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Arc Minerals Limited - ARCM - Akyanga Resource Update

RNS Number : 8183S

Arc Minerals Limited

28 June 2018

 

Arc Minerals Ltd / Epic: ARCM / Market: AIM / Sector: Mining & Exploration

 

28 June 2018

 

Arc Minerals Ltd 

("Arc Minerals" or the "Company")

 

Arc Minerals Reports 3 Million Ounce Gold Mineral Resource at the Akyanga Deposit

 

Arc Minerals ("Arc" or "the Company") is pleased to report an update of the Mineral Resource Estimate for the Akyanga deposit, part of its Casa project, located in the eastern part of the Democratic Republic of Congo ("DRC").  The statement of Mineral Resources (Table 1) was prepared by Denny Jones Pty Ltd ("Denny Jones"), a specialised Australian based Resource Consultancy and is reported in accordance with the requirements of the 2012 JORC Code.

 

Highlights - Akyanga Mineral Resource (100%)

  • ·3 million ounces of gold averaging 2.16 grams per tonne
  • ·Near-term exploration target of a further 200,000 to 600,000 ounces of gold in the Akyanga East Area
  • ·Further exploration targets along the 55km gold belt within its 133km² mining license
  • ·Commencement of a Scoping Study

 

Nick von Schirnding, ARC's Executive Chairman, commented:

"The increase in Akyanga's JORC mineral resource from 1.6m ozs to 3m ozs  is a game-changer for us and has exceeded our most optimistic expectations.  The increased ounces and grade has the potential to significantly enhance the economics of developing the mine. We shall now commence with a scoping study, targeting a 150koz-200koz per annum low cost gold operation, to be completed by year end.

Our ability to upgrade this significant, near-surface gold deposit in such a short timeframe clearly demonstrates the largely untapped potential of both the Akyanga project and the 55km long gold belt within our 133km2 mining license area.

 

We look forward to updating shareholders on further developments at Casa as well as at our Zamsort copper/cobalt project where drilling is about to commence and completion work on the plant is underway." 

 

Mineral Resource Estimate

The Akyanga deposit is located near the town of Misisi located 250km south of Bukavu, the provincial capital of the South Kivu Province in the Democratic Republic of the Congo. The Akyanga deposit currently has an Inferred Mineral Resource of 44.4 million tonnes at 2.16 grams per tonne containing 3 million ounces. The statement of Mineral Resources (Table 1) completed by Denny Jones Pty Ltd ("Denny Jones"), a leading Australian based Resource Consultancy is reported in accordance with the requirements of the 2012 JORC Code. 

 

 

Table 1.   Akyanga Mineral Resource estimate - cut-off grade of 0.5 g/t Au - June 2018 (100% Basis) 

Category

Tonnes
(millions)

Gold grade
(g/t)

Contained(3)
Gold
(million oz)

Inferred Resource (2)

44.3

2.16

3.0

1.     Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, marketing, or other relevant issues. The Mineral Resources in this report were reported using the guidelines of JORC (2012).

2.     The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred Resources as an Indicated or Measured Mineral Resource.  It is uncertain if further exploration will result in upgrading them to an Indicated or Measured Mineral Resource category.

3.     Contained metal and tonnes figures in totals may differ due to rounding.

 

Figure 1. Geological cross-section

References to Figure 1 relate to the version of this release visible in PDF format by clicking the link below:

http://www.rns-pdf.londonstockexchange.com/rns/8183S_1-2018-6-27.pdf

In addition to the Mineral Resource, an Exploration Target over the Akyanga East project has been defined as summarised below in Table 2 below.

 

Table 2.   Akyanga East Exploration Target - June 2018(1(100% Basis)

Category

Tonnes

(millions)

Gold Grade

(g/t)

Contained

Gold

(million oz)

Upper Range

7.1

2.43

0.6

Lower Range

3.1

1.94

0.2

1.     The quantity and grade of the reported Exploration Target are uncertain in nature and there has been insufficient exploration to define an Inferred Resource. It is uncertain if further exploration will result in the estimation of Mineral Resources.

2.     A cut-off grade of 0.5 g/t has been used to define the Exploration Target.

 

The Akyanga structure remains open in several directions and all geological indicators suggest the Misisi corridor and multiple surrounding targets have the potential to continue to deliver further substantial growth in the Company's mineral inventory.

 

 

Quality Control/Quality Assurance

The estimate is underpinned by data from 105 diamond drill holes and 6 RC drill holes totalling over 22,000m of drilling. All sample data was composited to the dominant sample length of 1 m prior to analysis an estimation. The sample database and the topographic survey were reviewed and validated by Arc Minerals and African Mining Consultants ("AMC") prior to being supplied to Denny Jones.

Block modelling was carried out by Denny Jones using cell dimensions of 25mE by 25mN by 25 mRL was coded to reflect the surface topography and mineralised zones. 

Density values were estimated into blocks and had an average density of 2.63t/m³.  The Resource estimate has been classified based on data density, data quality, confidence in the geological interpretation and confidence in the robustness of grade interpolation.

 

Scoping Feasibility Study  

In 2014, a scoping feasibility study for the Akyanga deposit on the previous SRK resource of 1.2Moz, resulting in an ungeared NPV (8%) and IRR of $171m and 35% respectively at a $1,300/oz gold price.  The company will now commence a Scoping Study with the aim to build a 150koz - 200koz per annum gold producer. 

 

Qualified Persons

The information in this announcement that relates the Resource Estimation was prepared by Ivor Jones (BSc. Hons, MSc, FAussIMM, CP(geo)) Mr Jones has sufficient experience in the activity which he is undertaking to qualify as a Competent Person as defined under the JORC Code (2012).  Denny Jones consents to the inclusion in this announcement of the matters based on this information in the form and context in which it appears. 

The exploration database and information in this announcement that relates to the Exploration Targets, Exploration Results and Mineral Resources or Ore Reserves is based on information prepared and reviewed by Mr Thomas Rogers (BSc. Hons, MSAIMM, MEIZ) of African Mining Consultants ("AMC"). Mr Rogers has sufficient experience in the activity which he is undertaking to qualify as a Competent Person as defined under the JORC Code (2012).  AMC consents to the inclusion in this announcement of the matters based on this information in the form and context in which it appears. 

The information in this press release is based on information provided by Arc Minerals Limited, Denny Jones and AMC and compiled on behalf of Arc Minerals by Mr Vassilios Carellas. The Mineral Resource has been independently prepared by Denny Jones.  Mr Vassilios Carellas (BSc (Hons), MAusIMM) is the Chief Operating Officer for Arc Minerals  and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined under the JORC Code (2012).  Mr Carellas consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

 

 

Best regards,

 

Christian Dennis: 0203 137 1903 (christian.dennis@optivasecurities.com)

Graeme Dickson: 0203 411 1880 (graeme.dickson@optivasecurities.com)

Hal Norwood: 0203 411 1882 (hal.norwood@optivasecurities.com)

Vishal Balasingham: 0203 411 1881 (vishal.balasingham@optivasecurities.com)

Mike Garnett: 0203 137 1906 (mike.garnett@optivasecurities.com)

 

T: +44(0)203 137 1902

 


      

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