ALO.L Regulatory News (ALO)

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

7 May 2014

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

Positive Initial Metallurgical Results and Operations Update, 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 high gold recoveries from 60% to over 90%, in both oxidised and primary sulphide bearing mineralisation, have been returned from initial cyanide bottle roll tests on seven composite samples taken from mineralised sections of the first few reverse circulation ('RC') holes drilled at Gourbassi East ('GRBE') in December 2013. The initial results suggest that the JORC Code compliant inferred resource estimate of, in aggregate, 193,000 oz Au for the GBRE and Gourbassi West ('GRBW') targets (two of three main target areas at the Kossanto Gold Project in western Mali (the 'Kossanto Project') - together 'Gourbassi') has the potential to be amenable to low-cost recovery by cyanide leach but further metallurgical tests and analysis to be undertaken to test this concept.

Highlights

· The tests were conducted as part of the first phase of testing the mining potential of the Gourbassi inferred resource estimate of 193,000 oz Au

· The analysis was LWL69M compliant: Accelerated CN Leach 1000g-2000ml, AAS and the highly encouraging results are suggestive of good amenability to cyanide leach recovery

· Further RC drill testing at Gourbassi has recently been completed following the previous encouraging reverse air blast ('RAB') results at GBRW - RC results expected shortly

· Further metallurgical test work will now be undertaken to derive an understanding of the potential for gravity recovery

Mark Jones, CEO of Alecto Minerals, said:

"This first pass metallurgical work gives me great confidence that our team's exploration efforts at the Kossanto Project are firmly advancing the project in the right direction towards the realisation of a mining opportunity. The Gourbassi JORC inferred resource estimate was recently increased by 80% to 193,000 oz Au at 1.19 g/t and further RC and RAB drilling recently completed is expected to increase this figure yet further. Importantly, our understanding of the structural controls on mineralisation at Kossanto has improved significantly under the guidance of Dr. Kevin Downing, and this bottle roll test work demonstrates that the gold we are finding has the potential for low-cost recovery by cyanide leach."

Further Information

To date, work at the Kossanto Project has focused on the three priority targets of GRBE, GRBW and Massakama. The two Gourbassi targets, for which a JORC Code compliant inferred resources estimate has been calculated for a total of 193,000 oz Au, are now being considered as one project due to the close proximity of the two targets. The Alecto exploration team is currently identifying further potential targets within the Kossanto Project and an updated target map is expected to be produced before the end of June 2014.

In line with the Company's strategy to rapidly unlock the value of its African portfolio, Alecto appointed SGS Laboratories in Ougadougou, Burkina Faso to undertake initial metallurgical testing from seven selected composite samples taken from mineralised sections of the first few RC holes drilled at GRBE in December 2013. The initial testing, which was to the standard LWL69M: Accelerated CN Leach 1000g-2000ml, AAS, returned positive results with gold recoveries ranging from 60% to over 90% in rhyolites to over 90% recovery from the saprock and altered mafics. This is suggestive of good amenability to cyanide leach recovery and further metallurgical test work and analysis will now be undertaken to adequately test this concept and to derive an understanding of the potential for gravity recovery.

Additionally, the Company has also completed further RC drill testing on the Gourbassi target following some highly encouraging RAB results. The results of this further RC drilling at Gourbassi and the recent RC drilling at Massakama are expected to be available shortly.

Review of Information

The information in this announcement that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Michael Ware, who is the Company's Part time Executive Director and a Fellow of the Australasian Institute of Mining and Metallurgy.

Michael Ware has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking and is a qualified person as defined in the AIM Rules. Michael Ware has reviewed this announcement and consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears.

**ENDS**

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

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 inferred resource estimate of 193,000 ounces of gold for Gourbassi. Alecto also has a joint venture with Centamin plc over two prospective gold exploration licences in Ethiopia, under which Alecto retains exposure to such assets with no capital expenditure obligations, as well as the wholly owned Wad Amour IOCG Project in Mauritania which is at an exploration stage. Combined, these projects provide the Company with a strong, diversified portfolio with exciting exploration upside potential.

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