9 Oct 2013 11:10
9 October 2013
For immediate release
West African Minerals Corporation
("WAFM" or the "Company")
Maiden mineral resource estimate
Drilling update
West African Minerals Corporation (AIM: WAFM) announces the Company's Maiden Inferred Mineral Resource Estimate (MRE) on Block 1 at its South Djadom property in southeast Cameroon. The Inferred Mineral Resource Estimate was prepared by independent consultants, The MSA Group ("MSA"), in accordance with The Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards on Mineral Resources and Mineral Reserves (2010).
HIGHLIGHTS
· CIM (NI-43-101 compliant) Inferred Mineral Resource on South Djadom Block 1 totalling 76.1 Mt of Inferred Mineral Resource @ 30.3% Fe at a 25% Fe cut-off grade.
· Included within this Inferred Mineral Resource is a higher grade colluvial and eluvial cap and near-surface enriched mineralisation of 12.6 Mt @ 41.6% at a 35% Fe cut-off grade.
· The Inferred Mineral Resource extends from surface to 150 metres below surface.
· Enrichment of the primary Banded Iron Formation (BIF) extends variably from surface to depths up to 40 metres with the majority of the enriched mineralisation shallower than 20 metres.
· The mineralisation is open along strike to the southeast (Block 2). Block 2 drilling is completed and the associated Inferred Mineral Resource should be released next month.
· South Djadom Block 1 is potentially a satellite ore body to the adjacent third party owned Mbarga deposit.
· Drilling is progressing at Binga in follow-up of mineralised intercepts drilled during the scout drilling program of 2012.
Brad Mills, President of WAFM commented:
"Scout drilling followed by wide spaced core and reverse circulation percussion (RC) drilling on the South Djadom Block 1 geophysical targets has defined an iron ore Inferred Mineral Resource that explains the geophysical anomalies that led us to explore this portion of our lease holdings in Cameroon. While we had hoped for a greater degree of enrichment and thickness of enriched mineralisation, the mineralisation outlined by this work will potentially make South Djadom Block 1 a satellite ore body to the adjacent Mbarga deposit. The opportunity exists to increase the Mineral Resource base in Block 1 with additional drilling, although the scope for significant higher grade mineralisation appears limited to date.
Drilling on Block 2 at South Djadom has been completed and we expect the South Djadom Block 2 Inferred Mineral Resource to be available next month. Given WAFM's strategy of exploring for and developing high grade DSO and/or easily developed near coastal iron ore deposits, future work at South Djadom will involve preliminary metallurgical testing to determine if a commercially viable concentrate can be produced from this Mineral Resource.
Current work is now focussing on better understanding the Iron ore mineralisation on our near-coastal Binga lease with infill core and RC drilling of targets identified in 2012 by widely-spaced scout drilling. We are also assessing the large untested geophysical anomalies on our North Djadom and Lele leases with surface sampling and mapping in preparation for any drill testing in 2014."
Technical Description of the Resource
The Inferred Mineral Resource Estimate was prepared by independent consultants, The MSA Group ("MSA"), in accordance with The Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards on Mineral Resources and Mineral Reserves (2010). The effective date of the Inferred Mineral Resource Estimate is 2 October 2013.
The South Djadom Block 1 Inferred Mineral Resource Estimate (MRE) is based on data from 7,315 metres of drilling from 89 drill holes, including final assay results from the infill reverse circulation (RC) drilling and angled diamond core drilling (DD) programmes completed since those announced by the Company on 30 July 2013 (a copy of the announcement is available on the Company's website) and reported below.
Drilling at Block 1 identified a steeply-dipping stratigraphic package that contains several BIF units alternating mainly with ferruginous schists and amphibolites. The drill-confirmed Iron mineralisation occurs over a strike length of approximately 3 km within a sequence that varies in width from 40 to 160 metres. These and the other mineralised zones as previously announced explain the main geophysical anomalies that initially led us to this area. The results indicate that the BIF stratigraphic sequence is locally highly enriched (> 50%Fe) over intervals from 5 to 10 metres in depth and moderately enriched (35%-50% Fe) to depths of approximately 40 metres. The reported Inferred Mineral Resource has considered an initial resource and further drilling on this Block 1 Mineral Resource might potentially increase the deposit size.
