AMBR.L Regulatory News (AMBR)

23 Nov 2006 07:01

Ambrian Capital PLC23 November 2006 23rd November 2006 Ambrian Capital plc Heads of Agreement signed with Palladex plc - Merger of Mining and Exploration Assets • Heads of Agreement ("HOA") signed for the merger of Ambrian Capital's unlisted mining and exploration assets with Palladex plc • Production of platinum concentrate from Yubdo Platinum and Gold Development PLC ("YPGD"), Ethiopia • Advanced stage gold exploration project at Tulu Kapi in Ethiopia • Drill target assessment on Lake Sonfon Gold and Diamond exploration project, Sierra Leone • Exploration activities underway on Madagascan gold project Ambrian Capital plc, formerly Golden Prospect plc, ("Ambrian" or "the Company"),wishes to announce that it has signed a Heads of Agreement to merge its miningand exploration assets (the "Transaction"), with Palladex plc, AIM: PLX ("Palladex"), a mineral exploration and development company. At the same timePalladex has also agreed to acquire Ethiopian Resources Limited ("ERL") aprivate UK registered company which imports platinum concentrate from Ambrian'sEthiopian assets. In return, Palladex will issue an aggregate of 50,000,000 newshares to Ambrian (and its nominees) and the shareholders of ERL. Following thecompletion of the Transaction, Ambrian (and its nominees) and the shareholdersof ERL will hold a 44.8% interest in Palladex. Ambrian is selling its wholly owned subsidiary, Golden Prospect Mining CompanyLimited (Bermuda) ("GPMC") which holds, either itself or through subsidiaries,the following assets: • a 51% interest in YPGD and management of a platinum and gold mining operation and 100% of (a) three exploration licences and (b) two prospecting licences for gold and platinum in Ethiopia; and • an 87.5% interest in Madagascar Gold and Stones SARL ("MGS") which holds gold exploration licences in Madagascar; and • exploration projects, through joint ventures, for platinum, gold and diamonds in Sierra Leone; and Due diligence on the assets is in progress and all parties are working to atarget completion date of 29 December 2006, subject to completion of formaldocumentation, finalisation of appropriate warranties and the approval of theshareholders of Palladex. The parties have agreed that Ambrian will nominate three new members to thePalladex board of directors and that three members of the Palladex board willretire on completion of the Transaction. Highlights of the projects include: • Production of platinum concentrate from Yubdo Platinum and Gold Development PLC, in Ethiopia. The Yubdo platinum/gold ore body is located in the Yubdo mafic-ultramafic complex, which is located in the Welega Region, of western Ethiopia. Trial mining and processing equipment has been ordered, which is expected to raise output to the 1,000 ounces per annum, while the design of a large scale operation is researched and completed. The occurrence of placer and alluvial platinum and gold has been known sinceancient times. An estimated 85,000 ounces of platinum were extracted from thearea between 1929 and 1941 through simple water washing surface workings. Largeareas on the licences remain to be evaluated. The deposit is open on strike andwidth. The potential beneath the 10-15m highly weathered surface layer has notbeen investigated, although quartz stock work has been observed in the bottom ofsome of the exploration pits. • Advanced stage gold exploration project at Tulu Kapi in Ethiopia. Gold was mined, via an open cut mine and adits, in the 1930's. The UNDP, in the 1970's, and Tan Range Exploration, in the late 1990's, conducted systematic geological mapping, geochemical prospecting, trenching and geophysical investigations, and drilled some diamond drill holes. These programmes indicated a zone of gold anomalies, 100-400m wide and about 1.3km long and gold mineralisation in the trenches, while the drilling intersected significant gold and silver mineralisation, with sulphides (mainly pyrite) associated with hydrothermal alteration within syenite. GPMC has carried out detailed additional mapping, soil geochemistry, structural analysis and is completing an eight hole diamond drilling programme, of which four have been completed. A major sigmoidal structure has been identified over 1km with an apparent width of 150-200m, which contains two wide series of quartz veins. The first four holes of the programme