Increase in JORC Resource at Gadzema Gold Project
African Consolidated Resources plc / Ticker: AFCR / Index: AIM / Sector: Mining
1 June 2011
African Consolidated Resources plc ('ACR' or 'the Company')
Increase in JORC Resource at Gadzema Gold Project
African Consolidated Resources Plc, the AIM listed southern African focused
resource development company, is pleased to announce an interim JORC Compliant
Resource upgrade on its Gadzema Gold Project in the northern midlands district
of Zimbabwe ('Gadzema' or 'the Project').
Highlights
* Interim Resource upgrade available for approx 5,300m (40%) of a total
13,000m drill programme completed in May 2011
* The Resource upgrade covers approx 600m of strike within ACR's 7km long
Gadzema project and is open to the north, south, west and at depth
* A JORC Inferred Resource has been estimated at 4.7Mt @ 1.1g/t for 165,000oz
at a cutoff grade of 0.6g/t
* The total Gadzema Resource now stands at 23Mt @ 1.2g/t for 912,000oz
* Assay results from the remaining 8,000m out of the 13,000m of drilling due
in early June 2011 - demonstrates the viability of exceeding the 1Moz
milestone at Gadzema in July
* ACR's total gold inventory now exceeds 1.4Moz, (tabulated below)
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 77 RC drill holes and four
diamond core ('DC') holes drilled by ACR during the Q1-Q2 2011 drilling campaign
and in 2010.
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.
The area has been tested with 15 east-west oriented drill traverses spaced at
40m northings and approximately 40m on section, and covers 600m of strike. 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 150m vertically below surface. Â Assays were carried out at 1m
intervals by Fire Assay method using ISO accredited laboratories in South Africa
and Zimbabwe.
+---------------+---------+-----+----------+----------+------------+-----------+
|ACR Gold | | | | | | |
|Â Resources May | | | | | | |
|2011 |Â | Â |Â |Â |Â |Â |
+---------------+---------+-----+----------+----------+------------+-----------+
| | | | | | | Vertical |
| | | | | | JORC | Depth of |
| Â | Oz |Grade| Â Tonnes |Cutoff g/t| Category | Drilling |
+---------------+---------+-----+----------+----------+------------+-----------+
|Peerless ACR | | | | | |Av 100m; |
|drilling | 210,000| 1.4 | 4,600,000| 0.5 |Inferred |Â max 150m |
+---------------+---------+-----+----------+----------+------------+-----------+
|Concession ACR | | | | | |Av 100m; |
|drilling | 240,000| 1.5 | 4,800,000| 0.5 |Inferred |Â max 150m |
+---------------+---------+-----+----------+----------+------------+-----------+
|Dumps, | | | | | | |
|Pickstone- | | | | | | |
|Peerless |Â | Â |Â | Â |Â |Â |
+---------------+---------+-----+----------+----------+------------+-----------+
| 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 | | | | | | |
|Pickstone- | | | | | | |
|Peerless | | | | | | |
|Resource | 513,000| 1.5 |10,566,000| Â |Â |Â |
+---------------+---------+-----+----------+----------+------------+-----------+
|Â |Â | Â |Â | Â |Â |Â |
+---------------+---------+-----+----------+----------+------------+-----------+
|Gadzema -Zone 1| 475,000| 1.5 | 9,700,000| 0.5 |Inferred |Â Av 150m |
+---------------+---------+-----+----------+----------+------------+-----------+
|Gadzema - Zone | | | | | | |
|2 | 272,000| 1.0 | 8,500,000| 0.6 |Inferred |Â Av 150m |
+---------------+---------+-----+----------+----------+------------+-----------+
|Gadzema - Zone | | | | | | |
|3 | 165,000| 1.1 | 4,700,000| 0.6 |Inferred |Â Av 150m |
+---------------+---------+-----+----------+----------+------------+-----------+
|Total Gadzema | 912,000| 1.2 |22,900,000| Â |Inferred |Â Av 150m |
+---------------+---------+-----+----------+----------+------------+-----------+
  |  |
+---------------+---------+-----+----------+----------+------------+-----------+
| | | | | | |Â Av |
|TOTAL ALL |1,425,000| 1.3 |33,466,000| Â |Â |100-150m |
+---------------+---------+-----+----------+----------+------------+-----------+
|1 Â Excludes | | | | | | |
|Zone 1 Dumps; | | | | | | |
|internal | | | | | | |
|estimate | | | | | | |
|11,000 oz at | | | | | | |
|0.84 g/t & | | | | | | |
|7,000 oz @ | | | | | | |
|0.51 g/t |Â | Â |Â | Â |Â |Â |
+---------------+---------+-----+----------+----------+------------+-----------+
ACR Technical Director Michael Kellow said, "Including the 174,000oz increase in
the Gadzema Resource as reported on 3 May 2011, we have now added 340,000oz to
the Project since drilling started in January. Â These additional ounces further
underpin the prospectivity of our Gadzema Gold Project where we now have
significant intercepts on several zones over 7km of strike length.
