AFO Afriore

    Akanani Platinum Project Granted Converted Prospecting Rights

 

    TSX/AIM:AFO

 

    ROAD TOWN, TORTOLA, British Virgin Islands, June 15 /CNW/ - AfriOre

Limited ("AfriOre" or the "Company") (TSX/AIM:AFO) is pleased to announce that

the South African Department of Minerals and Energy ("DME") has granted the

conversion of old order to new order prospecting rights to Akanani Mining

(Pty) Ltd. ("Akanani Mining") in respect of the Akanani Platinum Project

("Akanani").

    In terms of the agreement constituted by the new order prospecting rights

concluded between the DME and Akanani Mining on June 13, 2006, the converted

prospecting rights for platinum group metals ("PGM") and associated precious

and base metals, are granted to Akanani Mining for a period of five years.

Under Section 18 of the South African Mineral and Petroleum Resources

Development Act ("MPRDA"), Akanani Mining has the right to apply for an

extension of these prospecting rights for a further three years, on expiry of

the initial five year period. In addition, under Section 19(1) of the MPRDA,

Akanani Mining has an exclusive right to apply for a mining right at Akanani.

    AfriOre has earned its full entitlement of a 74% interest in Akanani

Mining, as per the terms of the Company's agreement with Akanani Mining, and

has been exploring Akanani under the originally granted old order rights since

November 2004. To date, 29 drill holes have been completed over 6.5 km of the

total 9 km strike length of the Platreef on the project area. The Company

announced on May 11, 2006, an independent initial inferred mineral resource

estimate for Akanani of 183.0 million tones at a grade of 4.5 grams of

platinum, palladium, rhodium plus gold per tonne, which equates to 26.4

million ounces of platinum, palladium, rhodium plus gold, as well as 0.24%

nickel and 0.14% copper. This estimate is based on 17 drill holes in the

Southern Priority Area, which extends for 3.6 km of the Platreef strike length

at Akanani. Eleven drill rigs are currently deployed at Akanani and a Pre-

Feasibility Study is underway. Final results from this study are expected by

early 2007.

    Warren Newfield, President and CEO of AfriOre, states "We are delighted

to have concluded the conversion of rights agreement with the DME, which

confirms Akanani Mining's rights well into the future and provides confidence

for us to continue with our aggressive exploration program on this very

exciting project."

    AfriOre also announces that it has entered into an agreement with the

original shareholders of Akanani Mining pursuant to which the Company has been

granted a right of first refusal to acquire any platinum project located in

the Republic of South Africa which any of such shareholders wishes to sell or

joint venture during the period expiring on May 5, 2008. Pursuant to this

agreement, AfriOre has issued 2,500,000 common share purchase warrants to such

shareholders, with each warrant entitling the holder to purchase one common

share of AfriOre at CDN$ 4.00 until May 5, 2008.

 

    About AfriOre Limited

    AfriOre is a TSX- and AIM-listed company focused on its 74%-owned,

4,095 ha Akanani Platinum Project, located on the Northern Limb of South

Africa's Bushveld Complex. AfriOre's Exploration and Management Team has

extensive experience in platinum projects in South Africa, where the Company

maintains aggressive exploration and acquisition programs. AfriOre's

Management has a successful history of creating shareholder value through the

exploration and advancement of projects.

    Exploration at Akanani is being conducted under the supervision of Mr.

Mike van Aswegen, COO of AfriOre and the Company's Qualified Person, as

defined under National Instrument 43-101. Mr. van Aswegen is responsible for

the technical material in this release, excluding that relating to the mineral

resource estimate. An independent technical report entitled "AfriOre Limited:

Akanani Platinum Project, Limpopo Province, South Africa, Project No. J883"

and dated May 29, 2006 has been filed on SEDAR and may be accessed at

www.sedar.com. The technical report was prepared by Mr. J.C. Witley (B.Sc.

Hons., Mining Geology), a registered Professional Natural Scientist with the

South African Council for Natural Scientific Professions (SACNASP) and an

employee of Snowden Mining Industry Consultants.

    AfriOre has a treasury of approximately CDN$ 24.1M. The Company has

50,780,868 shares outstanding and 57,098,402 shares fully diluted. For

additional information on AfriOre and its projects visit the Company's website

at www.afriore.com or contact:

 

    Forward Looking Statements

    -------------------------------------------------------------------------

    This press release contains certain "forward-looking statements". All

statements, other than statements of historical fact, that address activities,

events or developments that the Company believes, expects or anticipates will

or may occur in the future (including, without limitation, statements

regarding the estimation of mineral resources and the Company's plans with

respect to the exploration and development of Akanani) are forward-looking

statements. These forward-looking statements reflect the current expectations

or beliefs of the Company based on information currently available to the

Company. Forward-looking statements are subject to a number of risks and

uncertainties that may cause the actual results of the Company to differ

materially from those discussed in the forward-looking statements, and even if

such actual results are realized or substantially realized, there can be no

assurance that they will have the expected consequences to, or effects on the

Company. Factors that could cause actual results or events to differ

materially from current expectations include, among other things, changes in

PGM prices, changes in equity markets, failure to establish estimated mineral

resources, delays in obtaining or failure to obtain required regulatory

approval, political risks arising from operating in Africa, changes to

regulations affecting the Company's activities, uncertainties relating to the

availability and costs of financing needed in the future, the uncertainties

involved in interpreting drilling results and other ecological data, and the

other risks involved in the mineral exploration and development industry. 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. Although the

Company believes that the assumptions inherent in the forward-looking

statements are reasonable, 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.

    The inferred mineral resource figures referred to in this press release

are estimates and no assurances can be given that the indicated levels of

minerals will be produced. Such estimates are expressions of judgment based on

knowledge, mining experience, analysis of drilling results and industry

practices. Valid estimates made at a given time may significantly change when

new information becomes available. While the Company believes that the

resource estimate included in this press release is well established, by their

nature resource estimates are imprecise and depend, to a certain extent, upon

statistical inferences which may ultimately prove unreliable. Mineral

resources are not mineral reserves and do not have demonstrated economic

viability. Measured and indicated mineral resources are sufficiently well

defined to allow geological and grade continuity to be reasonably assumed and

permit the application of technical and economic parameters in assessing the

economic viability of the resource. Inferred mineral resources are estimated

on limited information not sufficient to verify geological and grade

continuity or to allow technical and economic parameters to be applied.

Inferred mineral resources are too speculative geologically to have economic

considerations applied to them to enable them to be categorized as mineral

reserves. There is no certainty that mineral resources can be upgraded to

mineral reserves through continued exploration.

 

 

    For further information: Fiona Childe, Ph.D., P.Geo., VP Corporate

Communications, Tau Capital Corp., Tel: (416) 361-9636 x 227, Email:

fchilde(at)taucapital.com

    (AFO.)



END

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