THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) NO 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMENDED, ("MAR") AND IS DISCLOSED IN ACCORDANCE WITH THE COMPANY'S OBLIGATIONS UNDER ARTICLE 17 OF MAR.  ON PUBLICATION OF THIS ANNOUNCEMENT, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.  

21 December 2022

Great Southern Copper plc

("GSC" or the "Company") 

Interim Results

Great Southern Copper plc (LSE: GSCU), the company focused on copper-gold exploration in Chile, announces its results for the six months ended 30 September 2022.

Highlights

·     Commenced exploration campaign at Especularita, which targeted porphyry-epithermal style copper-gold ("Cu-Au") mineralisation

·     Received ground magnetic data that identified multiple shallow and buried targets for follow-up exploration at the San Lorenzo project

·     Initiated reconnaissance diamond drilling at San Lorenzo, which targeted four individual prospect zones

·     Drilling programme at San Lorenzo confirmed the fracture-hosted copper target

·     Strengthened technical team with addition of a Chile-based chief geologist and two junior geologists

Post Period:

·     On 22 November 2022, the Company announced that early exploration at Especularita had identified multiple Cu-Au targets for more detailed prospect-scale exploration

·     On the same date, the Company also confirmed that scout exploration drilling at San Lorenzo was complete and that preliminary assay results for the first hole were being assessed and validated

Sam Garrett, Chief Executive Officer of Great Southern Copper, said: "We made excellent progress at our San Lorenzo and Especularita projects, where our exploration campaigns continued to produce promising results. We look forward to advancing our copper-gold exploration activities in 2023 and remain confident in the long-term strong market drivers for copper as an indispensable metal for the clean energy transition. Alongside our current exploration activities, we continue to seek opportunities for other assets to add to our portfolio with the potential to create additional value for shareholders."

Enquiries:

INTERIM MANAGEMENT REPORT 30 SEPTEMBER 2022

Following the Company's admission to listing in December 2021, raising some £3.5m, the Company has since been actively exploring at both of its Cu-Au projects in Chile, namely San Lorenzo and Especularita.

Since March this year the Company has enhanced its technical team with the addition of a Chile-based chief geologist and a further two junior geologists. The Chile management will continue to assess the human resources needs of the Company to ensure that it has the best people in the right locations to complete the exploration programmes. Our young team is fully engaged and working well together under the ongoing mentorship of our experienced senior management.

Since the beginning of this year, GSC has continued to make good operational progress.

San Lorenzo

In March 2022, the Company conducted an independent review of its 63.36 km² ground magnetic survey, undertaken by Australian-based geophysics consultants, Exploregeo Pty Limited. As announced in May 2022, the results of the interpretation suggest that thirteen near-surface magnetic anomalies may be representative of small intrusive bodies or zones of higher fracture-vein density. Significantly, four magnetic features are thought to represent deeply buried intrusives, with one in particular interpreted to potentially be the parental pluton to the monzonitic pipes seen at surface, and as such may be a porphyry copper or an intrusive-related gold target.

In addition, the Company's first scout diamond drilling programme commenced at San Lorenzo in July 2022 which targeted four prospect areas across the San Lorenzo project with up to 3,000m of diamond drilling.  In progress as at the end of September but since completed, it has four principal aims:

(1)  to determine if broad-scale oxidised sheeted fracture-vein sets observed at surface, have the potential to host copper sulphide mineralisation at depth;

(2)  to assess Cu-Au mineralisation observed at surface associated with unidirectional solidification textures ("USTs") type alteration of smaller monzonite stocks, sills and dykes invading the host granodiorite;

(3)  to attempt to determine and identify controls on mineralisation types; and

(4)  to evaluate the effective surface exploration methodologies, based on drilling results and observations, to ensure they are suitable for targeting future exploration programmes in the San Lorenzo district.

The Company reported in September 2022 that the drilling had been effective in demonstrating that fracture-veinlets in core samples were hosting pyrite, chalcopyrite, and molybdenite mineralisation in variable concentrations.

Drilling of the monzonite targets is now also complete and the Company is preparing the core samples for assaying, following which further work will be required to evaluate and assess the drill core and assay results in preparation for potential follow-up drilling programmes.

Especularita

Reconnaissance exploration work, including ground-based geological mapping and rock chip sampling, commenced across the Especularita project during the period to 30 September 2022. The work is designed to identify and delineate prospect areas suitable for follow-up detailed exploration programmes and to evaluate suitable exploration methods and technologies to employ in the on-going prospect-scale programmes.

To date the work at Especularita has identified significant potential for the development of high-grade Cu-Au mineralisation associated with both intermediate sulphidation and breccia-hosted style deposits, as well as evidence indicative of the alteration halos associated with porphyry Cu-Au deposits. The results are consistent with a large mineralising system at Especularita, which is further encouraging the Company to continue its efforts to increase its concession footprint in the district.

