What it owns
Stonepark - Arkle Resources owns 23.44% of the Stonepark Zinc Project.
Toronto-listed partner Group Eleven Resources Corp (CVE:ZNG) has defined a maiden Independent NI43-101 Inferred Resource of 5.1 Mt grading 11.3% combined zinc and lead, making it the second largest undeveloped zinc and lead Resource in Ireland after Glencore’s Pallas Green.
Stonepark lies to the west adjacent to Pallas Green, but at shallower depths.
Oldcastle - Arkle has a joint venture with Teck Ireland at Oldcastle in counties Cavan and Meath. Teck has earned in 75%, Arkle owns the remaining 25%.
Derrykearn - The Derrykearn Project consists of five licences in total, five contiguous licences in County Laois.
Ladyswell - Two contiguous licences, PL4504 and PL4505, in West Cork, south of Clonakilty.
Mine River - Arkle holds a block of eight licences (340 sq km) that cover an area of known gold mineralisation which extends along a trend of some 15 kilometres.
Further work to develop the existing gold targets is ongoing and fieldwork re-commenced in 2019.
Inishowen - The Inishowen gold project is located in County Donegal, Ireland.
These licences are considered by Arkle Resources to be highly prospective for mesothermal gold mineralisation similar to that found at the Curraghinalt Project developed by Dalradian Resources.
Arkle Resources is the first company to drill for gold in the area.
In September, Arkle announced a new gold target at Inishowen between the Meeneragh gold discovery drill site and the historic Glentogher lead-silver mine.
In October 2019, Stonepark project partner Group Eleven attracted a C$1mln equity investment from FTSE 100 giant Glencore PLC (LON:GLEN), which is operating nearby. Glencore subsequently put more money into Group Eleven in 2020.
Arkle said in November 2019 that it has begun a formal strategic review to examine options for its Stonepark stake.
The company noted that, in addition to its share of the project, it also holds offtake rights on 23.44% of any production and in the event of a sale by Group Eleven, Arkle holds equivalent pre-emption rights.
After original Stonepark partners Teck sold their majority stake, the company elected to maintain its share and contribute accordingly, but with zinc prices remaining well above the $2,000 per tonne range and industry interest in the asset, Arkle's board said it was "an excellent time to review that decision".
What's the latest?
Arkle raised £250,000 in May to keep it going, as the coronavirus crisis continued. The company subsequently revealed that drilling for Stonepark is likely to take place in August
What the boss says: Patrick Cullen, chief executive
“There is significant interest in the Stonepark zinc project, we believe because of the high grade and relatively shallow position of the established Inferred Resource and its strategic location adjacent to the far larger Pallas Green zinc-lead deposit,” Cullen says.
He pointed to the “significant upside potential for a major discovery” along the Pallas Green corridor in line with the model proposed by Group Eleven, with the southern part sparsely explored but recent drilling revealing the potential for further discovery.
“Newly reviewed airborne geophysical is assisting in refining the new targets as well as revealing newly prospective features in this area of the Stonepark block,” Cullen said.
In May, following the fundraising, Cullen re-iterated the potential inside the company.
"The high grade of the Stonepark deposit, its relatively shallow depth and its strategic location next door to Glencore's Pallas Green deposit have generated significant interest leading to the transaction, which significantly strengthens Arkle's balance sheet going forward," he said.
"We believe this investment and confirmation that our joint venture partner has received further funding from Glencore is a strong endorsement of the Stonepark project. Furthermore, there is exciting exploration potential in the south of the project along the 'Pallas Corridor'. We look forward to drilling recommencing as planned in August, subject to Covid-19 restrictions."