Armadale announce 35% Mpokoto mineral resource increase

PUBLISHED: Dec 19 2013 @ 05:15 | Comments (0) |

Armadale (LSE:ACP),an AIM quoted investment company focused on natural resource projects in Africa, have issued updated JORC Code Compliant Resource estimate at the Mpokoto Gold Project in the Katanga Province in the south of the Democratic Republic of Congo .

Highlights:

· 35% increase in total Mineral Resource to 510,000oz gold (‘Au’) from 11.2 million tonnes (‘Mt’) @ 1.42g/t Au at a cut-off grade of 0.5g/t (previous resource of 380,000oz Au from 7.2Mt @ 1.65g/t at a 0.5g/t cut-off)

· 65% of the updated Mineral Resource is in the Indicated category

· The Mineral Resource estimate is based upon the completion of an additional 21 diamond drill holes completed since the last resource estimate, a recent re-interpretation of the geology from164 holes drilled for a total of 18,142m –conducted by previous owners of the project

· Considerable further upside potential left– Exploration Target of 10Mt-15Mt at 1.2g/t-1.5g/t Au, as reviewed by CSA

· Defined development strategy to rapidly advance the Project through to low Capex, low Opex gold production in 24 months

Justin Lewis, Director of Armadale, said, “I am delighted to announce this 35% increase in the total gold Mineral Resource estimate at Mpokoto, demonstrating the Board’s belief that the Project has considerable further scope to become a highly attractive pre-production gold asset.

“The updated Mineral Resource is based on additional drilling and an increased level of confidence in the geological and resource model work that was conducted on behalf of the group. Our activities remain focused on the further delineation of gold resource ounces, together with the additional critical development work required ahead of low cost commercial gold production targeted within the next two years.”

CSA Global Pty Ltd was engaged to complete a Mineral Resource estimate for gold mineralisation in the Mpokoto Gold Project where the group has the right to earn an 80% interest in the Project.

The MRE is based on the results obtained from 164 drill holes (18,142m), consisting of 57 reverse circulation (‘RC’) totaling 3,585m, and 107 diamond drill holes (incl. RC holes with diamond core tails) totaling 14,557m, and is classified as Indicated and Inferred. This is based on confidence in the geological interpretation and continuity from the results of the drilling campaign and surface mapping.

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