Gold Resource at Gadzema Project reaches 1 mill...
African Consolidated Resources plc / Ticker: AFCR / Index: AIM / Sector: Mining
4 August 2011
African Consolidated Resources plc ('ACR' or 'the Company')
Gold Resource at Gadzema Project reaches 1 million ounces
African Consolidated Resources Plc, the AIM listed southern African focused
resource development company, is pleased to announce a JORC Compliant Resource
upgrade on its Gadzema Gold Project in the northern midlands district of
Zimbabwe ('Gadzema' or 'the Project').
Highlights
* Resource upgrade available for the final 8,000m of a total 13,000m drill
programme completed in May 2011
* The Resource upgrade relates to drilling strike extensions on two zones
covering approx  400m and 700m of strike within ACR's approx. 8km long
Gadzema project
* This recent drilling has added 119,000oz to the Gadzema gold inventory
* The total Gadzema Resource now stands at 27Mt @ 1.2g/t for 1.03Moz at cutoff
grades of 0.5-0.6 g/t, of which 276,000oz are in the Indicated category, and
the remainder in the Inferred category
* The drilling programme identified multiple parallel shear zones, which in
some areas coalesce into areas of semi-continuous mineralisation up to 600m
wide demonstrating the strong potential for large scale open-pit mining
ACR commenced an intensive drilling programme at Gadzema in January 2011, using
two Reverse Circulation ('RC') rigs on double shifts, and a diamond coring
('DC') drill rig. Â The programme, which covered approximately 13,000m, was
completed in mid-May 2011.
The current study includes sample and assay data for the final 63 RC drill holes
and one diamond core hole drilled by ACR, totaling 8,000m.
The drilling was carried out to test a sub-outcropping felsic intrusion where
north trending thrusting has created large quartz-sulphide stockwork vein
systems in the felsic porphyry, and in adjacent banded iron formations and talc
schists. Â The two areas drilled were on east-west oriented drill traverses
spaced at 80m northings and approximately 40m on section. Â All drill holes are
angled steeply (~60 degrees) towards grid west, normal to the general strike of
the gold mineralisation.
Drilling tested the mineralisation, which dips steeply to the east, to depths of
approximately 100-120m vertically below surface. Â Assays were carried out at 1m
intervals by Fire Assay method using ISO accredited laboratories in South Africa
and Zimbabwe.
Significant intercepts from the above drilling are tabulated below;
+----------------------------------------------------------------+
| Hole ID From Depth m To Depth m Intercept m Grade  g/t |
| |
| BRRC201 102 136 34 3.1 |
| |
| BRRC188 9 32 23 1.2 |
| |
| BRRC125 47 58 11 1.5 |
| |
| BRRC186 68 78 10 1 |
| |
| BRRC200 149 158 9 1.3 |
| |
| BRRC184 57 65 8 2.3 |
| |
| BRRC197 64 72 8 1.6 |
| |
| BRRC182 34 41 7 2.7 |
| |
| BRRC189 39 45 6 2.1 |
| |
| BRRC185 92 96 4 6.5 |
| |
| BRRC196 59 62 3 4.6 |
| |
| BRRC187 13 15 2 21.3 |
| |
| BRRC162 25 26 1 18.3 |
+----------------------------------------------------------------+
Table 1: Significant intercepts from recent RC drilling.