With the Gadzema Resource inventory now standing at over 900,000oz, we are
confident that we will surpass the 1 million oz milestone at Gadzema once the
assay results are to hand from the balance of the recent 13,000m drilling
programme. Â Aggressive drilling programmes for the second half of 2011 are
currently being planned with the objective of gathering further information
about the Gadzema mineralisation as we develop this significant project up the
value curve."
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. Â Michael
Kellow consents to the publication of this report.
**ENDS**
For further information visit www.acrplc.com or please contact:
Roy Tucker African Consolidated Resources plc +44 (0) 1622 816918
+44 (0) 7920 189012
Michael Kellow African Consolidated Resources plc +263 772 239 301
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 |
+------------------------------+------------------------------+----------------+
|aeromagnetics |Magnetic survey carried out |aeromags |
| |with a sensor in an aircraft | |
+------------------------------+------------------------------+----------------+
|archaean |rocks greater than 2,600 Ma in|Â |
| |age | |
+------------------------------+------------------------------+----------------+
|As |chemical symbol for arsenic |Â |
+------------------------------+------------------------------+----------------+
|Au |chemical symbol for gold |Â |
+------------------------------+------------------------------+----------------+
|banded iron-formation |chemical sedimentary rock|BIF |
| |consisting of iron and quartz | |
+------------------------------+------------------------------+----------------+
|base metal |Â Nickel, copper, lead, zinc |BM |
+------------------------------+------------------------------+----------------+
|capex |"capital expenditure"; cash |Â |
| |amount required for non- | |
| |operating costs such as plant | |
| |construction and equipment | |
+------------------------------+------------------------------+----------------+
|claims |areas allocated by the |Â |
| |government of Zimbabwe for the| |
| |purposes of exploration and | |
| |exploitation of minerals, may | |
| |be either for gold, diamonds | |
| |or base minerals. Â Synonymous | |
| |with leases, tenements. | |
+------------------------------+------------------------------+----------------+
|concentrate |normally of metallic minerals |Â |
| |such as pyrite and | |
| |arsenopyrite after removal of | |
| |gangue | |
+------------------------------+------------------------------+----------------+
|Conductor |See electromagnetic survey |Â |
+------------------------------+------------------------------+----------------+
|core |Cylindrical sample of rock as|Â |
| |cut by a diamond drill | |
+------------------------------+------------------------------+----------------+
|Co |Chemical symbol for cobalt |Â |
+------------------------------+------------------------------+----------------+
|Cu |chemical symbol for copper |Â |
+------------------------------+------------------------------+----------------+
|diamond drilling |Drilling method using a|Â |
| |diamond-impregnated cutting| |
| |bit to obtain a core sample of| |
| |rock | |
+------------------------------+------------------------------+----------------+
|dip |the orientation of a planar|Â |
| |geological feature relative to| |
| |horizontal | |
+------------------------------+------------------------------+----------------+
|disseminated sulphide |Accumulations of sulphide|Â |
| |minerals where the grains are| |
| |not separated by other| |
| |minerals and are not in| |
| |physical contact with each| |
| |other. | |
+------------------------------+------------------------------+----------------+
|electromagnetic survey |Geophysical technique using|EM, TEM, SIROTEM|
| |electrical currents to detect| |
| |conductive bodies below| |
| |surface. Conductive bodies| |
| |include massive-sulphides that| |
| |may contain base metals | |
+------------------------------+------------------------------+----------------+
|EM survey |See electromagnetic survey |Â |
+------------------------------+------------------------------+----------------+
|environmental impact|assessment of impacts to the|EIA |
|assessment |environment likely to be| |
