TIDMAFCR
African Consolidated Resources Plc / Index: AIM / Epic: AFCR / Sector: Mining
1 February 2010
African Consolidated Resources Plc ('ACR' or 'the Company')
Update
African Consolidated Resources Plc, the AIM listed resource company focused in
Zimbabwe, is pleased to announce a technical update on its extensive portfolio
of primarily gold, nickel, platinum, diamond and rock phosphate projects.
Overview:
* Aggressive resource development plan initiated following circa US$16m fund
raising in November 2009
* Over 38,000m have this week been awarded to Zimbabwean drilling companies
* Aiming to significantly increase existing gold resource base at the Giant
(300,000 oz Au) and Pickstone (513,000 oz Au) mines
* 18-month drilling campaign with a target to bring four projects up to maiden
JORC Resource status by December 2010
* Blue Rock maiden JORC Au resource targeted for April
* 14 sq km target area at Horseshoe Project to determine the near surface
nickel laterite resource - JORC resource by late Q4 2010
* Chishanya JORC resource planned for late 2010 - average P2O5 grade currently
14% from initial testing
* 1,400m strike of surface copper mineralisation over the old Cedric mine
workings being evaluated
* Heli-borne electromagnetic programme VTEM system is planned to cover the
35km long nickel prospective horizon of the Perseverance Greenstone Belt
* Production from the Peerless Sulphide Dump (200,000t at 4.2 g/t) targeted
late May 2010
* Additional initial 53,500 oz Resource calculations on the Oxide and
Transitional cap on the Peerless Mine
African Consolidated Resources CEO Andrew Cranswick said, "We are making rapid
progress in implementing our development plan, since raising approximately
US$16m of new funding in November 2009. ACR has planned an aggressive 18-month
drilling campaign and a target to bring four projects up to a maiden JORC
Resource status by December 2010, and to increase the Resource base at the Giant
and Pickstone gold mines which already have a cumulative JORC resource of over
800,000 oz Au.
"Work since the publication of the Company's last technical report has primarily
focussed on progressing the Peerless Sulphide dumps towards production and
assessing the mining economics of the Peerless oxide cap, infill Reverse
Circulation drilling at Blue Rock to define a maiden JORC Resource, and further
surface sampling of the Chishanya rock phosphate deposit. Surface mapping and
pitting has also defined drill targets at the Cedric copper project.
"With a highly prospective multi mineral portfolio of projects, a defined and
active development plan, a strong treasury, near term production from our gold
tailings project and significant political progress in Zimbabwe, highlighted by
returning foreign investment, we are extremely excited about the potential of
ACR. We have been operating in Zimbabwe for many years and are positioned well
to develop the huge and recognised mineral potential of Zimbabwe."
For further information visit www.afcr.com or please contact:
Andrew Cranswick African Consolidated +44 7920 189010
Resources plc
Roy Tucker African Consolidated +44 1622 816918
Resources plc +44 7920 189012
Richard Greenfield Ambrian Partners Limited +44 20 7634 4700
Hugo de Salis St Brides Media & Finance Ltd +44 (0) 20 7236 1177
Susie Callear St Brides Media & Finance Ltd +44 (0) 20 7236 1177
DEVELOPMENT DRILLING
The Company has implemented an extensive drilling programme aimed at advancing
the value of it assets. Drilling contracts totalling over 38,000m have this
week been awarded to Zimbabwean drilling companies. The summary programme for
the next 12 months includes:
* 19,000m of Reverse Circulation ('RC') drilling at the Gadzema and
Pickstone-Peerless projects (gold), and the Chishanya phosphate project
* 9,500m of diamond drilling at Gadzema and Pickstone-Peerless projects
(gold), the Chishanya phosphate project, the Cedric copper project, and the
Snakes Head Platinum Group Elements ('PGE') project
* 10,000m of exploration Rotary Air Blast ('RAB') drilling on the Chakari gold
project and on other current greenfield projects as surface results dictate
Gadzema Belt - gold
Blue Rock: The discovery is currently being assessed by RC infill drilling to a
depth of 150m over a strike of 600m, on 40m line spacing. Since 1 December
2009, 2,400m has been drilled; no assays are available due to the Christmas
break but broad visible alteration logged downhole is promising. The remainder
of the 4,000m programme should be completed late February. The Company expects
to declare a maiden indicated JORC resource in April 2010.
Giant Mine: A 2,000m diamond drilling programme is planned to commence in
March, aimed at extending the orebody at depth. A further 3,000m of infill RC
drilling will follow the diamond programme targeting an increase in the current
JORC resource of 300,000oz.
Gadzema Belt Extensions: Encouraging RAB drill intersections over 5km strike
length between the Blue Rock and Giant Mine projects were obtained in late
2009. These areas will be followed up by 5,000m of RC drilling in the first
half of 2010. Dependent on these results, a further 3,000m will be drilled to
determine a JORC resource before the end of the year.
