BHR.L Regulatory News (BHR)

2 May 2007 07:00

Carnegie Minerals plc02 May 2007 2 May 2007 Carnegie Minerals Plc ("Carnegie" or the "Company") First deposit explored in Southern Senegal substantially increases resource base of the SeneGambia Mineral Sands Project Carnegie Minerals Plc (CME), the mineral sands resource company with productioninterests in The Gambia and advanced exploration in adjoining Senegal, ispleased to announce that it has now completed its exploration programme over thefirst mineral sands deposit (Niafarang) in Southern Senegal. Highlights • Carnegie has completed exploration of the first mineral sands depositin Southern Senegal and obtained an independent resource statement • This resource substantially increases the entire resource base of thecompany's SeneGambia mineral sand project and is classified in the IndicatedCategory as defined by the JORC Code 2004 • The first explored deposit features low slimes, no overburden and avery high average grade of total heavy minerals including good zircon grades.The overall mineral assemblage is similar to the deposits currently being minedby Carnegie in adjoining Gambia • Carnegie has mobilised its exploration team in Africa and an air-coredrilling rig has been shipped to the port of Dakar to start test drilling of newexploration targets in Southern Senegal later this month The exploration programme has resulted in an additional resource totalling 4.8million tonnes of sand at an average grade of 12.4% total heavy minerals (THM)at a cut-off of 1% THM. As a percentage of the THM, the economic mineral contentis 13.7% zircon, 2.3% rutile, 75.2% ilmenite and 0.4% non-magnetic leucoxene.(See attached independent resource statement for detail) Wallis Drilling's air-core drilling rig has arrived in the port of Dakar and CMEhas mobilised its exploration team in Africa to start test drilling of newexploration targets generated by the high-resolution airborne magnetic andradiometric survey carried out by the company in late 2006. Alan Hopkins, Managing Director of Carnegie commented: "We are very pleased with these results as the first deposit explored by theCompany in Southern Senegal substantially increases the resource base of thewhole SeneGambia project. Its very high grade, low slimes and zero overburdencombine with its close proximity to the southernmost deposit in The Gambia tomake it a valuable additional resource. "With drilling scheduled later this month over the new exploration targets inthe Senegal licence area, we are rapidly moving to an understanding of the finalscale of the whole project". - Ends - For further information, call: Alan Hopkins, Managing Director, Carnegie Minerals Plc 020 7831 3113Romil Patel / Olly Cairns, Blue Oar Securities Plc* 020 7448 4400Billy Clegg/Edward Westropp, Financial Dynamics 020 7831 3113 *Blue Oar Securities was formerly Corporate Synergy Plc and acts as NominatedAdvisor and Broker for the Company. Notes to editors: Carnegie only listed on AIM in August 2006. It has already brought into fullproduction three dredges and is on track to meet its 2007 production targets inThe Gambia. It has completed a high resolution airborne geophysical survey overthe Southern Senegal licence area generating a number of targets for testdrilling. All exploration in Senegal is 50% co funded by Astron Ltd (the largestindependent buyer of zircon in China), with the emerging production in TheGambia fully funded by Astron Ltd (a 50% partner in each project). Independent Resource Statement MICHAEL SHEPHERD & ASSOCIATES Consultant Geologists 84 Adelma Road, Dalkeith WA 6009 Tel: 08 9386 2988 Email: halcyonhill@bigpond.com NIAFARANG HEAVY MINERAL DEPOSIT, SENEGAL RESOURCE STATEMENT The Niafarang Heavy Mineral Deposit, located in Senegal within the ExclusiveExploration Licence dated 26 November 2004, is held by Coast Resources Ltd, awholly owned subsidiary of Carnegie. The Indicated Mineral Resource for thedeposit, at a cut-off of 1% THM, is a total of 4.8 million tonnes of sand at anaverage grade of 12.4% total heavy minerals (THM). As a percentage of the totalheavy minerals, the economic mineral content is 75.2% ilmenite, 13.7% zircon,2.3% rutile and 0.4% non-magnetic leucoxene. The average slimes content for thedeposit is 2.2%. As the following table shows the deposit is made up of two parallel strandlinesoccurring over a distance of 6 km separated by low grade ground approximately 50metres wide. Strand Sand tonnes Grade Mineral Assemblage % of THM Mt % THM Ilmenite Zircon Rutile Leucoxene East 3.97 14.6 75.4 13.7 2.3 0.4West 0.83 1.7 69.6 15.5 2.0 0.6Totals 4.80 12.4 75.2 13.7 2.3 0.4 Based on the continuity of the deposit demonstrated by the drilling density of200 metres by 20 metres and the sampling frequency of one metre intersections,the mineral resource qualifies to be classified in the Indicated Category asdefined by the AUSIMM JORC Code 2004. The description of the Niafarang Mineral Resource is based on informationcompiled under the review of Michael Shepherd who is a Fellow of theAustralasian Institute of Mining and Metallurgy, and is Principal of MichaelShepherd and Associates, Consultant Geologists. Michael Shepherd has sufficientexperience which is relevant to the style of mineralisation and type of depositunder consideration and to the activity which he is undertaking, to qualify as aCompetent Person as defined in the 2004 Edition of the "Australasian Code forReporting of Exploration Results, Mineral Resources and Ore Reserves" (The JORCCode 2004). Michael Shepherd consents to the inclusion in the Report of thematters based on information in the form and context in which it appears. Michael Shepherd & Associates Glossary of terms "Heavy minerals" or "HM" a term given to minerals that have a specific gravity above 2.9 gm per cc "Ilmenite" a black or dark brown iron and titanium oxide mineral which is a major source of titanium "Leucoxene" a fine granular alteration product of titanium minerals "Rutile" a yellow, red or brown titanium oxide mineral which is a major source of titanium "Zircon" zirconium silicate, a colourless, brown or grey zirconium silicate mineral which is a major source of zirconium This information is provided by RNS The company news service from the London Stock Exchange