Joint Venture
March 29 2006 - 2:02AM
UK Regulatory
RNS Number:5562A
Mano River Resources Inc
29 March 2006
Mano River Resources Inc.
29 March 2006
No: 2006/5
TSX-V: MNO
AIM: MANA
Mano River and SearchGold conclude Joint Venture in Guinea
aimed at early diamond production
* Joint venture unifies Mano's hard rock and SearchGold's alluvial permits
for diamonds in the Bouro district, Guinea
* SearchGold scoping studies confirm high diamond grades in the Mandala
alluvial deposits from Mano's kimberlite dykes
* Mano mini bulk tests have confirmed the high diamond grades reported by
previous owner De Beers
* Large-scale bulk testing by the Joint Venture is designed to lead to early
diamond production from both alluvial and hard rock sources
Mano River Resources ("Mano" or "the Company") has entered into a Joint Venture
("JV") with SearchGold Resources ("SearchGold") in Guinea. The objective of the
JV is to rapidly establish alluvial diamond production on the Mandala property
of SearchGold, whilst conducting bulk sampling to determine the economic
potential of Mano's adjacent high-grade Bouro kimberlite dykes. A budget of
US$3 million has been assigned for the first year programme, to be funded 50/50
by Mano and SearchGold.
Under the Joint Venture, a two-pronged programme will be undertaken consisting
of systematic delineation and bulk sampling of the Bouro kimberlite dykes, with
particular priority emphasis on the Bouro North dyke, which Mano considers to
have the highest grade potential based on work to date. This dyke has a strike
length of 5 km, established by field mapping, drilling and geophysics.
Since acquiring the Bouro Permits in 2005, Mano carried out a programme of seven
small macrodiamond confirmation mini-bulk samples which were positive at the
three locations sampled along the Bouro North Dyke and the one location sampled
on the Bouro Central Dyke as per the results in Table 2 below.
As part of the broader work programme, regional work will be carried out to
locate more diamond bearing dykes and blows in all of these districts, which are
indicated to be present on the basis of several significant alluvial deposits
with no known source, as well as Mano/De Beers regional drainage sampling for
kimberlitic indicator minerals (KIMs).
The Mandala Permits of SearchGold Resources cover alluvial deposits with very
positive economic indicators, on the basis of systematic evaluations carried out
in the late 1980s by well-respected international consultants, Placer Analysis
Ltd. of Edinburgh, Scotland. Their work has established an non 43-101 compliant
indicated resource of 547,000 carats at an average grade of 0.50ct/m2 (0.71 ct/
m3 or 40cpht based on average gravel thickness of 0.7m) within four deposits
covering 1,098,000 square metres. Overburden thickness is negligible at 4.5m on
average for these deposits. This resource is non-compliant under 43-101 Canadian
standards of reporting mineral resources.
Of critical importance is that the above alluvial deposits drain the lower
grading Bouro Central and South dykes. The entire Mandala drainage basin was,
however, subjected to exploration by Placer Analysis, and larger and higher
grading inferred deposits totalling in excess of 2,000,000 carats were estimated
in areas draining the Bouro North and Extreme North dyke systems. The JV
intends systematically to verify and upgrade the resources to 43-101 standards
on these other deposits, as part of their combined efforts.
A JV management committee has been appointed and database compilations have
commenced, as well as personnel recruitment. Consultants are actively sizing,
sourcing and procuring equipment to include rotary pan, dense media separation
and x-ray modules in order to construct a state-of-the-art plant capable of bulk
sampling both alluvial and kimberlite samples. This work will be supplemented by
initial tests of the other alluvial deposits and kimberlite dykes on joint
properties, and combined will allow for comprehensive financial assessments of
the economic parameters for the establishment of a combined alluvial/hardrock
mine.
Mano's President and CEO, Dr. Tom Elder, comments: "These are exciting times for
Mano. With our partners, SearchGold, we aim to establish our first commercial
alluvial diamond operation in Guinea. Furthermore, this will be preceded by our
first underground kimberlite diamond mine, in Sierra Leone, operated by our
partners, Petra Diamonds, where initial diamond production is scheduled within
the next few months."
"Meanwhile drilling is ongoing at Mano's Liberian clusters of kimberlites, at
Weasua in joint-venture with Trans Hex Group, and at Camp Alpha under the
Mineral Cooperation Agreement with the Ministry of Land Mines & Energy. Mano's
objective is to become an integrated diamond miner and explorer and we will
continue aggressively to prospect our high priority licences in Liberia, Sierra
Leone and Guinea."
"In addition, Mano will advance its gold strategy and appoint, in the near
future, technical consultants for a feasibility study, to fast-track into
production by Q4/2007 its Liberian KGL project, to be renamed the 'New Liberty
Gold Mine'."
Mano's Qualified Person responsible for reviewing the content of this release is
its President, Dr Tom Elder, who holds a BSc and Doctorate in Geology from
Durham University in the UK, is a Fellow and former Member of Council of The
Institution of Mining and Metallurgy and a Fellow of The Geological Society.
For further information on Mano River Resources and its exploration programme,
you are invited to visit the Company's website at www.manoriver.com or contact
one of the following:
Tom Elder, President and CEO Mano River Resources Inc. +44 (0) 1235 810740
Justine Howarth/Ana Ribeiro, Parkgreen Communications +44 (0) 20 7493 3713
Jon Fitzpatrick. Bell Lawrie +44 (0) 141 221 7733
Raz Hussein, Controller Canada +1 (604) 689 1700
Notes to Editors
Mano's Bouro Dykes:
Known since the 1960s, and the object of artisanal mining activity, these have
received recent preliminary evaluation work by De Beers, which recovered in
excess of 5,000 microdiamonds from their Kimberley Acid Laboratory that suggests
high diamond grades at two locations on the Bouro North dyke (see Table 1).