intersected mineralised sections, with carbonate and quartz veinlets, associated with bands of, and disseminated, sulphides, mainly pyrite. Patches of sulphide mineralisation were observed in the core between the intersections. Assaying is underway in the SGS Laboratory, South Africa. • Drill target assessment on Lake Sonfon Gold and Diamond exploration project, Sierra Leone. The Company is participating in a joint venture with Golden Star Resources Inc (TSX: GSC, "Golden Star") and Mano River Resources Inc (AIM: MANA; TSX: MNO, "Mano"), on two contiguous exploration licences around Lake Sonfon in the Sula Mountains green stone belt in northern Sierra Leone. Golden Star is earning a 51% interest by focusing on the gold aspect of the venture whilst Mano will concentrate on the diamond potential of the properties. Work on the licences initially defined a 3km long by 0.3km wide gold anomaly and identified drill targets within a high grade gold-bearing stock work vein system beneath the anomaly, with a best trench intersection of 7.3m @ 7.4g/t. Mano, which holds 50% of the diamond aspect of the venture, has announced that reconnaissance work has confirmed the presence of commercial sized diamonds and kimberlite indicator minerals on the joint venture licence package. Five macro diamonds, weighing a total of 0.841 carats, were recovered from an initial single stream sample. As part of the due process, under the Sierra Leone Mines and Mineral Decree,GPMC (through a subsidiary) has applied to extend the period of the licence forLake Sonfon. GPMC is currently engaged in this process and expects to completethis administrative process in due course. • Exploration activities underway on Madagascan gold project. GPMC holds 87.5% of a gold prospect consisting of three contiguous exploration licences, 243.7 sq. km., on the east coast of Madagascar. Numerous small old workings and mines, for gold and silver, occur on the licence area, while there are also copper showings in the area. Soil geochemical sampling and surface geology mapping exercises are progressing. Nathan Steinberg, Finance Director, commented, "We welcome the merger withPalladex and look forward to a successful, progressive and enduring vehicle.Palladex is an excellent choice of partner as it has exploration, drilling andassociated equipment, cash and technical services assets as well as theprerequisite quality management. The aim of the merger is to enable AmbrianCapital to monetise its mining and exploration assets and provide capital tofurther develop them. We also believe the deal will establish a portfolio ofassets with the potential for economic development, thus enhancing shareholdervalue." For further information, please contact: Nathan Steinberg Terry WardFinance Director DirectorAmbrian Capital plc Ethiopian Resources LimitedTel: +44 (0)20 845 7500 Tel: +44 (0)7989 571 576Email: mail@ambrian.com Email: twardafl@yahoo.co.uk Roger Clegg Cathy Malins / Annabel LeatherVice President Corporate Finance PR AdvisersAmbrian Partners Limited Parkgreen CommunicationsTel: +44 (0)20 7776 6414 Tel: +44 (0)20 7493 3713Email: roger.clegg@ambrian.com Email: cathy.malins@parkgreenmedia.com Addendum Golden Prospect Mining Company Limited (Bermuda) ('GPMC' or the 'Company') holdsthe following mining and exploration assets: • a 51% interest and management of a platinum and gold mining operation and 100% of several exploration licences for gold and platinum in Ethiopia; • an 87.5% interest in a gold project in Madagascar; and . • exploration projects, through joint ventures, for platinum, gold and diamonds in Sierra Leone. Ethiopia The geological potential of Ethiopia's greenstone belts is well known. However,it is only in the last few years that the political and legislative frameworkhas become attractive enough to deliver this potential. As such, GPMC hastargeted this country as one of its priorities in developing mining projects andis in the vanguard of the growing interest in exploration and mining activitiesin the country. Currently, GPMC holds mining and exploration licences in the Yubdo area, WelegaRegion, of western Ethiopia, some 550 kms west of the capital Addis Ababa. Yubdo Platinum Mine In late 2004, GPMC acquired a 51% managing interest in the Yubdo Platinum andGold Development Private Limited Company (YPGDC), which operates a small scaleplatinum mine. Ato Benti Tasissa, who held three