🕐04.09.14 - 08:27 Uhr
ARMADALE CAPITAL PLC - POSITIVE ASSAY RESULTS UNDERPIN VALUE OF MPOKOTO GOLD PROJECT
Armadale Capital Plc / Index: AIM / Epic: ACP / Sector: Investment Company
4 September 2014
Armadale Capital Plc (Armadale or the Company)
Positive Assay Results Underpin Value of Mpokoto Gold Project
Armadale, the AIM quoted investment company focused on natural resource projects in Africa, is pleased to announce a series of positive assay results from the recently completed 2,307m drilling campaign at its Mpokoto Gold Project in the Katanga Province in the Democratic Republic of Congo (Mpokoto or the Project).
The drilling program was designed and conducted with the aim of expanding the current JORC resources, both along strike and up dip, and to upgrade the classification of the JORC resources by confirming the robustness of the mineralisation model.
This updated resource should feed into an expanded and updated Scoping Study, increasing the overall value of the Project.
Highlights
* Results confirm mineralisation is open along strike and at depth in all areas tested
* Significant assays include:
o MKTO-006 returned 20m @ 2.56g/t Au from 14.0m depth
o MKTO-020 returned 16m @ 1.76g/t Au from 16.0m depth
o MKTO-040 returned 14m @ 2.67g/t Au from 31.0m depth
o MKTO-023 returned 6m @ 4.26 g/t Au from 9.0m depth
o MKTO-037 returned 4m @ 4.42g/t Au from 56.0m depth
o MKTO-011 returned 8m @ 1.65g/t Au from 20m depth
* A new zone of continuous mineralisation (Target Zone 2) confirmed over a strike length of approximately 750m to an average depth of 60m down dip
* Program successfully tested exploration targets, extended mineralisation trends and confirmed continuity
* It is anticipated that the results will supports conversion of the existing 10Mt-15Mt at 1.2g/t-1.5g/t Au exploration target to classified resource
* Results demonstrate excellent potential for economic exploitation of the shallow oxide mineralisation and confirm the robustness of the applied Mineral Resource model, underpinning Mpokotos value as a solid gold development project with attractive economic fundamentals even at gold price of US$1,100/oz
Justin Lewis, Director of Armadale, said, "With mineralisation at Mpokoto confirmed open along strike and at depth in all tested areas and a significant new zone of mineralisation identified over a strike length of approximately 750m, these drill results are highly encouraging.
This exploration program further underpins Mpokotos value as a low cost gold development project and validates our targeted approach as we focus on the shallower, lower cost oxide resource.
These results are expected to be incorporated into an updated and classified Mineral Resource estimate which will further expand the resource base at Mpokoto, which in turn will be incorporated into an expanded and updated Scoping Study."
Further Information
A detailed drilling program was planned for the Mpokoto Project following the completion of an updated Mineral Resource estimate in early 2014.
A total of 46 shallow RC (Reverse Circulation)[1] drill holes were completed between June and July 2014 for a total of 2,307m as part of a targeted drilling program that focused on demonstrating the continuity of mineralisation up-dip and along strike.
CSA Global Pty Ltd ("CSA") were engaged in the capacity of independent technical advisors and Qualified Persons (QP) to undertake a review of drilling data and propose a follow-up work program.
CSA had previously estimated additional gold mineralisation potential in the project area of between 10 and 15 million tonnes at 1.2g/t - 1.5g/t Au at Mpokoto.
The drill holes completed to date are part of a more comprehensive drilling program aimed at testing the interpreted mineralisation geometry for continuity, near-surface mineralisation, refining of the geological model in selected areas and converting exploration potential to resources (Figure 1).
[cid:image015.jpg@01CFC80F.168519C0]
[Min Zone 4]
[Min Zone 3]
[Target Zone 2]
[cid:image020.jpg@01CFC80F.168519C0]
Figure 1.
Distribution of new drill holes (blue).
