Dempster Vanadium - Exploration Results

Corcel PLC

("Corcel" or the "Company")

Dempster Vanadium - Exploration Results

14 January 2021

Corcel Plc, the natural resource exploration and development company with interests in battery metals and flexible grid solutions, is delighted to announce the results from the 2020 exploration program at the Dempster Vanadium project. 

Highlights:

o  14 rock and 179 soil samples collected during work programme

o  Rock samples yielded anomalous vanadium values ranging from 0.12% to 0.35% vanadium pentoxide ("% V₂O₅")

o  13 of the 14 rock samples returned anomalous zinc and silver values

o  Soil samples returned vanadium values up to 0.82% V₂O₅ with 18 samples equal or greater to 0.40% V₂O₅

o  Additional McGill University research results expected shortly

o  Planning for the 2021 Exploration Program underway - expected to include drilling at the project

Scott Kaintz, Chief Executive commented: "We are quite pleased with these exploration results from Canada.  The rock and soil results are exceptionally good, indicating the presence and grade of the Canol Formation and enabling good formation tracking.  We expect to have multiple accessible targets for near term drilling."

Background on the Project:

Corcel holds a 50% interest in the project, which is located in Northern Yukon in North-western Canada.  The project spans an area of 40.96 square kilometres and is accessible via the Dempster Highway which connects the Arctic Ocean with Southern Canada.  The work was completed in late August 2020 despite extremely poor weather conditions and COVID-19 restrictions.  The work was completed by Breakaway Exploration Management Inc. ("Breakaway") on behalf of DVY196 Holdings Ltd. ("DVY196"): a corporation registered in Yukon specifically for exploration of the Property. 

Rock and Soil Sampling Results

The work program consisted of rock sampling at the Héon showing in the central part of the project and systematic soil sampling over a grid at the south end.  A total of 14 rock and 179 soil samples were collected.  The sampling targeted sections of the Canol Formation: a black shale horizon that extends 20km through the project.

The Héon showing was discovered by chip sampling in a road cut by government geologists¹ that returned 0.26% V₂O₅ over 7.4m.  To confirm this previous result, grab samples were collected at approximately 10m stations on two east-trending lines spaced approximately 60m apart along the edge of a highway borrow pit.  All 14 grab samples collected from this site returned strongly anomalous vanadium values ranging from 1,940 to 687 parts per million vanadium ("ppm V") or from 0.35 to 0.12% vanadium pentoxide ("% V₂O₅") ².  Thirteen of the 14 samples also returned anomalous values for zinc ranging from 2,371 to 301ppm Zn and for silver ranging from 2.2 to 0.8 grams per tonne silver ("gpt Ag").  As expected, Nickel values were weakly anomalous in these 13 samples from 478 to 85ppm Ni.

The northern line returned vanadium values from 1901 to 828ppm V (0.34 to 0.16% V₂O₅) across approximately 20m of the borrow pit's northern edge.  Sampling west of the sample sites on this line was prevented by thick gravel.  The southern line returned vanadium values from 1940 to 915ppm V (0.35 to 0.16% V₂O₅) across approximately 90m of the borrow pit's southern edge.

The soil grid was completed just north of hole DV07-01 that was drilled by previous nickel explorers in 2007.  In September 2019, the core from this hole was found in the field by DVY196, 108 core samples were submitted for analysis and an intersection of 0.39% V₂O₅, 0.22% Zn and 2.8gpt Ag over 75.9m from 14.1 to 90.0m was determined within a partial section of the Canol Formation³.  The grade and thickness of this intersection is comparable to Black Shale Vanadium-type ("BSV-type") deposits being explored elsewhere, most notably in Nevada, USA.

The soil grid measured 1,450 km long with east-west lines spaced every 100m.  Samples were taken at 50m stations on lines varying from 300 to 1,000m long.  Permafrost and thick moss cover prevented sampling at some stations.  The soil geochemistry was however, successful despite these conditions, collecting a more than adequate amount of data.   