Pickstone-Peerless - gold
A 2,000m diamond drilling programme will be undertaken in the second half of
2010, to test under the Peerless oxide gold resource, and to investigate the
Pickstone deeps.
Chisanya Carbonatite - phosphate
Channel chip sampling and in-house assaying using a Niton XRF analyser has
delineated extensive outcropping phosphate-rich ankerite rock. The latest
analysis has, as reported on 1 December 2009, returned an average P2O5 grade of
14%. This was as a result of assaying by SGS Laboratories, Johannesburg who
returned grades P2O5 grades ranging between 6-27% with a 2% cut off grade.
Further detailed channel chip sampling and mapping is currently being
undertaken to locate extensions to the phosphatic rocks.
A 2,000m diamond drilling programme to test the phosphate mineralisation to
200m depth will be initiated in March. Dependant on these results a 5,000m RC
infill drilling programme will commence in July, with a view to producing an
initial JORC resource by late Q4 2010.
Horseshoe Nickel
Pitting on a 50 to 100m grid is being planned to cover the 14 sq km target area
to determine the near surface nickel laterite resource with a view to presenting
a JORC resource before the end of the year. Concurrent column leach
metallurgical testing will be undertaken to determine leach characteristics and
recovery. As previously announced, preliminary metallurgical trials indicate
good recoveries (>90%), short residence times (<40 days), and low acid
consumption.
EXPLORATION PROGRAMMES
Regional gold exploration
Chakari Gold: Soil sampling undertaken by ACR has outlined a number of anomalous
targets lying on splays of the well-mineralised Lily Shear Zone, northwest of
the major Dalny mine. Further mapping, sampling and RAB drilling will be
conducted throughout 2010 to identify economic gold mineralisation hosted in
Archean metasediments and volcanics.
Regional Diamonds
A combination of ACR's historical diamond database and recent regional
exploration has defined two broad areas containing significant clusters of
kimberlite indicator minerals.
Commencing February, 10,000 line kilometres of aeromagnetics and radiometrics
will be flown over these areas to detect buried kimberlite bodies.
Cedric Copper
Ongoing mapping has identified approximately 1,400m strike of surface copper
mineralisation over the old Cedric mine workings. This area was last explored
in the 1960's, and lies in the Proterozoic Makonde copperbelt. Four diamond
drillholes totalling 1,000m will commence late Feb to test the down dip
extensions to a depth of 150m. Extension drilling will be planned following the
first phase results.
Perseverance Nickel
A heli-borne electromagnetic programme (VTEM system) is planned to cover the
35km long nickel prospective horizon of the Perseverance Greenstone Belt,
commencing March. Conductors will be identified and drill tested as part of
ongoing exploration during 2010.
Snakes Head PGE
It is proposed that the recently identified Fundumwi Block of this northern
subchamber of the Great Dyke will be drill tested once access becomes available
in the dry season. The mineralogy and ultramafic stratigraphy of the Fundumwi
Block suggests that the PGE reefs in this area may be higher grade than
elsewhere in the chamber. Four short diamond holes are planned to intersect the
P1 platinum reefs below the oxide zone.
PEERLESS SULPHIDE DUMP - GOLD PLANT PROGRESS
In line with previous guidance, the ACR joint venture with TWP Engineering
(South Africa) is progressing towards production from the Peerless Sulphide Dump
(200,000t at 4.2 g/t) late May 2010. Site works have commenced, with the office
block completed and transportable accommodation and other site infrastructure
under construction. Contracts for earthmoving, onsite laboratories and tailings
deposition are underway. Orders for equipment have been placed with vendors
locally and in South Africa, to be onsite in the first quarter.
Pilot scale metallurgical testing of the sulphide dump is complete with gold
recoveries in the range 65 - 70% observed. This result is within management
expectations and is close to the target previously reported of 73% less an
allowance of 10% for operations scale losses as compared with laboratory bench
test conditions. The pilot testing also demonstrated significantly reduced
reagent consumptions compared with laboratory tests.
In addition to the high-grade sulphide dump, scoping studies have commenced to
investigate the economics of treating the Peerless oxide cap through the same
cyanide leach plant.
Initial Resource calculations on the Oxide and Transitional cap on the Peerless
Mine by Hellman and Schofield consultants, Perth, WA, returned the following
estimates (yet to be verified to JORC standard).