Overall, drilling was conducted along strike to the northwest and up-dip of Mineralisation Zone 4 (Figure 1), up-dip of Mineralisation Zone 3 and up-dip and along strike in target Mineralisation Zone 2 (not classified resources).
Drilling in Target Zone 2 (southernmost area) confirmed that continuous gold mineralisation occurs in two sub-parallel, moderately southwest dipping lenses that can be traced over a strike length of about 750m (Figure 1).
The upper lens is, in places, up to 17m wide whereas the lower lens has a maximum width of 4m.
The mineralisation is currently confirmed to a maximum vertical depth of 100m (average 60m).
The drill section spacing is now reduced to about 50m.
[cid:image021.jpg@01CFC80F.168519C0]
Figure 2.
Cross section in Target Zone_2.
New drill holes (blue).
The drill holes sited in the Mineralisation Zone 3 area targeted mineralisation at shallow depth in the central and northern part of the "Inferred" mineralisation.
In the central area the shallow drill holes intersected low-grade mineralisation conforming with the interpreted zones of mineralisation.
However, in the northern area the shallow holes confirmed the tenor of mineralisation and suggest that future drilling may allow the mineralisation in Mineralisation Zone 3 to be joined with that in Mineralisation Zone 4 to the north.
The majority of drill holes were drilled along strike to the northwest and up-dip of Mineralisation Zone 4.
The drilling in this area was particularly successful.
Continuous mineralisation in several mineralised lenses has now been confirmed over a strike length of 1,000m and the mineralisation is open to the northwest.
This is a net increase of mineralisation strike length of 300m in Mineralisation Zone 4.
All drill holes targeted the up-dip and oxide zone of mineralisation (Figure 3).
The drilling program to date, has been highly successful in confirming continuity of mineralisation, substantiating the geometry of mineralisation and concepts used and has demonstrated that good potential exists in the area for shallow economic mineralisation.
[cid:image022.jpg@01CFC80F.168519C0]
Figure 3.
Cross section in Min Zone 4.
New drill holes (blue).
This cross section represents new mineralisation targeted and discovered.
About Mpokoto Gold Project
Mpokoto is located in the western part of the Katanga Province approximately 250 km west of Kolwezi in the Democratic Republic of Congo, and approximately 25km from the Zambian border.
The area is highly prospective, with local operators including Ivanplats Limited and Glencore Plc.
Since 1998 approximately US$20 million was spent on gold exploration at the Project.
In 2012, mining consultancy TetraTech completed a mineral resource estimation in line with JORC 2004 and NI 43-101 guidelines.
At a cut off of 0.5 g/t Au the deposit was estimated to contain 7.2 million tonnes at 1.6g/t Au for approximately 380,000 ounces of gold (Table 1).
Of this, approximately 5.3 million tonnes at 1.6g/t Au are classified in the Indicated category for 290,000 ounces.
CSA Global conducted an updated Mineral Resource estimation that Mpokoto currently has a resource of 11.12 million tonnes @ 1.42g/t gold (Au) at a cut-off grade of 0.5 g/t Au classified as Indicated and Inferred.
In addition, CSA Global is of the opinion that potential exists for an Exploration Target of between 10 and 15 million tonnes at 1.2g/t - 1.5g/t Au.
The potential for additional resources and reserves is therefore good.
Should this target mineralisation be converted to Inferred and Indicated resources and then to reserves, it is likely that the proposed project throughput rate can be substantially upgraded.
Competent Person Statement:
Scientific or technical information in this release has been prepared by Dr Simon Dorling of CSA Global Pty Ltd, Armadales geological consultant.
Dr Simon Dorling is a member of the Australasian Institute of Geoscientists (MAIG) and has sufficient experience which is relevant to the style of mineralisation under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (the JORC Code).
Dr Simon Dorling consents to the inclusion in this report of the Information, in the form and context in which it appears.
A copy of the announcement, which includes a map and drawings relating to Mpokotos location and geology can be found on the Companys website at www.armadalecapitalplc.com.
