🕐01.06.11 - 10:00 Uhr
AFRICAN CONSOLIDATED RESOURCES PLC - INCREASE IN JORC RESOURCE AT GADZEMA GOLD PROJECT
African Consolidated Resources plc / Ticker: AFCR / Index: AIM / Sector: Mining
1 June 2011
African Consolidated Resources plc (ACR or the Company)
Increase in JORC Resource at Gadzema Gold Project
African Consolidated Resources Plc, the AIM listed southern African focused resource development company, is pleased to announce an interim JORC Compliant Resource upgrade on its Gadzema Gold Project in the northern midlands district of Zimbabwe (Gadzema or the Project).
Highlights
Interim Resource upgrade available for approx 5,300m (40%) of a total 13,000m drill programme completed in May 2011
The Resource upgrade covers approx 600m of strike within ACRs 7km long Gadzema project and is open to the north, south, west and at depth
A JORC Inferred Resource has been estimated at 4.7Mt @ 1.1g/t for 165,000oz at a cutoff grade of 0.6g/t
The total Gadzema Resource now stands at 23Mt @ 1.2g/t for 912,000oz
Assay results from the remaining 8,000m out of the 13,000m of drilling due in early June 2011 - demonstrates the viability of exceeding the 1Moz milestone at Gadzema in July
ACRs total gold inventory now exceeds 1.4Moz, (tabulated below)
ACR commenced an intensive drilling programme at Gadzema in January 2011, using two Reverse Circulation (RC) rigs on double shifts, and a diamond coring (DC) drill rig.
The programme, which covered approximately 13,000m, was completed in mid-May 2011.
The current study includes sample and assay data for 77 RC drill holes and four diamond core (DC) holes drilled by ACR during the Q1-Q2 2011 drilling campaign and in 2010.
The drilling was carried out to test a sub-outcropping felsic intrusion where north trending thrusting has created large quartz-sulphide stockwork vein systems in the felsic porphyry, and in adjacent banded iron formations and talc schists.
The area has been tested with 15 east-west oriented drill traverses spaced at 40m northings and approximately 40m on section, and covers 600m of strike.
All drill holes are angled steeply (~60 degrees) towards grid west, normal to the general strike of the gold mineralisation.
Drilling tested the mineralisation, which dips steeply to the east, to depths of approximately 150m vertically below surface.
Assays were carried out at 1m intervals by Fire Assay method using ISO accredited laboratories in South Africa and Zimbabwe.
ACR Gold Resources May 2011
Oz
Grade
Tonnes
Cutoff g/t
JORC Category
Vertical Depth of Drilling
Peerless ACR drilling
210,000
1.4
4,600,000
0.5
Inferred
Av 100m; max 150m
Concession ACR drilling
240,000
1.5
4,800,000
0.5
Inferred
Av 100m; max 150m
Dumps, Pickstone-Peerless
Big Red
15,900
1.3
380,000
1.0
Measured
Football Field
18,800
1.0
586,000
1.0
Measured
Concentrate
28,300
4.4
200,000
1.0
Measured
Total Pickstone-Peerless Resource
513,000
1.5
10,566,000
Gadzema -Zone 1
475,000
1.5
9,700,000
0.5
Inferred
Av 150m
Gadzema - Zone 2
272,000
1.0
8,500,000
0.6
Inferred
Av 150m
Gadzema - Zone 3
165,000
1.1
4,700,000
0.6
Inferred
Av 150m
Total Gadzema
912,000
1.2
22,900,000
Inferred
Av 150m
TOTAL ALL
1,425,000
1.3
33,466,000
Av 100-150m
1 Excludes Zone 1 Dumps; internal estimate 11,000 oz at 0.84 g/t & 7,000 oz @ 0.51 g/t
ACR Technical Director Michael Kellow said, "Including the 174,000oz increase in the Gadzema Resource as reported on 3 May 2011, we have now added 340,000oz to the Project since drilling started in January.
These additional ounces further underpin the prospectivity of our Gadzema Gold Project where we now have significant intercepts on several zones over 7km of strike length.
With the Gadzema Resource inventory now standing at over 900,000oz, we are confident that we will surpass the 1 million oz milestone at Gadzema once the assay results are to hand from the balance of the recent 13,000m drilling programme.
Aggressive drilling programmes for the second half of 2011 are currently being planned with the objective of gathering further information about the Gadzema mineralisation as we develop this significant project up the value curve."
The technical elements of this report have been reviewed by Mr.
Michael Kellow (the Companys Technical Director).
Michael Kellow (BSc) is a member of the Australian Institute of Geoscientists (AIG) and a full-time employee of African Consolidated Resources Plc.
Mr.
Kellow has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australian Code for Reporting of Exploration Results, Mineral Resource and Ore Reserves" (JORC Code) and as a "qualified person" as defined in the AIM Note for Mining, Oil and Gas Companies.
Michael Kellow consents to the publication of this report.
**ENDS**
For further information visit www.acrplc.com or please contact:
Roy Tucker
African Consolidated Resources plc
+44 (0) 1622 816918
+44 (0) 7920 189012
Michael Kellow
African Consolidated Resources plc
+263 772 239 301
Andrew Godber
Panmure Gordon (UK) Limited
+44 (0) 207 459 3600
Callum Stewart
Panmure Gordon (UK) Limited
+44 (0) 207 459 3600
Abhishek Majumdar
Panmure Gordon (UK) Limited
+44 (0) 207 459 3600
Susie Geliher
St Brides Media & Finance Ltd
+44 (0) 20 7236 1177
Glossary
Term
Explanation
Acronym
aeromagnetics
Magnetic survey carried out with a sensor in an aircraft
aeromags
archaean
rocks greater than 2,600 Ma in age
As
chemical symbol for arsenic
Au
chemical symbol for gold
banded iron-formation
chemical sedimentary rock consisting of iron and quartz
BIF
base metal
Nickel, copper, lead, zinc
BM
capex
"capital expenditure"; cash amount required for non-operating costs such as plant construction and equipment
claims
areas allocated by the government of Zimbabwe for the purposes of exploration and exploitation of minerals, may be either for gold, diamonds or base minerals.
