Update on Cyprus Operations
Chesterfield Resources PLC / EPIC: CHF / Market: LSE / Sector: Mining
8 November 2022
CHESTERFIELD RESOURCES PLC
("Chesterfield" or the "Company")
Update on Cyprus Operations
Chesterfield is pleased to update the market with respect to its Cyprus strategy for 2023.
Chesterfield remains committed to build upon the successes that it has enjoyed on a licence group of three areas that are close together (two are adjoining) on the Westline Trend, a highly prospective mineral trend containing the Westline and Orchard areas in the West Troodos area, with a history of positive drill results announced most recently in late 2021 and early 2022.
At Westline, this recent work produced some long polymetallic intersections with consistently elevated gold shows, indicating potential for a for a larger nearby copper-zinc massive sulphide deposit with the target open in all directions. At Orchard, which has a history small scale trial mining in the 1950s, drilling in 2018 and 2021 encountered semi-massive sulphides.
Plans, currently being developed, include more drilling to continue to test the mineralised system for massive sulphide with potential in all directions. The scope and timing of the plans will depend on factors that will include the sale of the Adeline interests and prevailing market conditions. Chesterfield will also entertain proposals for joint venture or direct investment in the Cyprus licences though no such discussions are currently advanced. The Company will in due course update the market on the specifics of its plans for exploration work which it aims to carry out in 2023.
The Company is also rationalising its large exploration licence portfolio in Cyprus to reduce unnecessary spending and potential shareholder dilution while continuing to advance its most highly prospective retained Westline and Orchard assets. In line with this approach Chesterfield has recently informed the relevant authorities in Cyprus of its plan to surrender a number of licences as they expire over the next six months. As the affected licences expire in the coming months, Chesterfield's portfolio of licences will be reduced from a total of 26 licences covering 110.42 km2 to 3 licences (licence numbers: AE4664, AE4672 and AE4673) covering 13.39 km2. This will allow the Company to focus on the most prospective licences and also mitigate the need for substantial costs that would be payable for the renewal of licences that were likely to be of lesser interest.
Chesterfield Executive Chairman Paul Ensor said, "We are excited by the potential for additional exploration in 2023 in the properties that we are retaining and the decision to reduce our portfolio overall will make it easier for us to devote the resources to them that they deserve. Before giving up these extensive non-core properties we had more licences than we could possibly explore, with a considerable and potentially growing holding cost and required expenditures in the near future."
Update on Sale of Canadian Licences
Chesterfield entered into an Agreement with Pacton Gold Inc ("PAC.V") ("Pacton") as announced on 19 October 2022. The agreement is conditional, inter alia upon the approval by the relevant authorities at the TSX Venture Exchange, and a successful equity raise by Pacton. The Company is advised that progress is being made on all fronts and we hope to advise the market further in due course.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
For further information please visit www.chesterfieldresourcesplc.com or contact:
Chesterfield Resources plc
Paul Ensor, Executive Chairman
Tel: +44 (0) 7595 219 011
Tel: +44 20 7330 1883