**ENDS**
Enquiries:
Company
Justin Lewis, Director +44 20 7233 1462
Charles Zorab
Nomad and broker: finnCap Limited
Stuart Andrews/ Christopher Raggett +44 20 7220 0500
Press relations: St Brides Media & Finance Ltd.
Susie Geliher/Charlotte Heap +44 20 7236 1177
Notes
Table 1: Table of all recent drilling results composited at 0.3g/t economic cut-off, maximum of 2m internal dilution.
Hole_ID
>From (m)
To (m)
Interval
Lable
MKTO-002
1.00
7.00
6.00
6.00@0.51
MKTO-002
10.00
14.00
4.00
4.00@0.55
MKTO-002
34.00
38.00
4.00
4.00@0.71
MKTO-003
4.00
6.00
2.00
2.00@0.53
MKTO-003
6.00
16.00
10.00
10.00@0.64
MKTO-003
22.00
26.00
4.00
4.00@0.63
MKTO-003
32.00
35.00
3.00
3.00@0.54
MKTO-003
35.00
39.00
4.00
4.00@1.90
MKTO-004
26.00
29.00
3.00
3.00@0.54
MKTO-004
29.00
39.00
10.00
10.00@0.83
MKTO-004
41.00
44.00
3.00
3.00@0.55
MKTO-005
17.00
20.00
3.00
3.00@0.63
MKTO-006
1.00
5.00
4.00
4.00@0.58
MKTO-006
5.00
8.00
3.00
3.00@0.61
MKTO-006
14.00
34.00
20.00
20.00@2.56
MKTO-006
44.00
48.00
4.00
4.00@0.56
MKTO-007
3.00
5.00
2.00
2.00@0.51
MKTO-007
27.00
29.00
2.00
2.00@0.51
MKTO-007
36.00
48.00
12.00
12.00@0.80
MKTO-008
2.00
8.00
6.00
6.00@0.87
MKTO-008
17.00
26.00
9.00
9.00@0.70
MKTO-009
10.00
16.00
6.00
6.00@0.55
MKTO-009
25.00
27.00
2.00
2.00@0.58
MKTO-009
29.00
36.00
7.00
7.00@0.71
MKTO-010
4.00
7.00
3.00
3.00@0.52
MKTO-010
39.00
41.00
2.00
2.00@0.57
MKTO-010
46.00
49.00
3.00
3.00@0.57
MKTO-010
53.00
59.00
6.00
6.00@1.06
MKTO-011
20.00
28.00
8.00
8.00@1.65
MKTO-012
18.00
27.00
9.00
9.00@0.55
MKTO-012
27.00
34.00
7.00
7.00@1.03
MKTO-012
35.00
37.00
2.00
2.00@0.55
MKTO-013
4.00
6.00
2.00
2.00@0.51
MKTO-013
45.00
50.00
5.00
5.00@0.57
MKTO-014
0.00
11.00
11.00
11.00@0.91
MKTO-015
1.00
8.00
7.00
7.00@0.59
MKTO-015
32.00
35.00
3.00
3.00@0.65
MKTO-016
7.00
12.00
5.00
5.00@0.50
MKTO-017
2.00
8.00
6.00
6.00@0.51
MKTO-017
23.00
27.00
4.00
4.00@0.67
MKTO-017
30.00
32.00
2.00
2.00@0.62
MKTO-017
33.00
37.00
4.00
4.00@1.14
MKTO-018
1.00
11.00
10.00
10.00@0.53
MKTO-018
12.00
14.00
2.00
2.00@0.60
MKTO-018
16.00
18.00
2.00
2.00@0.51
MKTO-018
21.00
25.00
4.00
4.00@0.72
MKTO-018
42.00
46.00
4.00
4.00@0.85
MKTO-019
0.00
5.00
5.00
5.00@0.82
MKTO-019
