TIDMARCM
RNS Number : 8183S
Arc Minerals Limited
28 June 2018
Arc Minerals Ltd / Epic: ARCM / Market: AIM / Sector: Mining
& Exploration
28 June 2018
Arc Minerals Ltd
("Arc Minerals" or the "Company")
Arc Minerals Reports 3 Million Ounce Gold Mineral Resource at
the Akyanga Deposit
Arc Minerals ("Arc" or "the Company") is pleased to report an
update of the Mineral Resource Estimate for the Akyanga deposit,
part of its Casa project, located in the eastern part of the
Democratic Republic of Congo ("DRC"). The statement of Mineral
Resources (Table 1) was prepared by Denny Jones Pty Ltd ("Denny
Jones"), a specialised Australian based Resource Consultancy and is
reported in accordance with the requirements of the 2012 JORC
Code.
Highlights - Akyanga Mineral Resource (100%)
-- 3 million ounces of gold averaging 2.16 grams per tonne
-- Near-term exploration target of a further 200,000 to 600,000
ounces of gold in the Akyanga East Area
-- Further exploration targets along the 55km gold belt within its 133km(2) mining license
-- Commencement of a Scoping Study
Nick von Schirnding, ARC's Executive Chairman, commented:
"The increase in Akyanga's JORC mineral resource from 1.6m ozs
to 3m ozs is a game-changer for us and has exceeded our most
optimistic expectations. The increased ounces and grade has the
potential to significantly enhance the economics of developing the
mine. We shall now commence with a scoping study, targeting a
150koz-200koz per annum low cost gold operation, to be completed by
year end.
Our ability to upgrade this significant, near-surface gold
deposit in such a short timeframe clearly demonstrates the largely
untapped potential of both the Akyanga project and the 55km long
gold belt within our 133km(2) mining license area.
We look forward to updating shareholders on further developments
at Casa as well as at our Zamsort copper/cobalt project where
drilling is about to commence and completion work on the plant is
underway."
Mineral Resource Estimate
The Akyanga deposit is located near the town of Misisi located
250km south of Bukavu, the provincial capital of the South Kivu
Province in the Democratic Republic of the Congo. The Akyanga
deposit currently has an Inferred Mineral Resource of 44.4 million
tonnes at 2.16 grams per tonne containing 3 million ounces. The
statement of Mineral Resources (Table 1) completed by Denny Jones
Pty Ltd ("Denny Jones"), a leading Australian based Resource
Consultancy is reported in accordance with the requirements of the
2012 JORC Code.
Table 1. Akyanga Mineral Resource estimate - cut-off grade of 0.5 g/t Au - June 2018 (100% Basis)
Category Tonnes Gold grade Contained(3)
(millions) (g/t) Gold
(million oz)
--------------
Inferred Resource (2) 44.3 2.16 3.0
----------------------- ------------ ----------- --------------
1. Mineral Resources which are not Mineral Reserves do not have
demonstrated economic viability. The estimate of Mineral Resources
may be materially affected by environmental, permitting, legal,
marketing, or other relevant issues. The Mineral Resources in this
report were reported using the guidelines of JORC (2012).
2. The quantity and grade of reported Inferred resources in this
estimation are uncertain in nature and there has been insufficient
exploration to define these Inferred Resources as an Indicated or
Measured Mineral Resource. It is uncertain if further exploration
will result in upgrading them to an Indicated or Measured Mineral
Resource category.
3. Contained metal and tonnes figures in totals may differ due to rounding.
Figure 1. Geological cross-section
References to Figure 1 relate to the version of this release
visible in PDF format by clicking the link below:
http://www.rns-pdf.londonstockexchange.com/rns/8183S_1-2018-6-27.pdf
In addition to the Mineral Resource, an Exploration Target over
the Akyanga East project has been defined as summarised below in
Table 2 below.
Table 2. Akyanga East Exploration Target - June 2018(1() (100% Basis)
Category Tonnes Gold Grade Contained
(millions) (g/t) Gold
(million oz)
------------- ------------ ----------- --------------
Upper Range 7.1 2.43 0.6
Lower Range 3.1 1.94 0.2
------------- ------------ ----------- --------------
1. The quantity and grade of the reported Exploration Target are
uncertain in nature and there has been insufficient exploration to
define an Inferred Resource. It is uncertain if further exploration
will result in the estimation of Mineral Resources.
2. A cut-off grade of 0.5 g/t has been used to define the Exploration Target.
The Akyanga structure remains open in several directions and all
geological indicators suggest the Misisi corridor and multiple
surrounding targets have the potential to continue to deliver
further substantial growth in the Company's mineral inventory.
