2 Apr 2014 07:10
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Alecto Minerals plc / EPIC: ALO / Market: AIM / Sector: Exploration & Development
2 April 2014
Alecto Minerals plc ('Alecto' or the 'Company')
80% Resource Estimate Increase for the Company's Kossanto Gold Project, Mali
Alecto Minerals plc (AIM: ALO), the AIM quoted mineral exploration company focussed on West and East Africa, is pleased to announce an updated independent resource estimate in accordance with the guidelines of the JORC Code (2012), for the Company's wholly owned 207 sq. km. Kossanto Gold Project (the 'Kossanto Project') in the prospective Kenieba Inlier in western Mali. This has been prepared following completion of the recent drilling at the Gourbassi East ('GRBE') and Gourbassi West ('GRBW') targets (two of three main target areas at the Kossanto Project - together 'Gourbassi').
Highlights:
· Updated independent inferred resource estimate in accordance with the guidelines of the JORC Code (2012), completed by Wardell Armstrong International ('WAI') for Gourbassi (the 'Updated JORC Resource')
· Updated JORC Resource of 5.04 million tonnes ('Mt') of inferred resource grading at 1.19g/t gold ('Au') for, an aggregate, 193,000 oz Au with a cut-off grade of 0.5g/t Au
· Represents an approximate 80% increase from the previously published inferred resource estimate for GBRE of 2.35 Mt grading at 1.42g/t gold for 107,000 oz Au at a cut-off grade of 0.5g/t Au announced by African Mining & Exploration plc in June 2013
· Updated JORC Resource includes a maiden inferred resource estimate for GRBW and has defined gold in two zones over a total strike length of more than 1,000m at GRBW
· Updated JORC Resource calculated further to the recent RC and DD drilling programme covering both the GRBE and GRBW target areas which are located 3.7km distant along strike
- 1,908m of reverse circulation ('RC') holes and 921m of diamond drill ('DD') holes completed at GRBE
- 997m of RC holes and 200m of DD holes completed at GRBW
· Currently undertaking further RC drilling in order to prove continuity between these zones at GRBW with potential for further resource growth
· Additional 1,507m reverse air blast ('RAB') drilling has been completed at GRBE in order to test geophysical and geochemical anomalies, and 423m of RAB drilling at GRBW has demonstrated a further wide zone of mineralisation
Mark Jones, CEO of Alecto, commented:
"This significant 80% increase in the inferred resource estimate for the Kossanto Project represents another key exploration milestone for the Company as we continue to prove up the economic potential of this exciting gold project. The inferred resource estimate of 193,000 ounces of gold has been delineated over two (Gourbassi East and West) of the three main target areas at the Kossanto Project, highlighting the continued potential for further significant resource upside.
"The two target areas which comprise the current Gourbassi resource are just 3.7km apart and therefore, from a practical mining perspective, can be viewed as a single project. The combined resource is near surface (less than 100m deep) and we believe is likely to provide no significant metallurgical challenges. In terms of additional upside potential in the near-term, Gourbassi West consists of two proven zones of mineralisation, which we have tested using RAB drilling for continuity. Initial results are highly encouraging and we are now completing an infill RC drill programme seeking to demonstrate the continuity between the zones which should then allow for one larger target zone at Gourbassi to be defined with increased tonnage and resource opportunity. Interestingly, excluding our highly prospective Massakama prospect to the west of the Kossanto Project licence area, the value of the estimated in-situ gold is now over US$250 million which again underpins the economic potential of the Kossanto Project as we continue to explore and unlock its inherent value."
Further Information
The Kossanto Project is located in the centre of the Kenieba inlier in western Mali. The Kenieba inlier is a block of ancient greenstones and granites hosting many significant gold deposits in Senegal and Mali, making it one of the most important gold regions in Africa.
The 207 sq. km. Kossanto Project comprises three main target areas: GBRE, GBRW and the prospective Massakama prospect where large scale artisanal activity is occurring.
To date 8,668m of RC and 1,181m diamond drilling has been completed across the Gourbassi project.
Updated JORC Resource
Following the completion of the recent RC drilling activities at GRBE and GRBW (the results to date for which were announced on 23 January 2014 and 6 March 2014 respectively), the Company commissioned WAI to prepare the Updated JORC Resource for the Gourbassi gold deposit. The Updated JORC Resource for Gourbassi, which has been produced in accordance with the guidelines of the JORC Code (2012), estimates 5.04 Mt grading at 1.19g/t Au for 193,000 oz Au with a cut-off grade of 0.5g/t Au.
Table 1.1: Gourbassi Total Resource Estimate (WAI as at 28/03/2014) Global Resources | |||||
Cut Off Grade (g/t) | 0.3 | 0.5 | 0.7 | ||
Inferred | Tonnes (kt) | 7,421 | 5,041 | 3,584 | |
Au (g/t) | 0.94 | 1.19 | 1.44 | ||
Metal | kg | 6,947 | 6,013 | 5,150 | |
koz | 223 | 193 | 166 | ||
Notes: 1. Mineral Resources are not reserves until they have demonstrated economic viability based on a feasibility study or pre-feasibility study. 2. Mineral Resources are reported inclusive of any reserves. 3. Grade represents estimated contained metal in the ground and has not been adjusted for metallurgical recovery. 4. Resources reported based on a selective mining unit of 2.5m x 5m x 5m. | |||||
The Updated JORC Resource is based principally on 8 DD holes (1,121m) and 82 RC holes (8,728m).
The Updated JORC Resource includes an increase for the pre-existing inferred resource estimate for GRBE and a maiden inferred resource estimate for GRBW as detailed below.
