ALO.L Regulatory News (ALO)

Alecto Minerals plc / EPIC: ALO / Market: AIM / Sector: Exploration & Development

20 August 2012

Alecto Minerals plc ('Alecto' or 'the Company')

Commences Exploration at Wayu Boda Gold Project, Ethiopia

Alecto Minerals plc, the AIM listed multi-commodity exploration and development company with projects in Ethiopia and Mauritania, is pleased to announce that it has commenced a defined exploration campaign at the 945.5 sq km Wayu Boda Gold Project ('Wayu Boda' or 'the Project') located in the mineral rich central-southern Adola greenstone belt in southern Ethiopia.  

Highlights

·; Detailed mapping, structural analysis and channel sampling focussed on the advanced artisanal workings located on the northern area of the licence

·; Grades of up to 16g/t of gold returned from previous sampling of artisanal waste dumps

·; 800m trenching programme planned to test the grade of the quartz veins and the host rock to a depth of 2m and aims to extend the known mineralisation which is open in both directions

·; Trenching will also confirm the suspected continuation of the mineralisation between two of three sets of workings located 1km apart

·; Campaign designed to bring the licence to drill ready status in Q4 2012 - scout drilling programme anticipated for Q1 2013

Alecto Managing Director Damian Conboy said, "I am delighted to commence this defined exploration programme at Wayu Boda which is proximal to several world class gold deposits. The high concentration of advanced artisanal workings located on site is extremely exciting and a firm indication of its overall prospectivity. We have identified three artisanal pits in the northern part of the licence area and through the use of various exploration techniques we aim to establish the potential of each pit individually and investigate the possible continuation of the mineralisation between two of the pits which would be very favourable to the overall the project.

"This programme is designed to provide Alecto with a comprehensive understanding of the mineralisation at Wayu Boda and provide drill targets ahead of a drilling programme we anticipate to commence in Q1 2013. Elsewhere across our portfolio, we continue to make positive advancements which we will announce at the appropriate time."

Background to the Programme

Alecto will begin an extensive exploration work programme during Q4 2012 at its Wayu Boda Gold Licence in the south of Ethiopia. The work is focussed on the artisanal workings in the northern section of the licence. The region hosts a number of world class gold deposits including Midroc's Lega Dembi mine, which has an annual production of 160,000oz, 83km along strike to the North East and NMiC's Dawa project which is reported to have the potential to host a 17Moz deposit and is located 20km from Wayu Boda.

The higher concentration of more advanced artisanal workings occurs on the northern 15% of the Wayu Boda licence area. They occur in three locations, with a distance of 2km between the northernmost to the southernmost working. The pits target swarms of quartz veins which occur over a zone thought to be up to 50m thick within volcanics of the Megado belt. The Company has tested samples from artisanal waste dumps which have returned grades of up to 16g/t of gold. Visible gold has also been noted in various localities throughout the artisanal workings. The Company believes that the mineralisation is continuous between two of the three artisanal sites based on recent site visits by the technical team at Alecto.

Q4 2012 Work Programme

The work programme will consist of:

i) mapping;

ii) testing;

iii) characterisation of all artisanal workings; and

iv) an extensive trenching programme.

The characterisation of the artisanal working is to consist of detailed mapping of all worked areas, including structural analysis, channel sampling of all artisanal pits and sampling of all artisanal waste dumps. This will be followed by an 800m trenching campaign which will manually trench down to a depth of 2m and aims to test the grade of the quartz veins in the two locations, the grade of the host rock and the extent of the mineralisation.

Trenching between the two artisanal locations hopes to confirm the suspected continuation of the mineralisation between the two sites and trenching along strike hopes to extend the known mineralisation which is open in both directions.

The result of the work is that the tenor and extent of surface mineralisation will be fully tested and that worthy drill targets will be defined for drilling in Q1 2013 when a 2,000-3,000m scout drilling programme is envisaged to commence. If the results received are positive, this will be followed by resource drilling.

**ENDS**

For further information, please visit www.alectominerals.com or contact:

Notes:

Alecto Minerals plc is an AIM listed exploration company focussed on Africa with a diverse portfolio of exploration assets in Mauritania and Ethiopia. Also, the Company is currently conducting due diligence on the 711 sq km bauxite licence 223 located in the highly prospective south west coastal region of Guinea which already has established infrastructure and producing bauxite operations. The Company believes the project has the potential to host an in-situ bauxite resource of over 500 million tonnes. 

Additionally, in Mauritania, it has three gold and base metal development licences totalling 1,902 sq km in the highly prospective Mauritanide mobile belt and two uranium licences totalling 1,592 sq km. It also holds the 1,953 sq km gold exploration licence in the highly prospective Aysid-Metekel region of north western Ethiopia and the 945 sq km Wayu Boda gold licence in the mineral-rich central-southern Adola greenstone belt in southern Ethiopia. 

The Company is committed to conducting exploratory work across its portfolio, designed to strengthen its knowledge of the assets and delineate targets for further exploration. In tandem, the Board continues to evaluate a number of synergistic assets to build shareholder value.