11.00
14.00
3.00
3.00@0.50
MKTO-019
15.00
17.00
2.00
2.00@0.53
MKTO-020
0.00
6.00
6.00
6.00@0.87
MKTO-020
11.00
16.00
5.00
5.00@0.51
MKTO-020
16.00
32.00
16.00
16.00@1.76
MKTO-020
37.00
40.00
3.00
3.00@0.65
MKTO-021
0.00
13.00
13.00
13.00@1.10
MKTO-021
30.00
32.00
2.00
2.00@0.59
MKTO-021
32.00
37.00
5.00
5.00@0.60
MKTO-021
41.00
45.00
4.00
4.00@0.64
MKTO-021
46.00
58.00
12.00
12.00@1.14
MKTO-022
1.00
7.00
6.00
6.00@0.79
MKTO-022
12.00
15.00
3.00
3.00@0.75
MKTO-022
17.00
23.00
6.00
6.00@0.93
MKTO-023
0.00
6.00
6.00
6.00@0.72
MKTO-023
9.00
15.00
6.00
6.00@4.26
MKTO-024
0.00
21.00
21.00
21.00@1.21
MKTO-025
1.00
5.00
4.00
4.00@0.55
MKTO-026
2.00
7.00
5.00
5.00@0.73
MKTO-026
9.00
12.00
3.00
3.00@0.52
MKTO-026
14.00
22.00
8.00
8.00@0.95
MKTO-027
11.00
16.00
5.00
5.00@0.67
MKTO-028
21.00
23.00
2.00
2.00@0.56
MKTO-028
27.00
31.00
4.00
4.00@0.64
MKTO-028
35.00
43.00
8.00
8.00@0.79
MKTO-032
47.00
60.00
13.00
13.00@0.83
MKTO-034
56.00
58.00
2.00
2.00@0.59
MKTO-037
27.00
39.00
12.00
12.00@0.85
MKTO-037
56.00
60.00
4.00
4.00@4.42
MKTO-038
7.00
14.00
7.00
7.00@0.58
MKTO-039
4.00
17.00
13.00
13.00@0.96
MKTO-039
36.00
38.00
2.00
2.00@0.68
MKTO-040
31.00
45.00
14.00
14.00@2.67
MKTO-040
46.00
48.00
2.00
2.00@0.58
MKTO-040
49.00
52.00
3.00
3.00@0.63
MKTO-041
12.00
28.00
16.00
16.00@1.01
MKTO-041
40.00
44.00
4.00
4.00@0.85
MKTO-042
1.00
4.00
3.00
3.00@0.77
MKTO-043
3.00
5.00
2.00
2.00@0.59
MKTO-044
48.00
53.00
5.00
5.00@0.83
NOTE: 1.
All holes are Reverse Circulation (RC) holes.
All samples comprise crushed rock samples.
3.
Assaying is conducted at ALS Chemex Laboratories, Johannesburg, South Africa using industry standard 30g Fire Assay with AAS finish.
Assays >100g/t Au are finished gravimetrically.
4.
Certified reference materials, blanks and crushed lab duplicates are inserted into the sample stream and monitored by CSA Global UK.
5.
Down hole intercepts are quoted to two decimal places using a >0.2g/t lower cut-off which includes no more than 3m of internal dilution (>0.2g/t Au).
6.
No high cut-off grade has been applied.
7.
True widths are approximately 45-65% of the reported down-hole interval.
8.
NSI - no significant intercept.
