TIDMAFCR
African Consolidated Resources plc / Ticker: AFCR / Index: AIM / Sector: Mining
11 June 2010
African Consolidated Resources plc ('ACR' or 'the Company')
Nkombwa Hill Rare Earths and Phosphate Project, Zambia
ACR, the AIM listed resource development company, is pleased to provide the
following update in respect of its recently acquired Nkombwa Hill project in
Zambia (the 'Project') including the signing of a joint venture agreement for
the exploration of the Project for rare earth minerals and the commencement of
an in-house work programme with the aim of defining a phosphate resource.
The Nkombwa Hill project lies in North Eastern Zambia, 23km east of the
Lusaka-Tanzania bitumen highway near the town of Isoka, within ACR's 720 sq km
Large Scale Prospecting Licence No 12198-HQ-LPL which was granted on 16 January
2010. This licence covers Proterozoic metasediments and basement gneisses,
intruded by the Nkombwa Hill carbonatite and at least six of the Isoka swarm of
kimberlite pipes, explored by De Beers in 1959-1973. The Carbonatite has
historically been explored for phosphate, rare earths, and niobium.
The Project complements ACR's Chishanya Hill phosphate project in Zimbabwe,
where considerable expertise has already been developed, investigating the
geology and metallurgy of a similar carbonatite intrusion. ACR believes the
demand in southern Africa for phosphate fertilisers for food and biofuel
production will create strong markets for rock phosphate concentrates.
RARE EARTH MINERALS JOINT VENTURE AGREEMENT
ACR is pleased to announce that it has signed a joint venture heads of agreement
('Joint Venture Agreement') with Australian-based private exploration company,
Rare Earth International Ltd ('REI'), to explore the Project specifically for
Rare Earth minerals.
The Joint Venture Agreement will enable REI, in conjunction with ACR, to explore
for rare earth minerals, drawing upon the specialist exploration skills of the
REI management. REI CEO Dr. Jock Harmer and consultant Dr. Paul Nex, both have
world class academic and commercial experience in carbonatite hosted rare earth
Nkombwa mineralisation.
Pursuant to the Joint Venture Agreement, REI has been granted a period of 90
days in which to complete its due diligence of the Project after which it will
then have a binding, exclusive right to explore the Project for Rare Earth
minerals. In Stage 1 of the agreement REI must spend a minimum of $750,000 over
two years to define an initial Inferred Resource (to the Australian JORC
standard) at which point they will earn 30% equity in the Project. A further
Stage 2 expenditure of $600,000 over 18 months and the definition of an
Indicated JORC Resource will increase REI's equity interest in the Project to
50%.
Upon receipt of a Phase 2 Completion Notice, ACR may elect to co-fund Phase 3
(completion of pre-feasibility) and Phase 4 (bankable feasibility) with REI so
that each party maintains a 50% interest in the Project. If ACR does not elect
to co-fund after Phase 2 then after Stage 3 and Stage 4, REI will earn 65% and
75% respectively if they continue with sole funding.
PHOSPHATE AND NIOBIUM POTENTIAL
ACR retains 100% rights for minerals other than Rare Earths at Nkombwa Hill. The
potential phosphate resource at Nkombwa adds a second important asset in
addition to ACR's Chishanya Hill phosphate deposit in Zimbabwe, where ACR is
seeking to define a maiden JORC resource before the end of 2010.
Previous explorers for phosphate including Chartered Exploration Ltd, Roan
Selection Trust Ltd, Mindeco Ltd, Zimco Ltd and the Food and Agriculture
Organisation (FAO) have variously estimated Non-JORC/NI43-101/SAMREC 'reserves'
of the Nkombwa phosphate-bearing rocks at more than 200 million tonnes with a
grade of 4.6% P(2)O(5), however the depth extent and calculation methods of this
estimate is not known (Van Straten P. H. 2002. Rocks for Crops).
Much of the phosphate is contained in a rare mineral Isokite, a Ca-Mg Phosphate,
which in past metallurgical studies (to 1991) was not easy to concentrate by
conventional flotation processes due to the Magnesium content. Modern flotation
chemistry however may be able to solve the processing difficulties and ACR will
investigate this opportunity.
Niobium occurs widely disseminated in the carbonate as the mineral pyrochlore,
(NaCa)(2)Nb(2)O(6), at a "fairly constant" grade of 0.16% Nb(2)0(5 ) (Chartered
Exploration Ltd 1953-63), with individual samples reported over 1% Nb(2)0(5).