ACR's total gold Resources are tabulated below:
+------------------------------------------------------------------------------+
|ACR JORC Gold Resources August 2011 |
+--------------+---------+-----+----------+----------+------------+------------+
|Â | Oz |Grade| Tonnes |Cutoff g/t| JORC | Vertical |
| | | | | | Category | Depth of |
| | | | | | | Drilling |
+--------------+---------+-----+----------+----------+------------+------------+
|Peerless ACR | 210,000| 1.4| 4,600,000| 0.5 |Inferred |Av 100m; max|
|drilling | | | | | |150m |
+--------------+---------+-----+----------+----------+------------+------------+
|Concession ACR| 240,000| 1.5| 4,800,000| 0.5 |Inferred |Av 100m; max|
|drilling | | | | | |150m |
+--------------+---------+-----+----------+----------+------------+------------+
|Dumps, | Â | Â | Â | Â |Â |Â |
|Pickstone- | | | | | | |
|Peerless | | | | | | |
+--------------+---------+-----+----------+----------+------------+------------+
| Big Red| 15,900| 1.3| 380,000| 1.0 |Measured |Â |
+--------------+---------+-----+----------+----------+------------+------------+
|Football Field| 18,800| 1.0| 586,000| 1.0 |Measured |Â |
+--------------+---------+-----+----------+----------+------------+------------+
| Concentrate| 28,300| 4.4| 200,000| 1.0 |Measured |Â |
+--------------+---------+-----+----------+----------+------------+------------+
|Total | 513,000| 1.5|10,566,000| Â |Â |Â |
|Pickstone- | | | | | | |
|Peerless | | | | | | |
|Resource | | | | | | |
+--------------+---------+-----+----------+----------+------------+------------+
|Â | Â | Â | Â | Â |Â |Â |
+--------------+---------+-----+----------+----------+------------+------------+
|Gadzema |1,031,000| 1.2|27,000,000| 0.5-0.6 |Inferred- |Av 100m; max|
|Resource* | | | | |Indicated |150m |
+--------------+---------+-----+----------+----------+------------+------------+
|*Includes | Â | Â | Â | Â |Â |Â |
|Giant Mine and| | | | | | |
|Blue Rock | | | | | | |
|Resource | | | | | | |
+--------------+---------+-----+----------+----------+------------+------------+
|TOTAL ALL1 |1,544,000| 1.3|37,566,000| Â |Inferred, |Av 100m-150m|
| | | | | |Measured | |
+--------------+---------+-----+----------+----------+------------+------------+
|1 Excludes | Â | Â | Â | Â |Â |Â |
|Giant Dump - | | | | | | |
|to be JORC | | | | | | |
|calculated | | | | | | |
+--------------+---------+-----+----------+----------+------------+------------+
Table 2: Â Total gold Resource inventory
ACR Technical Director Michael Kellow said, "Reaching the 1 million ounce
milestone at our Gadzema Gold Project is a significant step in our ongoing
exploration of the belt where we now have significant intercepts on several
zones over approximately 8km of strike length with potential open pit mining
widths of up to 600m demonstrated.
"Following a successful fundraising last month for further exploration drilling,
between 10,000 to 30,000m of drilling will be committed in the second half of
2011. Â This will explore strike extensions of known mineralisation and
additional diamond core drilling will provide information on alteration,
structure, mineralogy and rock mechanics as we advance our strategy of defining
a total resource of 2 million ounces of gold at our Gadzema Gold Project by Q4
2012."
The technical elements of this report have been reviewed by Mr. Michael Kellow
(the Company's Technical Director). Michael Kellow (BSc) is a member of the
Australian Institute of Geoscientists (AIG) and a full-time employee of African
Consolidated Resources Plc. Mr. Kellow has sufficient experience which is
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 in the 2004 Edition of the "Australian Code for Reporting of Exploration
Results, Mineral Resource and Ore Reserves" (JORC Code) and as a "qualified
person" as defined in the AIM Note for Mining, Oil and Gas Companies. Michael
Kellow consents to the publication of this report.
**ENDS**
For further information visitwww.acrplc.com or please contact:
Roy Tucker African Consolidated Resources plc +44 (0) 1622 816918
+44 (0) 7920 189012
Andrew Godber Panmure Gordon (UK) Limited +44 (0) 207 459 3600
Callum Stewart Panmure Gordon (UK) Limited +44 (0) 207 459 3600
Abhishek Majumdar Panmure Gordon (UK) Limited +44 (0) 207 459 3600
Susie Geliher St Brides Media & Finance Ltd +44 (0) 20 7236 1177
Glossary
+----------------------------+-----------------------------------------+-------+
|Term |Explanation |Acronym|
+----------------------------+-----------------------------------------+-------+
|Au |chemical symbol for gold |Â |
+----------------------------+-----------------------------------------+-------+
|banded iron-formation |chemical sedimentary rock consisting of|BIF |
| |iron and quartz | |
+----------------------------+-----------------------------------------+-------+
|diamond drilling |Drilling method using a diamond-|Â |
| |impregnated cutting bit to obtain a core| |
| |sample of rock | |
+----------------------------+-----------------------------------------+-------+
|dip |the orientation of a planar geological|Â |
| |feature relative to horizontal | |
+----------------------------+-----------------------------------------+-------+
