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LONDON (Alliance News) - Armadale Capital PLC Wednesday said total inferred and indicated resources for its Mpokoto Gold Project in the Democratic Republic of the Congo are lower after detailed re-logging and re-interpretation of the weathered rock profile at the site gave an updated JORC compliant mineral resource estimate.
The AIM-quoted investment company, focused on natural resource projects in Africa, said that its total inferred and indicated resources fell slightly to 506,700 ounces of gold, from 510,200 ounces, and its total tonnage fell to 11.12 million tonnes, from 11.2 million tonnes in December.
The company said that its total fresh mineral resource fell 27% to 299,000 ounces from 409,200 ounces when compared to studies in December 2013.
However, the company said that following detailed re-logging and re-interpretation on one of the zones, its oxide mineral resource has increased fivefold to 109,500 ounces of gold from 20,500 ounces.
The company also increased the tonnage of its transition ore zone on site by 23% to 2.45 million tonnes from 1.99 million tonnes, which increased the ounces of gold treatable by gravity separation by 22% to 98,200 ounces from 80,400 ounces.
Armadale said the increased amount of oxide ore has had a positive economic effect on the project, as the oxide layer is amenable to gravity separation and therefore has more cost effective processing compared to deeper unweathered parts of the ore body
The company said that stage one of the project, which is subject to a Scoping Study, expected to be published on April 7, is focused on mining the oxide layer on site.
Armadale shares were down 3.7% to 0.130 pence Wednesday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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