AFRICAN MINING AND EXPLORATION plc

('AME' or 'the Company')

DRILLING UPDATE - KARAN LICENCE, MALI

 

African Mining & Exploration plc (AIM: AME), the AIM listed gold exploration company operating in Mali, West Africa, announces the findings of its initial Drilling Programme.

Highlights

12,269 metre Reverse Circulation ('RC') drill programme completed over four target areas within the Karan Licence;

 

Drilling targeted four prospects delineated by geochemical and geophysical data;

 

Approximately 2.9 km of the 25km structure drilled ;

 

Evidence of pervasive gold mineralisation discovered, associated with 3 of the 4 main targets;

 

Significant mineralisation found associated with quartz veining and porphyritic intrusions with dispersed low-grade halos;

 

Peak intersections include 1 metre ('m') at 11.75 grams per tonne gold ('g/t Au'), 1m at 8.62g/t Au, 1m at 5.88g/t Au, 1m at 4.73g/t Au and 2m at 3.90g/t Au.

 

Large low grade intersections include 39m at 0.21g/t and 101m at 0.11 g/t.

 

Further exploration drilling required to follow up mineralised structural targets  within the Karan Licence;

 

Screened fire assay to be completed on representative mineralised holes to detect for the presence of coarse grained gold

 

Mark Jones, Chief Executive Officer comments ''Gold mineralisation has been found on all four prospects and we are encouraged by the structures associated with the mineralisation in the host rocks indicating the presence of gold in the system. These structures are consistent with what is found elsewhere in Mali in similar terrain. Exploration remains at an early stage and the next phase aims to improve our understanding of the structures controlling mineralisation and thereby refine the next round of drilling to intersect higher grade intercepts which it is assumed are currently reflected in the larger low-grade gold halos that have been intersected''.

 

For further information, please contact:              

African Mining & Exploration plc	44 (0)207 499 4059
Mark Jones (Chief Executive Officer)
Singer Capital Markets Limited	44 (0)20 3205 7500
(Nomad and Broker)
James Maxwell/Jennifer Wyllie
Farm Street Communications	44 (0)759 3340 107
	44 (0)203 176 4249

 

 

Exploration programme

The Reverse Circulation ('RC') programme completed on targets in the Karan Licence comprised a total of 83 holes for 12,269 metres drilled. To date, assays have been received for all of the holes, bringing the total number of assay results to 12,920.

Drilling was completed using a well-established international drilling contractor with rig supervision being supplied at all times by experienced AME geologists.

Sampling protocols and drilling procedures were independently assessed and approved by an independent geological consultant as part of AME's standard QA/QC review.

Drilling depths were generally planned for 175 to 200 metres to obtain coverage across the structural targets, but were constrained at some sites due to the presence of groundwater and problems with the drill rig compressor. This resulted in minor changes to the drill plan; with drill holes brought closer together to ensure lateral coverage and that near vertical structures were not missed.

 

Exploration completed since acquisition of the Licence includes the following:

12,269m RC drilling (83 drill holes);

12,920 samples collected and submitted for gold fire assay;

475 line kilometres ('km') of ground magnetic geophysics;

1.2 line km of IP - Resistivity geophysics;

875 grab and channel samples collected and analysed;

21 BLEG samples collected by Newmont under terms of an agreement;

Kouroudjin Target

A fence of 12 holes was drilled across the target focussing on regional structure defined by airborne geophysics complemented by artisanal pits.

The local geology is dominated by a fine-grained schist with moderate chlorite alteration intruded by a porphyritic unit. Silicification, quartz veining and pyrite are common throughout and appear to show more intensity proximal to the contact with the intrusion and schist. Encouragingly these areas show increased gold mineralisation, suggesting the intrusion is an important control.

Peak intersections are illustrated in Table 1 below and show the presence of both high-grade intersections generally associated with quartz veins and lower grade wider zones typically associated with disseminated sulphides and quartz stockwork alteration.

According to geophysical data and interpretation, there are a substantial number of conjugate structures present which appear to be associated with mineralisation. Further work including diamond drilling is required to achieve a better understanding of the structures and the relationship with mineralisation.

 

Table 1: Kouroudjin Target peak drill intersections

Borehole	Final Depth (m)	Intersection From (m)	Intersection To (m)	Interval (m)	Grade (g/t Au)
RC11KDJ001	160	94.00 Inc.   95.00 99.00 110.0	111.0 96.00 101.0 111.0	17.00 1.00 2.00 1.00	1.03 2.63 3.9 1.08
RC11KDJ012	162	27.00 Inc.   33.00 58.00 85.00	36.00 34.00 59.00 91.00	9.00 1.00 1.00 6.00	1.17 8.62 11.75 1.04

 

Fintakourouni Target

The Fintakourouni Target is located in the north of the Karan Licence. A total of 11 RC holes were drilled of which 8 holes were drilled along a wide-spaced fence line over a strike length of approximately 500m specifically to test for the linear structure being followed by artisanal mining. Two more holes were used to test a chargeability anomaly generated by an IP-resistivity survey, whilst another hole was drilled back across RC11FIN002 to test the mineralisation intersected between 142m and 156m depth.

