospect areas. This is expected to generate a pipeline of quality diamond drilling targets to test for significant extents of bedded copper-silver mineralisation. The company is currently progressing project planning and permitting applications.

Qualified Person Statement

The information in this announcement that relates to exploration results is based upon information compiled by the company's technical staff and geological consultants. Paul Ténière, M.Sc., P.Geo., an independent Technical Advisor to the company and a Qualified Person under NI 43-101, has reviewed and approved the scientific and technical information disclosed in this announcement. Mr. Ténière consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears being consistent with the adoption of the NI 43-101 reporting code.

Further background about Chesterfield Resources 

Chesterfield Resources is a copper focused exploration company centred around its newly-acquired Adeline Copper Project in Labrador, Canada, together with its existing copper/gold project in Cyprus.

The exploration technical team is led by Dr Neil O'Brien, formally SVP Exploration & New Business Development, Lundin Mining. Dave Cliff, previously Head of Exploration Europe, Rio Tinto, serves as a board member.

The Company has also acquired a major backer. In December 2020, Polymetal International, the FTSE100 mining group, made a 23% investment in Chesterfield via a placing of new shares, as strategic backing for the company's project in Cyprus.

In Cyprus, the company holds the largest mineral exploration licence area of any operator on the island. Cyprus is regarded as a prospective copper-zinc-gold-silver exploration location. It is a member of the EU, and its legal system is based on English common law. Chesterfield identified a value-creative exploration opportunity due to minimal exploration activity on the island in the last 48 years since the invasion by Turkey in 1974 that put a halt to what had been a very active mining industry. 

While copper is the main exploration target, it is noteworthy that gold was not historically exploited in Cyprus. Gold has been encountered in several locations in the exploration target area and is an important part of the exploration objective. This also includes a waste dump opportunity that will be appraised, called Limni South Gold and an encouraging, potentially enlarged mineralised zone described above.

The company announced high grade polymetallic results from its 2020 drilling campaign and embarked in 2021 on an enlarged integrated geophysics, percussion, and diamond drilling exploration campaign. The company has now completed its diamond drilling campaign for 2021. In December 2021, the company reported a significant gold mineralised system at its Westline target including a drill hole with 21.4 m intersection grading 1.75 g/t gold from 98.7 m downhole including a high-grade zone of 3.3 m grading 6.55 g/t gold and 90.35 g/t silver from 100.20 m downhole. In addition, the company has recently identified a new gold oxide project name Limni South Gold based upon encouraging samples at a waste dump as well as drilling in the vicinity with a programme of further test work being planned.

Chesterfield Resources is committed to world-class environmental standards in all of its operations that are focussed on the exploration for copper, which is an essential metal to developing clean technology projects worldwide. The company hopes to develop industry and opportunities for the benefit of Canada and the Republic of Cyprus. 

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

**ENDS**

 For further information, please visit www.chesterfieldresourcesplc.com or contact:

Chesterfield Resources plc:

Martin French, Executive Chairman                         Tel: +44(0) 7901 552277

Panmure Gordon (UK) Limited (Joint Broker):       Tel: +44 (0)207 886 2500

John Prior & Hugh Rich

First Equity Limited (joint Broker):

Jason Robertson                                                         Tel: +44 (0) 207 330 188