Woodbois Regulatory News (WBI)

9 Sep 2008 07:00



9th September 2008

OBTALA RESOURCES PLC ("Obtala" or the "Company")

Trading Update

The Board of Obtala Resources, the AIM quoted mineral exploration and development company is pleased to provide the market with an operations and management update. 

Since listing on the 24th April 2008 a number of advancements have been made in Tanzania with respect to land holdings and operationally progressing our focus in becoming a multi-commodity junior exploration company.

Highlights:

The acquisition of six 1km2 new gemstone (emerald and alexandrite) mining licences in  Manyara area of Tanzania. (Press Release 29th May 2008).

Significant increase in landholding for gold exploration from 307.46km2 to 2076.74km2 with the acquisition of three new licences. (Press Release 25th July).  

New gemstone (ruby) licence at Matombo, in Morogoro District of Tanzania. (Press Release 31st July 2008).

Office in Mwanza and field teams established and operational in the Lake Victoria Goldfield (LVG) area.

1st phase soil sampling at the Nzega, Mwadui (Shinyanga), Buckreef and Buloli B gold licence areas completed.

6,440 samples (soil/stream/rock-chip) collected from all active licences.

Two geochemical anomalies identified at Mwadui (Shinyanga).

Previously unknown artisanal working identified within the Bukoli B gold licence area.

1st phase soil sampling completed at the Rulenge nickel prospect.

Ground magnetic contract for Rulenge awarded and work in progress

Obtala has now established an office and accommodation facility in Mzwanza in the Lake Victoria Goldfields District, recruited field staff, purchased three field service vehicles and operational field equipment. In the period since listing on the 24th April 2008 the focus of in-country operations has been on the gold licences to the south of Lake Victoria and the Rulenge nickel licence within the Kagera District..

Gold Licences

First phase soil sampling is being conducted in-house by Obtala. The company has recruited three Tanzania national geologists with three supporting experienced field assistants. Sampling has been completed on the Nzega, Shinyanga (Mwadui), Buckreef and Bukoli B licence areas, and is ongoing on the Bukoli A licence.

*Detailed sampling over artisanal workings in progress

Sample interval spacing varies from 500m X 200m (section line spacing x interval along section line) to 500m X 50m grids, depending on the expected local style of mineralisation. At Shinyanga the sample interval was reduced to 100m x 50m during the follow-up phase over the two geochemical anomalies, one of which reported a high of 0.63g/t gold in soils. 

Results from the first phase have been received for the Nzega licence and reveal an anomaly in the form of a cluster of geochemical 'gold in soil' values up to 44 ppb in the northeast of the licence. While prospecting on the Bukoli B licence abandoned artisanal workings were discovered indicating the presence of a mineralised structure within the south part of the licence. Sample results are pending for the Buckreef and Bukoli B licences. 

All samples are being submitted to ALS Chemex laboratories in Mwanza. To date 3,146 samples have been dispatched to the laboratory.

Nickel Licence

Obtala engaged the services of GFT Ltd, an experienced Tanzania registered geological consultancy, on the 1st June to undertake the preliminary phase of soil sampling and geological field mapping on the Rulenge nickel licence. This is now complete with in excess of 3,000 samples collected.  

The Rulenge licence is located 15km northwest of the Xstrata-Barrick Kabanga Nickel Deposit, in what is believed to be the stratigraphic equivalents of the Kabanga host lithologies within the metasediments of the Karagwe-Ankolean System, part of the Kibaran Orogenic Belt.

GFT has retained the services of geologists with previous field experience from working on the Kabanga exploration project. This has aided in the mapping process and compilation of the local geological stratigraphy. During the course of field mapping GFT has recognized a significant number of massive sulphide and semi-massive sulphide gossans in outcrop that GFT confidently interpret as occurring within the stratigraphic equivalents to the Kabanga deposit host lithologies. Within the Rulenge licence area the lithologies are folded with gossan outcrop being observed on both limbs of a northeast trending anticline structure.

Soil samples have been collected from a 200 X 100m grid. Over the areas with gossan outcrop a more detailed grid of 100m x 50m has been planned with sampling currently in progress. Stream sediment and rock-chip samples are being collected to supplement the soil sample programme. All sampling from this phase of work is expected to be completed by the end of September.

All samples from the soil sampling programme are being submitted to ALS Chemex in Mwanza. To date 2,658 samples have been dispatched to the laboratory.

A contract to undertake a ground magnetic survey was award and signed with GFT on the 14th August. The geophysical field team has mobilised to site and work is in progress. The field data is being collected from a 200 x 50m grids over the entire licence area with this reduced down to 50m x 10m over the areas hosting the gossan outcrop. Once complete the magnetic data will be used in conjunction with the geochemical data to define anomalies for further detailed sampling and additional follow-up geophysics, prior to establishing drill targets. 

Uranium Licences

Desk-top planning and target generation for the Mkuju East licence has been completed and a field crew mobilized to the site. Initial reconnaissance trips were made in August by GFT who will undertake the field work on the property. GFT expect to establish a field camp on the licence and begin work in early September on 5 initial targets. Field work will consist of ground traversing using hand-held scintollometers, over areas underlain by sediments of the Karoo Supergroup, with a view to identifying multiple stacked roll front occurrences.

Management Changes

Additions have been made to strengthen the technical experience of the Board of Directors with the Appointments of Professor John Monhemius and Mr. Nicholas Clarke as Non-Executive Directors. Jim Bain stepped down from his position as Non-Executive Director.

Frank Scolaro, Chairman of Obtala, commented that "Our company through the skillset and expertise of the Board and management is now ideally positioned to drive forward a co-ordinated, cost effective exploration programme of activities in Tanzania. Attention to detail throughout our licences, and strong local management allow Obtala to achieve and exceed my initial expectations. 

I am delighted with the progress and commitment that the local Tanzanian geologists and management have delivered, and am confident that the results of their strong and decisive work will deliver realisable value in the future to out shareholders. I am particularly pleased with the developments on the Rulenge nickel licence where the preliminary field observations are very encouraging and we are confident that we will meet with success on the project." 

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