The Company plans to complete a ground-based magnetics survey across the Especularita project within the next six months and to commence regional geochemistry sampling, plus detailed prospect-scale exploration on at least two prospects, with the aim of defining drilling targets for 2023.

District-scale Prospectivity

Chile is the world's largest producer and exporter of copper and a significant producer of lithium ("Li"), gold and molybdenum. As such, the country attracts significant foreign investment from the largest global mining companies as well as from junior explorers. Chile will continue to represent a dominant supplier of raw materials to the burgeoning battery metals market. As previously stated, the Company is open to other exploration opportunities and has been actively involved in discussions about potential targets, which could lead to a third project.  GSC is reviewing new opportunities to enhance its project portfolio relying on its in-country experience and wide network of contacts and relationships. During the period, the Company has conducted detailed reviews of two projects (Cu and Li), as well as numerous preliminary reviews of Cu-Au opportunities that meet its strategic investment criteria. So far, the Company has not encountered an opportunity, which it believes would fit with its current business model and strategy and become a third project, but management continues to seek out such opportunities.

Corporate and Social activity

The Company recognises the importance of obtaining and maintaining a social licence to operate. During heavy rains and flooding earlier in the year, it diverted some of its operations to shoring up local roads and supplying essential provisions for the benefit of local communities. It has also started to provide employment where possible, from time to time, for members of those communities.

Annual Audit

The Company has completed its first audited annual financial statements and I would like to thank our independent audit firm, PKF Littlejohn, our accounting partners in the UK, RSM, and in Chile, Puente Sur Outsourcing, for their efforts in helping us do so and setting up the relevant processes for future audits.

Market Conditions

As all shareholders and investors will be aware, capital markets have faced strong headwinds since our admission to listing, being impacted by falling commodity prices, rising inflation, falling exchange rates, and   political turmoil. The situation now appears to be stabilising as GSC moves into its second year as a listed company.

Risks and uncertainties

The Directors do not consider that the Company's principal risks and uncertainties have changed since the publication of its annual report and accounts for the financial year ended 31 March 2022 on 25 August 2022, which contains a detailed explanation of the risks relevant to the Company and is available at: https://gscplc.com/investors/documents-and-reports

Outlook

GSC looks forward to continuing its exploration activities at San Lorenzo and Especularita, its copper-gold exploration projects in Chile. Chile is the world's largest producer and exporter of copper and the Board remains confident in the long-term market drivers for copper as an indispensable metal for the clean energy transition. Alongside the Company's exploration activities, GSC will continue to seek additional exploration opportunities that could be added to our portfolio and have the potential to create additional value for shareholders.

Responsibility Statement

We confirm that to the best of our knowledge:

·   The Interim Financial Statements have been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting' ('IAS 34'), as endorsed for use in the United Kingdom;

·    The Interim Report gives a true and fair value of the assets, liabilities, financial position and loss of the Group;

·     The Interim Report includes a fair review of the information required by DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the set of interim financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and

·     The Interim Report includes a fair review of the information required by DTR 4.2.8R of the Disclosure and Transparency Rules, being the information required on related party transactions.

The Interim Report was approved by the Board of Directors and the above responsibility statement was signed on its behalf by

Charles Bond, Chairman

21 December 2022

Forward looking statement

Certain statements in this announcement, are, or may be deemed to be, forward looking statements. Forward looking statements are identified by their use of terms and phrases such as "believe", "could", "should", "envisage", "estimate", "intend", "may", "plan", "will", or the negative of those, variations or comparable expressions, including references to assumptions. These forward looking statements are not based upon historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities.

Such forward looking statements reflect the Directors' current beliefs and assumptions and are based upon information currently available to the Directors. A number of factors could cause actual results to differ materially from the results discussed in the forward looking statements, including risks associated with vulnerability to general economic and business conditions, competition, environmental and other regulatory changes, actions by government authorities, the availability of capital markets, reliance on key personnel, uninsured and underinsured losses and other factors, many of which are beyond the control of the Company. Although any forward looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with such forward looking statements.

Notes for Editors:

About Great Southern Copper

Great Southern Copper is a mineral exploration company focused on copper-gold deposits in Chile. The Company has the option to acquire rights to 100% of two projects that are prospective for copper-gold deposits in the underexplored coastal belt of Chile, a globally significant mining jurisdiction and the world's largest copper producer.

The two projects comprise the San Lorenzo Project, northeast of the coastal town of La Serena in northern Chile, and the Especularita Project located approximately 170km to the south of the San Lorenzo project. The two early-stage Cu-Au projects are within the same metallogenic belt as major coastal producing operations including Teck's Andacollo copper and gold mine. Significant historical small-scale and artisanal workings for both copper and gold are readily evident in both exploration project areas.

Great Southern Copper is strategically positioned to support the global market for copper, a key metal in the clean energy transition around the world. The Company is progressing its exploration and evaluation two-year work programme for the copper-gold projects, targeting principally large tonnage, low to medium grade porphyry style Cu-Au deposits.

Further information on the Company is available on the Company's website: https://gscplc.com