New high priority Base Metals targets identified at Changara Joint Venture

Transcription

1 BAOBAB RESOURCES PLC CHANGARA JOINT VENTURE UPDATE 15 JULY 2014 New high priority Base Metals targets identified at Changara Joint Venture Baobab Resources PLC ( Baobab or the Company ) is wholly focused in Mozambique where it is developing a pig iron and ferro-vanadium project in the Tete province (the Tete Project ), one of Africa s fastest growing mining centres. Other assets in the Company s portfolio include the Changara project which is being operated under a Joint Venture ( JV ) with ASX listed Metals of Africa (please refer to RNS dated 28 November 2012). Baobab announces that today an exploration update was made by Metals of Africa (ASX:MTA). An extract of the announcement is presented below and the full announcement is available on the Australian Stock Exchange website: Alternatively, investors may download a complete copy, including figures and plates, from the Company s website: HIGHLIGHTS Metals of Africa has identified three new high priority base metal targets within the Changara Joint Venture project in Mozambique. Targets are: Cassidy Shea prospect: Very large Zinc-Copper target with spot high grades up to 11.9% Cu and 5.1% Zn Rhodonite Hill prospect: Outcrops of Broken Hill type alteration over a 2km strike length and grades up to 14.4% Pb at surface Downeaster prospect: 1.4km long Cu anomaly in soils with elevated Pb and Zn and spot high grades up to 28.7% Zn The positive results from the Company s continued exploration efforts to define these targets has provided MTA with further strong belief in the potential for discovery of a major zinc-copper-lead deposit within the project area. Prospects are shallow drill worthy targets and further exploration will be conducted to define drill targets drilling is planned to commence by October Metals of Africa Limited (ASX: MTA) (the Company) is pleased to announce that it has identified three new high-priority base metals targets at the Changara Joint Venture, in the Tete province of Mozambique. The three new targets have been defined by a combination of interpretation of geological, geochemical and geophysical datasets plus detailed geological mapping. The results of this work provide the Company with what it views as compelling optimism for the discovery of a major zinc-copper-lead deposit in the extensive tenement holding. The three priority targets are: Cassidy Shea, Rhodonite Hill, and Downeaster. They three represent some of the highest ranked prospects of a total of 39 prospects which have been systematically ranked at the Rio Mazoe/Changara Project area. Reconnaissance work continues on the remaining 36 prospects. AIM ANNOUNCEMENT 14 JULY 2014 Page 1 of 13

2 Of particular importance has been the identification of outcropping zones of sulfide mineralisation that includes sphalerite (Zinc, Zn), chalcopyrite and malachite (copper, Cu), and galena (Lead, Pb), in addition to BHT alteration assemblages of Pb and Zn bearing silicate minerals. The program of geological, geochemical, and geophysical interpretation was conducted by MTA s exploration team in conjunction with independent geological consultant, Iain Groves, whose expertise is in the exploration of similar style deposits at Broken Hill in New South Wales. After spending two weeks on site, Independent Geological Gonsultant, Iain Groves, with considerable experience exploring at Broken Hill NSW, commented: Sulphide assemblages noted at Cassidy Shea include thick sequences with disseminated chalcopyrite and sphalerite (oxidized to malachite and smithsonite) in fine psammite to psammopelite garnet bearing rocks with associated gahnite and banded quartz garnet rocks with weakly layered sulphide. These types of rocks are common at Broken Hill proximal to the basal part of the system (Zinc Lodes). At Cassidy Shea, the disseminated sulphide zones identified may represent a large Cu-Zn target in their own right. At Cassidy Shea multiple zones of outcropping Zn and Cu mineralisation are present, and recent pxrf analysis has returned rock chip samples up to 11.9% Cu and 4.37% Zn, which demonstrates its strong mineralised potential. The Company aim to define drill targets for drilling in the 2014 field season. Rhodonite Hill is a large Pb and Zn anomaly, which is open to the north and south, and pxrf analysis has yielded lead results of up to14.4% Pb. Ground geophysics and mapping are planned to define drill targets at this anomaly. Downeaster is a strong 1.4km long Cu anomaly (with associated Zn and Pb), with peak values in- soils of 2018ppm Cu, 1753ppm Zn and 437ppm Pb. Additional infill soil sampling will be conducted to further confirm the prospect s potential. CONTACT DETAILS Baobab Resources PLC Ben James: Managing Director Tel: Jeremy Dowler: Chairman Tel: Frank Eagar: CFO Tel: Grant Thornton UK LLP Philip Secrett David Hignell Jamie Barklem Tel: Shore Capital Stockbrokers Jerry Keen Toby Gibbs Tel: COMPLETE METALS OF AFRICA ANNOUNCEMENT New high priority Base Metals targets identified at Rio Mazoe Project Highlights Metals of Africa has identified three new high priority base metal targets at its Rio Mazoe project in Mozambique Targets are located at the Changara JV Project within the Rio Mazoe Project area. The targets are: o Cassidy Shea prospect: Very large Zinc-Copper target with spot high grades up to 11.9% Cu and 5.1% Zn. o Rhodonite Hill prospect: Outcrops of Broken Hill type alteration over a 2km strike length and grades up to 14.4% Pb at surface. o Downeaster prospect: 1.4km long Cu anomaly in soils with elevated Pb and Zn and spot high grades up to 28.7% Zn. The positive results from the Company s continued exploration efforts to define these targets has provided MTA with further strong belief in the potential for discovery of a major zinc-copper-lead deposit within the project area. AIM ANNOUNCEMENT 14 JLUY 2014 Page 2 of 13

