Drilling Report

    AfriOre Announces Further Mineralized Drill Intersections for the

    Akanani Platinum Project

 

    TSX/AIM:AFO

 

    ROAD TOWN, TORTOLA, British Virgin Islands, June 29 /CNW/ - AfriOre

Limited ("AfriOre" or "the Company") (TSX/AIM:AFO) is pleased to announce

results for a further four drill holes for the P2 unit in the Southern

Priority Area ("SPA") on the Company's 74%-owned Akanani Platinum Project

("Akanani" or the "Project"), located on the Northern Limb of South Africa's

Bushveld Complex.

    Assay results have been received for drill holes ZF16, ZF22, ZF26 and

ZF28 for the P2 unit; the P2 unit is the well-developed upper mineralized zone

in the Platreef. Assay results for these holes yield good to excellent

platinum group metal ("PGM"), gold ("Au"), nickel ("Ni") and copper ("Cu")

mineralization. Highlights include:

 

    -  19.04 m of 6.49 g/t 3PGM + Au(x) and 0.35% Ni,

       including 6.04 m of 7.88 g/t 3PGM + Au and 0.30% Ni

       and 8.00 m of 7.97 g/t 3PGM + Au and 0.46% Ni in ZF28

 

    -  10.40 m of 4.07 g/t 3PGM + Au

       including 4.44 m of 4.96 g/t 3PGM + Au in ZF26

 

    -  6.68 m of 5.38 g/t 3PGM + Au

       including 2.45 m of 9.31 g/t 3PGM + Au in ZF22

 

    ((x) g/t 3PGM + Au (equal sign) grams of platinum, palladium, rhodium

    plus gold per tonne)

 

    The positive results for drill holes ZF22, ZF26 and ZF28 all exceed

AfriOre's initial minimum exploration target of 4 g/t 3PGM + Au over widths of

5 m. The high grades reported herein, impressive widths of mineralization and

continuity of the P2 unit continue to indicate potential for the SPA to host a

large resource of PGMs and Au, with associated Ni and Cu, as indicated by the

initial inferred mineral resource estimate for the SPA of 183.0 million tonnes

("Mt") at a grade of 4.5 g/t 3PGM + Au, which equates to 26.4 million ounces

of 3PGM plus Au, as well as 0.24% Ni and 0.14% Cu over an estimated average

true thickness of 16.6 m, as reported in an AfriOre news release dated May 11,

2006.

    All four holes reported here were collared vertically in the SPA and

their collar positions are shown in the attached diagram. A summary of

analytical results from the P2 unit in the four holes is as follows:

 

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

    Drill Hole ZF28

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

    Starting   Drill    3PGM     Pt      Pd      Rh      Au      Ni      Cu

     Depth   indicated  + Au    (g/t)   (g/t)   (g/t)   (g/t)    (%)     (%)

      (m)      width    (g/t)

                (m)

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

    1,336.96    19.04    6.49    3.09    2.74    0.28    0.38    0.35    0.15

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

    Incl.

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

    1,336.96     6.04    7.88    4.38    2.81    0.34    0.35    0.30    0.10

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

    &

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

    1,347.00     8.00    7.97    3.33    3.77    0.34    0.53    0.46    0.24

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

 

 

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

    Drill Hole ZF26

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

    Starting   Drill    3PGM     Pt      Pd      Rh      Au      Ni      Cu

     Depth   indicated  + Au    (g/t)   (g/t)   (g/t)   (g/t)    (%)     (%)

      (m)      width    (g/t)

                (m)

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

    1,003.18    10.40    4.07    1.74    1.93    0.15    0.25    0.28    0.17

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

    Incl.

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

    1,008.03     4.44    4.96    2.18    2.35    0.18    0.25    0.31    0.18

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

 

 

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

    Drill Hole ZF22

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

    Starting   Drill    3PGM     Pt      Pd      Rh      Au      Ni      Cu

     Depth   indicated  + Au    (g/t)   (g/t)   (g/t)   (g/t)    (%)     (%)

      (m)      width    (g/t)

                (m)

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

    1,640.70     3.30    4.35    1.78    2.12    0.18    0.27    0.27    0.17

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

    1,660.77     6.68    5.38    2.12    2.77    0.23    0.26    0.21    0.11

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

    Incl.

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

    1,664.00     2.45    9.31    3.79    4.65    0.41    0.46    0.34    0.18

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

 

 

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

    Drill Hole ZF16

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

    Starting   Drill    3PGM     Pt      Pd      Rh      Au      Ni      Cu

     Depth   indicated  + Au    (g/t)   (g/t)   (g/t)   (g/t)    (%)     (%)

      (m)      width    (g/t)

                (m)

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

    1,460.44    10.56    2.34    0.81    1.35    0.06    0.12    0.18    0.12

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

    Incl.

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

    1,467.00     3.00    3.30    1.18    1.90    0.10    0.12    0.22    0.13

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

 

    Notes to the above tables:

    Pt, Pd, Rh, Au, Ni and Cu mean platinum, palladium, rhodium, gold, nickel

    and copper respectively.

