Drilling work results - Bushveld Iron Ore Project

RNS Number : 1617Q

Bushveld Minerals Limited

02 November 2012

 



2 November 2012

For Immediate Release

Bushveld Minerals Ltd

("Bushveld" or the "Company")

Detailed Drilling Programme Update

 Drilling work results at the Bushveld Iron Ore Projects

Bushveld Minerals Limited, (AIM: BMN), a mineral development company focused on iron and tin projects in southern Africa, is pleased to provide further details of the drilling programme following the Operational Update (Drilling) released on [11 October 2012].

Highlights:

·      P-Q Magnetite Zone ("P-Q Layer"): Extension of the strike of mineralisation and closely spaced (500m) core drilling (details are given in table 1).

o  Significant diamond drilling intercepts include:

§ VK17 - 37.85m @ 52.894% Fe₂O₃

§ MAL2 - 41.84m @51.80% Fe₂O₃

§ VK18 - 37.85m @ 52.894% Fe₂O₃

·      Main Magnetite Layer: In-fill drilling programme to upgrade resource to indicated resource category. Geological continuity has now been proven - a total of 13 holes drilled with consistent intersections of between 8 and 10 metres  along 5km strike length, based on visual observation (table 2).

·      P-Q Layer weathered zone: Shallow drilling to identify the outcrop position of the mineralisation and to establish a JORC compliant resource for the weathered zone. Geological continuity up to the ±2 - 5m thick soil layer proven (table 3).

P-Q Magnetite Layer Drilling:

Five boreholes totalling 1,525 metres were drilled during the second quarter of 2012. They comprised three boreholes to extend the strike of the mineralization by almost 1km or about 25% and two in-fill boreholes to bring drillhole spacing to 500m. Results of each borehole are detailed in Table 1 below.

Main Magnetite Layer (MML) - Infill drilling:

Thirteen boreholes were drilled in 2012, including three in the weathered zone. The boreholes were mainly in-fill boreholes designed to upgrade the Main Magnetite Layer ("MML") resource into the indicated resource category. Three boreholes did not intersect the MML, as they were drilled into the footwall (i.e. they were sited slightly east of the MML). Assay results are pending, but intersections based on visual inspection are consistent with the previously drilled boreholes on which the current resource was determined. The intersections are summarised in Table 2 below.

P-Q Magnetite - Weathered Zone drilling:

A shallow drilling programme was designed to accurately determine the sub-outcrop position of the mineralisation below a thin (±2 - 5m thick) soil layer while also ensuring sufficient boreholes to allow for an initial resource estimate for the shallow weathered material.

A number of shallow exploratory marker holes were drilled as part of two fence lines (A and B) aimed at defining the position of the P-Q layer and intersected the footwall of the P-Q layer (Table 3). Boreholes on lines C, D and E all intersected the P-Q layer (Table 3).

Core samples are currently being analysed with preliminary results indicating mineralisation consistent with the fresh unweathered zone. This weathered resource was not all included in the 260 million tonne indicated resource declared thus far on the P-Q zone, and will be included in a further resource update due Q1 2013.

Enquiries: [e-mail]

Bushveld Minerals Fortune Mojapelo	[phone]
Fox Davies Jonathan Evans	[phone]
Tavistock Communications Jessica Fontaine / Jos Simson	[phone]
Tielle Communications Stéphanie Leclercq	[phone]

This information is provided by RNS

The company news service from the London Stock Exchange

- ENDS -

Notes to the editor

Bushveld Minerals Limited is a mineral development company focused on the Bushveld Iron Ore Project and the Mokopane Tin Project, both located on the northern limb of the Bushveld Complex, South Africa.

The Bushveld Iron Ore Project comprises two licenses covering 7,409 ha where a JORC compliant open-castable resource of 633 million tonnes (comprising 260 million tonnes Indicated and a further 373 million tonnes Inferred) has been established from a 4.5 km strike length. Further drilling along strike is expected to significantly add to the resource on the basis of identified strike extensions several kilometres long to the north and south of the project area with a target resource planned in excess of 1 billion tonnes. A scoping study on the project is underway for completion in Q1 2013.

The Mokopane Tin Project consists of one licence covering 13,422 ha of open-castable disseminated tin resource. The Company has explored one target and plans to drill a further four targets. The Company has established a JORC resource in excess of 5,000 tonnes of tin and is looking to expand the resource base by undertaking a drilling programme on the other three targets in the licence area and one target in a licence area currently under application. In the longer term, the Company intends to expand the resource base by acquiring further projects.

The Company was admitted to the Alternative Investment Market of the LSE in March 2012.

The scientific and technical information contained within this announcement has been reviewed and approved by Professor Morris Viljoen, technical advisor and head geologist to the Company. Prof Morris (Pr.Ss.Nat) has a Msc and PhD degree in Geology form Wits and 30 years experience in the mining industry. He is a fellow of the Society of Economic Geologists (SEG), the Geological Society of South Africa (GSSA), the Southern African Institute of Mining and Metallurgy (SAIMM) and the Royal Society of South Africa (RSSA).