3 Prospects are shallow drill worthy targets and further exploration will be conducted to define drill targets drilling is planned to commence by October Metals of Africa Limited (ASX: MTA) (the Company) is pleased to announce that it has identified three new highpriority base metals targets at the Rio Mazoe Project, in the Tete province of Mozambique. The three new targets have been defined by a combination of interpretation of geological, geochemical and geophysical datasets plus detailed geological mapping, at the Changara JV Project, within the wider Rio Mazoe project area. The results of this work provide the Company with what it views as compelling optimism for the discovery of a major zinc-copper-lead deposit in the extensive tenement holding. The three priority targets are: 1. Cassidy Shea; 2. Rhodonite Hill; and 3. Downeaster. These three represent some of the highest ranked prospects of a total of 39 prospects which have been systematically ranked at the Rio Mazoe Project. Reconnaissance work continues on the remaining 36 prospects. Of particular importance has been the identification of outcropping zones of sulfide mineralisation that includes sphalerite (Zinc, Zn), chalcopyrite and malachite (copper, Cu), and galena (Lead, Pb), in addition to BHT alteration assemblages of Pb and Zn bearing silicate minerals. The program of geological, geochemical, and geophysical interpretation was conducted by MTA s exploration team in conjunction with independent geological consultant, Iain Groves, whose expertise is in the exploration of similar style deposits at Broken Hill in New South Wales. After spending two weeks onsite, Independent Geological Gonsultant, Iain Groves, with considerable experience exploring at Broken Hill NSW, commented: Sulphide assemblages noted at Cassidy Shea include thick sequences with disseminated chalcopyrite and sphalerite (copper and zinc) in fine psammite to psammopelite garnet bearing rocks with associated gahnite and banded quartz garnet rocks with weakly layered sulphide. These types of rocks are common at Broken Hill proximal to the basal part of the system (Zinc Lodes). At Cassidy Shea, the disseminated sulphide zones identified may represent a large Cu-Zn target in their own right. At Cassidy Shea multiple zones of outcropping Zn and Cu mineralisation are present, and recent pxrf analysis has returned rock chip samples up to 11.9% Cu and 4.37% Zn, which demonstrates its strong mineralised potential. The Company aims to define drill targets for drilling in the 2014 field season. Rhodonite Hill is a large Pb and Zn anomaly, which is open to the north and south, and pxrf analysis has yielded lead results of up to14.4% Pb. Ground geophysics and mapping are planned to define drill targets at this anomaly. Downeaster is a strong 1.4km long Cu anomaly (with associated Zn and Pb), with peak values in- soils of 2018ppm Cu, 1753ppm Zn and 437ppm Pb. Additional infill soil sampling will be conducted to further confirm the prospect s potential. Further details on the three new priority targets are provided, following, in this announcement. AIM ANNOUNCEMENT 14 JLUY 2014 Page 3 of 13

