Initial Exploration Returns High Grade Rare Ear...
African Consolidated Resources plc / Ticker: AFCR / Index: AIM / Sector: Mining
17 May 2011
African Consolidated Resources plc ('ACR' or 'the Company')
Initial Exploration Returns High Grade Rare Earth Elements at Nkombwa Project
African Consolidated Resources plc, the AIM listed southern African focussed
resource development company, is pleased to announce results from a preliminary
exploration sampling programme at the Nkombwa Project in Zambia ('Nkombwa' or
'the Project'), which has demonstrated high grade rare earth element ('REE')
mineralisation. Â This exploration programme is being conducted and financed by
ACR's joint venture partners ASX-listed Southern Crown Resources Limited
(following its acquisition of Rare Earth International Limited ('REI')). Â As
more fully explained in the Company's announcement of 11 June 2010, REI has the
right to earn a 50% equity interest in the Nkombwa Hill project in exchange for
a minimum spend of US$1,350,000 in order to  define an Indicated JORC Resource.
 Thereafter, ACR may elect to share expenditure equally with REI and maintain a
50% interest. Â In the absence of such an election, REI may obtain a 75% interest
by funding a Bankable Feasibility Study.
ACR Chairman Roy Tucker said, "These results further underpin the prospectivity
of the Nkombwa Project, and the significant proportion of high-grade
mineralisation, including the identification of the highest-grade sample yet
found at Nkombwa, gives solid credence for further exploration on the Project
area. Â This sampling programme also succeeded in identifying the western and
southern quadrants of Nkombwa Hill as particularly prospective, and these have
been deemed as high priority areas for further detailed mapping and sampling,
with the objective of delineating targets for exploration drilling."
To view a full version of the Southern Crown Resources Limited announcement,
which includes the figures referenced below, please visit
www.southerncrown.com.au.
Southern Crown Resources Limited announcement:
Initial Exploration Returns High Grade Rare Earth Elements at Nkombwa Project
Grid Sampling Returns Grades of up to 22.09% TREO
Highlights
* Preliminary grid sampling at the Nkombwa REE Project in Zambia has returned
a significant proportion of highly mineralised samples.
* Initial grid based rock sampling program comprising 259 samples:
* 10 samples had Total Rare Earth Oxides (TREO) over 5%, with a maximum of
22.09%, the highest concentration yet found in an exploration sample at
the Nkombwa Project;
* 29 samples had TREO concentrations in excess of 2% with other highly
significant values of 11.18%, 13.09% and 13.47% also returned.
* Anomaly open to the west of the sample area requires further investigation
below shallow cover.
* A program of detailed mapping and sampling aimed at delineating targets for
exploration drilling is planned to commence next month.
Nkombwa Project, Zambia
Situated in the north-eastern part of Zambia, (Figure 1), Â is one of two rare
earth element (REE) projects to be held by Southern Crown Resources (Southern
Crown) (ASX code: SWR) following the acquisition of Rare Earth International
(REI). Â The Nkombwa project is a joint venture with African Consolidated
Resource plc ("ACR") under which Southern Crown can achieve a 75% interest in
the REE by fully funding a bankable feasibility study.
While the Nkombwa carbonatite has been previously explored for phosphate and
niobium, little attention has been focussed on the REE potential of the complex.
Preliminary Exploration Sampling Program
In November 2010, REI completed a preliminary sampling program over the area of
outcrop of the carbonatite in which kilogram-sized rock samples were collected
systematically over a 100m by 50m grid; producing 259 samples of which 178 were
in situ from outcrop, the remaining 81 from loose rock (scree) close to outcrop.
 At the same time, radiometric measurements were collected using a gamma-ray
spectrometer at points at a 100m by 25m spacing.
Final assay results on the rock samples have been received and are extremely
encouraging. Â The highest grade sample - an outcrop sampled collected towards
the northern end of the hill crest - contains 22.09% total rare earths
(lanthanides plus Y as oxide: "TREO"). Â More than 10% of the grid samples
returned TREO concentrations in excess of 2% while 10 samples had TREO
concentrations of over 5%. Â Full REE assay results for all samples having over
2% TREO are presented in Table 2. Â The distribution of REE values in the
complete suite of samples is summarised on the map of Nkombwa hill in Figure 2.