A total of 121 of the 179 soil samples returned vanadium values ranging from a maximum of 4,577ppm V (0.82% V₂O₅) down to an anomalous threshold value of 558ppm V (0.10% V₂O₅).  Eighteen of these samples show values at greater or equal to 2,237ppm V (0.40% V₂O₅).  These  strong values track a distinct linear vanadium zone for 1,300m.  The zone varies from 150 to 300m wide.  Strong zinc and silver values also track the zone as well as weak nickel values.  Correlation of these other metals in not perfect but generally the best zinc, silver and nickel values echo the best vanadium values.

Seventy-four samples returned zinc values ranging from a maximum of 8,827ppm (0.88%) Zn down to an anomalous threshold value of 952ppm (0.10%) Zn.  Eight of these samples show strong values greater or equal to 3,964ppm (0.40%) Zn.  Eighty-six samples returned silver values ranging from a maximum of 19.0gpt Ag down to an anomalous threshold value of 2.5gpt Ag.  Ten of these samples show strong values greater or equal to 10.7gpt Ag.  A total of 48 samples show weakly anomalous nickel values ranging from a background of 196ppm Ni up to a maximum of 1,003ppm Ni.

Figure 1

http://www.rns-pdf.londonstockexchange.com/rns/6263L_1-2021-1-13.pdf

Research continues at McGill University in Montreal, Quebec to investigate the role of organic material and related hydrocarbons in the metal enrichment processes within the Canol Formation in the context of the BSV-type deposit model.  This analytical work continues to be subject to restrictions related to the COVID-19 pandemic, but it is expected to be finalized and announced in due course.    

Conclusions

The 2020 rock sampling in the vicinity of the Héon showing indicates the presence and grade of the Canol Formation and shows that soil geochemistry is an effective tool to trace the vanadium-bearing Canol black shales.  Metal values are generally higher than earlier reported drill core samples, suggesting that the weathered rock is relatively metal-enriched.  It should also be noted that the 2020 results suggest that the Canol outcrops on surface further west than government geology maps indicate.

Next Steps

Planning for the next stage of exploration on the project is underway and is likely to involve drilling at several of the most readily accessible sites, alongside extending the soil geochemistry and obtaining a five-year operating licence for more advanced exploration, with the goal of targeting an initial Ni 43-101 resource.  Future operational timelines will be subject to COVID-19 related restrictions.    

QAQC and Analytical Procedures

The exploration work followed a quality assurance and quality control ("QAQC") program considered suitable and effective for the type of sampling conducted.  The rock and soil samples were sealed in rice bags with security tags in the field and delivered in person by Breakaway personnel to Bureau Veritas Commodities Canada Ltd. ("BV") facility in Whitehorse, Yukon.  The rock samples were dried and crushed to ≥70% < 2mm and a 250g split was pulverized to ≥85% <75μm (BV Code PRP70‐250).  The soil samples were dried and sieved to a 100g subsample to -80 mesh size (BV Code SS80).  The rock and soil pulps were then sent to BV's Vancouver facility where they were analyzed for 35 elements by 0.25g multi‐acid digestion, ICP‐ES finish (BV Code MA300).  All BV facilities are accredited under BV's ISO 9001:2015 registration.

Competent Person Statement

The technical and related information in this announcement has been reviewed by Mark Fekete, PGeo. Mr. Fekete has designation as a professional geologist in Quebec and British Columbia and is a qualified person for the preparation of reports under the Canadian disclosure standard NI 43-101.  He has sufficient experience in the style of mineralisation and type of deposit under consideration.  He approves the inclusion in this announcement of the technical information in the form and context in which it occurs.  Mr. Fekete is a principal of Breakaway Exploration Management Inc., Corcel's partner in the project.

Notes

1.  Héon, D., 2006: Yukon Geological Survey, Open File 2006‐3.

2.  Conversion Factor parts per million vanadium to per cent vanadium pentoxide equals 1.7852.

3.  Fekete, M. and Huber, M., 2019: Assessment Report 2018/2019 for DVY196 Holdings Ltd.

For further information, please contact:

Scott Kaintz 020 7747 9960                                                        CEO Corcel Plc

Roland Cornish/ Rosalind Hill Abrahams 020 7628 3396        NOMAD Beaumont Cornish Limited

Thomas Smith 020 7392 1432                                                     Broker Monecor (London) Ltd (ETX Capital)

Simon Woods 0207 3900 230                                                     IR Vigo Communications