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Positive Geological Review Highlights New Resource Potential at the Mpokoto Gold Project
Armadale, an AIM quoted investment company focused on natural resources projects in Africa, has announced the positive conclusion of a geological review undertaken by CSA Global Pty for the Mpokoto Gold Project in the Katanga Province of the Democratic Republic of Congo.
As part of a site visit to the Mpokoto Gold Project, CSA were asked to undertake a review to independently assess the Company’s geological interpretations relating to stratigraphy, mineralisation, and controls on mineralisation and comment on implications.
Highlights:
– Positive conclusions from CSA’s geological review highlights potential for extension of mineralisation to be extrapolated and targeted with a higher degree of confidence from known mineralised intercepts
– An Exploration Target of between 2.4Mt to 3.0Mt at a grade of 1.25 to 1.5g/t Au for an additional 120,000 to 150,000 ounces of gold has been identified
– The newly identified Exploration Target areas are along-strike and down dip from known mineralisation to be drill tested in May 2015
– Extensions of high grade mineralisation in sheared altered mafic rocks intersected in drill hole MPDD0064 which intercepted 27.9 metres@ 7.8 Au g/t are highlighted in addition to laterally continuous zones of mineralisation
– Potential for material enhancements to current pit models and economic fundamentals of the Project which has a current Total Mineral Resource of 678,000oz gold from 14.58 million tonnes @ 1.45g/t Au at a cut-off grade of 0.5g/t and demonstrated a post-tax net present value of US$55.3 million
– Defined development strategy to rapidly advance the Project through to low capex, low opex gold production in H1 2016
Peter Marks, Chairman of Armadale, said, “The scope and scale of the Mpokoto Gold Project continues to develop in line with our expectations of being able to deliver a low capex, low opex commercial gold mining project in the near future. The results of this geological review have provided the Company with a greater degree of confidence in planning the next drilling programme and targeting further mineralisation.”
Mpokoto Gold Project
Mpokoto has a current Total Mineral Resource of 678,000oz gold from 14.58 million tonnes @ 1.45g/t Au at a cut-off grade of 0.5g/t. The Company last year announced the results of an Expanded Scoping Study for Mpokoto which demonstrated a post-tax net present value of US$55.3 million based upon a discount rate of 8% and a gold price of US$1,250/oz. The Project comprises four Mining Licences which are valid for an initial term of 30 years from 30 September 2014.
The Company is currently finalising a definitive feasibility study on the Project which advances the work already undertaken as part of the Expanded Scoping Study. In parallel with this study the Company is in active discussions with potential funding partners to secure the US$20 million of capital required to commence construction of the Mpokoto Project. The Company anticipates that this funding will be secured at the project level.
The proposed drilling programme will have several objectives including targeting primary mineralisation and down dip mineralisation beyond the present pit limits. In particular, the recent work has highlighted the possibility of extensions of high grade mineralisation in sheared altered mafic rocks intersected in drill hole MPDD0064 which intercepted 27.9 metres@ 7.8 Au g/t. In addition, the geological work points toward laterally continuous zones of mineralisation. Further drilling will target near-surface “along strike mineralisation” which has the potential to substantially increase current pits to the north-west.
An Exploration Target of between 2.4Mt to 3.0Mt at a grade of 1.25 to 1.5g/t Au for an additional 120,000 to 150,000 ounces of gold has been identified and the Company hopes to bring these ounces “to book” in the planned drilling programme. The Company intends to conduct the programme during the course of Q2, commencing in May 2015, as the wet season comes to an end. The programme is expected to take 8-12 weeks to complete, depending on conditions and number of drill rigs available.