IRON ORE INFERRED MINERAL RESOURCE ESTIMATE
To date, the Company has completed 12,299 metres of infill reverse circulation and diamond drilling at South Djadom Block 1 in southeast Cameroon. A total of 2,142 diamond drill metres was utilised by MSA in preparing this MRE. The total Inferred Mineral Resources of 76.1 Mt @ 30.3% Fe at a 25% cut-off grade includes a higher grade colluvial and eluvial cap and near-surface enriched mineralisation of 12.6 Mt @ 41.6% at a 35% cut-off grade.
The Inferred Mineral Resource from South Djadom Block 1 is set in tables 1 and 2 below:
Table 1: Djadom Block 1 Mineral Resources as at 2 October 2013
Block | Resource Category | Tonnes (Mt) | Fe % | SiO2 % | Al2O3 % | P % | LOI% |
Djadom Block 1
| Measured | - | - | - | - | - | - |
Indicated | - | - | - | - | - | - | |
Meas. + Ind. | - | - | - | - | - | - | |
Inferred | 76.1 | 30.3 | 45.0 | 4.5 | 0.06 | 3.1 |
Notes:
(1) Mineral Resources which are not Mineral Reserves have no demonstrated economic viability.
(2) The effective date of the Mineral Resource is 2 October 2013.
(3) Mineral Resources for South Djadom Block 1 have been classified according to The Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards on Mineral Resources and Mineral Reserves (2010).
(4) The iron grades presented represent total iron. The proportion of recoverable iron has yet to be determined through mineralogical and metallurgical test work
(5) WAFM has a 100 per cent. interest in the Djadom Block. Accordingly, the Gross and Net Attributable Inferred Mineral Resource are the same. WAFM is the Operator of the Djadom Block.
Table 2: Djadom Block 1 Inferred Mineral Resources
The geological model was represented by wireframes of the iron mineralisation that were constructed using both lithological logging and iron assay results. The model was sub-divided into a Banded Iron Formation (BIF) proto-ore (MAG), overlain by a transitional BIF zone containing both magnetite and hematite (TRANS) and further overlain by a zone of leaching induced hematite enrichment (LEACH). In places a higher grade blanketing cap has been modelled that is of colluvial and eluvial origin (CAP). The top two metres of the model were discounted to account for soil and other non-iron enriched material.
The wireframes were filled with block model cells of 10mE by 50mN by 10mRL in order to represent the interpreted geological continuity. The Reverse Circulation (RC) and Diamond Drilling sample data were composited to 5 m lengths and the percentages of Total Iron, (Fe), Silica (SiO2), Aluminium Oxide (Al2O3), Phosphorous (P) and Loss on Ignition (LOI) were estimated into the model using Inverse Distance Squared.
A number of density measurements on drill core were conducted on site by using the Archimedes principle and augmented by gas pycnometry measurements at the assay laboratory. A regression equation based on the linear relationship between percentage total iron and density was then used to estimate in-situ bulk density.
The Mineral Resources were reported above a total iron cut-off grade of 25%. All the reported Mineral Resources are classified as Inferred Mineral Resources in accordance with The Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards on Mineral Resources and Mineral Reserves (2010).
FINAL SOUTH DJADOM BLOCK 1 DRILL RESULTS
Mineralisation
Table 3 below lists the significant intercepts >30% Fe and high-grade >50% Fe intercepts from the scout and infill drilling through drill hole DRC356. A map of all the drill holes reported in Table 3 is available on the website at www.westafricanminerals.com or at this link.