Drilling intersected a broad zone of meta-sediment with intermediate intrusions.  No structural interpretation has been possible and further drilling is required to establish the dip direction of the structures being followed by artisans which are not replicated at depth in drilling. 

Mineralised intersections achieved were consistent with the presence of quartz vein material and in close proximity to the intermediate shear. Further work is required to establish controls to mineralisation.

Table 2: Peak gold assays Ð Fintakourouni Target

Borehole	Final Depth (m)	Intersection From (m)	Intersection To (m)	Interval (m)	Grade (g/t Au)
RC11FIN002	160	142.0 Inc.   142.0  148.0	156.0 144.0 149.0	14.00 2.00 1.00	0.51 1.40 2.26
RC11FIN010	162	21.00 Inc.   24.0	27.00 27.00	6.00 3.00	1.02 1.82

 

Koukouroula Target

55 holes were drilled over Koukouroula which is an area dominated by artisanal workings. The original programme envisaged drilling toe to heel fences to provide full coverage of the prospect but this was not always possible due to the large number of active miners in the area.

The geology of Koukouroula is dominated by the dark fine grained schist, with minor porphyritic intrusions and significant quartz veining is common throughout the area, reaching up to 20 m wide intercepts and commonly associated with low-grade but anomalous gold mineralisation. The level and variety of alteration is notable and indicative of an area strongly affected by mineralising fluids.

Intersections of note for Koukouroula are illustrated below in Table 3.

 

Table 3:  Koukouroula Target Peak assay intersections.

Borehole	Final Depth (m)	Depth from	Depth to	Interval (m)	Grade (m)
RC11KOU006	146	44	45	1	2.26
RC11KOU007	150	10	11	1	4.73
RC11KOU017	162	63	70	7	1.29
RC11KOU029	189	87	99	12	0.42
RC11KOU038	150	92	113	21	0.33
		and   94.00	97	3	1.2

 

The presence of a number of types of alteration and ample evidence of pyrite is encouraging and further work is required that is expected to include diamond drilling to better understand the significance of local structures in controlling mineralisation. The absence of high-grade intercepts but the presence of lower grade pervasive mineralisation remains encouraging of higher grade areas nearby.

 

Mana Target

5 holes were drilled to test the Mana target. Drilling intersected a dark fine-grained schist and highly extensive porphyritic intrusions. Intrusions are believed to be an important control in gold mineralisation in the region and the size of the intrusion intersected is encouraging. However, alteration was less in evidence and will need to be discovered at which point there is an expectation that improved grades may be discovered.

 

Table 4: Mana Target peak drill intersections

Borehole	Final Depth (m)	Intersection From (m)	Intersection To (m)	Interval (m)	Grade (g/t Au)
RC11MAN001	72	68.0	69.00	1.00	0.56
RC11MAN004	156	117.0 Inc.  119.0	156.0 120.0	39.00 1.00	0.21 5.88
RC11MAN005	162	61.00	64.00	3.00	1.22

 

Coarse Grained Gold Potential

Artisanal mining at Karan has shown the presence of coarse-grained gold ( 0.1 mm) on the property. Routine sample preparation for fire assay can undervalue grades where coarse-grained gold is present. Now that we have completed assays using the routine process, it is our intention to check grades in representative mineralised holes using the significantly higher-cost screened fire assay method to ensure we have not failed to capture coarse-grained gold in the results. This means that mineralised intersections may return higher grades than previously identified.

Screened fire assay takes considerably longer to complete, we therefore do not expect initial results back for approximately 6 weeks. We will update shareholders and the general market once the programme is finished.

 

Planned Exploration

The Company is currently reviewing assay results and considering the next stage of exploration. Further geophysical surveys are being planned along with some multi-element soil geochemical programmes, RAB drilling and possible diamond drilling to establish structure detail. The Company is also in consultation with Malian geological expertise familiar with the deep weathering profiles typically found in the Karan region to discuss other exploration techniques that may be beneficial. A thesis will also be undertaken this summer by a Masters student, with a focus on the alteration and mineralisation styles identified during the recent RC drilling programme. 