small scale mining licences atYubdo, holds 47% of the company and Dr. Kebede Hailu holds 2%. The licences weretransferred to the YPGDC in May 2005. In return for this interest, GPMC wascommitted to spend £400,000, up to April 2008, to develop and expand theoperations, improve the assessment of the resources and upgrade the simpleprocessing plant. The Yubdo platinum/gold ore body is located in the Yubdo mafic-ultramaficcomplex, which is 9km long, 4-5km wide and strikes in a NNE-SSW direction. TheYubdo/Daleti/Tulu Dimtu ultramafic belt is considered a part of an ophahiolitesequence in the metamorphic rocks of the Arabian-Nubian Shield. The occurrenceof placer and elluvial platinum and gold mineralisation has been known sinceancient times. The three mining licences held by the YPGDC cover an area of 27.3 sq. km. andinclude the sites of previous mining activities, carried out by various British,Italian and Ethiopian groups in the period 1926 to 1941. An estimated 85,000ounces of platinum were extracted from the area in this period, through simplewater washing surface workings. The licences cover approximately 80% of thepresently known surface expression of the deposit. The upper section of the ore body consists of clays, rubble and fine highlyweathered material, at a depth of 6 to 15 metres, which extends over a surfacearea of approximately 5km by 1.5 km, containing gravity recoverable platinum andgold. GPMC believes that the deposit is weathered in situ, therefore it islikely that it extends at depth. Eight boreholes have indicated that the oxidised layer extends down to a depthof 40 metres and the presence of disseminated platinum group elements.Unfortunately, no records exist of any assays being undertaken on the boreholesamples. The mining and processing operations at present are small scale, using a washingtrommel and a gravity sluicing system to recover a platinum and goldconcentrate. GBM Minerals Engineering Consultants Limited assisted with anupgrade of the very basic processing operations. As part of its capitalcommitment, GMPC has ordered mining equipment, mobile equipment, pumps andprocessing equipment, which is expected to raise output to the 1,000 ounce levelin the interim. A pilot gravity recovery plant, which consists of a highintensity washing unit, multi-stage trammel, Knelson concentrator and Geminitable, at a cost of US$200,000, is under construction in South Africa. This equipment will allow the project to become self sufficient from a cash flowperspective sustaining the cost of the further resource definition, theexploration activities and metallurgical test work in advance of the expansionof operations to a large scale low grade open pit operation. The companyintends to initiate a drilling programme later this operational year to furtherinvestigate the structure and grade of the underlying formation. The most definitive resource potential estimations of the oxidised material werecarried out in two mainly separate areas by Nippon Mining, north/central, in1971 and Russian consultants to the Ethiopian Mineral Resources DevelopmentCorporation (EMRDC), southern, between 1973 to 1976 (Nippon Mining Co 1972 andEMRDC 1984 Reports in the Department of Mines). Nippon Mining estimated a resource of 388,000 ounces of platinum (35.9mt (27million cubic metres) at a grade of 0.336g/t Pt), in approximately one third ofthe deposit, through whole rock sampling and conventional assays. EMRDC estimated resources, under the Russian P1 & P2 classification, of 70,000ounces of platinum (22.4 million cubic metres at a grade of 0.11 g/cum Pt), inanother third of the deposit. However, the EMRDC admitted that their proceduresresulted in very poor repeatability and it was concluded that platinum recoveryby these methods was very low, due to the presence of very fine particles whichare not amenable to recovery by panning. Channel samples from the face of themain pit showed an average grade of 0.32 g/cu metre platinum. GPMC completed the first stage of the resource evaluation exercise, comprising30 pits dug to the depth of the surface layer, in early 2006. The samplingprogramme was undertaken on a 60m by 60m grid, in the EMRDC estimation area,incorporating whole rock sampling and conventional assay. It indicated anaverage grade of 0.55g/t, which is a greater than 7 times increase over theoriginal estimation. Grades of up to 1.8g/t of platinum were