AfriOre Akanani Platinum Project Update
ROAD TOWN, Tortola, British Virgin Islands, May 23 /CNW/ - AfriOre
Limited ("AfriOre" or the "Company") (TSX/AIM:AFO) is pleased to announce the
results of technical studies and the details of the proposed work program at
the Akanani Platinum Project ("Akanani") on the Northern Limb of South
Africa's Bushveld Complex. The proposed program follows the announcement of
results in a news release dated May 11, 2006 of an initial inferred mineral
resource estimate for the Southern Priority Area ("SPA") of 183.0 Mt at a
grade of 4.5 g/t PGM (platinum, palladium, rhodium plus gold (collectively
"PGM (4E)"), which equates to 26.4 million ounces of PGMs (4E).
Proposed Drilling Program
The proposed technical program includes drilling with a complement of 11
drill rigs, which are currently in operation on site, throughout the remainder
of the year, to complete a 35 hole drilling program (59,000 metres).
In the SPA the objective will be to delineate an indicated resource block
within the area of the existing inferred mineral resource. This drilling
- Eight rigs currently drilling on a 350 metre spaced grid; a further
five holes remain to be drilled. Initial results have been reported
for drill holes ZF18, ZF19, ZF20, ZF21 and ZF27. The results of the
balance of the holes will be reported as they become available.
- One rig currently drilling a deflection in hole ZF2 for mineral
resource estimation purposes and a further four of the above mentioned
eight rigs are drilling deflections on existing 350 metre spaced
holes. It is intended to drill deflections on a further 10 holes in
the SPA. Select deflections will provide material for metallurgical
It is expected that results from these programs will be reported at
regular intervals though to August 2006.
To view map of the Akanani Platinum Project please visit:
In the Central Area ("CA") a drilling program aimed at establishing an
inferred mineral resource will be undertaken over 3 km of strike and will
include drilling on an initial 500 metre spaced grid. The drilling will be in
the area surrounding existing AfriOre hole MO3 and historic hole MO1 (the
results of which have been reported previously and which had mineralized
intercepts of 23.86 metres at 6.22 g/t PGM (4E) and 39.46 metres at 4.78 PGM
(4E), respectively). A minimum of seven holes are intended to be drilled in
the CA to augment the five existing holes. This work has commenced with the
re-drilling of deflections in historic hole MO1, which lies along the current
property boundary and was originally drilled in 1980 by Anglo Platinum Limited
("Anglo Platinum"). Following a recent agreement pertaining to this hole, the
deflections are being drilled in collaboration with Anglo Platinum, such that
Anglo Platinum and AfriOre will each receive the core from one deflection from
this hole, with the drilling operation being managed by AfriOre and analytical
results of both deflections shared by the two companies. Drill hole MO8 has
also commenced drilling in the CA.
It is expected that results from this work will be reported periodically
between July and November, 2006.
In the Northern Area ("NA"), which constitutes the northern 2.4 km of
strike of the total of 9 km of Platreef Strike on Akanani, a total of six
drill holes are planned at 500 metre spacing. This area has not been drilled
previously and it is anticipated that results will be reported between
September and December, 2006.
In addition, a series of three step-out holes will be drilled in a
regional line, some 2.5 km west of the eastern boundary of the property and
beyond the current mineral resource blocks, to determine the regional
structure and mineralization in the Platreef. It is anticipated that results
of this drilling will be reported between September, 2006 and February, 2007.
AfriOre has now completed a program of geological mapping which includes
photogeological mapping, satellite imagery interpretation and 1:10,000 scale
surface mapping. Results have been integrated with aeromagnetic data acquired
in the past year and confirm a regular Bushveld lithological succession for
the area. The mapping also confirms the extent of faulting and dyke
intrusions, as indicated by the aeromagnetic data. Furthermore it identified
areas of variable and shallower dips in the Platreef hangingwall rocks at
surface, which are possibly related to structural features that result in
local changes of dip in the Platreef as has been drilled in the SPA.
Controls to Mineralization
Work conducted by AfriOre geologists and a consulting petrologist has
enabled the Platreef pyroxenite to be subdivided into 4 distinct units,
classified as the "P1" to "P4" (see news release of May 11, 2006). The four
units are distinguishable principally on the basis of mineralogy, but also
have differing geophysical and geochemical signatures. The P2, and to a lesser
extent P1 unit, are the most significant with respect to platinum group metal
("PGM") and base metal mineralization. The P1 unit, at the base of the
Platreef, is between 115-315 metres thick and consists of pyroxenite, which is
commonly altered and contains inclusions of country rock. In a number of the
drill holes in the SPA, the P1 unit has extensive, and locally high grade,
mineralised intercepts but was not included in the initial inferred mineral
resource estimate reported on May 11, 2006.
