TIDMAFP
RNS Number : 0769B
African Pioneer PLC
29 September 2022
29 September 2022
African Pioneer Plc
("African Pioneer" or "the Company")
Granting of Mining Licence and Drilling Programme Update at
Ongombo Project in Namibia
African Pioneer plc ("APP" or the "Company"), the exploration
and resource development company with projects located in Namibia,
Botswana, and Zambia, is pleased to inform shareholders that the
Ongombo Mining Licence has been approved and that ongoing shallow
drilling continues to define near-surface copper - gold
mineralisation to be assessed for possible open pit extraction in
addition to the already defined underground mineral resource.
Highlights:
-- Mining Licence approved by the Ministry of Mines and Energy of Namibia
-- The Company is in the process of completing an Environmental
and Social Impact Assessment ("ESIA") which will trigger the start
of the mine development process
-- Current drill programme is targeting potential near-surface
copper - gold mineralisation not included in the existing
underground mineral resource estimate. 26 holes completed to date
with copper - gold mineralisation present in 25 holes
-- Peak assay intercepts from near-surface drilling include
5.39% Cu eq over 0.82m, 4.72% Cu eq over 1.15m, 3.96% Cu eq over
1.15m, 3.24% Cu eq over 0.945m, 2.64% Cu eq over 1.39m and 2.46% Cu
eq over 1.42m
-- Assays are pending on a further 15 holes drilled to test the
up-dip and both SSW and NNE strike extensions of near-surface
mineralisation
-- Additional 8 infill holes provisionally planned subject to the results of pending assays
-- A zone of near-surface copper mineralisation extending over
an area of approximately 750 metres by 185 metres at an average
grade of greater than 1% Cu
-- A coincident gold zone covering an area of 500 metres strike
length and a variable width of between 50 metres and 185 metres at
an average gold grade of greater than 0.4g/t Au
-- External resource consultant to undertake a mineral resource
estimate for near-surface mineralisation once all assay data has
been received.
Colin Bird, Executive Chairman of African Pioneer commented:
"We are very pleased to announce our mining licence for Ongombo
has been approved by the Ministry of Mines in Namibia. This is a
significant step forward for the company.
Our near surface drilling programme has been very successful,
providing good copper and gold results on a consistent basis. The
effect of this drilling programme will be to provide an open cast
opportunity for the first two years of operation, thus reducing the
effect of onerous early capital on the DCF model and bringing in
the operation into cashflow very quickly. We anticipate accessing
the underground resource ex-open pit and this will reduce both
capital and time in opening up the underground resource. We intend
to move into project implementation which will include final plant
design, open pit and mine design and contractor appointments.
We intend to fast track all our activities to meet what we
anticipate to be huge copper demand during the latter part of
2023."
Update on the Near-Surface Mineralisation & Drill
Programme
A zone of presumed mineralisation extending approximately 180m
from the outcropping gossan that identifies the Ongombo orebody at
surface down-dip has been drilled. Historic low-density drilling
failed to define any mineralisation and it was assumed that as the
orebody progressed up-dip towards the gossan outcrop that sulphide
mineralisation in the form of pyrite and chalcopyrite would give
way to oxides of copper. Recent drilling has broadly defined a zone
of predominantly copper sulphide mineralisation to depths of around
10 to 15m vertical depth.
On completion of the balance of drilling and the receipt of
outstanding assays, a mineral resource estimate will be generated
by external consultants that is expected to add to the existing
underground resource and generate a new open pittable mineral
resource. Open pit excavation will potentially reduce the amount of
primary underground development required to access underground ore
by stripping waste rock to expose the mineralised horizon and
ultimately leaving a highwall that can be used to develop a portal
for the planned decline. Work will be done to optimise the open pit
resource to generate a mineable resource sufficient to feed a plant
for a minimum of 12 months whilst primary development advances to
access underground ore.
Further studies are required to confirm the amenability of
Ongombo ore to standard flotation processing. Provisional
assessment indicates that the ore is typical of that found on this
part of the Matchless Belt and therefore suitable for recovery of
copper and gold through flotation.
