Technical and Operational Update
African Consolidated Resources plc / Ticker: AFCR / Index: AIM / Sector: Mining
29 October 2010
African Consolidated Resources plc ('ACR' or 'the Company')
Technical and Operational Update
African Consolidated Resources Plc, the AIM listed resource company focused in
Zimbabwe, is pleased to announce a technical and operational update in respect
of its extensive portfolio of primarily gold, nickel, platinum, diamond and rock
phosphate projects.
OVERVIEW:
* Since the last technical report in May 2010, reverse circulation and diamond
drilling programmes totalling over 11,000 metres have been completed at the
Gadzema gold project and the Chishanya phosphate project.
* At Gadzema, over 5,504m of Reverse Circulation ('RC') drilling has been
completed at Blue Rock extensions, and 2,459m of RC drilling and 2,070m of
diamond drilling was completed at the Giant Mine, 5km to the north.
 Drilling of a parallel mineralised trend about 500m NE of Blue Rock
continues to intersect broad, low to medium-grade gold intercepts over
approx 500m of strike in felsic volcanic stockworks. Â Best intercepts
include 24m @ 1.7g/t, 8m @ 4.2g/t, 12m @ 3.2g/t and 7m @ 3.1g/t.
* The withdrawal of JV partner TWP from the Pickstone dump project, as
announced on 9 June 2010, has meant that some larger drilling projects have
been suspended in order to conserve exploration funds pending definition of
timescale and plans leading to a feasibility study and mining.
* In particular, drilling at the Horseshoe nickel project, has been scaled
back. However, despite delays in laboratory assay turnaround, and the import
of suitable core-cutting machinery, the drilling at the Giant gold mine is
completed and will allow a Resource upgrade once all assays are available.
 Good results from extensions of the Blue Rock gold project means infill
drilling will be planned to add further JORC Resources.
* At Pickstone the SSSB group (see 2010 Annual Report Chief Executive
Officer's Report) have determined that pursuant to the MOU signed with them
the open pit potential of Pickstone Peerless does not meet their internal
rate of return hurdle but they have stated they remain interested in
reviewing the potential for treatment of the dump and for underground
mining. Â Talks with other interested parties are now also underway for this
project. Â The SSSB group is continuing to evaluate the Giant Mine potential
within the context of the MOU.
* Pit sampling and detailed mapping at the Horseshoe nickel project has
determined that the thicker and higher grade portions of the near surface
laterite mineralisation is localised in remnant weathering surfaces capping
the prominent hills in the ranges. Â Drilling is required to assess these
thicker horizons, and a trial tracked rig capable of working in the steep
terrain is planned for November.
* At the Chishanya phosphate project, initial mineralogy tests indicate that
the apatite ore is well liberated by grinding, and should be amenable to
flotation. Â Float tests however were inconclusive due to oxide coatings on
the surface samples. Â A two hole diamond drill programme totalling 600m was
completed to investigate the distribution of the phosphate veins within the
intrusive pipe, and to obtain un-oxidised core for flotation tests. Â The
first hole hit mainly fenite country rock and only thin veins of phosphate.
 The second hole intersected very encouraging phosphate grades at depth,
with the bottom 166m of the hole averaging 8.6% P2O5 using a hand-held Niton
XRF analyser, which reads conservatively compared to laboratory assay
comparisons. Â Best intercept was 24.9m @ 11.6% P2O5. Â Further drilling will
be required to assess vein geometries and potential tonnages. Â In addition,
the greater carbonatite intrusion has never been assessed for its magnetite
content, which in surface outcrop often appears to meet the 30%-40% Fe
grades which are the world average for magnetite iron ore deposits prior to
concentration. Â Bulk sampling is planned.
* Assay results for the five diamond drill holes completed at the Cedric
copper project are not fully complete, but assays from the first hole
intersected oxide mineralisation of 18m @ 1.3% Cu from 31-49m  (includes
10m @ 2% Cu).