 Also shown on the map are three areas of anomalous Thorium (Th) radiation
(higher than 100ppm equivalent Th) identified by the ground radiometric survey.
Several high TREO samples cluster along a zone at the base of Nkombwa Hill along
the north-west contact of the carbonatite intrusion - these are all scree
samples and not in situ suggesting the presence of an area enriched in REE on
the adjacent slope. Â A substantial proportion of the samples from the southern
and south-eastern sides of Nkombwa Hill have TREO above 2-5% and the radiometric
measurements reveal a well-defined Th anomaly in this area. Â The area lies at
the opposite end of the complex from the drilling that took place in 1965/6 that
returned the previously reported highly encouraging results presented in Table
1.
+----+--------+-------+-------+-----+------+------+------+-----+
|Hole|Northing|Easting|Azimuth| Dip | From | To |Width |TREO%|
| | | +-------+-----+------+------+------+ |
| | | | (deg) |(deg)|metres|metres|metres| |
+----+--------+-------+-------+-----+------+------+------+-----+
|NB-1|8878565 |483200 | 180 | -45 |69.68 | 75.9 | 6.22 |7.98%|
| | | | | +------+------+------+-----+
| | | | | |84.56 | 85.5 | 0.94 |7.58%|
| | | | | +------+------+------+-----+
| | | | | |183.49|185.6 | 2.11 |7.78%|
| | | | | +------+------+------+-----+
| | | | | |398.9 |402.8 | 3.9 |2.59%|
+----+--------+-------+-------+-----+------+------+------+-----+
|NB-2|8878622 |483200 | 180 | -60 |298.3 |302.4 | 4.1 |5.47%|
| | | | | +------+------+------+-----+
| | | | | |377.2 |380.06| 2.86 |6.37%|
+----+--------+-------+-------+-----+------+------+------+-----+
Table 1: REE Mineralised zones from boreholes NB-1 and NB-2 drilled in 1965/66
by Roan Selection Trust
Coordinates are UTM Zone36S, 1950 Arc
Widths are downhole intervals
%TREO is percentage of total rare earth oxides including yttrium
Samples analysed by Genalysis Perth, November 2010
Conclusions
Southern Crown is extremely encouraged by the results achieved from the
preliminary exploration sampling program. Â Four of the rock samples had TREO in
excess of 10% while the TREO concentration in the most enriched sample is the
highest yet found at Nkombwa. Â Despite the relatively coarse spacing of the
sampling grid, and the restricted coverage of the radiometric survey, the
sampling program succeeded in identifying the western and southern quadrants of
Nkombwa Hill as particularly prospective areas.
Further Work
A program of detailed geological mapping and outcrop sampling, supported by
closer spaced ground radiometric measurements, is planned to assess the nature
and extent of the mineralised carbonatite units identified by the preliminary
exploration. Â At the same time, the potential for REE mineralisation in the
soils that surround Nkombwa Hill will be assessed using a series of pits.
Results from this program are expected in the third quarter and will be used to
design a program of combined RC and diamond-core exploration drilling to start
later in the year.
For further information please contact:
Rhod Grivas
Executive Director
Ph: +61 419 919 321
Jock Harmer
CEO Rare Earth International
Ph: +27 82 323 9768
About Southern Crown Resources Limited
Southern Crown Resources Limited, named after a prominent arc constellation in
the Southern Hemisphere, listed on the ASX on 2 December 2010 with approximately
29.5 million shares on issue.
Southern Crown was formed with the purpose of acquiring, exploring and
developing mineral deposits and on 20 December 2010 entered into an agreement to
acquire Rare Earth International which is developing the Nkombwa and Xiluvo
projects located in Zambia and Mozambique respectively and has an application
over a third project in Burundi. Â On 5 May 2011 the Southern Crown shareholders
voted in favour of the acquisition of Rare Earth International.
The Company continues to evaluate additional mineral projects considered likely
to add value to shareholders.
The Board of Directors has a strong mix of technical, financial and corporate
skills to successfully explore the Company's existing projects as well as source
and develop further acquisition opportunities globally.