Gourbassi East
GRBE is characterised by a NNW striking mineralised zone with significant gold grades.
Since the acquisition of the Kossanto Project, Alecto has completed a total of 6 DD holes (921.84m) and 13 RC holes (1,908m) at GRBE. This RC and DD drilling was aimed at increasing the previously defined inferred resource estimate of 107,000 oz Au and delineating extensions to the mineralised zone in addition to gaining a greater understanding of the structural controls for the mineralisation and its continuity at depth.
The Updated JORC Resource details an increase in the inferred resource estimate for GRBE to 3.08 Mt at an average grade of 1.27 g/t for 126,000 oz Au at a 0.5 g/t cut-off.
Table 1.2: Gourbassi East Resource Estimate (WAI as at 28/03/2014) Global Resources | |||||
Cut Off Grade (g/t) | 0.3 | 0.5 | 0.7 | ||
Inferred | Tonnes (kt) | 4,274 | 3,080 | 2,332 | |
Au (g/t) | 1.03 | 1.27 | 1.49 | ||
Metal | kg | 4,391 | 3,919 | 3,475 | |
koz | 141 | 126 | 112 | ||
Notes: 1. Mineral Resources are not reserves until they have demonstrated economic viability based on a feasibility study or pre-feasibility study. 2. Mineral Resources are reported inclusive of any reserves. 3. Grade represents estimated contained metal in the ground and has not been adjusted for metallurgical recovery. 4. Resources reported based on a selective mining unit of 2.5m x 5m x 5m. | |||||
Gourbassi West
GRBW lies approximately 4km NW of GRBE and appears to be analogous with its clear NNW striking zone of mineralisation associated with felsic volcanic rocks. Historical work in the area has included trenching, geophysics and RC drilling and the area of mineralisation appears to extend over a significant length. Accordingly, this zone has the potential for continuous gold mineralisation over a strike length of over 1km and is possibly open along strike to the NNW and SSE.
To date, Alecto has drilled 11 RC holes (997m) and 2 DD (200m) holes at GRBW and the Updated JORC Resource sets out a maiden JORC code compliant inferred resource estimate of 1.96 Mt at an average grade of 1.07 g/t for 67,000 oz Au at a 0.5 g/t cut-off. The modelled resource at GRBW occurs in two distinct zones that together indicate a strike length of in excess of 1,000m. Recent testing by RAB drilling, which has not been included in this resource estimate, indicates that mineralisation is continuous between these zones. Two lines of RAB holes were drilled to the north and south of the mineralisation seen in GRC46 and ML07 and have delineated a 70m wide zone of mineralisation including 26m @ 1.13g/t, 34m @ 1.58 g/t, and 15m @ 1.25g/t. RC drilling is currently being used to infill this area with the aim of providing resource level results.
Table 1.3: Gourbassi West Resource Estimate (WAI as at 28/03/2014) Global Resources | |||||
Cut Off Grade (g/t) | 0.3 | 0.5 | 0.7 | ||
Inferred | Tonnes (kt) | 3,147 | 1,962 | 1,252 | |
Au (g/t) | 0.81 | 1.07 | 1.34 | ||
Metal | kg | 2,557 | 2,094 | 1,675 | |
koz | 82 | 67 | 54 | ||
Notes: 1. Mineral Resources are not reserves until they have demonstrated economic viability based on a feasibility study or pre-feasibility study. 2. Mineral Resources are reported inclusive of any reserves. 3. Grade represents estimated contained metal in the ground and has not been adjusted for metallurgical recovery. 4. Resources reported based on a selective mining unit of 2.5m x 5m x 5m. | |||||
Review of Information
The information in this announcement that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Rasmané Kaboré, who is the Company's Head of Exploration in Mali a Member of The Australasian Institute of Mining and Metallurgy.
Rasmané Kaboré has sufficient experience, relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking, to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Rasmané Kaboré has reviewed this announcement and consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears.
**ENDS**
For further information, please visit www.alectominerals.com or contact:
Alecto Minerals plc Mark Jones | Tel: 020 3137 8862 |
Strand Hanson Limited Richard Tulloch Matthew Chandler James Dance | Tel: 020 7409 3494 |
Hume Capital Securities plc Jon Belliss Abigail Wayne | Tel: 020 3693 1470 |
St Brides Media & Finance Ltd Elisabeth Cowell Felicity Edwards | Tel: 020 7236 1177 |
Notes to editors:
Alecto Minerals plc is an African focussed, gold and base metal exploration and development company quoted on AIM.
The on-going development of the Kossanto Gold Project in Mali is the Company's predominant focus and with significant value upside potential evident across the tenure, the Board plans to continue to build on its increased total gold inferred resource estimate of 193,000 ounces for Gourbassi. Alecto also has a joint venture with Centamin plc over two prospective gold exploration licences in Ethiopia, under which Alecto retains exposure to such assets with no capital expenditure obligations, as well as the wholly owned Wad Amour IOCG Project in Mauritania which is at an exploration stage. Combined, these projects provide the Company with a strong, diversified portfolio with exciting exploration upside potential.
Glossary of Technical Terms
Au | the chemical symbol for Gold.
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g/t | grammes per tonne.
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Inferred Resource | that part of a Mineral Resource for which tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not verified geological and/or grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes which may be limited or of uncertain quality and reliability.
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JORC | the Joint Ore Reserves Committee: The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, as published by the Joint Ore Reserves Committee of The Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia.
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kt | thousand tonnes.
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Mt | million tonnes.
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oz | Ounces. |