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Armadale (LSE:ACP), an AIM quoted investment company focused on natural resource projects in Africa, have released assay results from the Company’s recent investment in the highly prospective, low-cost, Mpokoto Gold Project in the Katanga Province in the south of the Democratic Republic of Congo.
The results were returned from the final 20 holes of a diamond drilling programme undertaken in 2011 by the previous operators at Mpokoto and had not previously been released. The results were received after the current 380,000 oz Au resource estimate was established. The drilling programme was conducted to determine interpreted mineralisation geometries and test the continuity of mineralisation along strike and at depth.
Highlights:
· Twenty (20) diamond drill holes for 1,516.4m were completed to test the continuity of mineralisation along strike and at depth
· 18 out of 20 holes confirmed near surface mineralisation and strike extent with strong potential to prove up future resource model/estimations
· Significant assays include:
o MPDD0064 returned 27.9m @ 7.8g/t Au from 75m (including 10.0m @ 15.0g/t)
o MPDD0063 returned 5.0m @ 3.9 g/t Au from 39.4m and 9.7m @ 1g/t from 12m
o MPDD0074 returned 15.2m @ 2.6 g/t Au from 1.9m
o MPDD0078 returned 12m @ 2g/t Au from 17m
o MPDD0070 returned 15.7m @ 1.8 g/t Au from 2m
o MPDD0071 returned 15m @ 1.4g/t Au from 23m
o MPDD0082 returned 4.5m @ 2.2 g/t Au from 51m
· Results were received after the current Indicated and Inferred resource estimated at 380,000oz Au from 7.2 million tonnes @ 1.65g/t Au at a cut-off grade of 0.5 g/t Au (75% Indicated category) – demonstrates the significant potential for resource expansion in line with the Exploration Target potential* of 10-24 million tonnes @ 1.5-1.8 g/t Au
· An initial high-level review of drilling data has been undertaken by a CSA Global Geological Consultants (“CSA”). Results from that review include:
o mineralisation is confined to the coarse-clastic conglomerate bed of interbedded sandstone and conglomerate sequence
o mineralisation occurs in tabular and laterally extensive stratigraphic horizons
o mineralisation dips at moderate angle to the south and southwest
o good potential to increase the mineralisation base, and
o new results will facilitate more confident planning of future work programmes.
· Project is anticipated to be a relatively low-cost heap leach operation – mineralisation benefits from simple metallurgy with operating costs estimated at US$700-900 per ounce
*Tetra Tech Consultancy estimate. The quantity and grade of the Exploration Target is conceptual and there has been insufficient exploration to define a Mineral Resource.
Justin Lewis, Director of Armadale, said, “These are highly encouraging assay results which continue to underpin Mpokoto’s prospectivity as a low-capex, low-opex gold project. With highs of 27.9m @ 7.8g/t Au, mineralisation that appears metallurgically simple and hence amenable to a low-cost heap leach operation, we remain focused on advancing Mpokoto up the development curve with a view to commencing full commercial production in 2015.
“In line with this development schedule, we are incorporating these results, together with other data, in an updated geological model, which we anticipate will lead to an expansion of Mpokoto’s current resource of 380,000oz Au, and I look forward to updating shareholders on our progress in due course.”
Further Information:
A total of 20 diamond drill holes were completed for a total of 1,516.4m at Mpokoto by the previous operators of the Project, between June and November 2011. This exploration post-dated the mineral resource estimate that was conducted in early 2011 by Tetra Tech. The holes were drilled with the objectives of testing the interpreted resource geometry, delineating the continuity of the mineralisation, testing conceptual targets and refining the geological model in selected areas.
