Erris is fortunate to have in place a valued partner in Centerra Gold, which gives us increased exposure to discovery at no cost whilst also earning a management fee and maintaining an active team and exploration portfolio.
Anton du Plessis, chief executive
What it owns
Erris Resources PLC (LON:ERIS) holds six licence areas covering an area of 159sq km, which comprise the Abbeytown Project in County Sligo.
The area is a proven mineral district, centred on the old lead-silver mine of Abbeytown.
Abbeytown is a brownfields exploration project with underground access and evidence of mineralisation extending southwards from the historic workings.
In addition, there is regional exploration potential at Skreen, Lugawarry, and Streamstown, all within 15km of Abbeytown.
Erris this year acquired 18 contiguous prospecting licences prospective for base metal mineralisation in County Galway.
Brännberg comprises five permits acquired via a direct application from the government and a sixth permit (Grundtrask #7) acquired from Beowulf Mining.
Centerra Gold, meanwhile, funds generative exploration and on the election of a specific Designated Project Area it can earn up to 70% by spending US$3m per project.
In October, Erris received four new exploration permits for gold prospects in Norway at two sites: Mauken and Gautelis.
How is it doing
In September, Erris said it would maintain a disciplined approach to expenditure on its projects in Ireland and Scandinavia given the tough backdrop for junior miners at present.
At the end of August, Erris held approximately €1.7mln in cash.
In Ireland, at Abbeytown, soil samples have indicated a number of new zones of mineralisation that could potentially indicate a much larger deposit.
A preliminary metallurgical study also showed good quality lead and zinc concentrates can be produced using a standard flotation process with excellent recoveries ‘while the concentrate is clean with respect to penalty elements and the grindability characteristics of the mineralised sample are positive’.
“The results further reinforce our confidence in the economic potential of the Abbeytown Project.”
Ground-truthing and prospecting got underway at the Sakiatieva and Pirunkoukka reservation permits in Finland in June with fieldwork completed in October.
Erris aims to identify drill targets on one or more of the projects, which may lead to Centerra Gold electing a Designated Project Area for an earn-in.
Sakiatieva in North Finland ranks as the most interesting in terms of potential for significant mineralisation.
- Erris had cash of €1.7mln at the end of August
- Looking for partners to help carry the load at Abbeytown
- Sampling to continue at Galway to better understand potential
- Drill targets being selected for Centerra joint venture
- Four new gold exploration permits in Norway awarded in October