Operations Update

RNS Number : 1168G

Bushveld Minerals Limited

26 June 2012

 



26 June 2012

AIM:BMN

Bushveld Minerals Ltd

("Bushveld" or the "Company")

Operations Update

Bushveld Minerals Limited, the mineral development company focused on iron and tin projects in southern Africa, is pleased to announce an operational update on its exploration activities.

Highlights:

·      Consultants appointed as part of Mokopane Iron Ore Scoping Study, due Q1 2013

·      Drilling progressing well on the Mokopane Iron Ore Project - 1,522 m drilled between 23 April 2012 and 31 May 2012 to upgrade inferred resource to indicated resource and to extend resource

·      Work programme on the Zaaiplaats tin target making steady progress

·      High-resolution airborne geophysical survey to commence over both iron and tin licences in July 2012

Commenting on the update, the CEO of Bushveld Minerals, Fortune Mojapelo said, "Since listing on AIM in March we have made good progress in meeting our milestones. We remain on track to deliver a revised JORC resource in Q4 2012 following the current drilling campaign that is underway. In addition, we are now on target to deliver the scoping study on the mokopane iron ore project by Q1 2013 following the recent appointment of consultants to advise on the work streams."

APPOINTMENT OF CONSULTANTS FOR MOKOPANE IRON PROJECT SCOPING STUDY

Management intends to appoint several consultants for the identified work streams that will form a core part of the Scoping Study due to be completed by Q1 2013. The consultants and their respective work streams are outlined below.

Work stream	Consultant
Metallurgy Studies	Turnbery Projects - Gordon Cunningham
Drilling	Drillcorp Africa (Pty) Ltd
Infrastructure Scoping Study	Mott MacDonald
Hydrology	Reinie Meyer
Mining & Overall Project Management	Herbert Gerald Waldeck

IRON ORE DRILLING PROGRESS

During the months of April and May 2012, the Company undertook a drilling programme on the current Mokopane iron license area, designed to:

•     Upgrade 633 million tonnes JORC resource from inferred/indicated categories to indicated/measured categories

•     Drill-testing on the Malokong and Vogelstruisfontein farms to extend the mineralisation along strike

Two extension boreholes (VK16 and MAL2) were drilled to extend the shallow (<200m) resource along strike to both the north and south of the known resource. Both boreholes intersected the mineralised P-Q magnetite zone as expected. The P-Q zone occurs between 34m and 88m (i.e. ~54m intersection) in VK16 and between 64m and 116m (i.e. ~52 m intersection) in MAL2, and the strike length of mineralisation has been extended by ~1 km.

Three deeper boreholes (VK17, VK18 and VK19) were drilled as infill boreholes to better constrain the deeper (<400m) resource. VK17, VK18 and VK19 all intersected the P-Q zone as expected. Samples have been submitted to Setpoint Laboratories and we expect the first assay results late in July 2012.

The following table summarises the boreholes drilled thus far in 2012:

Borehole ID	Farm	Reason for drilling	Depth	Comments
VK16	Vliegekraal	Extension	150.09 m	Intersected P-Q at 34-88 m (54 m intersection)
MAL2	Malokong	Extension	156.63 m	Intersected P-Q at 64-116 m (52 m intersection)
VK17	Vliegekraal	Infill	399.48 m	Intersected P-Q zone, depth not yet logged
VK18	Vliegekraal	Infill	427.2 m	Intersected P-Q at 297-335 m (38 m intersection)
VK19	Vliegekraal	Infill	389.08 m	Intersected P-Q at 269-302 m (33 m intersection)

The drilling programme has confirmed a 25% increase in the strike of the mineralization. A resource upgrade is expected to be announced in late July 2012 once assays have been received from Setpoint Laboratories.

http://www.rns-pdf.londonstockexchange.com/rns/1168G_1-2012-6-25.pdf 

HIGH RESOLUTION GEOPHYSICS

The Company has commissioned GyroLAG (Pty) Ltd to conduct a high-resolution airborne geophysical survey over the project area and possible extensions. This survey will include both a magnetic and radiometric survey and should help to constrain the positions of the P-Q horizon better (Upper Zone) and identify possible extensions to the project. The survey is expected to start in early July and run for 6 weeks. At the same time, a similar survey will be flown over the tin licence area, which is thought, based on older geophysical and geochemical data, to contain an extension of the magnetite-rich P-Q  Zone (Upper Zone).  The map below shows the area to be flown over the iron project, compared to existing geophysics data.

http://www.rns-pdf.londonstockexchange.com/rns/1168G_2-2012-6-25.pdf 

* The farms Mooihoek, Bellevue and Schoonoord will be flown only upon the conclusion of a transaction to incorporate the properties into Bushveld Minerals.

TIN - ZAAIPLAATS EXPLORATION UPDATE

On the Zaaiplaats target, ~3 km northwest of the previously drilled Groenfontein target, a geochemical rock chip sampling programme has been carried out, and the open pit and underground workings of the abandoned Zaaiplaats Tin Mine have been surveyed. This work is shown in the figure below, and has demonstrated that outcropping tin mineralisation occurs along the southeastern slopes of the Zaaiplaats hil, where two abandoned open pits are found. These pits are connected by underground workings. The survey has shown that, potentially, a number of pillars of unmined mineralised material remain.

http://www.rns-pdf.londonstockexchange.com/rns/1168G_3-2012-6-25.pdf 

A number of vertical rock chip profiles were sampled in the abandoned open pit and underground workings. The locations of these profiles are shown in the figure below. The samples were pulverized and assayed using a Niton handheld XRF analyser. Duplicate samples were also sent to Setpoint for check assays, and although not from a certified laboratory, the results indicate grades consistently above 0.1% SnO₂, and often above 0.3% SnO₂. These are encouraging results, and drilling is planned to begin on the Zaaiplaats target in late 2012, once drilling access roads have been completed.

http://www.rns-pdf.londonstockexchange.com/rns/1168G_4-2012-6-25.pdf 

ACQUISITIONS

Iron Ore

The Company continues its efforts to acquire prospecting rights over adjoining ground to the north and south of the current resource, where it has identified strike extensions based on airborne magnetics and geological and geochemical data. An application in terms of section 102 of the Minerals and Petroleum Resources Development Act ("MPRDA") of 2002, to extend its prospecting area is currently under consideration by the Department of Mineral Resources and should be  finalised in the near future.

Enquiries: [e-mail]

Bushveld Minerals Fortune Mojapelo	[phone]
Fox Davies Jonathan Evans	[phone]
Tavistock Communications Jos Simson/ Lydia Eades	[phone]

 

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