TIDMALO
RNS Number : 3324L
Alecto Minerals PLC
27 April 2015
Alecto Minerals plc / EPIC: ALO / Market: AIM / Sector:
Exploration & Development
27 April 2015
Alecto Minerals plc ('Alecto' or the 'Company')
Independent (non-JORC) Resource Estimate for Kerboulé Gold
Project, Burkina Faso and issue of equity
Alecto Minerals plc (AIM: ALO), the AIM quoted mineral
exploration company focussed on West and East Africa, is pleased to
provide an independent (non-JORC) resource estimate for its
recently acquired Kerboulé Gold Project in northern Burkina Faso
('Kerboulé' or 'the Project'). This resource estimate is based on
the results obtained from modelling the historical drilling work
conducted by the previous owners of the Project. To view the
release with pictures and map illustrations please click the
following link.
http://www.rns-pdf.londonstockexchange.com/rns/3324L_-2015-4-24.pdf
In addition, the Company has agreed to issue 12,497,143 new
ordinary shares of 0.01 pence each in the capital of Alecto
('Ordinary Shares') to a consultant to the Company, in lieu of
fees.
Highlights:
-- Independent assessment of in situ mineralisation (non-JORC)
completed by Wardell Armstrong International ('WAI'): 6.2Mt grading
at 1.16g/t Au for 230,758 oz Au, at a cut-off grade of 0.5g/t
Au*
-- Implies an initial acquisition cost to Alecto for Kerboulé,
prior to any deferred consideration, of approximately US$2.25 per
resource ounce of gold - substantially lower than industry-standard
exploration cost per ounce
-- Mineralised zone starts from surface, with approximately 70%
of the mineralisation contained within the oxide and transitional
layers
-- Provides basis for the next phase of work to establish the
continuity of mineralisation between the modelled zones which
extend over a strike length of 3km
-- Subject to completion of a JORC Mineral Resource estimate for
Kerboulé, the Company has the potential to approximately double its
existing independent JORC inferred resource estimate when combining
it with the inferred JORC resource estimate of 247,000 oz Au at an
average grade of 1.14g/t Au for Kossanto East, Mali
* It should be noted that this assessment is not a JORC-code
compliant Mineral Resource estimate and is preliminary in
nature.
Alecto's CEO, Mark Jones, commented:
"This initial independent (non-JORC) in situ gold resource
assessment demonstrates why we acquired the Project in November.
Our technical team has worked diligently to collate and model the
data from historical work performed on the Project, and the next
step will be to identify new areas of mineralisation and seek to
expand on this solid resource base of close to a quarter of a
million ounces of gold.
"We are also delighted that we now have the opportunity, subject
to completion of a JORC Mineral Resource estimate for Kerboulé, to
approximately double the Company's existing independent JORC
inferred resource inventory. This represents a significant
step-change for the Company, considering that we had no defined
mineralisation 18 months ago.
"Alecto is focused on capitalising on the opportunities that
current market conditions provide, and the acquisition of resource
ounces at a cost of approximately US$2.25 per ounce demonstrates
our capabilities in this regard. The Board believes that growth
through third party collaboration on our existing exploration
portfolio and further M&A activity will enable the Company to
position itself as a producer in the medium term."
Kerboulé Gold Project
As previously announced, Alecto's geologists recently completed
a thorough review of the historical drilling data received on
acquisition of the Project from Kaizen Discovery Inc. in November
2014. The data identified that there were three discrete areas
within the Kerboulé prospect that had sufficient drill-hole density
and continuity of mineralisation to enable an initial block model
to be created. The data was therefore provided to WAI to conduct an
independent assessment of the potential in situ global grade
estimate for gold mineralisation at Kerboulé, albeit not, at this
stage, to an internationally recognised resource standard such as
JORC.
The table below outlines the preliminary in situ mineralisation
estimates (non-JORC) for the three zones of mineralisation
identified, labelled as Kerboulé North, Kerboulé Main and Kerboulé
South:
Global grade results for mineralisation at Kerboulé (non-JORC)
---------------------------------------------------------------------------------------
Cut-off Volume Tonnage Density Average grade Metal Metal
grade (g/t) (m(3)) (t) (t/m(3) Au (g/t) Au (kg) Au (oz)
)
0.0 5,507,265 13,344,244 2.45 0.67 8,981 288,730
0.5 2,586,570 6,191,001 2.42 1.16 7,177 230,758
1.0 1,006,922 2,383,905 2.39 1.90 4,534 145,758
1.5 496,277 1,180,982 2.40 2.59 3,061 98,415
2.0 269,452 637,678 2.39 3.33 2,126 68,342
2.5 167,861 397,581 2.39 4.02 1,599 51,403
------------- ---------- ----------- --------- -------------- --------- ---------
Technical information and parameters for the resource
estimate
WAI's estimation is based on an extensive historic drilling
database which covers a total of 3,420m from 12 diamond drill
('DD') holes, all of which had significant intercepts, and 26,603m
from 264 reverse circulation ('RC') holes, of which 180 had
significant intercepts.