It may be possible to float off the pyrochlore as a by-product in a phosphate
flotation circuit.
Proposed Work Programme
Data compilation of a large volume of historical reports is nearly complete, and
field visits are scheduled for June-July, ahead of extensive mapping and
geochemical sampling programmes. Drilling and metallurgical-extraction studies
will be required to assess the resources at depth once technical and
environmental planning is completed.
FURTHER INFORMATION
Rare Earth Mineralisation at Nkombwa Hill
Rare Earth elements (REEs) comprise the family of Lanthanides on the periodic
table of elements, and are separated into light rare earths - Lanthanum La),
Cerium (Ce), Praseodymium (Pr), Neodymium (Nd), and Samarium (Sm) - and the less
common heavy rare earths such as Yttrium, Europium, Terbium and Gadolinium.
The major REE-bearing minerals at Nkombwa Hill belong to the light REE group,
and are bastnäsite, monazite and pyrochlore with minor daqingshanite-(Ce),
rare-earth bearing isokite, strontian apatite, strontianite and other rare earth
carbonates. REE's reported from the carbonatite by Roan Selection Trust, Leeds
University and others include Cerium, Lanthanum, Neodymium, Praseodymium and
Gadolinium.
Within the carbonatite complex, bastnäsite - (Ce,La)CO(3)F, has been identified
as an abundant mineral in xenoliths hosted by late-stage ferrocarbonatite sills
and dykes (Touret, Leeds University, 1991). Bastnäsite-(Ce) occurs as fibrous
yellow crystals, about 1 µm in size, replacing monazite and in association with
baryte, in a matrix of dolomite. In common with bastnäsite-(Ce) from other
locations, the bastnäsite-(Ce) of Nkombwa Hill contains up to 70% light
rare-earth oxides. However, Nkombwa Hill bastnäsite-(Ce) is relatively deficient
in La and enriched in Pr and Nd.
Cerium oxide assay results ranging from 0.78 to 9.28% CeO(2) were recorded from
five samples of drill core obtained by Roan Selection Trust Ltd in 1968-69.
Individual rock chip samples from various workers in the 1980's yielded 2.5% Ce,
3.3% La and 0.6% Nd; 7.1% Ce, 7.2% La and 1.1% Nd and 5.6% Ce, 5.5% La and 2.3%
Nd.
REE uses and markets
Light rare earth elements are essential components of fuel refinery catalysts,
catalytic converters, fuel cell alloys, batteries, high quality optical glass,
fluorescent lights and TV screens, and high strength alloys for aircraft engines
and lighter cars. Neodymium and Samarium permanent magnets have wide
applications in the aerospace industry, cellphones, CD's, computers and sound
systems where miniaturization of components is a key feature. Emerging green
technologies such as wind turbines, hybrid vehicles and fuel cells all require
rare earth magnets, catalysts and specialized REE alloys.
China controls approximately 97% of the world's rare earth element market and
57% of current known Reserves. A March 2010 report by the Institute for the
Analysis of Global Security (a Washington based think-tank), predicts Chinese
domestic demand will absorb almost 100% of China's REE production by 2012, and
increasing government control and restrictive export quotas are already in
place. The study predicts global demand to reach 200,000 tonnes of rare earth
elements a year in 2014, up from about 150,000t in 2010, leading to a 40,000t
annual shortfall by 2015. Current world production is dominated by the giant
Bayan Obo mine in Inner Mongolia and will remain so even after production ramps
up from Mountain Pass (California), Mt Weld (Australia), Thor Lake and Hoidas
Lake (Canada) and Steenkampskraal in South Africa, between 2010 and 2013.
By 2014 the two largest and most advanced projects outside China, Mountain Pass
and Mt Weld, will each only be contributing about 20,000t or 10% of the
estimated demand. Mt Weld owner Lynas Corp. Ltd estimates 2010 supply of La,
Ce, Pr and Nd is already falling behind demand by 27%, 15%, 29% and 10%
respectively.
**ENDS**
For further information visit www.acrplc.com <http://www.acrplc.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 & +44 (0) 20 7236 1177
Finance Ltd
Susie Callear St Brides Media & +44 (0) 20 7236 1177
Finance Ltd
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.
[HUG£1423277]
(END) Dow Jones Newswires
June 11, 2010 05:00 ET (09:00 GMT)