Table 1: Ongombo Near-surface Drill Programme Selected Average
Weighted Assay Results for First 26 Drillholes
Borehole ID From To Mineralised Grade Grade Grade
(m) (m) Width (% Cu) (g/t Au) (Cu
(m) eq)*
APD001 11.81 14.81 3.0 0.42 0.78 0.96
------ ------ ------------ -------- ---------- ------
APD002 21.25 22.2 0.945 2.42 1.19 3.24
------ ------ ------------ -------- ---------- ------
APD003 8.82 10.37 1.55 2.18 0.50 3.0
------ ------ ------------ -------- ---------- ------
APD004 20.5 21.5 1.0 0.75 0.27 0.94
------ ------ ------------ -------- ---------- ------
APD005 11.69 13.11 1.42 2.12 0.49 2.46
------ ------ ------------ -------- ---------- ------
APD006 36.63 38.04 1.41 0.73 0.15 0.83
------ ------ ------------ -------- ---------- ------
APD007 50.42 51.42 1.0 0.47 0.14 0.56
------ ------ ------------ -------- ---------- ------
APD008 50.58 51.73 1.15 2.95 1.47 3.96
------ ------ ------------ -------- ---------- ------
APD009 30.41 31.80 1.39 2.36 0.41 2.64
------ ------ ------------ -------- ---------- ------
APD010 7.9 9.0 1.1 0.11 0.66 0.56
------ ------ ------------ -------- ---------- ------
APD011 16.7 17.48 0.78 0.69 0.17 0.80
------ ------ ------------ -------- ---------- ------
APD012 33.26 34.05 0.785 1.11 0.21 1.25
------ ------ ------------ -------- ---------- ------
APD013 46.04 47.2 1.15 4.44 0.40 4.72
------ ------ ------------ -------- ---------- ------
APD014 66.74 68.79 2.05 0.60 0.14 0.70
------ ------ ------------ -------- ---------- ------
APD015 39.14 39.82 0.68 1.03 0.19 1.16
------ ------ ------------ -------- ---------- ------
APD016 25.88 27.25 1.37 0.98 0.31 1.19
------ ------ ------------ -------- ---------- ------
APD017 16.0 16.57 0.57 1.33 0.33 1.56
------ ------ ------------ -------- ---------- ------
APD018 No Mineralised Intercept
----------------------------------------------------------
APD019 27.33 28.56 1.23 1.48 0.26 1.65
------ ------ ------------ -------- ---------- ------
APD020 53.9 54.72 0.82 4.59 1.17 5.39
------ ------ ------------ -------- ---------- ------
APD021 41.27 43.0 1.73 1.56 0.33 1.78
------ ------ ------------ -------- ---------- ------
APD022 13.86 14.84 0.975 2.03 0.21 2.17
------ ------ ------------ -------- ---------- ------
APD023 50.33 51.77 1.44 1.55 0.73 2.05
------ ------ ------------ -------- ---------- ------
APD024 66.47 67.08 0.61 0.99 0.32 1.21
------ ------ ------------ -------- ---------- ------
APD025 38.49 39.62 1.13 0.90 0.15 1.00
------ ------ ------------ -------- ---------- ------
APD026 19.59 21.42 1.83 1.31 0.43 1.60
------ ------ ------------ -------- ---------- ------
*A copper price of US$8,000 and a gold price of US$1,700 were
used for the purposes of calculating a copper equivalent grade.
The Company has elected to investigate the potential for an open
pit to mine copper sulphides and oxides. Oxides are known to occur
at or near surface from the outcrop of the Ongombo deposit
coincident with the Central Shoot. Initially assumed to extend for
a strike length of approximately 350m, recent drilling has extended
the zone coincident with copper grades >1% Cu to over 750m.
Drilling has also demonstrated that the down-dip extension from the
gossan outcrop extends in some locations to approximately 185m,
considerably wider (in the horizontal plane) than initially
anticipated at 100 to 150m.
Subject to mineral resource estimation work following the
completion of drilling and the return of assay data, indications
are that a viable copper resource suitable for open pit extraction
may occur. There also appears to be scope to add to the existing
underground resource with deeper mineralised intercepts expected to
be beyond any future pit floor. The bulk of mineralisation defined
to date with the exception of the zone closest to the Ongombo
gossan outcrop and to a vertical depth of between 10 and 15m is
sulphide-type mineralisation dominated by pyrite and
chalcopyrite.
The Ongombo orebody plunges to the NNE and an area has broadly
been defined suitable for mine infrastructure where any future ore
extraction would be from underground.
Environmental and Social Impact Assessment ("ESIA")
The ESIA process is well-advanced, and documentation is expected
to be completed ready for final submission to the relevant
authorities in the near future.
African Pioneer Plc
Colin Bird
Executive Chairman +44 (0)20 7581 4477
Beaumont Cornish (Financial Adviser)
Roland Cornish +44 (0) 020 7628 3396
Novum Securities Limited (Broker)
Jon Belliss +44 (0) 20 7399 9400
or visit https://africanpioneerplc.com/
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 as it forms part of
UK Domestic Law by virtue of the European Union (Withdrawal) Act
2018 ("UK MAR").
Qualified Person:
The technical information contained in this announcement has
been reviewed, verified, and approved by Colin Bird, CC.ENG, FIMMM,
South African and UK Certified Mine Manager and Director of African
Pioneer plc, with more than 40 years' experience mainly in hard
rock mining.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 as it forms part of
UK Domestic Law by virtue of the European Union (Withdrawal) Act
2018 ("UK MAR").
Glossary
A 'Mineral Resource' is a concentration or occurrence of solid
material of economic interest in or on the Earth's crust in such
form, grade (or quality), and quantity that there are reasonable
prospects for eventual economic extraction. The location, quantity,
grade (or quality), continuity and other geological characteristics
of a Mineral Resource are known, estimated or interpreted from
specific geological evidence and knowledge, including sampling.
Mineral Resources are sub-divided, in order of increasing
geological confidence, into Inferred, Indicated and Measured
categories.
An 'Indicated Mineral Resource' is that part of a Mineral
Resource for which quantity, grade (or quality), densities, shape
and physical characteristics are estimated with sufficient
confidence to allow the application of Modifying Factors in
sufficient detail to support mine planning and evaluation of the
economic viability of the deposit.
An 'Inferred Mineral Resource' is that part of a Mineral
Resource for which quantity and grade (or quality) are estimated on
the basis of limited geological evidence and sampling. Geological
evidence is sufficient to imply but not verify geological and grade
(or quality) continuity. It is based on exploration, sampling and
testing information gathered through appropriate techniques from
locations such as outcrops, trenches, pits, workings and drill
holes.
"Au" Gold
"Cu" Copper
" Cu eq " A copper price of US$8,000 and a gold price of
US$1,700 were used for the purposes of calculating a copper
equivalent grade.
"g/t" grammes per tonne
"Kt" thousand tonnes
"Mt" million tonnes
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African Pioneer (LSE:ASP)
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