    3PGM+Au means Pt+Pd+Rh+Au.

    Mean grades are weighted using mass factors (intersection width times

    specific gravity).

    The reported interval widths are uncorrected for the dip of the Platreef.

    Calculation of true widths will be carried out when further modeling is

    carried out for mineral resource estimation of the mineralized zones.

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

 

 

    Hole ZF28 is an in-fill hole within the 350 m spaced SPA grid, lying in

the approximate centre of drill holes ZF10, ZF21, ZF22 and ZF18, which form

part of the initial 500 m spaced grid. ZF28 traversed the Main Zone gabbro-

norites before intersecting a disturbed hangingwall sequence to the main

Platreef unit at 1,203.47m, with more typical pyroxenites being encountered

below 1,310.03 m. The drill hole was completed at a down-the-hole depth of

1,463.61 m in fine grained chill rocks close to the granofels footwall. In

addition to high PGM grades, this hole encountered high Ni values within the

wide mineralized intercept.

    Hole ZF26 is also an in-fill hole within the 350 m spaced SPA grid. This

hole was collared in the approximate centre of drill holes ZF5, ZF6, ZF10 and

ZF18, which form part of the initial 500 m spaced grid. ZF26 traversed the

Main Zone gabbro-norites before intersecting Platreef unit pyroxenites from

983.58 to 1,015.16 m. This hole was completed at a down-the-hole depth of

1,057.24 m in granofels footwall.

    Drill hole ZF22 was collared along the most westerly line drilled to date

in the SPA. This hole traversed the Main Zone gabbro-norites before

intersecting Platreef unit pyroxenites from 1,627.40 to 1,837.79 m. The drill

hole was completed at a down-the-hole depth of 1,861.90 m in granofels

footwall.

    Drill hole ZF16, collared near the northern end of the SPA, traversed the

Main Zone gabbro-norites before intersecting Platreef unit pyroxenites from

1,460.44 to 1,681.06 m. This hole was completed at a down-the-hole depth of

1,696.61 m in chill margin rocks. Core from ZF22 and ZF16 show localized

interaction zones between the P2 unit and hangingwall strata as a result of

magma mixing. This process appears to have resulted in localized dilution of

grade in drill hole ZF16.

 

    Quality Assurance/Quality Control

    Drill holes ZF16, ZF22, ZF26 and ZF28 were drilled in BQ size core (36mm

diameter); half-core samples for assay were cut by means of a diamond blade

saw. Geological logging, sampling and core handling procedures were carried

out under the supervision of Mr. Jeff White (B.Sc. Geology, Pr.Sci.Nat.) and

Mr. Henri Lombard (B.Sc. (Hons) Geology, Pr.Sci.Nat.), independent consultants

to AfriOre. Samples were prepared at Set Point Technology's sample preparation

facility in Mokopane, South Africa and analyzed for Pt, Pd, Rh, Au, Ni, Cu and

cobalt ("Co") by Set Point Technology laboratories in Johannesburg (ISO 17025

accredited and independent of AfriOre). Pt, Pd and Au fire assays were carried

out using lead collection/ICP; Rh fire assays used palladium collection/ICP;

Ni, Co and Co analyses were carried out using aqua regia digestion/ICP and

reflect acid-soluble metal content. Specific gravity was determined using a

gas picnometer. QA/QC procedures included the submission by AfriOre of

systematic duplicates, blanks and standard samples within the sample batches

submitted to Set Point Technology. In addition, selected pulverized sample

duplicates were submitted to SGS Lakefield Research Africa laboratories in

Johannesburg (ISO 17025 accredited and independent of AfriOre) for referee

analyses. Results from these control samples indicate acceptable consistency

of the Set Point Technology analyses.

 

    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.

    Exploration at Akanani is being conducted under the supervision of Mr.

Mike van Aswegen, COO of AfriOre and the Company's Qualified Person, as

defined under National Instrument 43-101. Mr. van Aswegen is responsible for

the technical material in this release, excluding the mineral resource

estimate, and has verified the data disclosed in this release, including the

sampling and analytical data underlying the drill results. The initial mineral

resource estimate for the Project is included in an independent technical

report entitled "AfriOre Limited: Akanani Platinum Project, Limpopo Province,

South Africa, Project No. J883" dated May 29, 2006. The technical report 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.

 

    To view map of the Akanani Platinum Project please visit:

http://files.newswire.ca/495/akanani_260606.jpg

 

    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 estimation of mineral resources, potential mineralization and

resources, exploration results and the Company's exploration and development

plans with respect to the Akanani Platinum Project) 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, changes in

commodity prices, changes in equity markets, failure to establish estimated

mineral resources (the inferred mineral resource figures disclosed in this

press release are estimates and no assurance can be given that the indicated

levels of minerals will be produced), political risks arising from operating

in Africa, changes to regulations affecting the Company's activities, delays

in obtaining or failures to obtain required regulatory approvals,

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