19 Mar 2014 07:00
Click on, or paste the following link into your web browser to view the associated PDF document:
http://www.rns-pdf.londonstockexchange.com/rns/6249C_-2014-3-18.pdf
Alecto Minerals plc / EPIC: ALO / Market: AIM / Sector: Exploration & Development
19 March 2014
Alecto Minerals plc ('Alecto' or the 'Company')
Completion of RAB drilling at Gourbassi East Target, 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 that it has recently completed a 1,505 metre drill programme, utilising its in-house truck-mounted Rotary Air Blast ('RAB') drill-rig, at the Gourbassi East prospect ('GRBE'). GRBE is one of three target areas identified at the group's 100% owned 207 sq. km. Kossanto Gold Project in Western Mali.
Overview
· Fence lines drilled in heel-to-toe fashion to cover geophysical and geochemical anomalies in the GRBE area outside of the main resource zone, which has a pre-existing maiden resource of 107,000 ounces of gold
· Parallel structures are common within this part of the Birrimian Greenstone belt of the Kenieba inlier and it is expected that RAB drilling will rapidly prove whether such potential exists at Gourbassi East
· Achieved hole depths of up to 51 metres following successful modifications
· 541 composite samples (3 metre composites) sent to SGS Laboratories in Bamako, Mali, for analysis by Fire Assay
· Low cost and effective scout drilling capability proven with a drilling cost of below US$6 per metre
· The RAB rig has now been deployed to the Gourbassi West ('GRBW') prospect to commence testing of the gold mineralisation to the north of the target, where drilling to date has highlighted the potential for continuation
· The work programme at GRBW will be critical to understanding the near-term resource potential at this prospect
Mark Jones, CEO of Alecto, commented:
"This RAB drill campaign was designed to extend our knowledge of the GRBE target, focussed on the prospective land outside of the initial resource area where 107,000 ounces of gold has been previously identified in accordance with the JORC code. Judicious modification of the Alecto-owned drill equipment means that we have achieved an extremely cost-effective exploration tool and by undertaking campaigns of this kind at Kossanto, we can generate advanced drill targets prior to resource drilling at a cost as low as US$5.60 per metre. We look forward to receiving the results from this latest campaign, as well as key results from our Reverse Circulation and Diamond Drill campaign conducted across all of our three targets at Kossanto. In the meantime, we remain active with the RAB drill-rig now moving on to GRBW so that we can link up two known areas of mineralisation and further reveal its resource potential."
Further Information
The GRBE prospect is one of three target areas identified at the group's 100% owned Kossanto Gold Project and contains Alecto's maiden JORC code resource of 107,000 ounces of gold ('Au'). The 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 1,505m RAB drill-programme was designed to complement the recently completed diamond drill ('DD') and Reverse Circulation ('RC') drill programme focussed on GRBE. A total of seven RAB fences were drilled across targets outside of the main resource zone in order to test the potential for parallel mineralised structures and southerly extensions to the resource zone and to follow-up on gold in soil anomalies and induced polarisation ("IP") targets.
Figure 1: Gridded gold in soil map showing location of the RAB lines completed. (Please see the associated PDF link at the top of the announcement)
RAB drilling is a very effective scouting technique as it offers a low cost drilling capability that can rapidly define targets for later DD and RC work. Alecto acquired the truck-mounted RAB rig as part of the acquisition of the Malian gold projects in October 2013. Alecto upgraded the rig's air-supply to ensure that the equipment would be suitable for drilling through the harder rock profiles seen at Kossanto. The upgrade of the integrated compressor means that the equipment is now capable of delivering over 120 psi of air pressure at a rate of 600 cfm, and this latest programme confirmed that it could easily drill holes to a depth of 51 metres.
A total of 541 composite samples (3 metre composites) were collected and sent to SGS Laboratories in Bamako, Mali, for geochemical analysis by fire assay. Single metre intervals were also kept for future analysis if required.
The RAB rig has now been deployed to GRBW. As outlined in the Company's press release dated 6 March 2014, the Company believes that there is considerable potential that the mineralisation at GRBW continues to the north and joins the previously drilled holes, completed in 2012, and the RAB rig will now test this area. The work programme at GRBW will be critical to understanding the near-term resource potential at this prospect and should lead to a detailed and comprehensive RC and DD programme in the coming weeks.
Grant of Warrants and change of registered office
The Company also announces that it has agreed to grant 15,730,327 warrants ('the Warrants') to its advisers in lieu of fees, in connection with, inter alia, recent fundraisings. Each warrant is convertible into one new ordinary share at the following exercise prices:
Number of Warrants granted | Exercise Price per share | Expiry date |
7,730,327 | 1.925 pence | 23 February 2019 |
5,000,000 | 1.5 pence | 22 January 2017 |
3,000,000 | 1 pence | 5 November 2016 |
In addition, the Company announces that it has changed its registered office address to 47 Charles Street, London, W1J 5EL, with immediate effect.
**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 |
XCAP 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 build on its current gold resource of estimate 107,000 ounces in the near term. Alecto also has a joint venture with Centamin over two prospective gold exploration licences in Ethiopia, under which Alecto retains exposure to the assets with no capital expenditure, as well as the wholly owned Wad Amour IOCG Project in Mauritania which is at an exploration status. Combined, these projects provide the Company with a strong, diversified portfolio with exciting exploration upside potential.