AfriOre Positive Akanani Platinum Project Results

    AfriOre Announces Positive Results for Initial Metallurgical Testwork

    from the Akanani Platinum Project

 

    TSX/AIM:AFO

 

    ROAD TOWN, TORTOLA, British Virgin Islands, June 28 /CNW/ - (TSX/AIM:AFO)

- AfriOre Limited ("AfriOre" or the "Company") is pleased to announce positive

results for initial metallurgical testwork on the Akanani Platinum Project

("Akanani" or the "Project"), located in South Africa's Bushveld Complex.

Laboratory flotation tests on diamond drill core samples achieved platinum

group metal recoveries of 80% into concentrates of suitable quality for

smelting.

    Results from an initial program of metallurgical testwork on drill core

samples from Akanani have been released by Mintek, an internationally

recognized research and development organization based in Johannesburg, South

Africa and independent of AfriOre, which specializes in the field of mineral

processing. This initial metallurgical testwork forms part of AfriOre's

preliminary program of metallurgical and mineralogical investigation of

samples collected from drill hole intercepts of the P2 mineralized zone within

the Southern Priority Area ("SPA") at Akanani.

    Four drill holes, ZF1, ZF4, ZF6 and ZF11, broadly representative of

mineralization types encountered by AfriOre's exploration of the SPA, were

selected for metallurgical testwork. Composite samples were prepared to

represent the P2 mineralized zone in each hole, as well as a selected higher

grade interval from within the P2 zone in three of the four holes, namely ZF4,

ZF6 and ZF11. The component material used for the composite metallurgical

samples comprised the residual crushed drill core after splitting out a

portion for standard assay of each drill core evaluation sample. This crushing

was carried out by Set Point Technology's sample preparation facility in

Mokopane, South Africa. The mass contribution of each evaluation sample to the

metallurgical composite sample was weighted using "mass factors" determined

from the sample length and specific gravity of the evaluation sample.

    Mintek conducted initial testwork using a flotation procedure commonly

used for the processing of platinum ores, involving a two-stage mill and float

sequence ("MF2 float"). Samples were initially milled to approximately 50%

passing 74 microns and a concentrate was floated, cleaned and re-cleaned.

Tailings were subsequently milled to greater than 90% passing 74 microns and

the flotation procedure repeated. Copper sulphate was added as an activator

and a polysaccharide-based reagent was added as a depressant for gangue

minerals. Subsequent to the first round of results, the flotation test

procedure was modified for three of the samples, with the object of enhancing

concentrate metal grades. The modified procedure involved an increase in the

quantities of gangue depressant, as well as additional cleaning of the primary

cleaner tailings.

    Plots of concentrate grade vs. recovery for the test data show that the

standard MF2 float achieved 80% recoveries of platinum, palladium, and gold

("3E") at concentrate grades in the range 50 to 80 g/t 3E, whereas the

modified procedure achieved 80% recoveries of 3E at enhanced concentrate

grades of 75 to 110g/t 3E. The modified procedure therefore achieved a

significantly higher concentrate grade without loss of recovery of 3E. This

level of recovery compares well with that of platinum group metal ("PGM")

recoveries from existing operations in Bushveld Complex Merensky and UG2 ores,

of 80 to 85% and 75 to 80%, respectively. Future optimization testwork will

seek to achieve further improvements in the grade of PGMs in the concentrates.

    With respect to base metals, Mintek results indicate nickel ("Ni") and

copper ("Cu") recoveries of approximately 63% and 85%, respectively, at a

combined concentrate grade of 7 to 10% Ni+Cu and 10 to 15% sulphur. Similar to

many PGM ores from the Bushveld Complex, Akanani mineralization contains

sulphide Ni minerals that respond to flotation and a smaller component of Ni

silicate minerals that do not respond to flotation. If Ni recovery is

expressed in terms of acid soluble "sulphide Ni" headgrade rather than "total

Ni" headgrade, then it is expected that the Ni recovery will increase. Future

metallurgical testwork will include acid soluble Ni determinations to confirm

Ni recovery on an acid soluble Ni basis, as well as determination of rhodium

recovery.