| |caused by any activity | |
+------------------------------+------------------------------+----------------+
|environmental management act |legislation encompassing and |EMA |
| |replacing all previous | |
| |environmental legislation | |
+------------------------------+------------------------------+----------------+
|environmental management plan |report detailing mitigation or|EMP |
| |avoidance of environmental| |
| |impacts associated with any| |
| |activity; for mining activity| |
| |usually incorporates a mine| |
| |closure plan | |
+------------------------------+------------------------------+----------------+
|fault |a fracture or break within a|Â |
| |body of rock across which some| |
| |movement has occurred | |
+------------------------------+------------------------------+----------------+
|felsite |silica rich igneous rock, aka|Â |
| |felsic volcanic | |
+------------------------------+------------------------------+----------------+
|flotation |the process of concentrating|Â |
| |minerals from finely ground| |
| |slurry by the addition of| |
| |reagents and air | |
+------------------------------+------------------------------+----------------+
|fold |geological term for a curve or|Â |
| |bend of planar surfaces in| |
| |rocks | |
+------------------------------+------------------------------+----------------+
|foliation |geological term for planar|Â |
| |features within rocks | |
+------------------------------+------------------------------+----------------+
|geophysics |Mineral prospecting systems|Â |
| |designed to detect| |
| |mineralisation using the| |
| |physical properties of rocks. | |
+------------------------------+------------------------------+----------------+
|global positioning system |Navigation and  positioning|GPS |
| |system allowing survey by| |
| |satellite | |
+------------------------------+------------------------------+----------------+
|gossan |Oxidized sulphide minerals|Â |
| |which form distinctive iron-| |
| |rich outcrops with sponge-like| |
| |weathering textures; gossans| |
| |often overlie sulphide-rich| |
| |deposits of base metals and| |
| |gold. | |
+------------------------------+------------------------------+----------------+
|greenstone belt |belts of metamorphosed|Â |
| |sedimentary and igneous rocks| |
| |of Archaean age | |
+------------------------------+------------------------------+----------------+
|hydrothermal |hot, water-rich fluid which|Â |
| |dissolves and transports| |
| |metals and deposits these in| |
| |suitable geological traps | |
+------------------------------+------------------------------+----------------+
|igneous rock |originally molten can be|Â |
| |volcanic or intrusive | |
+------------------------------+------------------------------+----------------+
|JORC |Joint Ore Reserves Committee|Â |
| |of the Australasian Institute| |
| |of Mining and Metallurgy | |
+------------------------------+------------------------------+----------------+
|laterite |highly weathered rock usually|Â |
| |conforms to a consistent| |
| |weathering pattern from| |
| |surface and often| |
| |redistributes gold, nickel or| |
| |aluminium to ore grade| |
| |concentrations above the| |
| |primary source at depth. | |
+------------------------------+------------------------------+----------------+
|lodes |Higher grade portion of|Â |
| |mineralised zones, usually| |
| |with specific orientation | |
+------------------------------+------------------------------+----------------+
|magnetic survey |measurements of the|Â |
| |perturbation in the earth's| |
| |magnetic field caused by| |
| |magnetic minerals in rocks | |
+------------------------------+------------------------------+----------------+
|massive sulphide |Bodies of sulphide minerals|Â |
| |where the grains are in| |
| |physical contact; these bodies| |
| |can become electrical| |
| |conductors (see EM surveys) | |
+------------------------------+------------------------------+----------------+
|metamorphism |changes in the mineral|Â |
| |compositions of rocks due to| |
| |increased temperature and/or| |
| |pressure normally during| |
| |burial | |
+------------------------------+------------------------------+----------------+
|mineralisation |metallic minerals such as |Â |