* Heli-borne electromagnetic surveys (TEM system) are planned to cover the
30km long nickel prospective horizon of the Perseverance Greenstone Belt for
massive nickel sulphides, plus the Cedric copper deposit for mineralisation
below the oxide cap and the Mphoengs nickel project  for sulphide nickel-PGE
(Botswana Tati belt extensions into Zimbabwe). Â The survey has been delayed
by lack of available equipment, but all efforts are being made to source a
contractor before year end.
* In Zambia, Rare Earths International Ltd ('REI'), pursuant to its Rare Earth
Minerals JV Agreement with ACR on the Nkombwa Hill project announced on 11
June 2010, has completed the due diligence on the project to its
satisfaction. Â As a result of this REI will be committed to a minimum spend
of $750,000 in order to define an initial Inferred Resource in exchange for
a 30% equity interest in the project. Historical drill core from the
project, phosphates as well as rare earths, has been retrieved, logged and
re-sampled.
* Final data compilation on the Kasempa Cu-Gold licence in the centre of the
country has revealed extensive soil geochemical anomalies for copper, and
historical diamond drill holes are reported intersecting Iron-Oxide copper-
gold (IOCG) style mineralisation. Â Claim beaconing and environmental
reporting is underway and an airborne magnetic/radiometric survey is being
costed over the IOCG targets.
ACR CEO Andrew Cranswick said, "While we have had some frustrating delays in
delivery of service and availability of suitable equipment, excellent progress
and consistently mineralised results continue to emanate from our Gadzema gold
projects and ground consolidation has met our best expectations on the area.
 Gold understandably forms the main focus of our resource definition efforts for
the near future as target definition continues on other projects. Â We continue
to work towards a gold production phase at Pickstone Peerless and hope to make
further announcements in this regard."
To view figures and diagrams relating to the announcement set out below, please
visit www.acrplc.com for the full version of the release.
For further information visit www.acrplc.com or please contact:
Andrew Cranswick       African Consolidated Resources +44 (0) 7920 189010
   plc
Roy Tucker          African Consolidated Resources +44 (0) 1622 816918
   plc +44 (0) 7920 189012
Richard Swindells      Ambrian Partners Limited +44 (0) 20 7634 4700
Jen Boorer Ambrian Partners Limited +44 (0) 20 7634 4700
Hugo de Salis St Brides Media & Finance Ltd +44 (0) 20 7236 1177
Susie Geliher St Brides Media & Finance Ltd +44 (0) 20 7236 1177
DEVELOPMENT DRILLING
Gadzema Belt - gold
Blue Rock:
Further prospective ground to the immediate north of Blue Rock (the Rainbow
Claims) has now been purchase-optioned and this together with the Berks claims
to the east and the Red Hat claims to the south cover 440 ha (4.4 sq km) in
total and more than treble the original strike length available. Â Work has
commenced on the Berks and Red Hat options.
Since the Company's last technical update in May 2010, 34 holes for 5504 m of RC
drilling  has been completed over a parallel mineralised trend about 500m NE of
the original Blue Rock discovery, within  the Berks claims.  Here the option
allows ACR to purchase the claims in full at any time before February 2013.
 Lines were drilled on 80m spacings across 1km of strike, angled 60 degrees
west. Â The central 500m of the drilled area has returned encouraging results,
similar to the main Blue Rock area, and results for the last 15 holes, mainly
southern extensions, are awaited.