 

 

 

Table 5: Summary of drill data for Karan Licence exploration programme

Hole ID	Project	Intersection	Intersection	Width	Grade	Including	Depth (From - To)
		From (m)	To (m)	(m)	(g/t Au)		(m)
RC11KDJ001	Kouroudjin	4	15	11	0.26	2m @ 0.66g/t	7-9m
		60	62	2	0.84
		94	111	17	1.03	1m @ 2.63g/t	95-96m
						2m @ 3.9g/t	99-101m
						1m @ 1.08g/t	110-111m
RC11KDJ002	Kouroudjin	80	98	18	0.11	1m @ 0.7ppm	80-81m
RC11KDJ003	Kouroudjin	No	Significant	Intersections
RC11KDJ004	Kouroudjin	No	Significant	Intersections
RC11KDJ005	Kouroudjin	90	97	7	0.84	1m @ 3.16g/t	90-91m
RC11KDJ006	Kouroudjin	124	127	3	0.54
		156	157	1	0.59
RC11KDJ007	Kouroudjin	No	Significant	Intersections
RC11KDJ008	Kouroudjin	21	22	1	0.5
		39	40	1	0.83
		137	151	14	0.3	1m @ 1.98g/t	146-147m
RC11KDJ009	Kouroudjin	32	48	16	0.1
		79	98	19	0.13
		121	122	1	0.79
RC11KDJ010	Kouroudjin	No	Significant	Intersections
RC11KDJ011	Kouroudjin	50	70	20	0.14	1m @ 0.59g/t	57-58m
RC11KDJ012	Kouroudjin	6	7	1	0.73
		9	10	1	0.55
		27	36	9	1.17	1m @ 8.62g/t	33-34m
		58	59	1	11.75
		85	91	6	1.04	2m @ 1.93g/t	85-87m
RC11FIN001	Fintakourouni	No	Significant	Intersections
RC11FIN002	Fintakourouni	142	156	14	0.51	2m @ 1.4g/t	142-144m
						1m @ 2.26g/t	148-149m
RC11FIN003	Fintakourouni	No	Significant	Intersections
RC11FIN004	Fintakourouni	No	Significant	Intersections
RC11FIN005	Fintakourouni	No	Significant	Intersections
RC11FIN006	Fintakourouni	No	Significant	Intersections
RC11FIN007	Fintakourouni	No	Significant	Intersections
RC11FIN008	Fintakourouni	No	Significant	Intersections
RC11FIN009	Fintakourouni	No	Significant	Intersections
RC11FIN010	Fintakourouni	21	27	6	1.02	3m @ 1.82g/t	24-27m
RC11FIN011	Fintakourouni	No	Significant	Intersections
RC11KOU001-3		No	Significant	Intersections
RC11KOU004	Koukouroula	72	97	25	0.1	1m @ 0.24g/t	72-73m
RC11KOU005		No	Significant	Intersections
RC11KOU006	Koukouroula	44	45	1	2.26
RC11KOU007	Koukouroula	10	11	1	4.73
		123	150	27	0.07
RC11KOU008	Koukouroula	23	120	97	0.08
RC11KOU009-10		No	Significant	Intersections
RC11KOU011	Koukouroula	12	79	67	0.1
RC11KOU012		No	Significant	Intersections
RC11KOU013	Koukouroula	9	10	1	0.63
RC11KOU014	Koukouroula	105	134	29	0.1
RC11KOU015-16	Koukouroula	No	Significant	Intersections
RC11KOU017	Koukouroula	63	70	7	1.29
RC11KOU018-28	Koukouroula	No	Significant	Intersections
RC11KOU029	Koukouroula	64	83	19	0.1
		87	99	12	0.42	5m @ 0.78g/t	89-94m
RC11KOU030-31		No	Significant	Intersections
RC11KOU032	Koukouroula	166	167	1	1.36
RC11KOU033-35		No	Significant	Intersections
RC11KOU036	Koukouroula	8	20	12	0.1
RC11KOU037	Koukouroula	154	168	14	0.1
RC11KOU038	Koukouroula	92	113	21	0.33	3m @ 1.2g/t	94-97m
RC11KOU039-43		No	Significant	Intersections
RC11KOU041	Koukouroula	95	96	1	0.94
RC11KOU044	Koukouroula	105	106	1	0.56
RC11KOU045-48		No	Significant	Intersections
RC11KOU049	Koukouroula	113	160	47	0.12	1m @ 1.80g/t	115-116m
RC11KOU050		No	Significant	Intersections
RC11KOU051	Koukouroula	5	6	1	0.83
RC11KOU052	Koukouroula	6	24	18	0.11	1m @ 0.66g/t	6-7m
RC11KOU053		No	Significant	Intersections
RC11KOU054	Koukouroula	119	120	1	0.54
RC11KOU055		No	Significant	Intersections
RC11MAN001	Mana	68	69	1	0.56
RC11MAN002	Mana	25	73	48	0.08	1m @ 0.7g/t	71-72m
RC11MAN003		No	Significant	Intersections
RC11MAN004	Mana	117	156	39	0.21	1m @ 5.88g/t	119-120
RC11MAN005	Mana	61	162	101	0.11	3m @ 1.22g/t	61-64m
						1m @ 0.68g/t	150-151m

 

 

 

 

 

 

 

Figure 1. Geological map of the Karan permit, highlighting the four areas drilled

Please click on the link below to view the geological map

http://www.rns-pdf.londonstockexchange.com/rns/9691G_-2011-5-19.pdf