25 Nov 2013 07:00
Alecto Minerals plc / EPIC: ALO / Market: AIM / Sector: Exploration & Development
25 November 2013
Alecto Minerals plc ('Alecto' or 'the Company')
Positive Exploration Update, Kossanto Gold Project, Mali
Alecto Minerals plc (AIM: ALO), the AIM quoted mining exploration company focussed on West and East Africa, is pleased to provide a positive update on the Company's exploration activities at its 207 sq km Kossanto Gold Project in the prospective Kenieba Inlier in western Mali.
Overview
· Contract signed with Amco Drilling (UK) Limited for 2,000m diamond core drilling and 4,500m Reverse Circulation ('RC') drilling to improve structural information at Gourbassi East and Gourbassi West prospects and to significantly increase the project's JORC resource
· Multi-purpose UDR 650 drill will be on site 1 December 2013 to commence drilling activities
· Road reconstruction has commenced using a CAT D6R bulldozer and is currently 30% complete
· Further investigation of the new gold discovery reported earlier this month has highlighted the expansive and exciting nature of the mineralisation in this area - confirmed as a significant structure with a NE orientation characterised by high-grade smoky quartz veins with visible gold
· Induced Polarisation ('IP') survey data has been reprocessed, successfully identifying additional new targets
· Further detailed IP surveys planned to follow-up potential targets to provide 2D and 3D geophysical investigation
· ASTER satellite data covering entire Kossanto block acquired - currently being processed in order to provide further prospect level targets
Alecto CEO Mark Jones said, "With drilling due to commence imminently, we are excited to move into the next stage of development at Kossanto, following which we believe that our current resource figure of 107,000 ounces of gold at our Gourbassi East prospect will be enhanced considerably. Additionally, we are utilising the recently raised funds to strengthen our understanding of areas outside of the initial resource area. As demonstrated by recent artisanal activity, which has revealed a new gold discovery, significant areas are continually being identified at this expansive project and we are excited to conduct further investigation of this zone. With this in mind we have an additional drilling campaign planned at Gourbassi West as well as IP surveys planned and ASTER satellite data acquired, which covers the entire tenure.
"Drilling at Kossanto will continue into the new year, providing us with plenty of news flow from this asset within our African resource portfolio. We also expect developments at our Ethiopian gold assets, which are being developed in joint venture with Centamin, and at our Mauritanian copper/gold projects, as we aim to strengthen our understanding of these prospective mineralised areas and in turn, deliver value to shareholders."
Further Information
The Alecto exploration team has taken advantage of a relatively early end to this year's rainy season in Mali and has reopened its exploration camp at Gourbassi in preparation for the continuation of resource drilling at Gourbassi East and exploration drilling of the Gourbassi West prospect.
Amco Drilling are currently mobilising the same UDR 650 multipurpose rig to Kossanto that was successfully used during the Q4 2012 drilling campaign and delivered Alecto's maiden resource of 107,000 oz of gold ('Au'). This rig was capable of achieving penetration rates of over 300-metres per day on the last drill campaign and was selected again due to its capability to drill diamond core. Drilling preparation is expected to be complete by 1 December 2013, with RC drilling during the first two weeks of December and diamond core drilling throughout December and into January 2014. Results from the RC drilling are expected to increase the resource significantly and should be available in Q1 2014.
The Company has undertaken further reconnaissance work at the Massakama prospect in the west of the Kossanto block, where a major new artisanal gold rush was reported in the release 14 November 2013. Mapping and sampling has demonstrated the area to be a significant structure at the Massakama prospect with a NE orientation characterised by high-grade smoky quartz veins (>30cm) with visible gold and strong arsenopyrite mineralisation. Although the nature of the mineralisation is not fully understood, the artisanal workings here are extensive with 4,000 - 5,000 people working in the area, and the Company looks forward to undertaking further investigations in the zone.
Historical gradient array IP data has been reprocessed by Indigeo in order to take into account the team's more in-depth understanding of the geology and mineralised structures at the Kossanto block. The processed data has narrowed down areas of potential mineralisation and will be followed up by higher resolution IP survey methods in order to allow the team to create 2D and 3D interpretations. RC drilling will test the newly refined targets at Gourbassi East which correspond to geochemical anomalies. In addition to this, ASTER satellite imagery for the entire block has been acquired from Geoimage in Australia and is currently being processed. It is expected that this imagery will further define prospect-level targets across Kossanto for follow up work in Q2 2014.
Transfer of Warrants
At the request of a warrant holder the Company has transferred 2,375,000 pre-existing warrants to Mike Ware, a Director of the Company. The warrants have a pre-existing exercise price at 1.55p and valid until 7 October 2014.
Issue of Equity
The Company has issued 5,000,000 new ordinary shares of par value 0.7p as consideration for financing fees.
Application has been made to the London Stock Exchange for the new ordinary shares to be admitted to trading on AIM. Dealings are expected to commence from 8:00 a.m. on Thursday 28 November 2013 ('Admission').
Following Admission, there will be a total of 593,918,775 ordinary shares in issue. For the purposes of calculating Total Voting Rights shareholders may use this number as the total number of shares in issue from the date of Admission.
**ENDS**
For further information, please visit www.alectominerals.com or contact:
Mark Jones Alecto Minerals plc Tel: 020 3137 8862
Jonathan Evans Fox-Davies Capital Ltd Tel: 020 3463 5000
Jon Belliss XCAP Securities plc Tel: 020 7101 7070
Elisabeth Cowell St Brides Media & Finance Ltd Tel: 020 7236 1177
Felicity Edwards St Brides Media & Finance Ltd Tel: 020 7236 1177
Notes
Alecto Minerals Plc is an African focussed, gold and base metal exploration and development company listed 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 107,000 ounces in the near term. Alecto also has a joint venture with Centamin over two prospective gold exploration licences in Ethiopia which sees Alecto retain exposure to the assets with no capital expenditure, as well as the wholly owned Wad Amour IOCG Project in Mauritania which is at exploration status. Combined, these projects provide the Company with a strong, diversified portfolio with exciting exploration upside potential.