indicated inseveral sections. This result, if applicable over all the EMRDC area, would indicate a preliminarypotential of around 900,000 ounces of platinum for the areas covered by theNippon Mining and EMRDC sampling programmes. The deposit is open on strike and width, plus the potential beneath the surfacelayer has not been investigated, although quartz stock work was observed in thebottom of some of the exploration pits. Exploration Properties The exploration properties (100% GPMC) are: Yubdo Exploration Licence 535.6 sq kmTulu Kapi Exploration Licence 20.0 sq kmYubdo Extension Prospecting Licence 100.4 sq kmTulu Dimtu Exploration Licence 137.0 sq kmTulu Dimtu Extension Prospecting Licence 241.0 sq km Initial reconnaissance exploration activities have been completed on the Yubdo,Yubdo Extension, Tulu Dimtu and Tulu Dimtu Extension Licences. ACA Howe (UK) hasreviewed the results and has given input into the formation of the next stage ofthe exploration programmes. A diamond drilling programme has been completedrecently on a gold anomaly at Tulu Kapi, which lies approximately 20km northeast of Yubdo. The Yubdo and Tulu Dimtu, 65km north east of Yubdo, Extension ProspectingLicences were acquired in 2005 to cover extensions of gold and platinum and goldmineralisation occurrences recognised on the boundaries of the Yubdo and TuluDimtu Licences Recent exploration and initial resource sampling on extensions of the Yubdo orebody on the Yubdo Exploration Licence show clays, rubble and fine highlyweathered material, with profile thicknesses and the presence of platinum andgold similar to the main body. Three areas, Gudgi/Keley, Kumto and Guliso, in the north of the licence showgold mineralisation in several places. These areas are close to the Tulu KapiLicence area. Gudji is located 3km NW of Tulu Kapi. A soil anomaly, 1.2km long and 200m wide,with values up to 200ppb Au, covering a series of quartz veins in ferruginisedschists, has been delineated by GMPC. Rock chip samples showed grades of up to 7 g/t Au. The UN Mineral Survey obtained a grade of 2.5 g/t Au over 15 metres ina drill hole in the 1970's. Kumto is situated south of Gudgi and close to the western border of the TuluKapi Licence. A 1km by 1km soil anomaly, with values up to 400ppb Au, coversseveral quartz veins, (widths up to 20 metres). Rock chip samples showed gradesof up to 7.7 g/t Au. The UNDP obtained a grade of 2.07g/t Au over 13m, ofmassive sulphides with copper, in 1971. A 3km exposure of quartz veins south of Guliso, 10km NW of Tulu Kapi, was minedduring the 1920's to 1930's by an Italian group. The UNDP, in the late 1960s, conducted systematic geological mapping,geochemical prospecting, trenching and geophysical investigation, with threediamond drill holes at Tulu Kapi, (UNDP Report 1971). These programmes indicatedseveral surface gold anomalies and gold mineralisation in the trenches, whilethe drilling intersected significant gold and silver mineralisation, withsulphides (mainly pyrite) associated with hydrothermal alteration within alkalisyenite. Tan Range Exploration also carried out mapping, soil geochemistry, trenching,geotechnical and diamond drilling activities in the area in the late 1990's. Azone of gold anomalies, 50 to 400 metres wide and about 1.3 km long, wasidentified and visible gold was found in quartz floats in a 50 metre longtrench. Reported anomalous results from the drilling are as follows: TKDD 1 3.0m @ 2.2 g/t Au Depth 45 to 48m 1.0m @ 2.9 g/t Au Depth 50 to 51m 2.0m @ 3.3 g/t Au Depth 63 to 65m TKDD 2 4.0m @ 2.5 g/t Au Depth 4 to 8m (2.0m @ 4.8 g/t Au Depth 6 to 8m) Fine grain gold identified in section 19.6 to 20m 2m @ 4.4 g/t Au Depth 21 to 23m 1m @ 5.0 g/t Au Depth 25 to 26m TKDD 3 13m @ 1.0 g/t Au Depth 5 to 18m (1m @ 3.5 g/t Au Depth 12 to 13m) (1m @ 7.1 g/t Au Depth 15 to 16m) (Repeat assay gave 137 g/t) TKDD 4 5m @ 1.4 g/t Au Depth 48 to 53m (1.3m @ 3.0 g/t Au Depth 48.7 to 50m) 0.7m @ 12.5 g/t Au Depth 103.7 to 104.4m TKDD 5 1m @ 7.7 g/t Au Depth 22 to 23m 2.4m @ 3.1 g/t Au Depth 34 to 37.6m (With additional structural analysis undertaken recently, GPMC believes that theTan Range holes were not orientated in the most advantageous direction and someholes were drilled down dip, thus not intersecting the mineralised structures). Tan Range commented in an internal report that silicification of the syenite wasobserved commonly in all the holes