The resource estimate (non-JORC) was generated from three
targets within the Kerboulé-Yalema Corridor ('KYC'), a clearly
defined NNE-SSW trending splay of the Inata shear zone, which
contains Avocet Mining plc's Inata gold mine. Mineralisation within
the KYC is characterised by steeply dipping quartz veins trending
NNE-SSW (other orientations exist) hosted within phyllitic schists,
shales and volcano-sedimentary rocks. These veins infill fractures
which are associated with the Kerboulé-Yalema shear zone and
crosscut the D2 schistosity. Kerboulé contains two main types of
gold bearing quartz veins: weak to moderate stockwork defining
thick zones (tens of metres scale) commonly at the dyke contacts or
at contacts between argillite and greywacke; and individual quartz
veins located within shear zones. Such shear zones are commonly
developed near lithological contacts.
To generate the resource estimate (non-JORC), mineralised
wireframes correlating to the three zones were used by WAI, with
further subdivisions for the eastern and western regions within
these. WAI conducted a review of the wireframes of the mineralised
zones against the drill hole database, which showed that a 0.2g/t
Au cut-off-grade is representative of the transition from
mineralised to non-mineralised material. These wireframes were used
to select the sample data, and the oxidation and sulphide
boundaries were also used to code the selected sample dataset.
Statistical analysis of the sample data shows single log-normal
populations of gold grades, with some positive skew. A top-cut of
20.32g/t Au oxide, 11.07g/t Au transition and 21.49g/t Au sulphide
was applied to reduce the influence of high grade outliers that
exist within the upper 1%of the sample database. Drill hole samples
were composited into 1m lengths within the mineralised domains.
The block model used has not been rotated and the blocks have
been clipped to the topography and sub divided according to the
degree of oxidation (oxide, transition and sulphide). Parent cell
sizes of 40m (X) x 20m (Y) x 5m (Z) for the North/Main zone and 10m
x 10m x 5m for the South zone have been used to reflect the
mineralisation morphology and the drill hole spacing.
Bulk densities, calculated using the 'water immersion' method
with wax sealed diamond core, were applied to the three oxidation
zones; with 2.16t/m(3) for the material density in the oxidised
zone, 2.35t/m(3) for the transitional zone and 2.78t/m(3) for the
fresh sulphide zone.
The principal estimation technique of Inverse Power Distance
Squared (IPD(2) ) was used to insert gold grades into the block
model, with Nearest Neighbour calculated for comparison. Model
validation was performed by global statistical grade validation and
Swath plot analysis, with results showing a good correlation
between the global grade estimates and the sample composites.
The in situ (non-JORC) estimation of mineralisation described
above is preliminary in nature and does not form a Mineral Resource
in line with internationally recognised resource standards. WAI
placed reliance upon the historic data provided by the Company and
no independent verification of such data (e.g. investigation of
original drill collars, geological logs, QAQC etc.), site visit,
independent exploration or other forms of investigation have been
conducted by WAI. Accordingly, the in situ resource mineralisation
estimate is not in accordance with the JORC Code (2012). The
Company confirms that the additional work required to complete a
formal JORC Mineral Resource estimate for Kerboulé will be
undertaken in due course.
Conclusions
Analysis of the mineralised wireframes and block modelling
reveals that Kerboulé North and Kerboulé Main consist of three
principal mineralised zones and an additional 14 small lenses. The
larger mineralised bodies have strike lengths of up to 340m and
widths of <5m for Kerboulé Main and 12-18m for Kerboulé North.
Mineralisation is shown to dip from between 50deg to vertical.
Historic drilling indicates a lack of continuity between the
Kerboulé Main and Kerboulé North bodies of mineralisation. Kerboulé
Main may be open to the south, as only a single un-mineralised hole
100m along strike suggests otherwise, but appears to be largely
defined by holes to the north.
Currently there appear to be two mineralised zones within
Kerboulé North, a western zone and an eastern zone (see Figures 1
and 2). The southern extent of the Kerboulé North west mineralised
zone has been delineated but it is open along strike to the N, as
is the Kerboulé North east zone. Additionally, these two
mineralised zones may be linked. Connecting these two mineralised
lenses and increasing their strike length to the NE could increase
the resource estimate substantially.
