ALO.L Regulatory News (ALO)

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

30 January 2013

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

Positive Exploration Results from Wad Amour IOCG Licence

Alecto Minerals plc, an AIM listed multi-commodity exploration and development company with projects in Ethiopia and Mauritania, is pleased to provide the full results of its exploration campaign targeting Iron Oxide Copper Gold ('IOCG') mineralisation at its 613 sq km Wad Amour exploration licence located in the highly prospective Mauritanide mobile belt within Mauritania.

Highlights

·; Geophysical and geochemical sampling and trenching has been completed during the Q4 2012 work programme

·; Integration of various data sets indicate significant mineralisation at the Chiron target, with a mineralisation style similar to that of First Quantum's major Guelb Moghrein Deposit

·; Trenching highlights include: MTR001 - 93.6m @ 0.11% copper including 1m @ 0.7g/t gold, MTR004 54m @ 0.15% copper and MTR007 5m @ 0.33% copper, from the Chiron target

·; Corresponding anomalous trench values and soil anomaly is high conductivity from electromagnetic data

·; Three further targets identified for further exploration work: Tamourt, Morfuk and Maghta Lahjar - soil sampling and mapping recommended

Alecto Managing Director Damian Conboy said, "This has been a highly productive campaign which has confirmed the prospectivity of the Chiron target, our most advanced within the Wad Amour Licence Area. As work advances, comparisons continue to be drawn between the Chiron target and First Quantum's Guelb Moghrein style of IOCG mineralisation, which is located 315km to the north-west and produces 17,000 tonnes of concentrate per month. The large low grade intersections are very encouraging and indicate possible large tonnages and from the weathering profile in the region we expect grades to improve significantly with depth. With these recent results in hand, we currently plan to undertake an induced polarisation and drilling campaign as part of its next stage of the Chiron target's development.

"The generation of new targets is also highly positive, which has resulted in the Gadel target moving further down our list of priorities. Follow up work is already being planned to prioritise and bolster our understanding of the mineralisation present within these areas and we look forward to confirming the next stage of exploration at the Wad Amour project."

Further Information

Chiron

Geophysics

Electromagnetic ('EM') and magnetic surveys were conducted over the whole of the Chiron target by SRK Exploration Ltd. After collection the magnetics data was submitted to Stewart Geophysics PTY for further processing.

The main NE striking feature on the magnetics data is a large dolerite dyke which is visible in the field. The data also shows the main NW trending fabric and the important WNW trending structures that coincide with the iron silica ridges. These features are best shown on the first vertical derivative (reduced to pole) grid shown in figure 1 below, along with the interpreted structures.

A major conductivity high lies between the two main mineralised ridges at Chiron and can be seen in Figure 2. This is interpreted as resulting from sulphide mineralisation at depth. The anomaly coincides with a strong copper in soils anomaly, surface mineralisation and encouraging intersections in trenching. Also coincident is WNW trending structure visible in both satellite imagery and ground magnetics. This structure is predicted to relate to the two earliest deformational phases (D1/D2) of the Pan African (tectono-thermal event), which are considered to be the most prospective structures in the region, acting as they did as the main conduits for mineralisation at Guelb Moghrein.

The EM survey also identified a very large conductivity high to the south of the main target and adjacent to interpreted thrusts. This high represents an important new target for new copper mineralisation which may be hidden at surface. Additional anomalous areas to the north east lie along the regional thrust zone, and are not thought to relate to mineralisation.

Trenching

At Chiron the Company completed 1,193m of trenching producing 1,292 samples for geochemical analysis at ALS Ireland. Trenching intercepted mostly low grade copper mineralisation.

Highlights include:

·; MTR001: 93.6m @ 0.11% copper ('Cu'), including 30m @ 0.24% Cu and 1m @ 0.7g/t Au

·; MTR004: 54m @ 0.15% Cu

·; MTR007: 5m @ 0.33% Cu from subdued north-western ridge

It is important to note that many of the high grade copper rock chips from previous work are from the ridge itself which was not intersected at any depth during the trenching due to the hard nature of the ridge material which could not be trenched. The weathering profile in the area typically enriches copper grade slightly in the top 20cm below which it is depleted before increasing to high levels associated with the supergene blankets at depths of 10-30m.

Geology

A 3x3km mapping area was completed on the Chiron target in conjunction with trenching and soil sampling activities. A more detailed unit boundary map was conducted at 0.5x0.5km over the 2 main Chiron ridges.

The area is predominantly covered with mafic schist with varying degrees of chloritisation and albitization. The ridge is confirmed as brecciated quartz and carbonate with an iron oxide matrix, the ridges are 200-400m SW of the main regional thrust which is characterised by quartz vein ridges and mylonite. Varying degrees of silicification also occur to the SW of the main target area both in mafic schists and in carbonate veins. In the far SW of the mapping area a gabbroic body was found consistently within the areas of silicification.

Gadel

Geophysics

EM and Magnetics were conducted over 1 day on the northern most ridge of the Gadel target. No significant anomalies were identified from either survey.

Geochemistry

167 soil samples and 36 rock chips were collected at the target but no anomalous values were recovered.

New Targets

166 rock chip samples were taken in total from Wad Amour, Tamourt East and West, Chiron and Gadel; as well as other non-prospect locations. From these areas the Morfuk prospect was identified as having good potential, especially as it also coincides with a soil anomaly from previous regional work.

At Tamourt follow up work from a visit by Peter Pollard, a leading independent IOCG specialist (see announcement of 25/9/12), was carried out and a total of 31 rock chips were taken from both the eastern and the western Tamourt prospects, although no significant results were obtained the area remains prospective and further work is warranted.

Recommendations & Next Steps

The results at Chiron, Tamourt and Morfuk have been the most encouraging of the field season and as such should be the focus for the next stage of work. Chiron remains the most prospective, and advanced, and the integration of data from various sources all point to copper mineralisation existing at the site, with a mineralisation style similar to that at Guelb Moghrein, or possibly as skarn mineralisation along a receptive carbonate host. Chiron is at a stage where it is ready to be drilled, however the Company is considering undertaking an IP survey previous to this to confirm that the mineralisation exists at depth and optimise positioning of drill holes.

The remaining licence remains highly prospective and more time is required to properly explore the Wad Amour, Chegar and Zreibya licences. The logical first steps for an integrated regional approach is to continue the regional soil sampling and general mapping/reconnaissance work.

Review of information

The information in this release has been compiled and reviewed by Niall Tomlinson who is a qualified person for the purposes of the AIM Note for Mining and Oil & Gas Companies dated June 2009. Mr. Tomlinson holds a MSc in Mining Geology from Camborne School of Mines and is a Chartered Geologist with the Geological Society of London, with over six years experience in early stage exploration projects.

**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.

In Mauritania, it has three gold and base metal development licences totalling 1,828 sq km in the highly prospective Mauritanide mobile belt and two uranium licences totalling 1,592 sq km. It also holds the 1,960 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 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.