ALO.L Regulatory News (ALO)

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

21 April 2011

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

Exploration Update from Mauritanian Gold and Base Metal Licences

Alecto Energy plc, the AIM listed resource investment company, is pleased to announce positive results from phase one of the Company's initial exploration programme focussed primarily at the Wad Amour (615 sq km) and Zreibya (529 sq km) gold and base metal licences located in the prospective Mauritanide mobile belt of Mauritania. 

Overview

·; Completion of field work programme, which consisted of geochemistry, reconnaissance visits and mapping by leading consultants SRK Exploration Services ('SRK ES')

·; Two well defined copper anomalies with strike lengths of over 800m and 900m in Wad Amour licence

·; Significant gold path finder minerals detected at Wad Amour and Zreibya - assay results expected in June 2011

·; Analysis of airborne magnetic data obtained for both prospects indicate a strong structural control

·; Recommendation to continue to phase two of exploration programme - to include additional soil sampling, trenching and ground geophysics

·; Phase two exploration to commence shortly to strengthen the Board's understanding of the licences

Alecto Executive Director Damian Conboy said, "These initial results from our Mauritanian gold and base metal licences underpin the prospectivity of the area, and the identification of two well defined copper anomalies at Wad Amour gives solid credence for further exploration activity in order to define the extent of these targets.

"The identification of significant gold path finder elements is also an important development and we will shortly be sending samples for assay testing and look forward to receiving the results in June 2011. A strengthened understanding of the licences, which are located in a highly prospective and emerging geological district, is also imperative and we expect to engage SRK ES imminently to conduct phase two of our exploration programme. This will involve additional soil sampling, trenching and ground geophysics and is due to commence shortly.

"We have a defined development strategy and Mauritania is gaining increased interest particularly in the areas where our licences are located. World class gold and copper projects are being developed and with this increased recognition of the country as a relatively undiscovered mineral district, we remain excited about the potential of our 1,902 sq km gold and base metal licence area."

Phase One Work Programme

The phase one work programme on the Wad Amour and Zreibya licences included a soil geochemistry study, reconnaissance visits and mapping. Soil sampling and mapping activities were focussed on previously identified mineral occurrences and prospects and a total of 2,066 samples were taken and obtained over six grids. Reconnaissance visits are aimed to identify new areas for further work in phase one and phase two. Additionally, data from the Mauritanian Ministry of Mines was obtained to facilitate the exploration, including airborne magnetics and radiometrics.

The soil samples, which were analysed using a handheld Niton XL2 XRF, resulted in two well defined copper ('Cu') in soils anomalies and early indications demonstrate solid grades. These anomalies are located in the Wad Amour licence which SRK ES believes to be highly prospective and a high priority target for additional exploration. The East-West trending 'Chiron' anomaly contains anomalous copper values over an 800m strike. The North West-South East trending 'Oued d'Amour' anomaly contains anomalous copper values over a 900m strike length. Analysis of airborne magnetic data obtained for both prospects indicate a strong structural control which may be used to direct future exploration. Due to this strong correlation between ESE lineaments and anomalous copper in soils values, further exploration activities will focus along this potential trend.

Geological horizons that host the mineralisation in Wad Amour licence are thought to extend under sand cover in the Chegar licence, Alecto's third licence, further increasing the prospectivity of the Company's portfolio in the region. Exploration activities on the Chegar licence have not yet commenced, however the Board intends to carry out preliminary work at this licence during phase two, weather permitting.

Importantly, in addition to the two copper in soils occurrences, anomalous values of gold path finder elements arsenic, antimony, tellurium, lead and zinc, have been recovered from both the Wad Amour and Zreibya licences, demonstrating the potential for gold mineralisation. Samples from grids at both licences are currently awaiting shipment from Mauritania to a laboratory in Ireland for analysis for gold and results are expected in June 2011.

Phase Two Work Programme

The Company considers the area to be prospective for iron oxide copper gold and stratiform sedimentary exhalative/volcanogenic massive sulphide ('SEDEX/VMS') style mineralisation and will continue with a second phase of its work programme on the Wad Amour and Zreibya licences. The Board expects to engage SRK ES imminently to conduct this phase of work which is anticipated to commence shortly.

**ENDS**

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

Notes:

Alecto Energy Plc is an AIM listed company with an experienced Board focussed on investing in a mix of natural resource and energy projects ranging from exploration, processing and development or mining and production, to maximise shareholder value. 

The Company has three gold and base metal development licences totalling 1,902 sq km and two uranium licences totalling 1,592 sq km in the highly prospective Mauritanide mobile belt of Mauritania. The Board has identified prospective exploration targets at each of the sites covered by these five licences.

Additionally, the Company also has a 9.73% shareholding in AIM listed resource investment company Charles Street Capital plc in return for a £100,000 investment. The Board believes this investment will provide Alecto with exposure to a diverse range of potential resource projects.