Quality Control/Quality Assurance
The estimate is underpinned by data from 105 diamond drill holes
and 6 RC drill holes totalling over 22,000m of drilling. All sample
data was composited to the dominant sample length of 1 m prior to
analysis an estimation. The sample database and the topographic
survey were reviewed and validated by Arc Minerals and African
Mining Consultants ("AMC") prior to being supplied to Denny
Jones.
Block modelling was carried out by Denny Jones using cell
dimensions of 25mE by 25mN by 25 mRL was coded to reflect the
surface topography and mineralised zones.
Density values were estimated into blocks and had an average
density of 2.63t/m(3). The Resource estimate has been classified
based on data density, data quality, confidence in the geological
interpretation and confidence in the robustness of grade
interpolation.
Scoping Feasibility Study
In 2014, a scoping feasibility study for the Akyanga deposit on
the previous SRK resource of 1.2Moz, resulting in an ungeared NPV
(8%) and IRR of $171m and 35% respectively at a $1,300/oz gold
price. The company will now commence a Scoping Study with the aim
to build a 150koz - 200koz per annum gold producer.
Qualified Persons
The information in this announcement that relates the Resource
Estimation was prepared by Ivor Jones (BSc. Hons, MSc, FAussIMM,
CP(geo)) Mr Jones has sufficient experience in the activity which
he is undertaking to qualify as a Competent Person as defined under
the JORC Code (2012). Denny Jones consents to the inclusion in this
announcement of the matters based on this information in the form
and context in which it appears.
The exploration database and information in this announcement
that relates to the Exploration Targets, Exploration Results and
Mineral Resources or Ore Reserves is based on information prepared
and reviewed by Mr Thomas Rogers (BSc. Hons, MSAIMM, MEIZ) of
African Mining Consultants ("AMC"). Mr Rogers has sufficient
experience in the activity which he is undertaking to qualify as a
Competent Person as defined under the JORC Code (2012). AMC
consents to the inclusion in this announcement of the matters based
on this information in the form and context in which it
appears.
The information in this press release is based on information
provided by Arc Minerals Limited, Denny Jones and AMC and compiled
on behalf of Arc Minerals by Mr Vassilios Carellas. The Mineral
Resource has been independently prepared by Denny Jones. Mr
Vassilios Carellas (BSc (Hons), MAusIMM) is the Chief Operating
Officer for Arc Minerals and has sufficient experience relevant to
the style of mineralisation and type of deposit under consideration
and to the activity which he is undertaking to qualify as a
Competent Person as defined under the JORC Code (2012). Mr Carellas
consents to the inclusion in this announcement of the matters based
on his information in the form and context in which it appears.
**S**
Contacts
Arc Minerals Ltd +44 (0) 20 3874
Nick von Schirnding (Chairman) 8664
SP Angel (Nominated Adviser & Broker) +44 (0) 20 3470
Ewan Leggat / Lindsay Mair / Soltan Tagiev 0470
Notes to the Editors
Arc Minerals is an AIM listed exploration and mine development
company focused on a diversified portfolio of mining projects with
interests in Slovakia, Eritrea, the Democratic Republic of the
Congo and Zambia.
ARC Minerals current holdings include:
-- 99% interest in CASA Mining Limited, a private company that
has a 71.25% interest in the 3 million-ounce inferred Mineral
Resource at the Akyanga gold deposit in the DRC.
-- A 61% equity interest in Zamsort Limited ("Zamsort"), a
private company focused on a prospective copper and cobalt licence
in the Zambia Copperbelt, together with a convertible loan to
Zamsort which converts into approximately a five percent additional
equity interest in Zamsort, with interest on the convertible note
being rolled forward to the end of 2018;
-- 100% ownership of the Kremnica Mining Licence Area in Slovakia which host the 1.3Moz AuEq pre-feasibility stage turec Gold Project;
For more information visit www.arcminerals.com
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
Forward-looking Statements
This news release contains forward-looking statements that are
based on the Company's current expectations and estimates.
Forward-looking statements are frequently characterised by words
such as "plan", "expect", "project", "intend", "believe",
"anticipate", "estimate", "suggest", "indicate" and other similar
words or statements that certain events or conditions "may" or
"will" occur. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors that could cause
actual events or results to differ materially from estimated or
anticipated events or results implied or expressed in such
forward-looking statements. Such factors include, among others: the
actual results of current exploration activities; conclusions of
economic evaluations; changes in project parameters as plans
continue to be refined; possible variations in ore grade or
recovery rates; accidents, labour disputes and other risks of the
mining industry; delays in obtaining governmental approvals or
financing; and fluctuations in metal prices. There may be other
factors that cause actions, events or results not to be as
anticipated, estimated or intended. Any forward-looking statement
speaks only as of the date on which it is made and, except as may
be required by applicable securities laws, the Company disclaims
any intent or obligation to update any forward-looking statement,
whether as a result of new information, future events or results or
otherwise. Forward-looking statements are not guarantees of future
performance and accordingly undue reliance should not be put on
such statements due to the inherent uncertainty therein.