4 Figure 1. Rio Mazoe Project and prospect location map AIM ANNOUNCEMENT 14 JLUY 2014 Page 4 of 13

5 Cassidy Shea Prospect Cassidy Shea (previously reported as T2) is a large Zn-Pb-Cu geochemical anomaly that was first identified through regional soil sampling of tenement 1122L. The geochemical anomaly displays a strong correlation with regional airborne magnetic data with documented portable XRF (pxrf) analysis of various rock chips returning up to 5.1% Zn, 1.5% Cu, and elevated Pb. Cassidy Shea occurs over a very large area of 3.2 x 2.2km with anomalous geochemistry coincident with a geophysical magnetic anomaly. Figure 2. Highly anomalous zinc geochemistry (>750ppm) contoured over a magnetic RTP AS image for Cassidy Shea Prospect Contrary to regional geological mapping, Cassidy Shea is hosted by a thick sequence of metamorphosed sediments with multiple zones of outcropping Zn and Cu mineralisation noted. Recent pxrf analysis of rock chips has returned up to 11.9% Cu and 4.37% Zn as spot highs that demonstrates the mineralized potential of the area. Alteration type lithologies were noted with variable amounts of disseminated sphalerite and malachite (from 0% to 5%) recognized in the area and include banded silica-garnet-biotite (+/- magnetite), garnet quartzite, massive garnetite, yellow cummingtonite-magnetite-biotite, garnet-biotite bearing psammite, and gahnitepsammite. These mineral assemblages are well documented at Broken Hill in Australia. A program of work including infill soil sampling, mapping, and ground geophysics has been devised to progress this exciting target with the aim to define shallow drill targets for testing during the 2014 field season. AIM ANNOUNCEMENT 14 JLUY 2014 Page 5 of 13

6 Figure 3. Geochemical anomaly polygons over geology for Cassidy Shea Prospect AIM ANNOUNCEMENT 14 JLUY 2014 Page 6 of 13

7 Figure % disseminated sphalerite (now weathered to vuggy brown smithsonite) in an ilmenite bearing psammite (field of view 2cm). Figure 5. Malachite rich psammite with ex sphalerite with XRF analysis of over 2% Cu and Zn. Figure 6. Cummingtonite-magnetite rock associated with the best zones of sulphide and gahnite mineralisation (required petrology). AIM ANNOUNCEMENT 14 JLUY 2014 Page 7 of 13

8 Rhodonite Hill Prospect Rhodonite Hill is located 7km north of Cassidy Shea and is a large north-south trending N-S trending Pb and Zn anomaly associated with a strong potassic radiometric anomaly. The geochemical anomaly is observed in soil sampling for more than 3km and is open both north and south. Recent reconnaissance and mapping identified an exciting BHT alteration assemblage of minerals that includes amazonite (green microcline with up to 0.5% Pb) in pegmatite at two locations, rhodonite, bustamite, Mn rich minerals, and spessartine garnet. Other interesting minerals include orange manganese minerals and red muscovite in pegmatite. Several layers of massive manganese and occurrences of Mn "balls" are also present. These zones possibly represent a Mn-rich exhalite horizon. Peak values from pxrf rock analyses include 1.01% Pb and 0.86% Zn in magnetite bearing rocks, 0.56% Pb in amazonite, and anomalous Bi and As. A galena rich drusy quartz vein is present in the north of the area visited and is likely the continuation of the previously reported Fred-Lead quartz vein. Portable XRF analysis of the galena yielded 14.4% Pb, 0.58% As, 26g/t Ag and 0.26% W and anomalous Au. Figure 7. Rhodonite Hill Project and prospect location map AIM ANNOUNCEMENT 14 JLUY 2014 Page 8 of 13

9 Amazonite (Pb-microcline) in pegmatite at Rhodonite Hill (IG090) Quartz-feldspar-muscovite-ilmenite host rocks with numerous pegmatite segregations Possible rhodonite crystals (IG089) in Pegmatite - Crystals are blocky. Mn and orange translucent minerals (IG087) with red mica in q-fd-mv Arkose (0.34% Pb) Manganese and orange mineral (IG091) % Zn Galena in late dogtooth textured quartz vein (IG093a) - possible Fred Lead Vein. Figure 8. Variety of rocks at Rhodonite Hill, including excellent BHT indicators include Pb-rich amazonite (microcline) in pegmatite Rhodonite Hill has excellent indicators of a BHT-Style system, with the presence of a large Pb-Zn anomaly and amazonite-rich pegmatite associated with a potassic high in radiometric data. Rhodonite Hill proves the presence of pre-metamorphic Pb-Zn mineralization and confirms the exploration strategy of at Rio Mazoe for BHT mineralistion. Although no sulphide mineralisation has yet been identified it is likely that sulifes are present along the trend in the vicinity of Rhodonite Hill and regolith cover along the trend could conceal sulfide mineralization. Ground geophysics and mapping have been proposed over the anomaly to define drill targets. AIM ANNOUNCEMENT 14 JLUY 2014 Page 9 of 13

