Kemin Resources Regulatory News (KEM)

11 Apr 2005 12:39

GMA Resources PLC11 April 2005 GMA RESOURCES Plc NEWS RELEASE FOR IMMEDIATE RELEASE London, 11 April 2005 GEOLOGICAL RESOURCE STATEMENT FOR AMESMESSA GMA Resources Plc (the "Company"), the gold mining company, is pleased toannounce the development of a new Resource Statement for the major mineralisedzone (Veins 8 and 9) at Amesmessa. Based on recent drilling results and there-interpretation of historical drilling and underground sampling previouslyperformed by L'Office National de Recherche Geologique et Miniere (ORGM), theCompany has completed geological modeling of 2 of the 50 known mineralisedquartz veins previously identified within the Amesmessa zone. The mineralresource is calculated as 1,854,000 tonnes at a grade of 10.3 g/t for 614,000ounces of contained gold. Further resource information is provided in the tablebelow. The Company holds a controlling interest in the Algerian based company, ENOR,the owner of the Tirek-Amesmessa Gold Project in the Sahara of southern Algeria.The Amesmessa zone is located at the southern end of the 1,400 km2 exploitationpermit area, which covers an 80 kilometre mineralised corridor associated with amajor north-south deformation zone on which the Tirek and Amesmessa golddeposits are located. The Company has focused to date on completing the Resource Statement forAmesmessa veins 8 and 9, and is currently preparing the detailed mine plan andschedule to support the Feasibility Study for a new 300,000 tpa processing plantat Amesmessa. The study is expected to be completed in June 2005. TheFeasibility Study is being completed by GRD Minproc Ltd and RSG Global Pty Ltd(RSGG), who are responsible for geological modeling and mine planning, includingthe presentation of Resource and Reserve Statements ("Competent Person's" reportin terms of the JORC Code). The following Mineral Resource Statement was prepared, in accordance with theJORC Code, by RSGG as of 31 March 2005. Mineral Resource Estimate for Combined Vein Domains 8, 9 and 9a Reporting cut-off is 1.5 g/t Au above 380mRL and 3.0 g/t Au below 380mRL Category Tonnes Grade (g/t Au) OuncesMeasured 100,000 19.1 62,000Indicated 943,000 11.3 343,000Sub-total 1,043,000 12.1 405,000 Inferred 811,000 8.0 209,000Total 1,854,000 10.3 614,000 All domains were estimated by Ordinary Kriging of the grade times horizontalwidth accumulation and of the horizontal width in 20metre by 20metre panels intwo-dimensional long section projection, followed by back-calculation of thepanel grade. Mineralisation volumes were reported as proportions inthree-dimensional blocks of 5metre N-S by 1metre E-W by 1mRL. No dilution wasapplied for the Mineral Resource. The Mineralised Resource estimated by RSGG has been determined to an approximatedepth of 450 metres, whilst previous estimates reported by ORGM (using theclassification system of the Russian State Committee for Ore Reserves) extendedto approximately 537 metres. The majority (75%) of the infill drilling performedby the Company was confined to the top 60 metres of the orebody. Previousdrilling by ORGM extended well below this, and in fact borehole S233, one of thedeepest drilled by ORGM at Amesmessa vein 9 intersected the reef zone at a depthof approximately 420 metres below surface with a value of 34.7g/t Au over 1.13metres. Whilst the main objective of the Company's drilling program at Amesmessawas to prove up sufficient open cut mine reserves to support the first few yearsof gold production for the new Amesmessa plant, the Company considers vein 8 and9 to have potential to be a significant underground mine and believes there isexcellent exploration potential at depth. ORGM have previously published a resource estimate, calculated in 1993, for 16of the veins at Amesmessa, inclusive of veins 8 and 9. ORGM resources arecategorized according to the classification system of the Russian Committee forOre Reserves and are presented below for comparison. ORGM Resource Estimate for Amesmessa Reporting cut-off is 2.0 g/t Au Category Tonnes Grade Ounces Veins 8 & 9C1 909,800 18.9 553,137C2 580,400 17.4 325,069Sub-Total 1,490,200 18.3 878,206 Veins 1,3,4,7,10 to 13,15 to 18,33 and 36C1 483,100 18.1 280,525C2 445,300 16.8 239,916Sub-Total 928,400 17.4 520,441 Total 2,418,600 18.0 1,398,647 As with Amesmessa, ORGM have previously published a resource estimate for Tirek,calculated in 1993. Up to then ORGM's drilling program at Tirek had onlyextended over 14 of the main vein swarms. Again it should be noted that ORGMresources are categorized according to the classification system of the RussianCommittee for Ore Reserves. ORGM Resource Estimate for Tirek Reporting cut-off is 2.0 g/t AuCategory Tonnes Grade OuncesC1 512,313 23.3 384,578 C2 543,053 11.0 191,647Total 1,055,366 17.0 576,225 In addition to the C1 and C2 Resources, ORGM have estimated 'P' (prognosticated)resources of 571,000 ounces at Amesmessa and 63,000 ounces at Tirek. ENOR has been producing gold from its mining and processing operations at Tireksince 2001, developing open cut mines on 20 of the 70 quartz veins identifiedpreviously by ORGM. The Company has completed an extensive drilling program on13 of the major vein swarms at Tirek and achieved reef intercepts of greaterthan 15 g/t Au in 40 out of the 179 holes drilled. At Amesmessa, whilst GMA's drilling campaign focused on infill drilling at veins8 and 9,an extra 19 exploratory holes were drilled to allow geologicalinterpretation and modeling on a further 3 vein swarms. Of the total of 88 holesdrilled within the Amesmessa zone, 11 holes achieved reef intercepts of greaterthan 15g/t Au. The Company is continuing with the assessment of the recent exploration datacollected from its drilling program at Tirek, as well as completing the detailedvalidation of the historical ORGM drilling and trenching data. This information,coupled with the mining grade control data that has been collected over the pastfour years should allow the Company to complete resource modeling of theadditional 3 vein swarms at Amesmessa as well as the major vein swarms at Tirekby June 2005. A large number of mineralized quartz veins have also been reported for theIntermediate Zone that extends the 60 kilometres between Tirek in the north andAmesmessa to the south. ORGM have previously estimated a resource of 1.3 millionounces, categorized as 'P' according to the classification system of the RussianCommittee for Ore Reserves. Twenty-three of these veins have been identified bythe Company as having a high economic potential based on historical trenchingand drilling by ORGM. Exploration work has commenced on some of these veins, inparticular at Derregh and Timeg Nord. Further exploration activity is plannedfor the remainder of the year. ENDS For further information contact:GMA Resources Tel: + 61 400 228 234Colin Ikin, Chief Executive 4C-Burvale Tel: + 44 (0)20 7907 4761Carina Corbett Website: www.gmaresources.plc.uk This information is provided by RNS The company news service from the London Stock Exchange