Synonymous with leases, tenements.
concentrate
normally of metallic minerals such as pyrite and arsenopyrite after removal of gangue
Conductor
See electromagnetic survey
core
Cylindrical sample of rock as cut by a diamond drill
Co
Chemical symbol for cobalt
Cu
chemical symbol for copper
diamond drilling
Drilling method using a diamond-impregnated cutting bit to obtain a core sample of rock
dip
the orientation of a planar geological feature relative to horizontal
disseminated sulphide
Accumulations of sulphide minerals where the grains are not separated by other minerals and are not in physical contact with each other.
electromagnetic survey
Geophysical technique using electrical currents to detect conductive bodies below surface.
Conductive bodies include massive-sulphides that may contain base metals
EM, TEM, SIROTEM
EM survey
See electromagnetic survey
environmental impact assessment
assessment of impacts to the environment likely to be caused by any activity
EIA
environmental management act
legislation encompassing and replacing all previous
environmental legislation
EMA
environmental management plan
report detailing mitigation or avoidance of environmental impacts associated with any activity; for mining activity usually incorporates a mine closure plan
EMP
fault
a fracture or break within a body of rock across which some movement has occurred
felsite
silica rich igneous rock, aka felsic volcanic
flotation
the process of concentrating minerals from finely ground slurry by the addition of reagents and air
fold
geological term for a curve or bend of planar surfaces in rocks
foliation
geological term for planar features within rocks
geophysics
Mineral prospecting systems designed to detect mineralisation using the physical properties of rocks.
global positioning system
Navigation and positioning system allowing survey by satellite
GPS
gossan
Oxidized sulphide minerals which form distinctive iron-rich outcrops with sponge-like weathering textures; gossans often overlie sulphide-rich deposits of base metals and gold.
greenstone belt
belts of metamorphosed sedimentary and igneous rocks of Archaean age
hydrothermal
hot, water-rich fluid which dissolves and transports metals and deposits these in suitable geological traps
igneous rock
originally molten can be volcanic or intrusive
JORC
Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy
laterite
highly weathered rock usually conforms to a consistent weathering pattern from surface and often redistributes gold, nickel or aluminium to ore grade concentrations above the primary source at depth.
lodes
Higher grade portion of mineralised zones, usually with specific orientation
magnetic survey
measurements of the perturbation in the earths magnetic field caused by magnetic minerals in rocks
massive sulphide
Bodies of sulphide minerals where the grains are in physical contact; these bodies can become electrical conductors (see EM surveys)
metamorphism
changes in the mineral compositions of rocks due to increased temperature and/or pressure normally during burial
mineralisation
metallic minerals such as gold, base metals, pyrite and arsenopyrite incorporated in rocks
mineralised zones
hydrothermally altered structural features containing potentially valuable minerals
Ni
chemical symbol for nickel
orebody
economically viable portion of a mineralised zone
Pd
Chemical symbol for palladium
Pt
Chemical symbol for platinum
pyrite
iron sulphide mineral often associated with gold
pyrrhotite
iron sulphide mineral
quality control
procedures to ensure the accuracy of all results obtained from any activity, particularly sampling and assays
QC
quality assurance
process of recording all quality control procedures
QA, QA/QC
quartz
silicon oxide mineral very common in hydrothermal deposits
resource
mineral resource as defined by the JORC Code 2004
reverse circulation drilling
rotary percussion drilling whereby the sample is returned from the cutting head inside the rod string to surface thereby avoiding contamination from the walls of the hole
RC
rotary air blast drilling
Open-hole drilling whereby drill cuttings are returned to surface by compressed air in an un-lined hole; contamination is possible from the walls of the hole.
RAB
saprolite
In-situ weathered rock vertically located at the bottom of the lateritic weathering profile.
Can be host to nickel laterite ore
schist
metamorphic rock with well developed foliation
serpentinite
magnesium iron silicate of metamorphic origin
shale
clay-rich sedimentary rock, when black or carbonaceous normally contains carbon
Black shale
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
siting of works plan
statutory submission required ahead of any mining activity
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
synform
geological term for an upward facing fold
talc
magnesium iron silicate mica of metamorphic origin
tenement
an area encompassing a number of blocks of claims
thrust
shallow dipping fault where the upper body of rock overrides the lower portion
ultramafic
dark silicate mineral or rock with high magnesium and iron
variogram
mathematical representation of spatial variability between data
wireframe
computer generated volume boundary, usually around lithological or Resource zones
XRF
X-Ray fluorescence; an assay technique using x-rays to measure element concentrations in a sample
UNITS
cm.g/t
centimetre grams per tonne - metal content expressed as grade times thickness
g
gramme
g/t
grammes per metric tonne - metal concentration
ha
hectare
kg
kilogramme, a thousand grammes
km
kilometre
koz
thousand ounces
kt
thousand metric tonnes
kv
thousand volt
kva
thousand volt amperes
m
metre
mm
millimetre
m
micron, or millionth of a metre
mt
million metric tonnes
moz
million ounces
oz
fine troy ounce equaling 31.1048 grammes - normal unit used in selling gold
ppb
parts per billion
ppm
parts per million, equivalent to g/t
t
metric tonne
t/m3
density measured as metric tonnes per cubic metre
degrees
Lottie Brocklehurst
St Brides Media & Finance Ltd
Chaucer House
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London EC4M 9AY
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