Table 1 - Drilling Summary
+----------------------+-----------------+------------------+------------------+
| Drill Hole Type | Â Total no of| Â Metres drilled | Â Metres drilled |
| Â | holes|since last report | total on project |
|Blue Rock & extensions| | (May 2010) | |
+----------------------+-----------------+------------------+------------------+
| RAB | 657 | - | 9,810- ongoing |
+----------------------+-----------------+------------------+------------------+
| RC | 108 | 5504 | 14,832-on-going |
+----------------------+-----------------+------------------+------------------+
| Diamond Core | 4 | Â | 676 on-going |
+----------------------+-----------------+------------------+------------------+
| Giant Mine | Â | Â | Â |
+----------------------+-----------------+------------------+------------------+
| RC | 108 | 2459 | 15,994 |
+----------------------+-----------------+------------------+------------------+
| Diamond Core | 11 | 2070 | 2070 |
+----------------------+-----------------+------------------+------------------+
Table 2 - Significant intercepts in RC holes, Blue Rock extensions
+-----------+----------+------+------------------+
| Hole ID | From (m) | To | Intercept |
| | | Â (m) | |
+-----------+----------+------+------------------+
| BRRC 79 | 22 | 34 | 12m @ 3.2 g/t Au |
+-----------+----------+------+------------------+
| including | 22 | 25 | 3m @ 11.3g/t Au |
+-----------+----------+------+------------------+
| BRRC 80 | 86 | 91 | 5m @ 1.6 g/t Au |
+-----------+----------+------+------------------+
| BRRC 82 | 51 | 59 | 8m @ 4.2 g/t Au |
+-----------+----------+------+------------------+
| BRRC 83 | 38 | 43 | 5m @ 1.5 g/t Au |
+-----------+----------+------+------------------+
| ditto | 50 | 65 | 15m @ 1.0 g/t Au |
+-----------+----------+------+------------------+
| ditto | 74 | 77 | 3m @ 2.8 g/t Au |
+-----------+----------+------+------------------+
| BRRC 84 | 102 | 109 | 7m @ 3.1 g/t Au |
+-----------+----------+------+------------------+
| BRRC 85 | 88 | 91 | 3m @ 9.6 g/t Au |
+-----------+----------+------+------------------+
| BRRC 87 | 87 | 98 | 11m @ 1.5 g/t Au |
+-----------+----------+------+------------------+
| ditto | 107 | 113 | 6m @ 3.1 g/t Au |
+-----------+----------+------+------------------+
| ditto | 122 | 127 | 5m @ 1.2 g/t Au |
+-----------+----------+------+------------------+
| BRRC 88 | 138 | 148 | 10m @ 1.2 Au |
+-----------+----------+------+------------------+
| ditto | 151 | 175 | 24m @ 1.7 g/t Au |
+-----------+----------+------+------------------+
| BRRC 89 | 132 | 136 | 4m @ 2.2 g/t Au |
+-----------+----------+------+------------------+
| ditto | 149 | 157 | 8m @ 2.6 g/t Au |
+-----------+----------+------+------------------+
*80m linespacing. Im fire assays at 0.5g/t lower cut, includes up to 2m internal
waste, no top cut.
Results available to hole 93 of 108
The geology in the new extensions is similar to Blue Rock - dominated by
stockwork mineralisation in felsic bodies intruded into talc schists and minor
banded iron formations. Â Numerous targets exist along strike, defined using
potassium-channel radiometrics, aeromagnetics, and detailed field mapping.
The mineralised trend NW of Blue Rock appears to run north for about 1.5km to
join the Shlegani prospect, where five historical RC holes returned some
significant intercepts (best 12m @ 2.06 g/t in SHRC 03 and 7m @ 2.5 g/t in SHRC
06), and 500m to the south the mineralisation trends into the Red Hat option
claims, which contains the old Red Hat mine.
While awaiting all RC assay results on the current drilling, ACR is pattern RAB
drilling the large Red Hat block  (27 ha),  to focus in on the mineralised
trends prior to RC drilling.
Further RC infill drilling to 40m linespacing on the Berks option after the Red
Hat programme will allow a JORC Resource to be calculated.
Giant Mine: Â The current JORC compliant Inferred Resource at Giant Mine stands
at 300,000oz. Â The recent RC and diamond drilling has extended the
mineralisation to depth and has also penetrated a thick diorite intrusion at the
south end of the mine, where earlier RC drilling was unable to penetrate the
hard formation at depth. Â The diorite contains broad gold intersections where it
cuts the main shear zone of the Giant Mine. Cutting of core and assaying is
underway, ahead of an incremental Resource upgrade.
Pickstone-Peerless - gold
Six large-diameter core holes for approximately 1,200m were drilled into the
Peerless orebody for metallurgical and geotechnical test work. Â Processing of
the core is in progress.