Table 2: Table of all Collar positions of the reported programme
Drill Hole ID
East (UTM)
North (UTM)
RL
Dip
Azimuth (magnetic)
Hole Type
EOH
Comments
MKTO-001
811521
8817800
1115
-55
45
RC
40
assays received
MKTO-002
811506
8817784
1115
-55
45
RC
45
assays received
MKTO-003
811481
8817767
1115
-55
45
RC
50
assays received
MKTO-004
811471
8817746
1115
-55
45
RC
49
assays received
MKTO-005
811483
8817824
1112.5
-55
35
RC
60
assays received
MKTO-006
811460
8817802
1112.5
-55
35
RC
50
assays received
MKTO-007
811439
8817786
1112.5
-55
35
RC
50
assays received
MKTO-008
811434
8817850
1112.5
-55
35
RC
50
assays received
MKTO-009
811416
8817833
1112.5
-55
35
RC
40
assays received
MKTO-010
811400
8817810
1112.5
-55
35
RC
60
assays received
MKTO-011
811350
8817907
1112.5
-55
35
RC
60
assays received
MKTO-012
811334
8817888
1112.5
-55
35
RC
40
assays received
MKTO-013
811317
8817870
1112.5
-55
35
RC
50
assays received
MKTO-014
811616
8817750
1115.9
-55
45
RC
40
assays received
MKTO-015
811598
8817732
1115.9
-55
45
RC
50
assays received
MKTO-016
811668
8817731
1115.9
-55
45
RC
35
assays received
MKTO-017
811650
8817714
1115.9
-55
45
RC
50
assays received
MKTO-018
811615
8817678
1115.9
-55
45
RC
55
assays received
MKTO-019
811710
8817703
1115.9
-55
45
RC
35
assays received
MKTO-020
811692
8817685
1115.9
-55
45
RC
60
assays received
MKTO-021
811674
8817667
1115.9
-55
45
RC
60
assays received
MKTO-022
811793
8817646
1117
-55
45
RC
50
assays received
MKTO-023
811756
8817607
1117.2
-55
45
RC
40
assays received
MKTO-024
811738
8817589
1117.2
-55
45
RC
55
assays received
MKTO-025
812008
8817656
1117.1
-55
45
RC
45
assays received
MKTO-026
812071
8817649
1118
-55
45
RC
40
assays received
MKTO-027
812133
8817643
1121.5
-55
45
RC
35
assays received
MKTO-028
812115
8817625
1121.5
-55
45
RC
55
assays received
MKTO-029
812170
8817609
1121.5
-55
45
RC
35
assays received
MKTO-030
812152
8817592
1121.5
-55
45
RC
55
assays received
MKTO-031
812308
8817354
1122
-60
47
RC
55
assays received
MKTO-032
812392
8817263
1120.5
-60
47
RC
60
assays received
MKTO-033
812569
8817085
1120.5
-60
47
RC
50
assays received
MKTO-034
812646
8817020
1119.6
-60
47
RC
60
assays received
MKTO-035
812661
8816966
1119.9
-60
47
RC
60
assays received
MKTO-036
812713
8816947
1119.6
-60
47
RC
60
assays received
MKTO-037
813044
8816133
1082
-60
45
RC
60
assays received
MKTO-038
813110
8815942
1092.414
-60
48
RC
49
assays received
MKTO-039
813307.2
8815539
1085.458
-60
60
RC
50
assays received
MKTO-040
813267.4
8815575
1084.966
-60
60
RC
60
assays received
MKTO-041
813249.7
8815678
1088.269
-60
60
RC
50
assays received
MKTO-042
813202.6
8815800
1086.979
-60
60
RC
34
assays received
MKTO-043
812234.5
8817420
1122.333
-60
60
RC
60
assays received
MKTO-044
812444.1
8817174
1120.839
-60
60
RC
60
assays received
MKTO-045
812479.3
8817139
1120.839
-60
60
RC
50
assays received
MKTO-046
812584.9
8817032
1120.839
-60
60
RC
50
assays received
[cid:image002.png@01CECBDD.61F8A860]
Charlotte Heap
St Brides Media & Finance Ltd
3 St Michaels Alley, London, EC3V 9DS
www.stbridesmedia.co.uk
Tel: 020 7236 1177 | Mob: 07771862283 | Twitter: @StBrides1
________________________________
[1] RC (reverse circulation) drilling is a cost-effective drilling method by which an air pressure driven hammer penetrates the rock sequence and generated a rock sample of crushed material as opposed to continuous core as in diamond drilling.