Table 3 - Minimum 30% Fe over 5 metres INCLUDING Minimum 50% Fe over 5 metres
Borehole | Scout /Infill | Depth from (m) | Depth to (m) | Downhole Length (m) | Hole Inclina-tion | Fe % | Al2O3 % | P % | S % | SiO2 % | LOI % |
DDD001B | Infill | 0 | 25 | 25 | -90 | 47.9 | 4.4 | 0.06 | 0.02 | 22.5 | 4.2 |
DDD001B | Infill | 27 | 63 | 36 | -90 | 37.9 | 2.0 | 0.07 | 0.58 | 37.5 | 3.6 |
Including
| Infill | 0 | 11 | 11 | -50 | 58.4 | 4.3 | 0.04 | 0.01 | 9.2 | 2.5 |
DDD002 | Infill | 4 | 9 | 5 | -90 | 31.9 | 6.7 | 0.09 | 0.02 | 43.4 | 3.4 |
DDD003 | Infill | 4 | 12 | 8 | -50 | 36.6 | 14.7 | 0.04 | 0.05 | 22.1 | 9.4 |
DDD005 | Infill | 7 | 18 | 11 | -90 | 38.5 | 5.7 | 0.05 | 0.03 | 29.7 | 7.9 |
DDD005 | Infill | 41 | 52 | 11 | -90 | 33.6 | 0.2 | 0.05 | 0.19 | 47.7 | 0.8 |
DDD005 | Infill | 55 | 69 | 14 | -90 | 35.0 | 0.1 | 0.06 | 0.09 | 45.1 | 0.5 |
DDD006 | Infill | 5 | 10 | 5 | -90 | 30.6 | 5.4 | 0.03 | 0.02 | 48.4 | 2.3 |
DDD008 | Infill | 3 | 10 | 7 | -53 | 38.1 | 5.3 | 0.12 | 0.01 | 34.3 | 2.8 |
DDD008 | Infill | 37 | 47 | 10 | -53 | 34.2 | 2.0 | 0.07 | 0.28 | 45.0 | 1.1 |
DDD009 | Infill | 7 | 15 | 8 | -55 | 50.7 | 5.5 | 0.12 | 0.03 | 14.4 | 7.0 |
DDD009 | Infill | 43 | 51 | 8 | -55 | 41.8 | 4.4 | 0.10 | 0.03 | 23.7 | 9.8 |
DDD009 | Infill | 54 | 61 | 7 | -55 | 49.6 | 1.6 | 0.07 | 0.03 | 15.0 | 10.1 |
Including
| Infill | 7 | 13 | 6 | -55 | 52.6 | 5.4 | 0.15 | 0.02 | 11.8 | 7.1 |
Including
| Infill | 55 | 60 | 5 | -55 | 52.8 | 0.8 | 0.08 | 0.04 | 10.7 | 10.3 |
DDD010 | Infill | 79 | 87 | 8 | -50 | 33.6 | 1.9 | 0.07 | 0.29 | 45.2 | 0.2 |
DDD011 | Infill | 3 | 8 | 5 | -50 | 37.6 | 13.2 | 0.03 | 0.04 | 23.8 | 8.1 |
DDD011 | Infill | 26 | 46 | 20 | -50 | 41.6 | 2.2 | 0.06 | 0.03 | 31.2 | 6.5 |
DDD013 | Infill | 40 | 63 | 23 | -43 | 35.7 | 0.9 | 0.06 | 0.31 | 41.7 | 1.2 |
DDD013 | Infill | 77 | 92 | 15 | -43 | 33.3 | 0.3 | 0.06 | 0.19 | 42.9 | 1.3 |
DDD013 | Infill | 105 | 112 | 7 | -43 | 32.2 | 0.3 | 0.05 | 0.06 | 45.8 | 0.7 |
DDD015 | Infill | 1 | 13 | 12 | -50 | 36.9 | 4.5 | 0.15 | 0.01 | 38.3 | 2.7 |
DDD015 | Infill | 16 | 22 | 6 | -50 | 30.7 | 6.7 | 0.03 | 0.03 | 43.4 | 4.1 |
DDD015 | Infill | 25 | 33 | 8 | -50 | 31.8 | 5.0 | 0.06 | 0.07 | 41.2 | 6.6 |
DDD015 | Infill | 87 | 100 | 13 | -50 | 34.5 | 1.8 | 0.07 | 0.29 | 43.7 | 0.3 |
DDD017 | Infill | 61 | 72 | 11 | -44 | 36.7 | 0.1 | 0.06 | 0.39 | 41.8 | 0.8 |
DDD018 | Infill | 99 | 107 | 8 | -50 | 33.8 | 1.9 | 0.07 | 0.08 | 44.2 | 0.2 |
DDD019 | Infill | 44 | 56 | 12 | -50 | 35.0 | 0.6 | 0.06 | 0.05 | 43.7 | 4.5 |
DDD019 | Infill | 76 | 88 | 12 | -50 | 35.2 | 0.2 | 0.06 | 0.05 | 45.2 | 0.6 |
DDD019 | Infill | 90 | 98 | 8 | -50 | 36.9 | 0.1 | 0.07 | 0.02 | 43.7 | 0.7 |
DDD020 | Infill | 32 | 37 | 5 | -50 | 39.8 | 2.8 | 0.07 | 0.02 | 32.2 | 6.8 |
DDD020 | Infill | 38 | 43 | 5 | -50 | 35.0 | 0.8 | 0.06 | 0.01 | 40.8 | 7.1 |
DDD020 | Infill | 57 | 66 | 9 | -50 | 33.3 | 1.7 | 0.08 | 0.06 | 43.7 | 3.4 |
