Positive Gold Drilling Results - Kossanto Project

RNS Number : 8460Y

African Mining & Exploration PLC

28 February 2013

 



African Mining and Exploration / Index: AIM / Epic: AME / Sector: Mining

28 February 2013

African Mining and Exploration Plc ('AME' or 'the Company')

Positive Gold Drilling Results at Kossanto Project in Mali

African Mining and Exploration plc, the AIM listed gold exploration and development company focussed in West Africa, is pleased to announce positive results from its first phase 3,136m drilling programme at its 207 sq km KossantoGold Project('Kossanto' or 'the Project'), located in the prolific Kenieba Inlier in western Mali.

Highlights:

·    Reverse Circulation drilling identified significant gold mineralisation at the Gourbassi East target in a consistent mineralised corridor trending NNW, which has a 900m strike length that remains open in both directions

·    28 holes drilled at the Gourbassi East target area totalling 2,246 metres - main mineralised intercepts located less than 100m below surface with best intercepts including:

o 75m @ 2.04 g/t Au

o 46m @ 2.16 g/t Au

o 17m @ 3.86 g/t Au

o 11m @ 6.16 g/t Au

·    Drilling at Gourbassi West Target area indicates continuity of gold mineralisation along a 1km corridor

·    10 holes drilled at the Gourbassi West target area totalling 889 metres - best intercepts include:

o 9m @ 3.46 g/t Au

o 6m @ 2.77 g/t Au

o 21m @ 1.8 g/t Au

AME CEO, Mark Jones said: "These impressive gold intercepts highlight the exciting upside potential our flagship Kossanto Gold Project offers.   With two key target areas identified, Gourbassi East and Gourbassi West, we will continue to explore the Project with a view to defining a maiden resource and in turn economic prospectivity. 

"Drilling was primarily focused on the Gourbassi East target.  Results suggest the area has significant future resource upside, with gold mineralisation occurring within a 900m long zone, which remains open in both directions.   Drilling results have produced sufficient grade and width to give us confidence that we can define an initial mineral resource later this year.  In tandem, drilling results taken from our secondary target area, Gourbassi West, indicate the continuity of gold mineralisation along a 1km corridor, and further exploration will be conducted over this area to further assess the project's larger resource potential."  

Drilling Programme

The 3,136m RC drilling programme was completed in December 2012 and followed on from positive check-assay results reported within the Kossanto Project area from three target areas, Gourbassi East, Gourbassi West and Massakama, and a trench re-sampling programme at Gourbassi East (see press release dated 11 January 2013).

The RC drilling programme, which focussed on the Gourbassi East and Gourbassi West target areas, 7 km away from each other, was designed to achieve two primary objectives.  The first objective was to define sufficient grade and tonnage for an initial mineral resource estimate at the Gourbassi East target area.  

28 RC holes were drilled at the Gourbassi East target area totalling 2,246 metres, to depths of between 50 and 130 metres, all inclined at -55 degrees.   Collar spacing between new and old holes in this area was narrowed where possible to approximately 25 metres apart, and for a better assessment of the mineralised orebody, scissor holes were drilled at 50 metre intervals.

Drilling to date has identified that the mineralisation at Gourbassi East is formed of steep dipping "pervasive silica alteration - style" silica and is disseminated with gold grades generally increasing towards a clear resistive axis following a lithological contact between a rhyolite and a rhyodacite structure.  The drilling also indicated the continuity and the quality of the mineralisation along a 900m strike length trending NNW, suggesting the area has significant resource upside potential.  AME has refined the geological model for the target area and the Company believes that an initial resource estimate could be defined in H1 2013.   

The second objective of the 2012 drilling programme was to better understand the mineralisation at the Gourbassi West target.  10 holes were drilled in this area, totalling 889 metres, all inclined at -60 degrees.  Importantly, these drill results indicated the continuity of mineralisation along a 1km corridor, which ground and aerial geophysics had previously suggested.  It is the Company's intention to conduct further exploration at this target area in order to better define the resource potential.

Table 1: AME drilling results for the Kossanto Gold project.  Results reported for intercepts >0.3g/t Au.