Table 1: Results bulk diamond sampling of the Bouro North Dyke
Bouro North Dyke Bouro Extreme North Bouro Central Bouro South
Sieve Class Diamonds Weight of Diamonds Weight of Diamonds Weight of Diamonds Weight of
(mm sq. mesh) Number Diamonds Number Diamonds Number Diamonds Number Diamonds
(carats) (carats) (carats) (carats)
2.0 56 3.8036125 7 0.5048225 0 0 0 0
1.0 150 2.5824260 16 0.2933995 3 0.0550290 5 0.0843900
0.5 379 2.1359370 47 0.2576270 1 0.0053840 4 0.0213135
0.3 666 1.2071495 79 0.1450245 3 0.0062305 13 0.0268335
0.212 824 0.4857965 107 0.0640685 10 0.0057800 32 0.0186330
0.150 934 0.1760155 110 0.0212700 12 0.0020915 42 0.0073480
0.104 842 0.0511585 88 0.0052790 5 0.0003320 51 0.0031435
0.074 611 0.0116660 28 0.0006140 3 0.0000460 15 0.0003410
-0.074 179 0.0011280 8 0.0000540 1 0.0000010 2 0.0000180
Totals 4,641 10.4548915 490 1.2921590 38 0.0748940 164 0.1620205
Total 1,920 kg 620 kg 627 kg 560 kg
Processed
Number of 11 3 3 3
Sample Sites
The samples in Table 2 were of weathered surface material collected and weighed
by hand in the field, which were jigged at 0.71mm mesh screen size to produce a
concentrate. Concentrates were forwarded to Mineral Services Laboratory in Cape
Town, South Africa for descriptions, measuring and weighing, which is summarized
in the table. Note that no sieving was carried out. The diamonds are virtually
entirely dodecahedron in crystal form, with the exception of two octahedral
crystals, and four described as fragments. Colours are dominantly brown with
subordinate (34%) white crystals, and 70 of the 76 (92%) diamonds are described
as transparent. At three other locations, two on the Bouro South Dyke and one
on the Bouro Extreme North dyke, no diamonds were found in the concentrate by
Mineral Services.
Table 2: Results of Mano's bulk diamond sampling of the Bouro dykes
Location (UTM East / Sample # -0.71mm +0.71-1.00mm +1.0mm Total Recovered
Dyke/Sample UTM North) Weight Diamonds Diamonds Diamonds Diamonds Carats
(wet)
Bouro North / 465437E / 975165N 1.0 tonne 29 3 15 11 1.82500 carats
Sample 004
Bouro North / 466894E / 975352N 1.0 tonne 22 10 3 9 1.24825 carats
Sample 005
Bouro North / 462919E / 974703N 1.0 tonne 22 11 6 5 1.38255 carats
Sample 006
Bouro North Totals 3.0 tonnes 73 24 24 25 4.4558 carats
Bouro Central / 464840E / 971316N 1.0 tonne 3 1 1 1 0.11725 carats
Sample 002
SearchGold's Mandala Alluvial Deposits:
In 2003 and 2004, SearchGold proceeded with a large-scale bulk sampling of the
Mandela alluvial resources. This work formed the basis of Peter Walker's scoping
study and the highlights of this programme include:
* Recovery of 24,542 diamonds weighing 6,571.10 carats;
* Processing of a total of 17,921.87 m3 of gravel at a mean grade of 0.37
cts/m3;
* Confirmation of a mean value of 53.42 US$ per carat;
* Confirmation of an updated non 43-101 compliant diamond resource of 535,162
carats of diamonds larger than 1.5mm in a 1,156,000 m2 area
About Mano River Resources
Mano is an exploration company focused on the discovery of diamond, gold and
iron ore deposits in the Archaean terrain of the highly prospective,
under-explored, West African Mano River Union countries of Liberia, Sierra
Leone, and Guinea. Mano considers that the region has the potential to further
develop into a world-class diamond and gold mining province. The Company
presently has some 25,000km2 under mineral licence, promising gold prospects in
all three countries, certainly one and possibly a second cluster of
diamondiferous pipes in Liberia, and joint ventures in place with BHP-Billiton,
Golden Star Resources, Navasota, Petra Diamonds and Trans Hex Group.
About SearchGold
SearchGold Resources is a Canadian based mining exploration company whose
primary mission is to target, explore and develop gold and diamond deposits in
Africa and in Canada. SearchGold's project strategy maximizes its experience and
resources, and supports the company's commitment to strengthen shareholder
value.
References in this News Release are made to historic work by the following
Competent Persons ("CPs") who have completed Competent Person's Reports
("CPRs"), as defined under 'AIM Rules for Companies' in respect of standards of
resource notification at the time of resource calculations. As noted above,
these resources are non-compliant under Canadian 43-101 standards.
CP - Placer Analysis Limited
A company highly skilled in marine and non-marine diamond field evaluation and
development managed by Donald Sutherland, a consultant specialising in diamond
exploration and mining. Dr. Sutherland publishes in the Journals of the British
and American Geological Societies.
CP - Peter Walker holds a B.Sc. in Geology as well as an MBA, both from Cape
Town University in South Africa. Peter Walker has actively evaluated
diamondiferous kimberlites and expanded the resources of existing mines.
The TSX Venture Exchange has not reviewed and does not take responsibility for
the adequacy or accuracy of this release.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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