| |gold, base metals, pyrite and | |
| |arsenopyrite incorporated in | |
| |rocks | |
+------------------------------+------------------------------+----------------+
|mineralised zones |hydrothermally altered|Â |
| |structural features containing| |
| |potentially valuable minerals | |
+------------------------------+------------------------------+----------------+
|Ni |chemical symbol for nickel |Â |
+------------------------------+------------------------------+----------------+
|orebody |economically viable portion of|Â |
| |a mineralised zone | |
+------------------------------+------------------------------+----------------+
|Pd |Chemical symbol for palladium |Â |
+------------------------------+------------------------------+----------------+
|Pt |Chemical symbol for platinum |Â |
+------------------------------+------------------------------+----------------+
|pyrite |iron sulphide mineral often|Â |
| |associated with gold | |
+------------------------------+------------------------------+----------------+
|pyrrhotite |iron sulphide mineral |Â |
+------------------------------+------------------------------+----------------+
|quality control |procedures to ensure the|QC |
|Â |accuracy of all results| |
| |obtained from any activity,| |
| |particularly sampling and| |
| |assays | |
+------------------------------+------------------------------+----------------+
|quality assurance |process of recording all|QA, Â QA/QC |
| |quality control procedures | |
+------------------------------+------------------------------+----------------+
|quartz |silicon oxide mineral very|Â |
|Â |common in hydrothermal| |
| |deposits  | |
+------------------------------+------------------------------+----------------+
|resource |mineral resource as defined by|Â |
| |the JORC Code 2004 | |
+------------------------------+------------------------------+----------------+
|reverse circulation drilling |rotary percussion drilling|RC |
|Â |whereby the sample is returned| |
| |from the cutting head inside| |
| |the rod string to surface| |
| |thereby avoiding contamination| |
| |from the walls of the hole | |
+------------------------------+------------------------------+----------------+
|rotary air blast drilling |Open-hole drilling whereby|RAB |
| |drill cuttings are returned to| |
| |surface by compressed air in| |
| |an un-lined hole;| |
| |contamination is possible from| |
| |the walls of the hole. | |
+------------------------------+------------------------------+----------------+
|saprolite |In-situ weathered rock|Â |
| |vertically located at the| |
| |bottom of the lateritic| |
| |weathering profile. Â Can be| |
| |host to nickel laterite ore | |
+------------------------------+------------------------------+----------------+
|schist |metamorphic rock with well|Â |
| |developed foliation | |
+------------------------------+------------------------------+----------------+
|serpentinite |magnesium iron silicate of |Â |
| |metamorphic origin | |
+------------------------------+------------------------------+----------------+
|shale |clay-rich sedimentary rock, |Black shale |
|Â |when black or carbonaceous | |
| |normally contains carbon | |
+------------------------------+------------------------------+----------------+
|shear zone |zone of multiple fractures or |Â |
|Â |discontinuities in rock, | |
| |either ductile or brittle | |
+------------------------------+------------------------------+----------------+
|siltstone |fine grained usually quartz |Â |
|Â |rich sedimentary rock; where | |
| |calcareous contains calcium or| |
| |magnesium carbonate | |
+------------------------------+------------------------------+----------------+
|siting of works plan |statutory submission required |Â |
| |ahead of any mining activity | |
| |Â | |
+------------------------------+------------------------------+----------------+
|stockworks |zone of multiple quartz filled|Â |
|Â |fractures with individual | |
| |veins often of random | |
| |orientation | |
+------------------------------+------------------------------+----------------+
|strike |the horizontal orientation of |Â |
| |a planar geological feature | |
+------------------------------+------------------------------+----------------+
|sulphide |sulphur bearing metallic |Â |