Chisanya Carbonatite - phosphate
Recent mineralogy studies by SGS laboratories using a scanning electron
microscope (QUEMSCAN) and XRD analysis for modal mineral assemblages has
indicated that >85% of the apatite crystals are well liberated by grinding, and
should be amenable to flotation. Â Subsequent flotation tests however were
complicated by iron oxide weathering in the surface samples and a float upgrade
to an apatite concentrate was difficult to obtain. Â SGS recommended that un-
oxidised samples should be obtained by drilling before carrying out any detailed
float tests.
Two core holes totalling 602m were completed in September. Â They were drilled at
45 degrees dip into the base of Baradanga Hill to obtain fresh rock for
metallurgical flotation testwork on the apatite (P2O5) ore, and to investigate
the geometry and thickness of the sub-vertical veins hosting the phosphate
mineralisation.
As the vein systems appear to form semi-concentric rings around the outer edge
of the Baradanga intrusion, the holes were oriented east-west and north-south to
bisect the target zones at right angles. The first hole, CNDD01, oriented 270
degrees, intersected only thin carbonatite veins in a predominant mass of
altered country rock (syenite and fenite). Â However the second hole, CNDD02,
oriented at 200 degrees, intersected thick zones of mineralised carbonatite from
134m downhole until end-of-hole at 300m. Â In this section, apatite
mineralisation was strongly developed and of significantly higher grade than
current southern African carbonatite deposits (Dorowa 6.5% to 8%, Palabora 6.9
to 8.6%). Â The initial assays have been taken using a hand-held Niton XRF
analyser, at 20cm intervals down the core, and averaged to 1m intervals. Â Assays
on un-crushed material are likely to be erratic but ACR has run correlation
tests comparing coarse-crushed Chishanya phosphate mineralisation against
laboratory assays on pulps, where the Niton reads up to 50% below the laboratory
value. Â Hence the values below are likely to err on the conservative. Â Twenty-
five surface samples of apatite material previously submitted to  SGS
laboratories, Johannesburg, ranged from  0.26% to 25.3% P2O5, averaging 12.3%.
Table 3: Â Significant Phosphate intersections, Chishana project
+---------+----------+-------+---------------------+
| Hole ID | From (m) | To | Intercept |
| | | Â (m) | |
+---------+----------+-------+---------------------+
| CNDD02 | 134.3 | 161 | 26.7m @ 6.4 % P2O5 |
+---------+----------+-------+---------------------+
| Â | 187.4 | 205.9 | 18.5m @ 20.6 % P2O5 |
+---------+----------+-------+---------------------+
| Â | 228.3 | 238 | 9.7m @ 19.8 % P2O5 |
+---------+----------+-------+---------------------+
| Â | 275.6 | 300.3 | 24.9m @ 11.6 % P2O5 |
+---------+----------+-------+---------------------+
Further drilling is required to establish that the volume of phosphate
mineralisation reaches economic thresholds. This will be deferred until next
year due to the wet season and budget constraints. Meanwhile mineralogy and
flotation tests can be carried out on the fresh core.
EXPLORATION PROJECTS
Regional gold exploration
Chakari Gold:
No field work was done in the period, and trenching or drilling is deferred to
conserve cash burn.
Basemetals/PGE
Cedric Copper
The Cedric project covers approximately 1,400m strike of surface copper
mineralisation over the old Cedric mine workings. Â This area was last explored
in the 1960s, and lies in the Proterozoic Makonde copperbelt. Â Five diamond
drillholes previously reported have been submitted for assay.
Assays from the first hole intersected thick mineralisation at moderate grades;
18m @ 1.3% Cu from 31-49m (includes 10m @ 2% Cu)
Results from the remaining four holes are awaited.
A heli-borne VTEM survey is planned over the Cedric trend as soon as possible,
subject to equipment availability.
Horseshoe Nickel
Pitting has now been completed over most of the claims area (14 sq km) Pits were
dug on a 100m x 100m grid and channel samples taken at 20cm intervals down the
pits. Over 750 pits have been hand-dug and channel sampled to date.
