SIGNIFICANT GOLD MINERALISATION INTERSECTED AT MANIEMA PROJECT, DRC 21.7m at 3.58g/t Au HIGHLIGHTS
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1 ERONGO ENERGY LIMITED Registered Office: Postal Address: Contact Details: ACN LEVEL 1, SUITE 5, THE BUSINESS CENTRE PO BOX 131 TELEPHONE SALVADO ROAD, SUBIACO SUBIACO WA 6904 FACSIMILE WESTERN AUSTRALIA 6008 ADMIN@ERONGOENERGY.COM.AU 19 July 2012 SIGNIFICANT GOLD MINERALISATION INTERSECTED AT MANIEMA PROJECT, DRC 21.7m at 3.58g/t Au HIGHLIGHTS Results received from single deep drill hole at Kabotshome Prospect at Maniema Gold Project, DRC Results include: o 2.5g/t Au (from 319m) including 4.03g/t Au o 3.58g/t Au (from 354m) including 8.74g/t Au The hole ended in mineralisation Result confirms continuity and improving grade at depth at Kabotshome The mineralisation is of a similar style and structural setting to Banro s Twangiza (5.6Moz) and Namoya (2Moz) deposits Erongo Energy Limited (ASX: ERN) ("Erongo" or the "Company") is pleased to announce that it has received results for a single deep diamond hole drilled on its most advanced Kabotshome Prospect on PR 4804 at the Maniema Gold and Tin Project ( Maniema Project ) in east central Democratic Republic of Congo (DRC). Drill hole KBD07 was drilled under previous drill holes KBD g/t Au from 33.35m) and KBD g/t Au from 68m). Two significant zones of mineralisation of 2.5g/t Au from 319m (including 4.03g/t Au from 320m) and 3.58g/t Au from 354m (including 8.74g/t Au) were reported. Results are summarised in Table 1 and Figures 1 and 2. Drill hole KBD07 was stopped short in highly mineralised fine grained silicified sediments as all drill rods were exhausted and the hole had to be stopped within the mineralised zone. At the Kabotshome Prospect, the Company is targeting a structurally complex mineralised shear where one or more broad high grade zones of mineralisation occur along the structure. One such zone was intersected at the bottom of KBD g/t including 8.74g/t Au) where the true thickness of this high grade chute needs to be established by deepening the hole. Future drilling at regular intervals along the structure will also identify the surface position of this high grade chute and will identify any additional zones of high grade mineralisation along the structure. Gold mineralisation reported at Banro Corporation s Twangiza and Namoya deposits located to the east in the same mineral province reflect similar high grade chute geometries. 1
2 Interpretation of an airborne magnetic and radiometric survey flown over the project area suggests that the Kabotshome hill is underlain by a large anticlinal fold structure. The eastern limb of the fold is dominated by mafic volcanics while the western limb is comprised mostly of sediments. The mineralised shear is interpreted to lie along the near vertical axial plane of the fold structure where sediments are in contact with volcanic rocks. Additional mineralised shear structures can be expected parallel to the main shear in both rock types. All drilling completed to date at Kabotshome has returned significant results and this most recent result confirms that mineralisation extends deeper than 300m below surface with a significant increase in grade. This mineralisation is also open to the north and south. Several additional targets have been identified along mafic volcanic contact zones with associated soil anomalies within the Kabotshome Prospect area from the geophysical survey. The Company now plans to deepen KBD07 and to drill a series of holes along the remainder of the 1km structure which will help to identify additional high grade zones of mineralisation and give a better indication of the potential overall grade of mineralisation at Kabotshome. The Company will also analyse all soil sampling, trenching and drilling results received to date in conjunction with the interpretation of the geophysical survey to follow up with trenching and pitting on new target areas while it procures a suitable drill rig for future work. The Company remains confident that the Kabotshome Prospect has significant gold resources to support an open pit and underground mining operation. For further information regarding Erongo Energy, please contact: Mark Gasson Simon Hinsley Managing Director Investor Relations Tel: Tel: mark@gasson.co.za simon@nwrcommunications.com.au Erongo Energy website: The information in this report that relates to exploration results is based on information compiled by Mr Mark Gasson who is a member of the Australasian Institute of Mining and Metallurgy. Mr Gasson, the Managing Director of the Company, has sufficient relevant experience in respect of the style of mineralization, the type of deposit under consideration and the activity being undertaken to qualify as a Competent Person within the definition of the 2004 Edition of the AusIMM s Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Gasson consents to the inclusion in this report of the matters that are based on his information in the form and context in which it appears. 2
3 Table 1: Summary of Significant Intersections Received, KBD07, Kabotshome Prospect, Maniema Project, DRC Hole_ID Easting (me) Northing (mn) EOH Dip (deg) Azim (deg) From To Width Au (g/t) KBD incl incl
4 Figure 1: Borehole Locality Map at the Kabotshome Prospect, PR
5 Figure 2: Section N 5
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