| |mineral | |
+------------------------------+------------------------------+----------------+
|synform |geological term for an upward |Â |
| |facing fold | |
+------------------------------+------------------------------+----------------+
|talc |magnesium iron silicate mica |Â |
| |of metamorphic origin | |
+------------------------------+------------------------------+----------------+
|tenement |an area encompassing a number |Â |
| |of blocks of claims | |
+------------------------------+------------------------------+----------------+
|thrust |shallow dipping fault where |Â |
|Â |the upper body of rock | |
| |overrides the lower portion | |
+------------------------------+------------------------------+----------------+
|ultramafic |dark silicate mineral or rock |Â |
| |with high magnesium and iron | |
+------------------------------+------------------------------+----------------+
|variogram |mathematical representation of|Â |
|Â |spatial variability between | |
| |data | |
+------------------------------+------------------------------+----------------+
|wireframe |computer generated volume |Â |
|Â |boundary, usually around | |
| |lithological or Resource zones| |
+------------------------------+------------------------------+----------------+
|XRF |X-Ray fluorescence; an assay|Â |
| |technique using x-rays to| |
| |measure element concentrations| |
| |in a sample | |
+------------------------------+------------------------------+----------------+
|UNITS |Â |Â |
+------------------------------+------------------------------+----------------+
|cm.g/t |centimetre grams per tonne - |Â |
| |metal content expressed as | |
| |grade times thickness | |
+------------------------------+------------------------------+----------------+
|g |gramme |Â |
+------------------------------+------------------------------+----------------+
|g/t |grammes per metric tonne - |Â |
| |metal concentration | |
+------------------------------+------------------------------+----------------+
|ha |hectare |Â |
+------------------------------+------------------------------+----------------+
|kg |kilogramme, a thousand grammes|Â |
+------------------------------+------------------------------+----------------+
|km |kilometre |Â |
+------------------------------+------------------------------+----------------+
|koz |thousand ounces |Â |
+------------------------------+------------------------------+----------------+
|kt |thousand metric tonnes |Â |
+------------------------------+------------------------------+----------------+
|kv |thousand volt |Â |
+------------------------------+------------------------------+----------------+
|kva |thousand volt amperes |Â |
+------------------------------+------------------------------+----------------+
|m |metre |Â |
+------------------------------+------------------------------+----------------+
|mm |millimetre |Â |
+------------------------------+------------------------------+----------------+
|µm |micron, or millionth of a | |
| |metre | |
+------------------------------+------------------------------+----------------+
|mt |million metric tonnes |Â |
+------------------------------+------------------------------+----------------+
|moz |million ounces |Â |
+------------------------------+------------------------------+----------------+
|oz |fine troy ounce equaling |Â |
| |31.1048 grammes - normal unit | |
| |used in selling gold | |
+------------------------------+------------------------------+----------------+
|ppb |parts per billion |Â |
+------------------------------+------------------------------+----------------+
|ppm |parts per million, equivalent |Â |
| |to g/t | |
+------------------------------+------------------------------+----------------+
|t |metric tonne |Â |
+------------------------------+------------------------------+----------------+
|t/m3 |density measured as metric |Â |
| |tonnes per cubic metre | |
+------------------------------+------------------------------+----------------+
|° |degrees | |
+------------------------------+------------------------------+----------------+
This announcement is distributed by Thomson Reuters on behalf of
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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