About CASA Mining
CASA Mining Limited ("Casa") is a private Mauritian registered
company that is the 71.25 percent owner and operator of the Misisi
Gold Project located in South Kivu, eastern DRC, approximately
350km south of Bukavu and 180km north of Kalemie.
The CASA licence area consists of three contiguous mining
licenses (133km(2) ), issued in March 2015 and valid for 30 years.
These licenses encompass a 55km strike length of the Tanganyika
graben within the Rusizian belt ("Misisi Corridor"), including the
Akyanga Deposit along with the Lubitchako, Tulongwe, Kilombwe and
Mutshobwe prospects.
The licences have benefited from considerable capital
expenditure to date, including regional geophysical surveys
completed in 2011, 19,522m of diamond drilling, 2,720m of reverse
circulation drilling and excavated 6,274-line metres of trenches.
[UPDATE FOR RECENT DRILLING PROGRAMME]
At CASA's most advanced project, the Akyanga Deposit, Denny
Jones in June 2018 reported an inferred Mineral Resource, within a
US$1,500/oz gold selling price optimised pit shell, which defined a
3Moz JORC inferred resource @ 2.16 g/t Au (using a 0.5 g/t Au
cut-off)
Technical Glossary
Assay the laboratory test conducted to determine
the proportion of a mineral within
a rock or other material.
Au the chemical symbol for gold
------------------------------------------------
Diamond Drilling a drilling method in which penetration
is achieved through abrasive cutting
by rotation of a diamond encrusted
drill bit. This drilling method enables
the collection of tubes of intact rock
(core)
------------------------------------------------
Dip a line directed down the steepest axis
of a planar structure including a planar
ore body or zone of mineralization.
The dip has a measurable direction
and inclination from the horizontal
------------------------------------------------
Fire Assay fire assaying is the quantitative determination
in which a metal or metals are separated
from impurities by fusion processes
and weighed in order to determine the
amount present in the original sample
------------------------------------------------
Grade the proportion of a mineral within
a rock or other material which for
gold is usually measured in g/t
------------------------------------------------
g/t grammes per tonne, the quantity of
the element expressed as the number
of grammes contained in one tonne of
the host rock
------------------------------------------------
JORC Resource Resource estimated according to the
Australasian Code for Reporting of
Exploration Results, Mineral Resources
and Ore Reserves, as published by the
Joint Ore Reserves Committee of The
Australasian Institute of Mining and
Metallurgy, Australian Institute of
Geoscientists and Minerals Council
of Australia
------------------------------------------------
Indicated Mineral Resource That part of a Mineral Resource for
which tonnage, densities, shape, physical
characteristics, grade and mineral
content can be estimated with a reasonable
level of confidence. It is based on
exploration, sampling and testing information
gathered through appropriate techniques
from locations such as outcrops, trenches,
pits, workings and drill-holes. The
locations are too widely or inappropriately
spaced to confirm geological and/or
grade continuity but are spaced closely
enough for continuity to be assumed
------------------------------------------------
Inferred Mineral Resource That part of a Mineral Resource for
which tonnage, grade and mineral content
can be estimated with a low level of
confidence. It is inferred from geological
evidence and assumed but not verified
geological and/or grade continuity.
It is based on information gathered
through appropriate techniques from
locations such as outcrops, trenches,
pits, workings and drill-holes which
may be limited or of uncertain quality
and reliability
------------------------------------------------
M metre, a unit of length as per the
International System of Units
------------------------------------------------
Moz one million troy ounces
the process or processes by which a
mineral is introduced into a rock,
resulting in a valuable or potentially
valuable deposit. It is a general term,
incorporating various types; e.g.,
fissure filling, impregnation, and
replacement
------------------------------------------------
Mineralisation the process or processes by which a
mineral is introduced into a rock,
resulting in a valuable or potentially
valuable deposit. It is a general term,
incorporating various types; e.g.,
fissure filling, impregnation, and
replacement
------------------------------------------------
Oz(s) ounce (Troy ounce) 1 ounce is equal to 31.1034807 grammes
------------------------------------------------
Pre-feasibility Study a preliminary study undertaken to determine
if it would be worthwhile to proceed
to the feasibility study stage
------------------------------------------------
QA/QC Quality Control and Quality Assurance,
a set of defined procedures in all
aspects of the mineral deposit evaluation
to ensure the best possible confidence
in resultant mineral Resource and Reserve
estimates are achieved; the quality
of an estimate is dependent on the
quality of the data used
------------------------------------------------
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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