Table 1 (Results of recent boreholes drilled into the P-Q magnetite layer):

Borehole ID	Farm	Reason for drilling	Depth	P-Q Intersection	Grade
VK16	Vliegekraal	Strike Extension	150.09 m	34-88 m (54 m intersection)	49.78m @ 31.90% Fe2O3 (67.85m @ 34.23% Fe2O3 if footwall mineralisation is included)
MAL2	Malokong	Strike Extension	156.63 m	64-116 m (52 m intersection)	41.84m @51.80% Fe2O3 (56.61m @ 50.56% Fe2O3 if footwall mineralisation is included)
VK17	Vliegekraal	Infill	399.48 m	260-303 m (43 m intersection)	37.85m @ 52.894% Fe2O3 (54.85m @ 48.955% Fe2O3 if footwall mineralisation is included)
VK18	Vliegekraal	Infill	427.2 m	288-335 m (47 m intersection)	42.65m @ 50.377% (61.50m @ 44.85% Fe2O3 if footwall mineralisation is included)
VK19	Vliegekraal	Strike Extension	389.08 m	269-302 m (33 m intersection)	32.29m @ 45.67% Fe2O3 (47.29m @ 42.63% Fe2O3 if footwall mineralisation is included)

Table 2 (Intersection depths of infill boreholes drilled into the main magnetite layer):

Borehole ID	Farm	Reason for drilling	Depth	MML intersection
VK20	Vliegekraal	Extension	81.90	64.57m to 72.50m (7.93m intersection)
VK21	Vliegekraal	Infill	102.83	Not Intersected (drilled into footwall)
VK22	Vliegekraal	Infill	99.95	84.08 m to 93.03m (8.95m intersection)
VL8	Vriesland	Infill	88.21	58.63m to 68.20m (9.57m intersection)
VL9	Vriesland	Infill	93.61	Not Intersected (drilled into footwall)
VL10	Vriesland	Infill	57.80	Not Intersected (drilled into footwall)
VL11	Vriesland	Infill	51.85	31.38m to 39.53m (8.15m intersection)
VL12	Vriesland	Extension	99.94	83.75m to 91.90m (8.15m intersection)
VL13	Vriesland	Extension	40.33	22.15m to 30.48m (8.33m intersection)
VK 23	Vliegekraal	Infill	150.82	130.48m to 140.17m (9.69m intersection)
MW 01	Vriesland	Infill	14.00	1.50m to 11.50m (10.00m intersection)
MW 02	Vliegekraal	Infill	25.20	9.30m to 17.50m (8.20m intersection)
MW 03	Vriesland	Infill	20.00	6.50m to 12.00m & 13.50m to 17.77m (appears to be duplicated by faulting)

Table 3 (Boreholes drilled into the P-Q layer in the weathered zone):

Borehole ID	Farm	Line	Depth	P-Q Intersected
VKW1	Vliegekraal	A	15 m	No
VKW2	Vliegekraal	A	15 m	No
VKW3	Vliegekraal	A	15 m	No
VKW4	Vliegekraal	A	15 m	No
VKW5	Vliegekraal	A	15 m	No
VKW6	Vliegekraal	A	15 m	No
VKW7	Vliegekraal	A	20 m	No
VKW8	Vliegekraal	A	20 m	No
VKW9	Vliegekraal	A	30 m	Yes
VKW10	Vliegekraal	A	40 m	Yes
VKW11	Vliegekraal	A	60 m	Yes
VKW11.2	Vliegekraal	A	100 m	Yes
VKW12	Vliegekraal	B	15 m	Only upper portion
VKW13	Vliegekraal	B	15 m	Only upper portion
VKW14	Vliegekraal	B	15 m	Only upper portion
VKW15	Vliegekraal	B	15 m	Only upper portion
VKW16	Vliegekraal	B	15 m	Only upper portion
VKW17	Vliegekraal	B	15 m	Only upper portion
VKW18	Vliegekraal	B	20 m	Only upper portion
VKW19	Vliegekraal	B	20 m	Only upper portion
VKW20	Vliegekraal	B	35 m	Only upper portion
VKW21	Vliegekraal	B	45 m	Only upper portion
VKW22	Vliegekraal	B	20 m	Only upper portion
VKW32	Vliegekraal	B	15 m	Yes Yes Yes
VKW25	Vliegekraal	C	82 m	Yes
VKW24	Vliegekraal	C	50 m	Yes
VKW23	Vliegekraal	C	20 m	Yes
VKW26	Vliegekraal	D	50 m	Yes
VKW27	Vliegekraal	D	50 m	Yes
VKW28	Vliegekraal	D	20 m	Yes
VKW29	Vliegekraal	E	50 m	Yes
VKW30	Vliegekraal	E	50 m	Yes
VKW31	Vliegekraal	E	30 m	No

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