+--------+-------------------------+------+------------------------------
| Sample | X Y Type |TREO+Y|La2O3 Ce2O3 Pr6O11 Nd2O3 Sm2O3
| | | % |
+--------+-------------------------+------+------------------------------
|N K05025|483 300 8 878 149 outcrop|22.09 |5.04 11.19 1.30 4.13 0.29
| | | |
|N K01017|482 900 8 877 745 scree |13.47 |4.67 6.61 0.55 1.52 0.08
| | | |
|N K01022|482 896 8 878 002 scree |13.09 |4.33 6.60 0.55 1.52 0.07
| | | |
|N K01024|482 890 8 878 106 scree |11.18 |4.17 5.40 0.42 1.10 0.06
| | | |
|N K06010|483 408 8 877 392 outcrop|9.22 |2.87 4.54 0.44 1.24 0.08
| | | |
|N K01020|482 898 8 877 903 scree |8.38 |2.54 4.21 0.38 1.15 0.07
| | | |
|N K05015|483 303 8 877 649 outcrop|7.33 |2.06 3.69 0.37 1.10 0.07
| | | |
|N K07016|483 501 8 877 701 outcrop|7.31 |2.05 3.71 0.37 1.08 0.07
| | | |
|N K04006|483 200 8 877 201 scree |6.13 |2.38 2.92 0.22 0.56 0.03
| | | |
|N K06006|483 401 8 877 201 outcrop|5.16 |1.97 2.45 0.20 0.50 0.03
| | | |
|N K06003|483 399 8 877 046 scree |4.98 |1.95 2.35 0.19 0.46 0.02
| | | |
|N K07024|483 504 8 878 101 outcrop|4.58 |1.34 2.28 0.22 0.64 0.05
| | | |
|N K01025|482 903 8 878 154 scree |4.54 |1.70 2.20 0.17 0.43 0.02
| | | |
|N K02018|483 003 8 877 791 outcrop|4.42 |1.41 2.20 0.19 0.57 0.04
| | | |
|N K01019|482 905 8 877 864 outcrop|4.15 |1.26 2.09 0.19 0.57 0.03
| | | |
|N K01014|482 900 8 877 602 scree |3.90 |0.94 1.96 0.21 0.71 0.06
| | | |
|N K09003|483 703 8 877 051 outcrop|3.85 |1.49 1.83 0.14 0.34 0.02
| | | |
|N K02003|482 999 8 877 050 scree |3.74 |1.03 1.88 0.18 0.58 0.04
| | | |
|N K06018|483 403 8 877 800 outcrop|3.48 |1.00 1.74 0.17 0.51 0.03
| | | |
|N K06001|483 399 8 876 950 scree |3.14 |1.25 1.47 0.12 0.28 0.02
| | | |
|N K10003|483 801 8 877 046 outcrop|2.93 |1.20 1.34 0.10 0.25 0.02
| | | |
|N K04015|483 199 8 877 653 scree |2.91 |0.93 1.42 0.13 0.39 0.03
| | | |
|N K06015|483 404 8 877 650 outcrop|2.74 |0.68 1.37 0.15 0.49 0.04
| | | |
|N K09008|483 698 8 877 304 outcrop|2.66 |1.07 1.25 0.09 0.22 0.01
| | | |
|N K03015|483 101 8 877 652 scree |2.61 |0.71 1.32 0.13 0.41 0.03
| | | |
|N K06014|483 402 8 877 599 outcrop|2.39 |0.66 1.21 0.13 0.37 0.03
| | | |
|N K10009|483 805 8 877 352 outcrop|2.29 |0.81 1.11 0.10 0.25 0.02
| | | |
|N K06005|483 399 8 877 152 outcrop|2.07 |0.76 0.98 0.08 0.21 0.01
| | | |
|N K10013|483 799 8 877 550 outcrop|2.04 |0.85 0.95 0.07 0.16 0.01
+--------+-------------------------+------+------------------------------
--------------------------------------------------------------------+
Sample Eu2O3 Gd2O3 Tb2O3 Dy2O3 HO2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3 Y2O3 |
--------------------------------------------------------------------+
N K05025 0.046 0.059 0.002 0.008 0.001 Â 0.000 Â 0.000 0.022|
|