drilled in the gold soil anomaly area, withdevelopment of secondary quartz along the fractures. The alteration was relatedclosely with sulphide mineralisation, mainly pyrite. It also commented, after the conclusion of its work on the Tulu Kapi Licence,that the first phase of drilling has intersected a mineralised stock work withinan intrusive syenite and that, due to the nature of the mineralisation, TuluKapi represents a potential large open pittable target. GPMC has carried out detailed additional mapping, soil geochemistry, structuralanalysis and is completing an eight hole diamond drilling programme. A majorsigmoidal structure has been identified over 1 km with an apparent width of 150to 200 metres, which contains two wide series of quartz veins. The drill programme is designed to examine the first flexure in the southernsection of the sigmoidal structure. The first four holes of the programmeintersected mineralised sections, with carbonate and quartz veinlets, associatedwith bands of, and disseminated, sulphides, mainly pyrite. Patches of sulphidemineralisation were observed in the core between the intersections. Assaying isunderway in the SGS Laboratory, South Africa. The Yubdo Extension Prospecting Licence was taken up to cover the extensions ofthe gold bearing structures in the Gudgi and Guliso areas. Initial work to datehas been geological mapping and soil geochemistry sampling. The Tulu Dimtu and Tulu Dimtu Extension Licences cover three ultra-maficintrusions which lie on the extensive Ultra-mafic belt in western Ethiopia. Initial geological mapping, wide spaced geochemical soil sampling, streamsampling and topography programmes have been carried out to date. The presenceof fine grained platinum and gold has been detected in several streams. Sierra Leone GPMC is currently involved in two exploration projects in Sierra Leone: - Lake Sonfon - joint ventured with Mano River Resources Inc and Golden Star Resources Ltd; and - York Platinum - joint ventured with Jubilee Platinum plc: As part of the due process, under the Sierra Leone Mines and Mineral Decree,GPMC (through a subsidiary) has applied to extend the period of the licenses forboth the Lake Sonfon and York Platinum projects. GPMC is currently engaged inthis process and expects to complete this administrative process in due course Lake Sonfon The Lake Sonfon exploration area is located on the northern end of the ArcheanGreenstone belt of the Sula Mountains, North West Province, an established andextensive gold province. Mano River Resources Inc. holds the contiguous propertysituated on the eastern and southern boundaries of GPMC's subsidiary property. The Company entered into a 50/50 Joint Venture Agreement with Mano RiverResources Inc. on the two properties, with Mano River as the operator exploringfor diamonds. The two companies subsequently entered into a joint venture withGolden Star Resources Ltd. ("Golden Star"), a Toronto Stock Exchange listedcompany, whereby Golden Star could earn a 51% interest in the two propertiesexploring for gold and be the operator. The two contiguous properties have a total area of 256 square kilometres. TheSonfon district is one of Sierra Leone's richest and most prolific historic goldfields. Work on the Sonfon Licences, by Golden Prospect and Mano, initiallydefined a 3km long by 0.3km wide gold anomaly and identified drill targetswithin a high grade gold-bearing stock work vein system beneath the anomaly,with a best trench intersection of 7.3m @ 7.4g/t. Further work by Golden Star has shown significant regolith anomalies (>160 ppbAu, with high values up to 9,963 ppb Au) occurring in a parallel structure, inclose proximity to the first structure, which extends over a 10km strike length.The majority of the regolith in this area is considered to have formed in situand it is expected that bedrock mineralisation may incur in close proximity tothe surficial gold anomalies. This is further supported by the stronglyanomalous rock-chip samples (three samples contained 2.25, 2.67 and 7.05 g/tAu), which have been taken in close proximity to the gold-in-soil anomalies. Mano River announced in June 2004 that reconnaissance work has confirmed thepresence of diamonds and kimberlite indicator minerals on the joint venturelicence package. Five macro diamonds, weighing a total of 0.841 carats, wererecovered from an initial single stream sample. All of the