REG - African Pioneer PLC - Central Africa Copperbelt Update

African PioneerAnnouncement

23/10/2023 07:15

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RNS Number : 8824Q  African Pioneer PLC  23 October 2023

 

23 October 2023

African Pioneer Plc

("African Pioneer" or "the Company")

Central Africa Copperbelt: Commencement of Earn In under Option Agreement and
Update on Western Foreland exploration on the NW Zambia Joint Venture

 

African Pioneer plc ("AFP" or the "Company") the exploration and resource
development company with advanced projects in Namibia, Botswana, and Zambia,
is pleased to;

 

·    update  shareholders in relation to the First Quantum Minerals
Limited ("First Quantum") option agreement with AFP's 80% owned subsidiary
African Pioneer Zambia Ltd (the "Option Agreement"). The parties to the Option
Agreement, details of which were announced on 20 January 2022, have signed an
Addendum dated 20 October 2023 that  confirms First Quantum have delivered a
notice to exercise their option over two out of four licences subject to the
Option Agreement  thereby commencing a two year earn in period (the "First
Earn In Period") and that in light of expenditure and work to date First
Quantum has been granted an additional 6 months to 17 January 2024 to incur
US$500,000 of exploration expenditure over the other two licences that are the
subject of the Option Agreement; and

 

·    confirm First Quantum has identified the key structural architecture
determining the boundary between the Western Foreland and the Central Fold and
Thrust Terrain in the area of AFP's licenses. Deep drilling on AFP's licenses
has successfully identified diagnostic features indicative of similar
stratigraphy and mineralization processes to those involved in the formation
of the Kamoa-Kakula deposit.

 

 

Highlights

·    First Quantum have delivered a notice to exercise their option over
two exploration licences XE27767-HQ - LEL and XE27771-HQ - LEL. The First Earn
In Period during which First Quantum has to prepare a Technical
Report demonstrating an Indicated mineral resource of at least 300,000 tonnes
of contained copper for First Quantum to earn a 51% shareholding in African
Pioneer Zambia commenced on 17 September 2023 (more details below).

 

·    First Quantum has stated that it has defined the key structural
architecture that determines the boundary between the Western Foreland and the
Central Fold and thrust Terrain in the area of AFP's licences.

 

·    First Quantum has also noted that deep-drilling on AFP licences has
successfully delineated the key diagnostic features indicative of similar
stratigraphy and mineralising processes likely to have played a role in the
formation of the Kamoa - Kakula deposit.

 

·    Based on the success of the programme to date, and in light of total
exploration expenditure by First Quantum to date of over US$1.6 million, the
Parties have agreed to extend the period until 17 January 2024 for First
Quantum to deliver a notice to exercise its option to earn in over exploration
licences 27770-HQ-LEL and 27768-HQ-LEL (more details below).

 

·    Work completed by First Quantum includes mapping, soil sampling,
ground geophysics, air core drilling and diamond drilling.

 

·    Drilling has commenced on Turaco, a prioritised near-surface
mineralised target in the fold- and thrust domain.

 

·    First Quantum has confirmed its intention to drill-test each of the
main near-surface targets including Chipopa, Turaco and Chibwika during the
current programme whilst planning for deeper drilling to test the Western
foreland domain for Kamoa-style mineralisation.

 

Colin Bird Executive Chairman commented "We are very pleased to be advised by
First Quantum that they have exercised their Option to commence earning in on
two licences and we have agreed to extend their option period on the other two
licences, where they wish to complete sufficient work to decide on the
prospectivity of these licences to 17 January 2024. The initial period under
the Option Agreement has been extremely successful for both First Quantum and
AFP with the Western Foreland and Kamoa-style mineralising environment being
established as well as near surface mineralisation in the fold- and thrust
domain further to the east on some of our licences. We are particularly eager
and excited to see the outcome of the current Turaco drilling given the broad
mineralised intercepts reported at shallow levels during the 2022 programme.
We look forward to our future involvement with First Quantum, with the
knowledge that they will approach the exploration with enthusiasm and their
typical technical wisdom."

