Corcel PLC

("Corcel" or the "Company")

Wowo Gap - Receipt of Gap Analysis Report

09 June 2022

Corcel, the natural resource exploration and development company with interests in battery metals and flexible energy generation and storage, announces receipt of its externally commissioned Gap Analysis Report conducted on the Company's Wowo Gap nickel/cobalt project, where the Company retains a 100% interest.   

Highlights:

o  A detailed Gap Analysis report for the Wowo Gap Project has been completed externally, including a comprehensive review of legacy data and proposals for areas of future emphasis in preparation for an eventual Mining Lease application

o  Key findings, other than the need to continue to mature the project technically, include the requirement to update offtake assumptions given recent positive structural changes in Nickel prices and the proposed broadening of focus to include multiple development concepts including both a DSO alongside HPAL (High Pressure Acid Leach) and DNi (Direct Nickel) processing options

Gap Analysis:

AMC Consultants Pty Ltd ("AMC") were contracted, as part of the Company's preparation work for a Mining Lease application, to prepare a Gap Analysis of the Wowo Gap lateritic nickel/cobalt project in Papua New Guinea ("PNG").  This work builds on the historic 2010 feasibility study and the 2016 direct shipping ore ("DSO") study conducted by the previous owners of the project.  The focus of the study was to provide a clear understanding of the additional data and work required to make an eventual formal application for the Mining Lease, including a bankable feasibility study ("BFS") acceptable for project financing purposes.

Key Findings:

Geology:

o  In general AMC considers the deposit geology to be well understood however some additional resource definition work suggested to define mineralization boundaries and the extent of the deposit

o  Some portion of the resource may need to be upgraded to the JORC Measured classification in order complete a full BFS

Offtake:

o  Requirement to update previous 2010 and 2016 views on market demand, quality, and expected Nickel prices, particularly given recent strong structural changes in Nickel prices

Geotechnical:

o  Requirement to plan for expected very wet conditions at the minesite including surface drainage, stability of excavation and landform walls and trafficability across benches and haul roads

Operations and Infrastructure:

o  Currently envisaged operations are considered reasonable and consistent with others in the region (including the Ramu nickel mine- using hydraulic excavators and articulated dump trucks).  Further work limited to finalising routine additional documentation, economic assessment and engineering work

o  Ore likely to be stockpiled at the mine to be dried and later sent to the coast for export through a barge loading facility at Collingwood Bay hence key infrastructure spread across minesite, local village and barge loading facility

Mine Planning:

o  Some early work on mine planning completed by the previous owners but additional work, including ore loss and dilution models, cut-off grade analysis and the determination of economic pit limits now required

Environmental:  

o  Requirement to prepare detailed risk mapping including risk mitigation measures and associated implications. 

o  Requirements to understanding project hydrology including peak flows and flood mapping alongside relevant average recurrence intervals for the predicted mine-life with a view to right sizing required development infrastructure

o  Greatest risk which requires mitigation is expected to be water quality downstream of project and potential contamination from run-off, leachate and spills

Economic Assessment:

o  Building on previous work additional analysis of expected operating and capital costs will be developed

Development Concept :

o  Wowo Gap was originally developed in 2010 as a 1.5Mtpa (dry) open pit mine with on-site processing using HPAL technology.  In 2016 a further study was undertaken examining a 2Mtpa DSO nickel laterite operation.  Based on the results of the AMC report Corcel intends to conduct a Pre-Feasibility Study ("PFS") examining multiple development concepts including both a DSO operation alongside a HPAL or Direct Nickel operation.

The Company will update the market as it continues its technical work to advance the Wowo Gap project.     

For further information, please contact:

Scott Kaintz 020 7747 9960                                                                               Corcel Plc CEO 

James Joyce / Andrew de Andrade 0207 220 1666                                WH Ireland Ltd NOMAD & Broker

Simon Woods 0207 3900 230                                                                            Vigo Communications IR 

The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain.