Binga: Maiden Inferred Mineral Resource Estimate

Transcription

1 West African Mineral Binga: Maiden Inferred Mineral Resource Estimate RNS Number : 6643X West African Minerals Corporation 15 January 2014 For immediate release 15 January 2014 West African Minerals Corporation ("WAFM" or the "Company") Binga Initial Inferred Mineral Resource and Drilling Update % Fe at a 25% Fe cut- off grade from infill drilling in three blocks West African Minerals Corporation (AIM: WAFM) announces its maiden Inferred Mineral Resource Estimate ("MRE") at the Binga license located approximately 80 km east of the planned Kribi multi- user deep seaport in southwest Cameroon. The Inferred Mineral Resource Estimate was prepared by independent consultants, The MSA Group ("MSA"), in accordance with The Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Definition Standards on Mineral Resources and Mineral Reserves (2010). The 2013 drilling program comprised 5,806 metres of infill core and reverse circulation ("RC") drilling in follow- up to the 5,581 metres of widely- spaced scout drilling in 114 holes conducted in Several sub- outcropping magnetite- rich units have been drill- confirmed in two areas, comprising two adjacent blocks 6 and 7, and block 8, which have a combined strike length of approximately 5 km. The steeply dipping iron mineralisation is hosted by banded magnetite gneiss and is open in both areas with strike extension potential for at least 20 km. This is based on previous scout drilling and airborne geophysics which also covered the adjacent Minko license. HIGHLIGHTS CIM (NI compliant) Binga Initial Mineral Resource of % Fe at a 25% Fe cut- off grade, representing infill drilling of 5,806 metres in three blocks Mineralisation intersected from surface to vertical depths of approximately 50 metres and remains open at depth Potential to increase strike extent of the Mineral Resource by at least 20 km along strike with further infill drilling Metallurgical testing planned for Q Brad Mills, President of WAFM commented: "The Binga resource is the third Inferred Mineral Resource the Company has delivered from work conducted in the past 16 months at two of its license areas. Binga is important as it clearly identifies the potential for a significant near- coastal Mineral Resource that could 1/7

2 represent the first major step in the Company's goal to develop near term cash flow. The proximity of Binga to coastal infrastructure, which will allow short truck haulage to port with greatly reduced capital and operating costs, makes this potentially an ideal first production project for the company. "The three initial blocks 6/7 and 8 were targeted by utilising ground geophysics (gravity and magnetics) to guide the infill drilling program in follow- up to wide- spaced scout drilling and regional aeromagnetic surveys. This approach has proved highly successful in saving both time and cost on the project. The excellent correlation between the geophysics and the Mineral Resource models, coupled with the low phosphor and sulphur content, suggest that Binga could potentially be commercially viable and warrants detailed economic evaluation. In view of the considerable strike length of the magnetite mineralisation identified to date, it is reasonable to anticipate that drilling out along strike could yield sufficient Mineral Resources to support an initial production target of 3 Mt to 5 Mt per annum. In this connection, the Company is considering the possibility of raising $5-6 million in January to fund the 2014 drilling in addition to infrastructural and conceptual mining studies." Based on these encouraging preliminary results, the 2014 work programme is being designed to demonstrate: 1) metallurgical process requirements to produce a high grade saleable concentrate; 2) ground geophysics to guide future resource drilling; 3) expansion drilling to increase the Mineral Resource base to support a 10+ year mining project; and 4) conceptual studies on commercial operations that will allow West African Minerals Corporation to be one of the first hard- rock mining operators in Cameroon. Technical Description of the Resource The Inferred Mineral Resource Estimate was prepared by independent consultants, The MSA Group ("MSA"), in accordance with The Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Definition Standards on Mineral Resources and Mineral Reserves (2010). The effective date of this Inferred Mineral Resource Estimate is 13 January The maiden Inferred Mineral Resource Estimate (MRE) for Binga is based on data from 1,595 metres of drilled iron mineralisation from 75 boreholes, including the assay results of infill core and reverse circulation (RC) drilling herein reported (below). Inclined drilling was conducted on sections between approximately 50 m and 300 m apart. Drilling at Binga identified a steeply- dipping stratigraphic package that contains magnetite gneiss and alternating units of leucogneiss with variable amounts of pyroxene, amphibole and magnetite. The drill- confirmed iron mineralisation occurs over a combined strike length of approximately 5 km and individual magnetite- rich units range in width from approximately 2 metres to over 20 metres. Drill results to date indicate that these magnetite- rich units are partially oxidised to hematite and supergene enriched to depths of up to 15 metres. The iron grade of the non- weathered protore below the enriched cap ranges up to 37% Fe in individual block estimates depending on the relative abundance of magnetite, whereas the individual block estimates of the enriched near surface material range up to 42%. The reported Inferred Mineral Resource is considered an initial resource and further drilling on the Mineral Resource has potential to increase the deposit size. IRON ORE INFERRED MINERAL RESOURCE ESTIMATE To date, the Company has completed 11,387 metres of infill core and RC drilling at the Binga License in southwest Cameroon. The total Inferred Mineral Resource of % Fe at a 25% cut- off grade includes a higher grade colluvial and eluvial cap and near- surface enriched mineralisation of % Fe at a 25% cut- off grade. The Binga Inferred Mineral Resource is set out in tables 1 and 2 below: Table 1: Binga Inferred Mineral Resource at a 25% Fe cut- off as at 13 January 2014 Block Resource Category Tonnes (Mt) Fe % SiO 2 % Al 2 O 3 % P % LOI% 2/7

3 Measured Binga License Indicated Meas. + Ind Inferred Notes: (1) Mineral Resources which are not Mineral Reserves have no demonstrated economic viability. (2) The effective date of the Mineral Resource is 13 January (3) Mineral Resources for the Binga blocks have been classified according to The Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards on Mineral Resources and Mineral Reserves (2010). (4) The iron grades presented represent total iron. The proportion of recoverable iron has yet to be determined through mineralogical and metallurgical test work (5) WAFM has a 100 per cent. interest in the Binga license. Accordingly, the Gross and Net Attributable Inferred Mineral Resource are the same. WAFM is the Operator of the Binga Project. (6) Source: MSA Mineral Resource Estimate Table 2: Binga Inferred Mineral Resource Binga Inferred Mineral Resource as at 13 January % Fe Cut- off Grade Mineralisation Domain Tonnes Fe SiO 2 Al 2 O 3 P LOI (millions) (%) (%) (%) (%) (%) Supergene Enriched Cap Magnetite gneiss Total The geological model for the Binga MRE was represented by wireframes of the iron mineralisation that were constructed using both lithological logging and iron assay results. The model was sub- divided into Magnetite gneiss protore, and an overlaying zone of secondary enrichment (Supergene Enriched Cap) which may contain Fe- rich material of colluvial and eluvial origin. The top two metres of the model were discounted to account for soil and other non- iron enriched material. The wireframes were filled with block model cells of 80mE by 4mN by 20mRL in order to represent the interpreted geological continuity. The Reverse Circulation (RC) and Diamond Drilling sample data were composited to 2 m lengths and the percentages of Total Iron, (Fe), Silica (SiO 2 ), Aluminium Oxide (Al 2 O 3 ), Phosphorous (P) and Loss on Ignition (LOI) were estimated into the model using Inverse Distance Squared. A number of density measurements on drill core were conducted on site by using the Archimedes principle and augmented by gas pycnometry measurements at the assay laboratory. A regression equation based on the linear relationship between percentage total iron and density was then used to estimate in- situ bulk density. The Mineral Resources were reported above a total iron cut- off grade of 25%. All the reported Mineral Resources are classified as Inferred Mineral Resources in accordance with The Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards on Mineral Resources and Mineral Reserves (2010). BINGA DRILL RESULTS Mineralisation Table 3 below lists the significant intercepts >30% Fe from the scout and infill drilling up to drill hole BDD014 & BRC195. A map of all the drill holes reported in Table 3 is available on the website at and at the end of this release. Table 3 - Minimum 30% Fe over 5 metres 3/7

4 Borehole Scout/Infill Depth from (m) Depth to (m) Downhole Length (m) Hole Inclination Fe % Al2O3 % P % S % SiO2 % LOI % BDD003 Infill BDD004 Infill BDD009 Infill BDD009 Infill BDD012 Infill BDD013 Infill BDD013 Infill BRC027 Scout BRC027 Scout BRC032 Scout BRC033 Scout BRC042 Scout BRC046B Scout BRC090 Scout BRC090 Scout BRC115 Infill BRC116 Infill BRC118 Infill BRC119 Infill BRC119 Infill BRC122 Infill BRC122 Infill BRC122 Infill BRC122 Infill BRC123 Infill BRC127 Infill BRC130 Infill BRC147 Infill BRC147 Infill BRC148 Infill BRC162 Infill BRC163 Infill BRC174 Infill BRC174 Infill BRC175 Infill BRC175 Infill BRC177 Infill BRC178 Infill BRC180 Infill BRC182 Infill BRC183 Infill BRC184 Infill BRC186 Infill BRC186 Infill BRC186 Infill BRC187 Infill BRC188 Infill BRC188 Infill BRC188 Infill BRC189 Infill BRC190 Infill /7

5 BRC191 Infill BRC192 Infill BRC192 Infill BRC192 Infill BRC193 Infill BRC194 Infill BRC194 Infill BRC195 Infill Stated downhole thicknesses are apparent as the relationship between borehole trace and the orientation of the mineralised package is variable. QUALIFIED PERSON The technical information contained in this announcement has been reviewed by Dr Brendan Clarke, the Head of Geology of The MSA Group. Dr Brendan Clarke is a Member of the Geological Society of South Africa and a Professional Natural Scientist (Pr.Sci.Nat) registered with the South African Council for Natural Scientific Professions. Dr Clarke has sufficient experience relevant to the style of mineralisation under consideration and to the activities which are being reported, to qualify as a Qualified Person for the purposes of this announcement. The MSA Group has implemented best- practice QAQC protocols on the Binga prospect including the insertion of standards, blanks and duplicates into the sampling stream. The MSA Group has reviewed the results of the QAQC programme to date and is satisfied that the assay results reported in this release are both accurate and precise. For further information contact: West African Minerals Corporation Beaumont Cornish Limited (Nominated Adviser) Anton Mauve Managing Director Donna Yoshimatsu Investor Relations and Corporate Secretary Roland Cornish Michael Cornish +44 (0) (416) (0) SP Angel Corporate Finance LLP (Broker) GTH Communications Ewan Leggat +44 (0) Toby Hall Suzanne Johnson Walsh +44 (0) /7492 About West African Minerals Corporation West African Minerals Corporation (AIM: WAFM) is an iron ore mining and exploration group focused on West Africa with interests in iron ore exploration permits in Cameroon and Sierra Leone. Through its 100 per cent owned subsidiary Compagnie Minière du Cameroun SA, WAFM owns six exploration permits in Cameroon covering a total Block of approximately 6,000 square kilometres and spanning the coast to the eastern deposits. The Sierra Leone licences comprise five exploration licences with potential for enriched hematite schists typical of the Marampa Group over a total Block of approximately 687 square kilometres. Further information on the Group is available at GLOSSARY OF TECHNICAL TERMS Amphibolite A metamorphic rock comprised mainly of the Mg- Fe- Ca- silicate mineral amphibole, generally with an orientated fabric Al 2 O 3 Chemical symbol for aluminium oxide 5/7

6 Fe Magnetite Magnetite gneiss Chemical symbol for iron One of the most common iron minerals and an important ore of iron with the chemical formula Fe 3 O 4 Metamorphic rock with a distinctive layered texture due to the discontinuous segregation of quartzo- feldspathic and ferromagnesian minerals. Magnetite can form up to 50% in this iron- rich variety of gneiss. Hematite The principal ore mineral of iron with the chemical formula Fe 2 O 3 Leucogneiss LOI P Pyroxene S SiO 2 Strike Reverse circulation drilling (RC) Diamond drilling (DD) Inferred Mineral Resource Mineral Resource Light coloured variety of a metamorphic rock with almost no dark minerals. Chemically similar to a granite Loss on ignition. A test designed to measure the amount of moisture or impurities lost when a sample is ignited during analysis Chemical symbol for phosphorus Common rock- forming Mg- Fe- Ca silicate mineral Chemical symbol for sulphur The chemical compound silicon dioxide, also known as silica (from the Latin silex), is an oxide of silicon with the chemical formula SiO 2 Horizontal direction or trend of a geological structure A drilling method that utilizes a large rotary drill and air compressor to collect rock samples quickly and efficiently. The high speed and low cost of RC drilling makes it an ideal method for obtaining mineral samples A drilling method that uses a large rotary drill with a hollow drill bit and core barrel that allows for the collection of intact core samples. While slower and more expensive than RC drilling, the collection of intact core samples allows for greater observation and interpretation of rock types, mineralisation styles and structural features An Inferred Mineral Resource is that part of a mineral resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity A Mineral Resource is a concentration or occurrence of diamonds, natural solid inorganic material, or natural solid fossilized organic material including base and precious metals, coal, and industrial minerals in or on the Earth's crust in such form and quantity and of such a grade or quality that it has reasonable prospects for economic extraction. The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge Please click here pdf.londonstockexchange.com/rns/6643x_ pdf for a full copy of the release with images of: 1. BINGA Project - RC and DD Drill Collars 2. BINGA Project - RC and DD Drill Collars a. Block 6/7 b. Block 8 ENDS 6/7

7 END This information is provided by RNS The company news service from the London Stock Exchange DRLGGUQCGUPCPPC 7/7