|disseminated sulphide |Accumulations of sulphide minerals where|Â |
| |the grains are not separated by other| |
| |minerals and are not in physical contact| |
| |with each other. | |
+----------------------------+-----------------------------------------+-------+
|fault |a fracture or break within a body of rock|Â |
| |across which some movement has occurred | |
+----------------------------+-----------------------------------------+-------+
|felsite |silica rich igneous rock, aka felsic|Â |
| |volcanic | |
+----------------------------+-----------------------------------------+-------+
|greenstone belt |belts of metamorphosed sedimentary and|Â |
| |igneous rocks of Archaean age | |
+----------------------------+-----------------------------------------+-------+
|igneous rock |originally molten can be volcanic or|Â |
| |intrusive | |
+----------------------------+-----------------------------------------+-------+
|JORC |Joint Ore Reserves Committee of the|Â |
| |Australasian Institute of Mining and| |
| |Metallurgy | |
+----------------------------+-----------------------------------------+-------+
|laterite |highly weathered rock usually conforms to|Â |
| |a consistent weathering pattern from| |
| |surface and often redistributes gold,| |
| |nickel or aluminium to ore grade| |
| |concentrations above the primary source| |
| |at depth. | |
+----------------------------+-----------------------------------------+-------+
|mineralisation |metallic minerals such as gold, base |Â |
| |metals, pyrite and arsenopyrite | |
| |incorporated in rocks | |
+----------------------------+-----------------------------------------+-------+
|mineralised zones |hydrothermally altered structural|Â |
| |features containing potentially valuable| |
| |minerals | |
+----------------------------+-----------------------------------------+-------+
|orebody |economically viable portion of a|Â |
| |mineralised zone | |
+----------------------------+-----------------------------------------+-------+
|pyrite |iron sulphide mineral often associated|Â |
| |with gold | |
+----------------------------+-----------------------------------------+-------+
|pyrrhotite |iron sulphide mineral |Â |
+----------------------------+-----------------------------------------+-------+
|quartz |silicon oxide mineral very common in|Â |
| |hydrothermal deposits  | |
+----------------------------+-----------------------------------------+-------+
|resource |mineral resource as defined by the JORC|Â |
| |Code 2004 | |
+----------------------------+-----------------------------------------+-------+
|reverse circulation drilling|rotary percussion drilling whereby the|RC |
|Â |sample is returned from the cutting head| |
| |inside the rod string to surface thereby| |
| |avoiding contamination from the walls of| |
| |the hole | |
+----------------------------+-----------------------------------------+-------+
|schist |metamorphic rock with well developed|Â |
| |foliation | |
+----------------------------+-----------------------------------------+-------+
|stockworks |zone of multiple quartz filled fractures |Â |
|Â |with individual veins often of random | |
| |orientation | |
+----------------------------+-----------------------------------------+-------+
|strike |the horizontal orientation of a planar |Â |
| |geological feature | |
+----------------------------+-----------------------------------------+-------+
|talc |magnesium iron silicate mica of |Â |
| |metamorphic origin | |
+----------------------------+-----------------------------------------+-------+
|thrust |shallow dipping fault where the upper |Â |
|Â |body of rock overrides the lower portion | |
+----------------------------+-----------------------------------------+-------+
|UNITS |Â |Â |
+----------------------------+-----------------------------------------+-------+
|g |gramme |Â |
+----------------------------+-----------------------------------------+-------+
|g/t |grammes per metric tonne - metal |Â |
| |concentration | |
+----------------------------+-----------------------------------------+-------+
|km |kilometre |Â |
+----------------------------+-----------------------------------------+-------+
|m |metre |Â |
+----------------------------+-----------------------------------------+-------+
|Mt |million metric tonnes |Â |
+----------------------------+-----------------------------------------+-------+
|Moz |million ounces |Â |
+----------------------------+-----------------------------------------+-------+
|oz |fine troy ounce equaling 31.1048 grammes |Â |
| |- normal unit used in selling gold | |
+----------------------------+-----------------------------------------+-------+
|ppb |parts per billion |Â |
+----------------------------+-----------------------------------------+-------+
|ppm |parts per million, equivalent to g/t |Â |
+----------------------------+-----------------------------------------+-------+
|t |metric tonne |Â |
+----------------------------+-----------------------------------------+-------+
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Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: African Consolidated Resources Plc via Thomson Reuters ONE
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