Results of Drilling Campaign

RNS Number : 6608S

China Africa Resources PLC

04 December 2012

 



China Africa Resources Plc

("CAR" or the "Company")

Results of Drilling Campaign

China Africa Resources Plc is pleased to release the results of its underground resource drilling programme at its 100% owned Berg Aukas mine - a zinc, lead, silver and vanadium deposit in northern Namibia.  

Highlights

·     Completion of the 15 hole and 6,856m diamond drilling programme.

·     Several outstanding, high grade intersections including:

o  59.40m @ 26.0% zinc, 13.2% lead

o  32.02m @ 17.8% zinc, 2.9% lead

·     The release of a maiden JORC compliant resource anticipated in Q1 2013.

·     Revised timetable for completion of feasibility study.

Rod Webster, CEO of CAR commented:

"I am very excited about the results of the drilling program.  It's very rare to see such high grades in lead/zinc projects these days and goes to show that Berg Aukas is a very rich deposit.  These results further confirm our confidence in the economics of the project."

Drilling Campaign

A confirmation diamond drilling campaign has been completed at the Berg Aukas mine targeting the bulk of the known resource.  The drilling results have confirmed the exceptional grades and general distribution of the mineralisation as was understood from the detailed historical data on the orebody.  A total of 11 holes, and four daughter holes were completed totalling in 6,856m.  A table with the full results of the drilling campaign can be seen below.

Various styles of mineralisation, including massive zinc/lead sulphides, zinc and lead oxides in breccias and vanadate muds were encountered.  The deposit remains open at depth.

The 3D geological model will now be updated and a maiden JORC-compliant resource will be estimated by CSA Global (UK) Ltd, which is expected to be reported in Q1 2013.  During H1 2013 metallurgical test work will be undertaken on the core samples recovered from the drilling programme and a preliminary mining study will be carried out.

Table 1: Significant Diamond Drilling Intersections

	Hole No	From (m)	To (m)	Interval (m)1	Zn%	Pb%	V%	Ag ppm	V2O5%2
	BD-001	593.51	594.50	0.99	5.3	1.5	<LOD	<LOD
	BD-001A	602.77	603.26	0.49	30.2	30.1	<LOD	135
	BD-001A	603.26	614.30	11.04	Cavity
	BD-001A	614.30	619.37	5.07	39.5	15.5	0.589	82	1.052
	BD-002	674.79	675.66	0.87	9.2	0.5	<LOD	<LOD
	BD-002	689.20	690.00	0.80	7.1	8.3	1.530	<LOD	2.731
	BD-003	459.37	461.00	1.63	5.3	0.6	<LOD	17
	BD-003	474.00	475.41	1.41	17.4	2.5	0.008	29	0.014
	BD-003	487.20	494.00	6.80	33.6	2.3	<LOD	92
	BD-003	504.72	505.94	1.22	38.0	2.5	<LOD	159
	BD-004	506.38	511.59	5.21	3.5	1.7	0.153	<LOD	0.273
	BD-004	515.00	520.10	5.10	2.1	2.4	0.391	<LOD	0.698
	BD-011B	514.00	515.42	1.42	19.0	2.5	0.032	30	0.057
	BD-011B	525.24	527.05	1.81	18.8	0.1	0.141	219	0.252
	BD-011B	538.00	540.00	2.00	2.8	0.8	<LOD	9
	BD-012	494.00	497.00	3.00	8.0	4.2	0.003	11	0.006
	BD-012	509.00	515.63	6.63	2.4	1.4	0.202	7.4	0.361
	BD-012	517.00	523.00	6.00	2.7	0.9	0.093	<LOD	0.166
	BD-012	538.00	539.00	1.00	9.4	1.1	<LOD	<LOD
	BD-012A	498.00	500.40	2.40	3.4	4.3	0.789	<LOD	1.408
	BD-012A	516.00	518.80	2.80	3.3	4.6	0.808	<LOD	1.441
	BD-012A	523.00	531.00	8.00	3.3	2.4	0.307	3.4	0.548
	BD-012A	597.60	657.00	59.40	26.0	13.2	0.134	61	0.239
including	BD-012A	597.60	621.55	23.95	38.8	29.4	0.016	138	0.028
and	BD-012A	628.52	650.69	22.17	26.6	2.7	0.210	13	0.375
	BD-012A	668.00	673.68	5.68	3.0	4.1	0.476	3	0.849
	BD-013	543.28	575.30	32.02	17.8	2.9	0.003	37	0.006
including	BD-013	543.28	544.08	0.80	29.9	4.7	0.035	35	0.062
and	BD-013	544.08	546.43	2.35	Cavity
and	BD-013	546.43	547.42	0.99	43.1	2.5	<LOD	65
and	BD-013	552.07	564.75	12.68	20.4	3.2	<LOD	47
and	BD-013	567.76	575.30	7.54	31.3	5.7	<LOD	63
	BD-014	551.56	554.30	2.74	42.6	3.0	0.314	115	0.560
	BD-014	561.00	564.14	3.14	24.3	8.8	0.019	89	0.034
	BD-014	564.14	572.3	8.16	Cavity
	BD-014	572.3	573.0	0.70	34.9	11.6	0.625	145	1.116
	BD-015C	634.54	635.30	0.76	6.76	0.16	<LOD	<LOD
	BD-015C	636.64	637.63	0.99	3.10	0.09	0.003	<LOD
	BD-015C	640.00	644.72	4.72	20.9	0.4	0.008	11	0.014
including	BD-015C	643.36	644.72	1.36	60.8	0.9	0.005	31	0.009
	BD-015C	649.75	655.00	5.25	29.0	2.9	0.489	15	0.874
including	BD-015C	649.75	653.45	3.70	38.6	1.9	0.224	20	0.399
	BD-015C	661.33	662.72	1.39	3.0	1.2	0.139	<LOD	0.248