The P2 unit (termed the "upper mineralized zone" in news releases prior
to May 11, 2006) is a regular, mostly unaltered pyroxenite, up to 55 metres
wide, which has PGM mineralization throughout much of its thickness and has
been intersected in drilling throughout the Akanani project area. The unit has
a recognizable hanging wall contact and has enhanced grades near the upper
contact (now referred to as the "Upper P2 unit" or "UP2 unit", and referred to
as the "high grade zone" in news releases prior to May 11, 2006). The inferred
mineral resource reported on May 11, 2006 was for the P2 unit only.
The P3 and P4 units are thin and discontinuous units composed of
pyroxenite and mela-norite, locally developed between the hangingwall contact
of the P2 unit and the overlying gabbro norites.
Mineral Resource Estimates
Following completion of the initial inferred mineral resource estimate,
which is based on 17 drill intercepts in the P2 unit within the SPA to a depth
of 1,700 metres, work has commenced on defining further mineral resources in
the SPA. This will incorporate a further 13 drill holes in the area, and
resources will be estimated to a maximum depth of 2,000 metres and will
include holes which are being drilled at a 350 metres spacing, down from the
original 500 metre spacing. The results of these mineral resource estimates
are expected to be available by the third quarter of 2006.
Preliminary Engineering Studies
Preliminary mining and metallurgical studies are currently nearing
completion and the results of these studies are expected to be released by
In February, 2006, a contract for a Pre-Feasibility Study ("PFS") was
awarded to SRK Consulting, an international engineering firm independent of
AfriOre. The PFS is scheduled to be completed by early 2007.
Quality Assurance / Quality Control
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 ("NI 43-101"). Mr. Van Aswegen is
responsible for the technical material in this release.
Drill holes are drilled in BQ core size (36mm diameter) and half-core
samples are cut by means of a diamond blade saw. Geological logging, sampling
and core handling procedures are carried out under the supervision of Ms.
Liana Spies (M.Sc. Geology, Pr.Sci.Nat.) and Mr. Henri Lombard (B.Sc. (Hons)
Geology, Pr.Sci.Nat.), independent consultants to AfriOre. Samples are
prepared at Set Point Technology's sample preparation facility in Mokopane and
analyzed for platinum, palladium, rhodium, gold, nickel, copper and cobalt by
Set Point Technology laboratories in Johannesburg (ISO 17025 accredited and
independent of AfriOre). Pt, Pd and Au fire assays are carried out using lead
collection/ICP, Rh fire assays use palladium collection/ICP; nickel, copper
and cobalt analyses are conducted using aqua regia digestion/ICP and reflect
acid-soluble metal content. Specific gravity is determined using a gas
picnometer. Quality Assurance / Quality Control ("QA/QC") procedures include
the submission by AfriOre of systematic duplicates, blanks and standard
samples within the sample batches submitted to Set Point Technology. In
addition, selected pulverized sample duplicates were submitted to SGS
Lakefield Research Africa laboratories in Johannesburg (ISO 17025 accredited
and independent of AfriOre) for referee analyses. The results from these
control samples indicate acceptable consistency of the Set Point Technology
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. In a news release dated 11 May 2006, the Company announced
an initial inferred mineral resource estimate for the Southern Priority Area
("SPA") of 183.0 Mt at a grade of 4.5 g/t PGM (platinum, palladium, rhodium
plus gold (collectively " PGM (4E)"), which equates to 26.4 million ounces of
PGMs (4E). A technical report on this mineral resource estimate is currently
being prepared and will be filed on SEDAR. A technical report dated April 2005
and entitled "A Report to NI 43-101 Standards on the Akanani Platinum Group
Metals Property, Limpopo Province, South Africa, Prepared for AfriOre Limited"
can be obtained from SEDAR at www.sedar.com.
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
AfriOre is well-funded, with a treasury of approximately CDN$ 24.8M. The
Company has 50,352,920 shares outstanding and 54,598,402 shares fully diluted.
For additional information on AfriOre and its projects visit the Company's
website at www.afriore.com or contact:
Fiona Childe, Ph.D., P.Geo.
VP Corporate Communications, Tau Capital Corp.
Tel: (416) 361-9636 x 227
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 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,
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 disclosed 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,