Kerboulé South (see Figure 3) is characterised by two larger,
more homogenous, mineralised bodies than defined to date at the
abovementioned Kerboulé North and Main zones and is thus a more
attractive target for future potential open pit mining. The strike
length of the mineralisation is between 150-200m and reaches widths
of >50m in the oxide layer. Drill testing of the strike extents
of the two parallel mineralised bodies at Kerboulé South has to
date been minor and mineralisation remains open to the NNE of the
western body. A single hole to the SSW of the eastern mineralised
zone suggests a limit to the strike length but additional holes are
required to confirm this.
Further to the above preliminary in situ resource estimate
(non-JORC) of 230,758 oz Au at an average grade of 1.16g/t Au, work
is underway to plan how best to increase the quantity of defined
mineralisation. A geological model will be created to combine with
mineralised wireframes to better understand and constrain the
mineralisation. The Company anticipates that additional data, in
conjunction with the existing extensive drilling database, will
enable an independent consultancy group to generate a maiden JORC
Mineral Resource estimate for Kerboulé in due course.
Review of Information
The information in this announcement that relates to Exploration
Results, Mineral Resources or Ore Reserves has been reviewed by
Michael Ware, who is the Company's consultant and a Fellow of the
Australasian Institute of Mining and Metallurgy. Michael Ware has
sufficient experience relevant to the style of mineralisation and
type of deposit under consideration and to the activity that he is
undertaking and is a qualified person as defined in the AIM
Rules.
Michael Ware has reviewed this announcement and consents to the
inclusion in the announcement of the matters based on his
information in the form and context in which they appear.
Issue of equity
Additionally, the Company has agreed to issue 12,497,143 new
Ordinary Shares ('Fee Shares') to a consultant to the Company in
lieu of fees. The Fee Shares will rank pari passu in all respects
with the existing Ordinary Shares of the Company.
Application for trading on AIM and Total Voting Rights
Application will be made for the Fee Shares to be admitted to
trading on AIM and admission is expected to become effective and
dealings commence at 8.00 a.m. on 30 April 2015 ('Admission'). On
Admission, the Company will have in issue 1,100,063,600 Ordinary
Shares. The Company has no Ordinary Shares held in treasury. The
above figure may therefore be used by shareholders in the Company
as the denominator for the calculations by which they will
determine if they are required to notify their interest in, or a
change in their interest in, the share capital of the Company under
the Financial Conduct Authority's Disclosure and Transparency
Rules.
**ENDS**
For further information, please visit www.alectominerals.com or
contact:
Alecto Minerals plc Tel: +44 (0)20 3137 8862
Mark Jones
Strand Hanson Limited Tel: +44 (0)20 7409 3494
Richard Tulloch
Matthew Chandler
James Dance
Beaufort Securities Limited Tel: +44 (0)20 7382 8300
Elliott Hance
St Brides Partners Ltd Tel: +44 (0)20 7236 1177
Elisabeth Cowell
Felicity Winkles
Notes to editors:
Alecto Minerals plc is an African focussed, gold and base metal
exploration and development company quoted on AIM with exploration
projects in Mali, Ethiopia, Mauritania and Burkina Faso.
In Mali, the Kossanto Project has a current independent inferred
JORC code compliant resource estimate of 6.72Mt grading at 1.14g/t
Au for an aggregate of 247,000 oz Au with a cut-off grade of 0.5g/t
Au at Kossanto East. The Kossanto Project is located in the centre
of the Kenieba inlier in western Mali. The Kenieba inlier is a
block of ancient greenstones and granites hosting many significant
gold deposits in Senegal and Mali, making it one of the most
important gold regions in Africa.
Alecto also owns The Kerboulé Project, located in the highly
prospective Birrimian-age Djibo gold belt in northern Burkina Faso,
two prospective gold exploration licences in Ethiopia, as well as
the wholly owned Wad Amour IOCG Project in Mauritania which is at
an exploration stage.
Combined, these projects provide the Company with a strong,
diversified portfolio with exciting exploration upside
potential.
Glossary of Technical Terms
Au the chemical symbol for Gold.
g/t grammes per tonne.
inferred that part of a Mineral Resource for which tonnage, grade
resource and mineral content can be estimated with a low level of
confidence. It is inferred from geological evidence and
assumed but not verified geological and/or grade continuity.
It is based on information gathered through appropriate
techniques from locations such as outcrops, trenches, pits,
workings and drill holes which may be limited or of uncertain
quality and reliability.
JORC the Joint Ore Reserves Committee: The Australasian Code
for Reporting of Exploration Results, Mineral Resources
and Ore Reserves, as published by the Joint Ore Reserves
Committee of The Australasian Institute of Mining and Metallurgy,
Australian Institute of Geoscientists and Minerals Council
of Australia.
non-JORC not in compliance with the guidelines of JORC
Moz million ounces.
Mt million tonnes.
oz ounces.
t/m(3) tonnes per cubic metre.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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