African Mining and Exploration plc.
("AME" or "the Company")
Update on the Company's exploration activities
African Mining & Exploration plc (AME), the AIM listed mining company focusing on exploration in West Africa, is pleased to update the market on the Company's exploration activities.
Highlights
· Political settlement reached in Mali; national assembly leader to take over as interim president, a move that will
return the nation to civilian rule following last month's military coup
· Commencement of drilling operations, following importation of drill rig and ancillary equipment
· Nine drilling targets defined at the Karan and Diatissan projects
· Operational drilling capability enhances the Company's ability to identify potential resources at low cost and to
react quickly to opportunities
· Recently acquired ground magnetic equipment identifies new drill target at Diatissan
· Ongoing discussions continue to secure rights through acquisition or joint venture on additional properties in the
region
· Cash balance of £3.18m as at February 29th 2012, providing sufficient funds for planned exploration work over the
medium term
Investment in Reconnaissance Exploration Capability
AME is pleased to report that, further to the Company's recent announcements, the planned deployment of the drill rig to the Karan permit has taken place and auger drilling commenced as planned on April 6th. AME's investment in the rig allows the Company to work efficiently in a region where drilling capacity is in short supply. The drill rig which is mounted on an all-terrain vehicle is capable of both RAB and Auger drilling and can drill down to depths greater than 100 metres in favourable ground conditions. Its rugged design and 4x4 functionality makes it highly mobile and will enable it to access rough terrain and road conditions conventional truck mounted drill rigs cannot operate in. This should enable the Company to operate during periods of seasonal rain thereby extending the length of the effective annual drilling season. With the acquisition of support equipment, a mobile exploration camp and the investment in ground magnetic survey equipment, AME is seen by regional exploration companies as a strong partner for reconnaissance exploration and has opened up potential JV and contract drilling opportunities. This capability allows AME to quickly and cost effectively sample what lies beneath the laterite covering that masks most of the West African Gold Belt. In areas which show enhanced prospectivity, the Company plans to undertake follow up RC and diamond core drilling.
Exploration Update
General Overview
Prior to the reported coup d'état in Mali, AME's planned work programme over the previous six months had progressed with the development of a centralised geological database, structural analysis, mapping, sampling, trenching and a geomorphology study. These have been of great value in identifying drill targets in advance of the equipment's arrival. Using AME's recently acquired ground magnetometer the Company has been able to get a clearer view of the anomalous structures already picked up by a previous aeromag survey.
The Company has continued to conduct reconnaissance on a number of other permit areas in the region where it is negotiating to secure rights through acquisition or joint venture and has been diligently filtering opportunities for further commercial discussions.
It is anticipated that the Company will be able to achieve good utilization of the drilling equipment on both current tenements as well as new opportunities that may arise on a JV basis.
Karan Permit
The outline plan for the Karan permit is that RAB drill fences will be completed at the three previously drilled targets of Mana, Fintakourouni and Kouroudjin to provide full cross-structure coverage, with additional RAB drilling at two targets near Kouroudjin, as identified from the Induced Polarisation (IP) geophysical survey. Follow up drilling will take place once the assay results of the initial RAB drilling have been processed.
A ground magnetic survey over the Farague geochemical anomaly will also be conducted to provide structural information prior to auger drilling. The same approach will be used on several additional targets identified by Newmont in 2011.
More in depth technical details are provided below.
Figure 1. Geophysical Map of the Karan Permit showing completed RC and planned RAB holes.
Use the link at the end of this announcement to view this illustration
Kouroudjin, Fintakarouni and Mana
RAB drill fences have been planned to further test mineralisation identified during 2011's RC drilling. Fences will be placed with an azimuth of 252-72°, perpendicular to the structure indicated by the artisanal pits, field structural measurements and regional geophysics. Three fences have been planned at each of the Mana, Fintakourouni and Kouroudjin targets, centred upon the best intercepts from the RC drilling. Nine holes have been planned for each fence, with 50m hole spacing, the hole depths will be decided on site and the number of holes at each fence amended based on the drilling results and observations.
IP work yielded some interesting results and correlations with the best intercepts from the RC drilling at RC11KDJ001 and 012. These anomalies appear to have a NNW strike and will be tested initially by two holes as recommended by the IP consultant. These holes drill into a chargeability anomaly (see Fig 2), which is twinned by another similar, yet stronger anomaly to the west.
Figure 2. Cross section showing the chargeability image along line 3 with RC11KDJ001 and 012 plotted on the western chargeability anomaly.
Use the link at the end of this announcement to view this illustration
Farague
The Farague area contains the most strongly anomalous geochemical results within the Karan Permit. It was tested with a termite mound sampling program in Q2 of 2011 which further delineated an anomalous zone. This area will be the subject of ~ 20 line km's of ground magnetometer survey prior to drilling. The results of this geophysical survey will be used in conjunction with the geochemical results to create a plan for drilling an auger grid.
Diatissan Permit
In order to identify RAB drill targets at this permit, which contains several areas with geochem anomalies, AME commenced its planned work program last year, whereby the previously excavated trenches were cleaned and re-sampled. The re-sampling exercise proved difficult due to the poor quality of mapping information from the original study. GPS co-ordinates of the original study did not match up with the re-trenching data, so meaningful correlation between the two sets of data was not possible. On the basis that AME has greater confidence in the data from its own programme it will use this data in conjunction with a ground magnetic survey over the majority of the permit area to define drill targets. The ground magnetic survey has just been finished and the preliminary interpretation has already defined one drill target at a structure that parallels the general trend over a distance of 400 to 600m. Further analysis of the data will be undertaken with the intention of identifying additional drill targets.
Initial drilling at Diatissan is planned on at least four target areas, after the drilling program at Karan. Two targets have anomalous gold in soil and stock works of quartz veining in trenches. Each target will initially be drilled with five holes perpendicular to the structural trend. A third target area where another five holes are planned is defined by distinct ridges where tourmaline sandstone was found as float. The fourth target is at the magnetic anomaly. Subsequent targets will be defined upon completion of the interpretation of the ground magnetometer survey data.
Figure 3. Topographic map with Diatissan Permit outlined and the four RAB drilling targets.
Use the link at the end of this announcement to view this illustration
Guinea Permits
In May 2011 AME was granted three reconnaissance permits in Guinea. Following geological investigation, it was concluded that the licences were unlikely to yield an economic gold resource and will not be pursued. AME will continue to monitor opportunities to enhance its exploration portfolio.
Cash Position
The company had a cash balance of £3.18m as of February 29th 2012. This provides sufficient funds to support the Company's planned exploration activities over the medium term.
Mark Jones, AME's CEO commented that:
"Our new operational drilling capability puts AME in a stronger position to identify potential resources at low cost whilst at the same time allowing AME to react quickly to opportunities. This provides AME with a strong competitive advantage which opens up opportunities to establish resource potential on both the Company's existing properties as well as any prospective properties under JV agreements."
Enquiries:
| African Mining & Exploration plc. | 44 (0)207 499 5881 |
| Mark Jones (Chief Executive Officer) | |
| Singer Capital Markets Limited (Nomad and Broker) | 44 (0)20 3205 7500 |
| James Maxwell / Jenny Wyllie | |
Notes:
Link to view illustrations referred to in this announcement:
The technical information contained in this announcement has been reviewed and approved by Mr. Ebo Bakker. Mr. Bakker has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity to which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves and as a qualified person under the AIM Note for Mining, Oil and Gas Companies. Mr. Bakker is an employee of African Mining & Exploration Plc.
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This information is provided by RNS