10 Figure 9. Mn ball at Rhodonite Hill AIM ANNOUNCEMENT 14 JLUY 2014 Page 10 of 13

11 Downeaster Prospect Downeaster is a strong 1.4km long Cu anomaly with associated Zn and Pb, with peak values in soils of 2018ppm Cu, 1753ppm Zn and 437ppm Pb. The anomaly is hosted in, and along the contact of, the east dipping marble units of the Monte Pitao Formation. Figure 10. Downeaster Project and prospect location map During mapping, several zones of calcite containing minor amounts of sphalerite and weak galena were located. Outcropping mineralization included a 1m wide subcrop of muscovite altered calcite with fine galena and weathered sphalerite (1.49% Pb and 0.39% Zn), and massive calcite with 1cm elongate grains of sphalerite (assaying 28.7% Zn as spot highs). Limited outcrop caused by the calcite rich nature of the material in the area obscured much of the anomaly and it is possible that richer zones of Zn, Pb, and Cu occur below surface. The different hosting lithology of Downeaster indicates that it is not of BHT origin; however, this high order anomaly could still represent a significantly mineralised body that is worthy of follow up exploration. It is possible that Downeaster represents a sulfide replacement in carbonate stratigraphy. Further infill soil sampling has been proposed that could define drill targets based solely on magnitude of the soil anomalism. AIM ANNOUNCEMENT 14 JLUY 2014 Page 11 of 13

12 Figure 11. Coarse grained sphalerite crystal in calcite identified at Downeaster Ground Geophysics Update The Company also advises of a revised timetable for its ground geophysics survey at the Rio Mazoe Project. Ground geophysics is likely to continue until late August, with earth works to follow and drilling now likely to commence in about late September. Join Venture Update The Company advises that it has re-negotiated the terms of the Joint Venture previously entered into with Baobab Resources PLC (BAO: AIM). The revised terms of the JV are summarised below: Activity Completion Date Expenditure (US$) MTA equity BAO equity 1st Works Program Aug ,000 25% 75% 2nd Works Program Nov ,000 40% 60% 3rd Works Program Nov ,000 51% 49% 4th Works Program Jun-17 $660,000 - $1,200,000 80% 20% Key Terms of JV: MTA to be the Operator and run the exploration program MTA to fund 1 st, 2 nd and 3 rd Work Programs. BAO has option to co-fund 4 th Works program on a pro-rata basis to retain 49% interest. If MTA fund total amount for 4 th works program, MTA earns 80% interest. Thereafter both companies contribute to expenditure proportionately. MTA can walk away from the JV at any point. AIM ANNOUNCEMENT 14 JLUY 2014 Page 12 of 13

13 About Metals of Africa Limited (MTA) MTA is a diversified minerals exploration company dedicated to exploring for world class deposits in Africa. MTA s core commodity targets are: lead, zinc, copper and graphite. In Mozambique, MTA is focussed on leadzinc-silver exploration for a Broken Hill Type target within the Rio Mazoe Project and adjacent Changara project. The Company also has a team focussed on graphite exploration at its Montepuez project. In Tanzania, MTA is currently focussed on the Mkindu Project where the target is an Olympic Dam style, Uranium-Iron oxide-copper- Gold (U-IOCG) deposit. The Kroussou Project in Gabon represents a shallow Mississippi Valley Type lead-zincsilver target. The Company s management staff reside in Africa, which ensures optimum in-country relationships and maximum resources are spent in-ground. Competent Persons Statement The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Ms. Cherie Leeden, who is Executive Director of the Company. Ms Leeden is a Member of the Australian Institute of Geoscientists and has sufficient experience of relevance to the styles of mineralisation and the types of deposits under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Ms Leeden consents to the inclusion in this report of the matters based on information in the form and context in which it appears. AIM ANNOUNCEMENT 14 JLUY 2014 Page 13 of 13