Although mineralisation appears to form a fairly consistent horizontal sheet at
surface, 1-3m thick and grading 0.5-1.5% Ni, the pitting and recent detailed
regolith mapping has identified thicker and higher grade laterite development on
remnant weathering surfaces related to Post-Gondwana and Pan-African planation
surfaces, developed at ca. 1700ma and ca. 1550ma, respectively. Â Although
restricted in area to siliceous cappings (known as birbirite), these are more
favourable targets due to increased thickness and grade. Â Pitting can only test
these horizons to about 3m before safety becomes an issue, hence a track has
been constructed into the area to allow a small tracked RAB rig to test an
initial area.
Column leach metallurgical testing, planned for this quarter, has been deferred
until the drilling obtains full-depth intersections beneath the birbirite caps.
 RAB drilling should commence this month, but many areas are too steep for easy
access and a portable rig may have to be imported to test the higher areas.
Should the birbirite caps become the principal target, ground consolidation in
the area may be required to amass a critical tonnage.
Perseverance Nickel
A heli-borne electromagnetic (EM) programme, planned to cover the 30km long
nickel prospective horizon of the Perseverance Greenstone Belt, is awaiting
availability of EM equipment in the country. Â Discussions are underway with two
companies who may be able to source a suitable EM system in Dec-January. Â EM
conductors will be identified and drill tested for nickel sulphides as part of
ongoing exploration during 2011.
Mphoengs NI-PGE
ACR holds approximately 11km of strike of extensions of the Tati nickel belt
into Zimbabwe, which is prospective for mafic/ultramafic hosted nickel and PGE
models such as the Phoenix and Selkirk mines in Botswana. Â Data reviews of
previous exploration indicates that no significant surface mineralisation has
been found, hence deeper search methods are required. Â Electromagnetic surveys
proved very effective on the Botswana Ni-PGE deposits, hence an EM survey is
planned as soon as a suitable contractor is available.
Snakes Head PGE
As previously announced, four short diamond holes have been planned and sited to
intersect the P1 platinum reefs on the recently identified Fundumwi Block of
this northern subchamber of the Great Dyke. Â 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. Â Due to the very rugged terrain
man-portable or heli-portable drills are required. Â These have proved difficult
to obtain and quotes for these continue to be sought.
Regional Diamonds
A combination of ACR's historical diamond database and recent regional
exploration has defined areas containing significant clusters of kimberlite
indicator minerals. Â Geophysical surveys are continuing to be delayed by
equipment malfunction but are expected to resume in November.
Zambia - Nkombwa Hill, Rare Earths, Phosphate
Environmental permits and claim beaconing is complete, historical data has been
comprehensively compiled into a GIS database, and reconnaissance visits have
been carried out by ACR and REI. Â Both commodities (Phosphate and REE) can have
complex extractive metallurgy so initial sampling and research is focussing on
the metallurgy and mineralogy of the deposit.
In June ACR announced that it had signed a joint venture heads of agreement with
Australian-based private exploration company, Rare Earth International Ltd
('REI'), to explore the Project specifically for Rare Earth elements (REEs).
 REEs reported from the carbonatite include Cerium, Lanthanum, Neodymium,
Praseodymium and Gadolinium.
This 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. Â ACR will be
exploring the phosphate potential of Nkombwa Hill as a 100% owned project.
Zambia - Kasempa Cu-Au
The Kasempa project lies in central Zambia in Proterozoic sediments and granites
at the root zone of the Zambian copperbelt. In recent years the potential for
large Iron oxide copper-gold (IOCG) deposits have been recognised, similar to
Olympic Dam in Australia.
Geoquest consultants, Zambia, have compiled all historical data on copper and
gold exploration over the lease area into a GIS database, and have identified
several copper-gold targets where soil geochemistry coincides with magnetic
highs possibly linked to mineralised intrusive granites.
Claims beaconing and environmental permitting is underway, prior to field visits
and planning of geophysics/drilling.
This announcement has been reviewed by Mike Kellow BSc, a member of the
Australian Institute of Geologists and Technical Director of ACR. Â Mr Kellow
meets the definition of a "qualified person" as defined in the AIM Note for
Mining, Oil and Gas Companies.
Neither the contents of the Company's website nor the contents of any website
accessible from hyperlinks on the Company's website (or any other website) is
incorporated into, or forms part of, this announcement.
**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;
DDH diamond drill hole
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#1457227]
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