N K01017 0.013 0.015 0.000 0.002 0.000 Â 0.000 Â 0.000 0.005|
|
N K01022 0.011 0.009 Â 0.002 0.000 Â 0.000 Â 0.000 0.003|
|
N K01024 0.009 0.010 0.000 0.002 0.000 Â 0.000 Â 0.000 0.005|
|
N K06010 0.014 0.023 0.001 0.004 0.000 Â 0.000 Â 0.000 0.007|
|
N K01020 0.011 0.013 0.000 0.002 0.000 Â 0.000 Â 0.000 0.005|
|
N K05015 0.012 0.017 0.001 0.002 0.000 0.000 0.000 Â 0.000 0.006|
|
N K07016 0.012 0.018 0.001 0.003 0.000 0.000 0.000 Â 0.000 0.007|
|
N K04006 0.005 0.007 0.000 0.002 0.000 Â 0.000 Â 0.000 0.003|
|
N K06006 0.005 0.008 0.000 0.002 0.000 0.000 0.000 Â 0.000 0.003|
|
N K06003 0.004 0.005 0.000 0.001 0.000 0.000 0.000 0.000 0.000 0.002|
|
N K07024 0.011 0.021 0.001 0.004 0.000 0.000 0.000 0.000 0.000 0.007|
|
N K01025 0.003 0.003 Â 0.001 0.000 Â 0.000 Â 0.000 0.002|
|
N K02018 0.006 0.008 0.000 0.001 0.000 Â 0.000 Â 0.000 0.003|
|
N K01019 0.005 0.006 0.000 0.001 0.000 Â 0.000 Â 0.000 0.002|
|
N K01014 0.009 0.013 0.000 0.001 0.000 Â 0.000 Â 0.000 0.003|
|
N K09003 0.004 0.007 0.001 0.004 0.001 0.001 0.000 0.000 0.000 0.013|
|
N K02003 0.007 0.008 0.000 0.002 0.000 0.000 0.000 Â 0.000 0.005|
|
N K06018 0.005 0.007 0.000 0.001 0.000 Â 0.000 Â 0.000 0.002|
|
N K06001 0.002 0.004 0.000 0.001 0.000 0.000 0.000 Â 0.000 0.002|
|
N K10003 0.003 0.006 0.001 0.002 0.000 0.000 0.000 0.000 Â 0.004|
|
N K04015 0.005 0.007 0.000 0.001 0.000 Â 0.000 Â 0.000 0.003|
|
N K06015 0.006 0.009 0.000 0.001 0.000 0.000 0.000 Â Â 0.002|
|
N K09008 0.003 0.007 0.001 0.003 0.000 0.001 0.000 0.000 0.000 0.009|
|
N K03015 0.005 0.006 0.000 0.001 0.000 Â 0.000 Â 0.000 0.002|
|
N K06014 0.004 0.006 0.000 0.001 0.000 0.000 0.000 Â Â 0.002|
|
N K10009 0.003 0.005 0.000 0.001 0.000 0.000 0.000 0.000 Â 0.004|
|
N K06005 0.002 0.005 0.000 0.002 0.000 0.001 0.000 0.000 0.000 0.007|
|
N K10013 0.002 0.003 0.000 0.001 0.000 0.000 0.000 0.000 0.000 0.002|
--------------------------------------------------------------------+
**ENDS**
For further information visit www.acrplc.com or please contact:
Roy Tucker         African Consolidated Resources +44 (0) 1622 816918
    plc +44 (0) 7920 189012
Michael Kellow African Consolidated Resources +263 772 239 301
plc
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
Competent Person's Statement
The information in this report that relates to Exploration Results, Mineral
resources and/or Ore Reserves is based on information provided by Dr R.E. "Jock"
Harmer, PrSciNat, FGSSA and compiled by Dr Harmer and and Mr R Grivas, MAIG ,
MAusIMM, for Southern Crown Resources Limited and reviewed by Mr Michael Kellow
(the Company's Technical Director). Â 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.
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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