Peerless Mine near-surface mineralisation (non-JORC)
+--------------------+---------+-----------+-------------------+---------------+
|Zone |Tonnes |Grade (g/t)|Contained Gold (oz)|Depth approx|
| | | | |(m) |
+--------------------+---------+-----------+-------------------+---------------+
|Peerless Oxide Cap |739,935 |1.16 |27,693 |0-40m |
+--------------------+---------+-----------+-------------------+---------------+
|Peerless transition |748,640 |1.07 |25,795 |40-60m |
|Ore | | | | |
+--------------------+---------+-----------+-------------------+---------------+
|TOTAL |1,488,575|1.12 |53,500 | |
+--------------------+---------+-----------+-------------------+---------------+
Economic modelling studies are underway to assess treating the deposit in
parallel with the sulphide dump.
For a map showing the location of the Company's projects please paste the
following link into your internet browser
http://hugin.info/138338/R/1378916/339228.pdf
<https://inpublic.huginonline.com/exchweb/bin/redir.asp?URL=http://hugin.info/13
8338/R/1378916/339228.pdf> or access the version of this announcement on the
Company's website: www.acrplc.com <http://www.acrplc.com/>:
This announcement has been reviewed by Mike Kellow BSc, a member of the
Australian Institute of Geologists and Technical Director of ACR. Mr Kellow
meets the definition of a "qualified person" as defined in the AIM Note for
Mining, Oil and Gas Companies.
**ENDS**
GLOSSARY OF TECHNICAL TERMS
Term/ Acronym Explanation
aeromagnetics magnetic survey carried out with a
sensor in an aircraft;
archaean rocks greater than 2,600 Ma in age;
argillaceous a sedimentary rock dominated by clay and
silt-sized particles;
Au chemical symbol for gold;
carbonatite intrusive or extrusive igneous rocks
defined by mineralogic composition
consisting of greater than 50 percent
carbonate minerals, generally calcium
carbonate. They usually occur as
pipelike intrusions;
concentrate normally of metallic minerals such as
pyrite and arsenopyrite after removal of
gangue;
Cu chemical symbol for copper;
diamond drilling drilling method using a
diamond-impregnated cutting bit to
obtain a core sample of rock;
dolomites / dolomitic dolomite is the name of a sedimentary
carbonate rock and a mineral, both
composed of calcium magnesium carbonate
CaMg(CO3)2;
electromagnetic survey geophysical technique using electrical
currents to detect conductive bodies
below surface. Conductive bodies
include massive-sulphides that may
contain base metals;
EM survey see electromagnetic survey;
fault a fracture or break within a body of
rock across which some movement has
occurred;
felsic intrusive an igneous rock of granitic
composition that is intruded into
surrounding strata;
fold geological term for a curve or bend of
planar surfaces in rocks;
geophysics mineral prospecting systems designed
to detect mineralisation using the
physical properties of rocks;
igneous rock originally molten can be volcanic or
intrusive;
IP survey "Induced Potential" - a geophysical
technique to detect disseminated
sulphide mineralization;
JORC Joint Ore Reserves Committee of the
Australasian Institute of Mining and
Metallurgy;
lodes a discrete, rich portion of an orebody
that has a distinct spatial
orientation, often controlled by faults
and folds;
magnetic survey measurements of the perturbation in
the earth's magnetic field caused by
magnetic minerals in rocks;
mineralisation metallic minerals such as gold, base
metals, pyrite and arsenopyrite
incorporated in rocks;
mineralised zones hydrothermally altered structural
features containing potentially
valuable minerals;
orebody economically viable portion of a
mineralised zone;
phoscorite calcium phosphate mineral occurring in
carbonatite lavas;
pyroxenite an ultrabasic rock rich in pyroxene - a
silicate mineral;
quartz silicon oxide mineral very common in
hydrothermal deposits;
radiometrics the measurement by spectrometer of
radiation energy given off by
radioactive rock-forming minerals,
usually Uranium, Thorium, Potassium;
resource mineral resource as defined by the
JORC Code 2004;
reverse circulation (RC) drilling rotary percussion drilling whereby the
RC sample is returned from the
cutting head inside the rod string to
surface thereby avoiding
contamination from the walls of the
hole;
rotary air blast (RAB) drilling Open-hole drilling whereby drill
RAB cuttings are returned to surface
by compressed air in an un-lined
hole; contamination is possible from
the walls of the hole;
schist metamorphic rock with well developed
foliation;
shear zone zone of multiple fractures or
discontinuities in rock, either ductile
or brittle;
siltstone fine grained usually quartz rich
sedimentary rock; where calcareous
contains calcium or magnesium carbonate;
stockworks zone of multiple quartz filled fractures
with individual veins often of random
orientation;
strike the horizontal orientation of a planar
geological feature;
sulphide sulphur bearing metallic mineral;
thrust shallow dipping fault where the upper
body of rock overrides the lower
portion;
[HUG£1378919]
Full version incl. map (PDF): http://hugin.info/138338/R/1378919/339231.pdf
(END) Dow Jones Newswires
February 01, 2010 01:01 ET (06:01 GMT)