DDD020 | Infill | 67 | 80 | 13 | -50 | 31.6 | 2.3 | 0.08 | 0.47 | 44.5 | 0.4 |
DRC306 | Infill | 46 | 57 | 11 | -90 | 37.7 | 0.5 | 0.06 | 0.21 | 41.5 | 0.5 |
DRC309 | Infill | 2 | 41 | 39 | -50 | 46.9 | 2.3 | 0.07 | 0.04 | 25.2 | 4.7 |
Including
| Infill | 6 | 17 | 11 | -50 | 52.5 | 2.6 | 0.07 | 0.02 | 15.8 | 5.9 |
DRC310 | Infill | 0 | 8 | 8 | -50 | 41.1 | 8.0 | 0.06 | 0.07 | 25.0 | 6.8 |
DRC310 | Infill | 30 | 55 | 25 | -50 | 46.6 | 0.6 | 0.05 | 0.05 | 27.7 | 4.3 |
Including
| Infill | 31 | 38 | 7 | -50 | 58.2 | 1.3 | 0.05 | 0.07 | 8.6 | 5.8 |
DRC311 | Infill | 3 | 16 | 13 | -50 | 41.1 | 11.8 | 0.05 | 0.08 | 17.0 | 10.0 |
DRC311 | Infill | 57 | 65 | 8 | -50 | 35.8 | 0.3 | 0.07 | 0.13 | 43.0 | 3.4 |
DRC311 | Infill | 66 | 72 | 6 | -50 | 34.1 | 0.5 | 0.05 | 0.06 | 46.2 | 0.8 |
DRC312 | Infill | 76 | 85 | 9 | -50 | 32.9 | 2.2 | 0.07 | 0.28 | 46.7 | 0.5 |
DRC313 | Infill | 1 | 6 | 5 | -50 | 31.9 | 5.7 | 0.03 | 0.02 | 45.2 | 3.1 |
DRC313 | Infill | 63 | 82 | 19 | -50 | 33.0 | 2.5 | 0.07 | 0.19 | 46.0 | 0.3 |
DRC316 | Infill | 24 | 29 | 5 | -50 | 32.1 | 4.4 | 0.08 | 0.02 | 44.1 | 4.4 |
DRC316 | Infill | 36 | 42 | 6 | -50 | 35.6 | 1.8 | 0.07 | 0.32 | 43.4 | 0.7 |
DRC318 | Infill | 5 | 14 | 9 | -50 | 45.4 | 8.3 | 0.05 | 0.03 | 20.8 | 5.5 |
DRC318 | Infill | 25 | 45 | 20 | -50 | 48.0 | 0.8 | 0.07 | 0.03 | 25.4 | 4.1 |
DRC321 | Infill | 37 | 44 | 7 | -50 | 33.2 | 4.9 | 0.08 | 0.00 | 43.8 | 2.3 |
DRC326 | Infill | 35 | 46 | 11 | -50 | 30.5 | 3.8 | 0.10 | 0.01 | 49.4 | 2.1 |
DRC327 | Infill | 4 | 21 | 17 | -50 | 47.7 | 4.1 | 0.08 | 0.01 | 20.7 | 5.5 |
DRC329 | Infill | 82 | 87 | 5 | -50 | 33.5 | 2.8 | 0.06 | 0.26 | 44.9 | 0.3 |
DRC355 | Infill | 0 | 14 | 14 | -50 | 39.6 | 12.0 | 0.05 | 0.05 | 20.9 | 8.7 |
DRC356 | Infill | 0 | 20 | 20 | -50 | 45.2 | 10.9 | 0.04 | 0.07 | 13.0 | 9.4 |
Including
| Infill | 0 | 5 | 5 | -50 | 56.7 | 5.6 | 0.05 | 0.03 | 8.0 | 4.4 |
Stated thicknesses are apparent as the relationship between borehole trace and the orientation of the BIF package is variable
EXPLORATION ACTIVITIES ON BLOCK 2
Infill reverse circulation (RC) drilling and angled diamond core drilling (DD) on the second mineralised BIF-rich stratigraphic sequence traced over 2 km on Block 2 at South Djadom have been completed and the first set of assay results are expected to be announced shortly. This will be followed by a Supplementary Mineral Resource Estimate on Block 2 in the next month.
EXPLORATION ON BINGA LICENSE
A ground geophysical survey has been completed over three blocks on Binga and the resulting anomalies are being drill tested to confirm the strike extent and continuity of iron mineralisation and to constrain the mineralised envelope for possible resource modelling. Inclined diamond and reverse circulation drilling across the three blocks is expected to conclude within the next three weeks.