AREA	SECTION	BHID	FROM (m)	TO (m)	INTERVAL (m)	SUM	Au g/t	MID*
GOURBASSI EAST	3775N	GRC12	4	40	36	21.3	0.59	0
		INCL	20	27	7	8.09	1.16
		AND	46	48	2	4.42	2.21
	3775N	GRC13	12	15	3	2.63	0.88	0
		AND	42	44	2	5.33	2.67	0
		AND	52	54	2	1.4	0.7	0
	3810N	GRC14	21	53	32	78.7	2.46	2
		INCL	27	43	16	63.9	4	0
	3860N	GRC15	7	60	53	80.1	1.51	3
		INCL	7	12	5	21.2	4.36	0
		INCL	21	31	10	29	2.9	0
		INCL	43	60	17	21.5	1.27	1
		AND	67	70	3	1.81	0.6	0
	3860N	GRC16	0	75	75	153	2.04	5
		INCL	0	11	11	67.8	6.16	0
	3900N	GRC17	29	75	46	99.2	2.16	4
		INCL	32	49	17	65.7	3.86	0
	3900N	GRC18	44	55	11	18.5	1.68	2
	3925N	GRC19	15	18	3	3.15	1.05	0
		AND	24	65	41	43.2	1.1	4
	3925N	GRC20	3	23	20	17.7	0.88	3
		AND	67	75	8	2.86	0.36	1
		AND	79	100	21	11.4	0.54	3
	3950N	GRC21	11	16	5	2.41	0.48	1
		AND	57	59	2	1.99	1	0
	3960N	GRC22	1	5	4	2.9	0.73	0
		AND	20	40	20	11.2	0.58	4
	3975N	GRC23	18	24	6	4	0.67	0
	3975N	GRC24	43	51	8	15.7	1.96	0
		AND	62	72	10	8.28	0.83	0
	4000N	GRC25	38	65	27	26.5	0.98	4
		AND	77	79	2	1.7	0.85	0
	4025N	GRC26	NSI
	4025N	GRC27	NSI
	4075N	GRC28	NSI
	4075N	GRC29	13	14	1	12	12	0
	4125N	GRC30	10	13	3	1.87	0.62
	3685N	GRC31	72	85	13	19.3	1.49	3
		INCL	72	75	3	15.7	5.22	0
	3655N	GRC32	90	96	6	9.41	1.57	1
		INCL	91	92	1	5.77	5.77
		AND	101	106	5	2.11	0.42	2
		AND	113	119	6	25.1	4.18	0
	3655N	GRC33	36	41	5	8.52	1.74	1
		INCL	38	39	1	6.65	6.65
		AND	51	75	24	41.5	1.73	4
		INCL	52	62	10	29.2	2.92	0
		INCL	69	74	5	10.5	2.098	0
	3700N	GRC34	60	81	21	19.3	1.49	3
		INCL	73	81	8	20.4	2.55	1
		AND	90	104	14	9.23	0.66	3
		INCL	90	96	6	7.25	1.21	0
	3725N	GRC35	27	29	2	1.72	0.86	0
		INCL	49	51	2	2.5	1.25	0
		AND	64	70	6	11.4	1.9	0
	3725N	GRC36	11	12	1	1.12	1.12	0
		AND	26	31	5	1.69	0.34	2
		AND	47	49	2	7.47	3.74	0
		AND	72	74	2	3.18	1.59	0
	3725N	GRC37	12	16	4	31.8	7.96	0
		AND	24	26	2	2.86	1.43	0
	3400N	GRC38	31	54	23	18.1	0.79	3
		INCL	31	33	2	4.75	2.38	0
		INCL	41	44	3	5.49	1.83	0
3400N	GRC39	NSI
GOURBASSI WEST	5200N	GRC40	NSI
	5200N	GRC41	60	67	7	3.28	0.47	1
	5350N	GRC42	NSI
	5350N	GRC43	19	29	10	9.92	0.99	2
		AND	37	58	21	37.9	1.8	2
		INCL	45	54	9	31.1	3.46	0
		AND	67	72	5	2.29	0.46	1
	5280N	GRC44	38	43	5	1.65	0.33	2
	5635N	GRC45	32	37	5	10.2	2.04	1
		AND	56	60	4	2.65	0.66	1
		AND	74	97	23	13.5	0.59	4
		AND	117	124	7	4.24	0.6	2
	5940N	GRC46	0	12	12	9.64	0.8	2
		AND	16	18	2	1.71	0.86	0
		AND	47	55	8	10.4	1.31	0
	5940N	GRC47	1	14	13	5.33	0.41	2
		AND	43	47	4	1.49	0.37	1
		AND	55	60	5	2.17	0.43	2
		AND	65	73	8	4.07	0.51	3
		AND	78	97	19	12.1	0.63	2
	6050N	GRC48	71	72	1	1.3	1.3
		AND	77	89	12	17.1	1.43	0
		INCL	82	88	6	13.6	2.77	0
	6050N	GRC49	2	9	7	12.4	1.77	0
		INCL	3	6	3	8.65	2.88	0

NSI: No significant Intercepts

MID: Maximum Internal dilution

The RC drilling programme was completed by a certified drilling service AMCO Drilling using SANDVIK UDR 650.

Sampling and Assaying Procedures

Samples have been collected at one metre intervals, which were bagged in large plastic sample bags.  All the samples collected were weighed and carried to the camp for analytical sampling. This sampling was done by multi-stage riffle splitting to reduce a 20kg - 30kg sample to a 2kg fraction to be analysed for gold.

All samples have been prepared and assayed at SGS certified laboratory at Kayes, Mali, using fire assay methods (FAA505) on 50g sample pulp.  AME has implemented a routine and efficient quality check system by the means of standards and blanks on a regular basis, and duplicates inserted at 25m intervals, totalling up to 16% of the assayed samples. Laboratory sample preparation and assaying was reviewed and controlled during the entire duration of the campaign.

All QA/QC samples retrieved from the laboratory have been checked and found to be acceptable and conform to the best practices in the mineral industry.

Competent Person

Nigel Chapman: The technical exploration and mining information contained in this Announcement has been reviewed and approved by Mr. RN Chapman. Mr. Chapman 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 Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves and as a qualified person under the AIM Note for Mining, Oil and Gas Companies. Mr. Chapman is an employee of Mineral Exploration Management Limited, an independent geological consultancy established in 2005 and is a Chartered Professional Member of the Australasian Institute of Mining and Metallurgy (CP Aus.I.M.M). Mr. Chapman consents to the inclusion in this Announcement of such information in the form and context in which it appears.

**Ends**

For further information please visit www.ameplc.co.uk or contact:

Mark Jones	African Mining & Exploration plc	Tel: [phone]
James Maxwell / Jenny Wyllie	N+1 Singer	Tel: [phone]
Felicity Edwards/ Charlotte Heap	St Brides Media & Finance Ltd	Tel: [phone]

Notes

About AME

African Mining and Exploration plc (AIM:AME) is a West African focussed gold exploration company. AME currently has a number of prospective gold projects in Mali including its flagship 207 sq km Kossanto Gold Project located in the centre of the prospective Kenieba inlier in western Mali. It is currently exploring and developing the Kossanto Gold Project with a view to delineating its maiden JORC compliant resource. The Company is also evaluating additional opportunities to expand its portfolio and geographical focus.

 

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