Notes:

1         Where vanadium is not quoted assays were less than limit of detection (<LOD).

2         All thicknesses quoted are 'down hole' thicknesses.

Historical Mineral Resource Estimate

The Drilling campaign was designed to confirm the historical (SWACO, non-SAMREC compliant) Mineral Resource Estimate from December 1977, by Lombard, 1981 (Berg Aukas Competent Persons Report, 2011, page 50); being:

Table 2: Berg Aukas Historical Mineral Resource

Tonnes	Grade
Assured and Indicated	Zn%	Pb%	V2O5%
1,651,000	17	5	0.6

Feasibility Study

These excellent results have taken us some 6 months longer than we originally anticipated.  Now that we have the diamond drill cores, metallurgical work can commence and is planned to start early in the new year. The timing of the completion of the feasibility study is dependent upon the results of the metallurgical test-work and in particular the ability to produce a saleable vanadium product. Once the metallurgical test work and resulting process flow sheet are completed, the engineering and other remaining elements of the feasibility study could be completed in 3-4 months.  On this basis, the company currently anticipates that the feasibility study will be completed by the end of the 2013.

Shaft inspection

A visual inspection of the Berg Aukas No2 shaft was undertaken earlier in the year using a real-time video camera lowered down the full depth of the shaft on a winch. This showed that the shaft was open to its full depth of approximately 792m. The side wall conditions were good to approximately 588m below surface, below which the presence of support steel to support the sidewall was noted.  The shaft bottom had little spillage indicating no rock failures had occurred since the mine closure and subsequent shaft flooding.

Quality Assurance / Quality Control

Diamond core samples from the underground drilling campaign were assayed at Bureau Veritas Laboratory in Swakopmund Namibia. The Bureau Veritas Laboratory is SADCAS/SANAS ISO/IEC 17025:2005 accredited.

NQ or NQ3 size drill core was taken through the mineralised intersections, with poor ground being triple-tubed. All drill core was logged and photographed. Mineralised intervals were split in half by sawing and sampled at site. Very friable core and vanadium muds were sampled using a trowel to cut the material and samples collected manually. Samples were placed in labelled plastic bags and shipped to Bureau Veritas Mineral Laboratory in Swakopmund, Namibia, for assaying. China Africa Resources has implemented an industry standard QA/QC programme that includes the blind insertion of certified standards, duplicates and blanks into the sample stream.

All samples were sorted, dried and weighted on receipt at the laboratory. Core samples were crushed 2mm and a sub-sample pulverised to P90 of 75um. Samples were fused with sodium peroxide and subsequent melt dissolved in dilute hydrochloric acid for analysis. Zinc, lead and vanadium were determined by Inductively Coupled Plasma Optical Emission Spectrometry (ICP-OES). Silver was determined by Inductively Coupled Plasma Mass Spectrometry (ICP-MS).

Background of the Berg Aukas Mine

The Berg Aukas underground mine operated from 1958 to 1978.  The first shaft was established in 1958 with a second shaft sunk in 1968. From 1968 to 1978 it is reported that 2.3 million tonnes of material @ 15.0% zinc, 3.9% lead and 0.85% V2O5 were hoisted from the mine, of this 1.5 million tonnes of ore at 21.5% Zn, 5.5%Pb and 1.23% V2O5 was milled.

The mine closed in 1978 due to low zinc prices, and significant resources remain un-exploited.  The majority of the remaining resource is located in areas of the mine where extensive development is in place, providing good access to the orebody. 

Competent Persons Statement

The technical information in this announcement has been compiled, reviewed and approved by Michael Stuart MIMMM, Exploration and Development Manager for Weatherly Mining Namibia. Mr Stuart has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity to which he is undertaking to qualify as a qualified person under the AIM Note for Mining, Oil and Gas Companies. Mr Stuart is a Professional Member of the Institute of Materials, Minerals and Mining (MIMMM) and consents to the inclusion in this Announcement of such information in the form and context in which it appears.

For further information please contact:

China Africa Resources plc                                                        [phone]

Rod Webster, Chief Executive Officer

Dean Friday, Investor Relations

Nominated Adviser and Broker

RFC Ambrian Limited

Samantha Harrison / Jen Boorer                                               + 44 (0) 20 3440 6800

Further information is also available on the Company's website: www.chinaafricares.com

About China Africa Resources

CAR is an AIM listed company, focused on the development of the Berg Aukas lead/zinc project in Northern Namibia.  

 

END

 

 

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