YEAR END LIQUIDITY
WAFM's current forecast cash position for the end December 2013 is estimated to be approximately US$3 million.
QUALIFIED PERSON
The technical information contained in this announcement has been reviewed by Dr Brendan Clarke, the Head of Geology of The MSA Group. Dr Brendan Clarke is a Member of the Geological Society of South Africa and a Professional Natural Scientist (Pr.Sci.Nat) registered with the South African Council for Natural Scientific Professions. Dr Clarke has sufficient experience relevant to the style of mineralisation under consideration and to the activities which are being reported, to qualify as a Qualified Person for the purposes of this announcement. The MSA Group has implemented best-practice QAQC protocols on the South Djadom prospect including the insertion of standards, blanks and duplicates into the sampling stream. The MSA Group has reviewed the results of the QAQC programme to date and is satisfied that the assay results reported in this release are both accurate and precise.
For further information contact:
West African Minerals Corporation | Anton Mauve Managing Director
Donna Yoshimatsu Investor Relations and Corporate Secretary
| +44 (0) 1624 639396
+1 (416) 722-2456 |
Beaumont Cornish Limited (Nominated Adviser) | Roland Cornish Michael Cornish
| +44 (0)20 7628 3396 |
SP Angel Corporate Finance LLP (Broker) | Ewan Leggat
| +44 (0) 20 3463 2260 |
GTH Communications | Toby Hall Suzanne Johnson Walsh | +44 (0) 20 7822 7493/7492 |
About West African Minerals Corporation
West African Minerals Corporation (AIM: WAFM) is an iron ore mining and exploration group focused on West Africa with interests in iron ore exploration permits in Cameroon and Sierra Leone. Through its 100 per cent owned subsidiary Compagnie Minière du Cameroun SA, WAFM owns six exploration permits in Cameroon covering a total Block of approximately 6,000 square kilometres and spanning the coast to the eastern deposits. The Sierra Leone licences comprise five exploration licences with potential for enriched hematite schists typical of the Marampa Group over a total Block of approximately 687 square kilometres.
Further information on the Group is available at www.westafricanminerals.com.
GLOSSARY OF TECHNICAL TERMS
Amphibolite | A metamorphic rock comprised mainly of the Mg-Fe-Ca-silicate mineral amphibole, generally with an orientated fabric.
|
Al2O3 | Chemical symbol for aluminium oxide. |
banded iron formation (BIF) | A distinctive type of rock often found in Precambrian sedimentary rocks; the structure consists of repeated thin layers of iron oxides, either magnetite or haematite, alternating with bands of iron-poor silica rich shale and chert. |
direct shipping ore (DSO) | High-grade haematite is often referred to as "Direct Shipping Ore" or "DSO" as it does not require beneficiation, or employs a relatively simple crushing and screening process, before shipment for use in steel mills. |
Fe | Chemical symbol for iron. |
Ferruginous schist | An iron-rich crystalline metamorphic rock having a foliated or parallel structure due to the recrystallisation of the constituent minerals. |
LOI | Loss on ignition. A test designed to measure the amount of moisture or impurities lost when a sample is ignited during analysis. |
P | Chemical symbol for phosphorus. |
S | Chemical symbol for sulphur. |
SiO2 | The chemical compound silicon dioxide, also known as silica (from the Latin silex), is an oxide of silicon with the chemical formula SiO2. |
strike | Horizontal direction or trend of a geological structure. |
Reverse circulation drilling (RC) | A drilling method that utilizes a large rotary drill and air compressor to collect rock samples quickly and efficiently. The high speed and low cost of RC drilling makes it an ideal method for obtaining mineral samples. |
Diamond drilling (DD) | A drilling method that uses a large rotary drill with a hollow drill bit and core barrel that allows for the collection of intact core samples. While slower and more expensive than RC drilling, the collection of intact core samples allows for greater observation and interpretation of rock types, mineralisation styles and structural features. |
Inferred Mineral Resource | An Inferred Mineral Resource is that part of a mineral resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity |
Mineral Resource | A Mineral Resource is a concentration or occurrence of diamonds, natural solid inorganic material, or natural solid fossilized organic material including base and precious metals, coal, and industrial minerals in or on the Earth's crust in such form and quantity and of such a grade or quality that it has reasonable prospects for economic extraction. The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge. |
ENDS