African Mining and Exploration plc
("AME" or "the Company")
Granting of Permits in Guinea
African Mining & Exploration plc (AIM: AME), the AIM listed mining company with exploration licences in Mali, West Africa, is pleased to announce that it has been granted three gold Reconnaissance Permits in Guinea. These permits provide AME with the exclusive right to search for gold and confirm prospectivity before the need to apply for a full Exploration Permit. Reconnaissance Permits are issued for three months and are renewable one time for an additional period of three months.
Two of the three permits are in the Siguiri region, and the third is in the Dinguiraye region. All three permits have been granted to AME's wholly-owned Malian subsidiary by the government of Guinea.
The Siguiri region is the primary gold producing area in the Siguiri basin, and is home to AngloGold Ashanti's Siguiri mine (SAG) (5.5 moz*). Based on initial reconnaissance work by the Company's geologists AME's two permits in this region, Sonzani and Liélila, appear to be highly prospective, with signs of good structure and the presence of gold shown by artisanal mining on both permit areas.
The Sonzani permit covers a total area of 53 km2 and lies approximately 5 km from the main road linking Mali and Guinea, 17 km from the town of Siguiri and approximately 30 km from SAG. Regional geological mapping shows a significant granodiorite intrusion in the north of the permit on an east-north-east trending fault structure that continues through into the SAG permit area. The artisanal activity on the permit is concentrated in the central area where miners target quartz vein bearing saprolites.
The Liélila permit covers a total area of 50 km2 and lies on the banks of the River Niger. Part of the permit is a floodplain, however artisanal mining is targeting the quartz veins in saprolite and AME's initial reconnaissance showed signs of dolerite intrusions, which we believe is encouraging.
A comprehensive soil geochemical programme for the two permits has now started. This programme, along with structural mapping, will form the basis of the Company's decision to apply for the full exploration permit.
The Dinguiraye permit is 40 km2 and lies immediately north of Severstal's Lefa gold mine permit (5.9 moz**), which consists of a number of deposits including both the Lero and Fayalala mines. Initial reconnaissance has not been completed, but its close proximity to a significant gold bearing corridor is also encouraging.
The close proximity of the new permits to Mali provides a comfortable extension to our existing operations, which will be managed by our team based in Bamako.
Mark Jones, AME's CEO commented:
"The granting of these permits in Guinea not only adds three exciting grassroots exploration opportunities to our portfolio of existing Malian assets, but also provides further credibility to AME's ability to work effectively within the region. We look forward to keeping shareholders updated on progress with these opportunities over the months ahead."
African Mining & Exploration plc
44 (0)207 499 4059
Mark Jones (Chief Executive Officer)
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Singer Capital Markets Limited (Nomad and Broker)
44 (0)20 3205 7500
James Maxwell / Jenny Wyllie
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Farm Street Communications
* - AngloGold Ashanti Mineral Resource and Ore Reserve Report 2010
** - Wardell Armstrong Nord Gold CPR (prepared in accordance with JORC Code (2004)) 1 November 2010
The technical information contained in this announcement has been reviewed and approved by Mr. RN Chapman. Mr. Chapman has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity to which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves and as a qualified person under the AIM Note for Mining, Oil and Gas Companies. Mr. Chapman is an employee of Mineral Exploration Management Limited, an independent geological consultancy established in 2005 and is a member of the Australasian Institute of Mining and metallurgy (Aus.I.M.M).
This information is provided by RNS