    The objective of this first phase of metallurgical testwork is to obtain

an indication of the variability in metallurgical response for mineralized

samples collected across the SPA at Akanani. However, the scope of this work

is limited by the small quantities of material available from exploration

samples for metallurgical purposes, and a full optimization of the flotation

conditions will only be possible in the second phase of testwork, where full

drill core from deflections drilled for this purpose will be utilized for

advanced metallurgical testwork. The drilling of metallurgical samples for

this second phase program is well advanced and results are expected by

September 2006.

    Stuart Comline, Chairman of AfriOre states "we are very encouraged by the

results of the preliminary metallurgical testwork. The work at Mintek has

shown that PGM flotation recoveries for the initial four Akanani drill holes

are broadly in line with those obtained from other Bushveld ores and has

confirmed that the resulting Akanani concentrates are suitable for treatment

in a traditional PGM matte smelter."

 

    About AfriOre Limited

    AfriOre is a TSX- and AIM-listed company focused on its 74%-owned, 4,095

ha Akanani Platinum Project, located on the Northern Limb of South Africa's

Bushveld Complex. AfriOre's Exploration and Management Team has extensive

experience in platinum projects in South Africa, where the Company maintains

aggressive exploration and acquisition programs. AfriOre's Management has a

successful history of creating shareholder value through the exploration and

advancement of projects.

    Metallurgical testwork was carried out by Mintek in Johannesburg under

the supervision of Dr. M. Bryson (Ph.D. (Chem.)), a member of the South

African Institute of Mining and Metallurgy, and an employee of Mintek.

Mr. R.M. Whyte (C.Eng. M.I.Chem.E.), a Fellow of the South African Institute

of Mining and Metallurgy and an independent metallurgical consultant to

AfriOre, has verified the data disclosed and is responsible for the technical

material in this release.

    An independent technical report entitled "AfriOre Limited: Akanani

Platinum Project, Limpopo Province, South Africa, Project No. J883" and dated

May 29, 2006 has been filed on SEDAR and may be accessed at www.sedar.com. The

technical report was prepared by Mr. J.C. Witley (B.Sc. Hons., Mining

Geology), a registered Professional Natural Scientist with the South African

Council for Natural Scientific Professions (SACNASP) and an employee of

Snowden Mining Industry Consultants.

    AfriOre has a treasury of approximately CDN$ 22.4M. The Company has

50,783,368 shares outstanding and 57,098,402 shares fully diluted. For

additional information

 

    Forward Looking Statements

    -------------------------------------------------------------------------

    This press release contains certain "forward-looking statements". All

statements, other than statements of historical fact, that address activities,

events or developments that the Company believes, expects or anticipates will

or may occur in the future (including, without limitation, statements

regarding the metal recoveries for Akanani being less than those indicated by

the metallurgical results and the Company's plans with respect to the

exploration and development of Akanani) are forward-looking statements. These

forward-looking statements reflect the current expectations or beliefs of the

Company based on information currently available to the Company. Forward-

looking statements are subject to a number of risks and uncertainties that may

cause the actual results of the Company to differ materially from those

discussed in the forward-looking statements, and even if such actual results

are realized or substantially realized, there can be no assurance that they

will have the expected consequences to, or effects on the Company. Factors

that could cause actual results or events to differ materially from current

expectations include, among other things, the preliminary nature of the

Metallurgical Results, changes in PGM prices, changes in equity markets,

failure to establish estimated mineral resources, delays in obtaining or

failure to obtain required regulatory approvals, political risks arising from

operating in Africa, changes to regulations affecting the Company's

activities, uncertainties relating to the availability and costs of financing

needed in the future, the uncertainties involved in interpreting drilling

results and other ecological data, and the other risks involved in the mineral

exploration and development industry. Any forward-looking statement speaks

only as of the date on which it is made and, except as may be required by

applicable securities laws, the Company disclaims any intent or obligation to

update any forward-looking statement, whether as a result of new information,

future events or results or otherwise. Although the Company believes that the

assumptions inherent in the forward-looking statements are reasonable, forward-

looking statements are not guarantees of future performance and accordingly

undue reliance should not be put on such statements due to the inherent

uncertainty therein.

 

    For further information: on AfriOre and its projects visit the Company's

website at www.afriore.com or contact: Fiona Childe, Ph.D., P.Geo., VP

Corporate Communications, Tau Capital Corp., Tel: [phone] x 227, Email:

fchilde(at)taucapital.com

    (AFO.)



END