diamonds wererecovered in the coarse size fraction, with two being over 4mm in size. Onediamond is classified as a clear white octahedral gemstone weighing 0.315carats. Two other diamonds are also classified as white stones and a further twoare described as brown in colour. The brown stones are characterised by internalcleavages and inclusions, which imply that they might not have been subjected tosignificant transport. A reconnaissance stream sampling programme of some 58 samples was undertaken.Three samples yielded kimberlitic chrome spinels and a further three yieldedkimberlitic ilmenite. The spinels were submitted for microprobe analysis, theresults of which indicate that they have compositions that plot within the WorldDiamond Inclusion Field (as defined by Fipke et. Al. 1995). The recovery ofthese indicator minerals suggest that kimberlites may be present within thelicences and, furthermore, the chemistry of the chrome spinels, coupled with theproximity of the five macro diamonds, implies that any kimberlites are likely tobe diamond bearing. York Platinum GMPC's subsidiary has a 105.3 square kilometre platinum exploration propertylocated around the village of York, some 37 kilometres south of Freetown, on theFreetown Peninsula in the Western Area of Sierra Leone. GPMC entered into a Joint Venture Agreement with Jubilee Platinum plc, an AIMlisted company, with GPMC having 50% and Jubilee Platinum 50% and operatorbasis. GPMC elected to fund the next stage of exploration, which increased itsshare to 80%, with Jubilee Platinum remaining as operator. The property covers the central section of the Freetown Layered Gabbro Complex,an area with a history of artisinal platinum production. The Complex is alayered sequence of gabbroic and troctolite rocks with some of the cyclicalunits having anomalous platinum, palladium, chromium, vanadium, nickel andcopper mineralisation. Previous exploration, carried out by Golden Prospect andothers, in the 1990s, showed values of up to 0.57 g/t platinum, with one repeatassay up to 0.84 g/t, and palladium values up to 0.12 g/t in weathered bedrock.GPMC's work traced this mineralisation over a strike length of 5.2km and notedthat the mineralisation occurred commonly, but not always, in more resistantcyclical units of pyroxene troctolites, which outcrop at surface in the form ofraised ridges. Polished sections of rocks studied previously have shown sulphidemineralisation, especially chalcopyrite, phyrrhotite and minor pentlandite, withassociated ilmenite and magnetite. The primary platinum mineral is generallycooperite, a mineral found commonly in the Merensky platinum bearing reefs ofthe Bushveld Complex in South Africa. The joint venture has completed phase one of a geological reconnaissanceprogramme on the property. Overall, the results indicate a 3.2km extension ofthe previously identified 2m wide platinum/palladium mineralised reef likehorizon, from 5.2km to 8.5km in length along strike, and have discovered aparallel reef horizon of mineralisation 1.2km in length along strike. The programme comprised geological reconnaissance, ground magnetometrytraversing and soil sampling, trenching/pitting and stream sediment sampling,with the primary objective of extending the strike length of a known mineralisedplatinum bearing reef like horizon. Significant results were: • Raised ridges associated with the previously identified mineralisation can be traced over a strike length of 8.5km; and • A new trench yielded up to 0.44 g/t Platinum in highly weathered, laterised rock, while soils showed anomalous values up to 0.35 g/t Platinum; and • A second parallel belt of mineralisation, 2km to the east of the main belt around Monomo, has been discovered and traced over a strike length of 1.2km and remains open ended. Madagascar GPMC holds an 87.5% interest in Madagascar Gold and Stones SARL ("MGS") whichholds three contiguous gold exploration licences over 243.7 sq. km., on theeast coast of Madagascar. Larchwood Minerals Sarl holds 12.5 %. Numerous small old workings and mines, for gold and silver, occur on the licencearea, while there are also copper showings in the area. Soil geochemicalsampling and surface geology mapping exercises are progressing. Futureprogrammes will be structured around the results of the present activities. This information is provided by RNS The company news service from the London Stock Exchange