 

Addendum to Option Agreement:

The key commercial terms of the addendum to the Option Agreement entered into
on 20 October 2023 are:

 

1.   First Quantum has delivered an option exercise notice in relation to
exploration Licences XE27767-HQ - LEL and XE27771-HQ - LEL ("Exercised
Licences").

 

2.   First Quantum have not yet earned a shareholding in African Pioneer
Zambia. The two year First Earn In Period in relation to the Exercised
Licences commenced on 17 September 2023; during the First Earn In Period First
Quantum in order to earn a 51% interest in African Pioneer Zambia have to
prepare and fund a Technical Report demonstrating an Indicated mineral
resource of at least 300,000 tonnes of contained copper. The First Earn In
Period can be extended by 12 months if First Quantum incur US$2M of
expenditure towards preparing the Technical Report.

 

3.   To extend until 17 January 2024 the initial option period  in relation
to the two exploration licences that have not yet been exercised where First
Quantum can if the exploration expenditure on exploration
licence 27770-HQ-LEL (US$363,866 spent as at 31 July 2023 )
and 27768-HQ-LEL (US$248,624  spent as at 31 July 2023) increases to
US$500,000 per licence (the "Not Yet Exercised Licences") deliver a notice to
exercise their option in relation to the two licences within 60 days of
meeting the US$500,000 exploration expenditure.  If First Quantum delivers a
notice to exercise their option over either of the two Not Yet Exercised
Licences then the First Earn In Period over that licence may be extended by up
to  6 months.

 

First Quantum confirmation on exploration through 31 July 2023

First Quantum has stated that they are pleased with results achieved during
the initial option period which confirm the presence of the Western Foreland
stratigraphy and elements of Kamoa-style mineralisation on AFP's licences. The
recognition of the Western Foreland domain along with the delineation
near-surface targets in the adjacent fold and thrust domain (Kolwezi-style)
represents an important development for Zambia. First Quantum, the Company and
its local partners look forward to progressing work on all targets and
deploying maximum resources, both financial and expertise, with a view to
finding a commercially viable orebody for near term development.

 

Work Programme to 31 July 2023

First Quantum has completed an extensive work programme on all the optioned
licences including, mapping, soil sampling, ground geophysics, air core
drilling and diamond drilling.

 

Several near surface targets have emerged (as detailed in prior quarterly
reports), and three of these prospects at Turaco, Chipopa and Chibwika have
been selected for follow-up work including air core and diamond drilling.

 

In addition to the near surface targeting using soil geochemistry, First
Quantum has conducted a broadscale 'Generative' programme employing
comprehensive proprietary datasets such as airborne gravity, magnetics and
radiometrics as well as remote sensing imagery.  These datasets have been
combined with detailed litho-structural mapping, geochronological analysis and
deep-sensing magneto-telluric (MT) traverses to generate an integrated
interpretive model of the district. This model has, for the first time,
clearly defined the key structural architecture domains of the area including
the important boundary between the Western Foreland and Central fold and
thrust terrain of the Katangan basin.

 

In 2022 First Quantum utilised this architecture model to site two deep
diamond holes ('framework holes') in the Western Foreland succession. These
holes were designed to test prospective stratigraphic positions in the
sequence for mineralisation similar to that found in north of the border in
the DRC at Kamoa-Kakula.  The framework holes successfully delineated the
Katangan sequence including a key reduced 'diamictite' horizon.  Localised
intercepts of chalcocite copper mineralisation on the boundary of reduced and
oxidised strata suggest that the same mineralising processes are occurring on
the African Pioneer licences as seen north of the border in the DRC.

 

Further modelling and MT lines have recently been conducted to define the
crucial structural and sedimentalogical features known to be associated with
the high-grade copper accumulations at Kamoa-Kakula.

 

2023 Drill programmes

First Quantum has informed the Company that follow-up drilling of the near
surface targets at Turaco, Chipopa and Chibwika is planned using aircore and
diamond drilling.  Drilling aims to better define the extent and continuity
of mineralisation discovered during 2022.

 

On the Western Foreland, 750m-1000m deep holes are planned to test the key
prospective positions in the sequence in areas where relevant structures have
been defined in recent MT traverses.

 

First Quantum Expenditure

To the end of July 2023 First Quantum has expended approximately $1.6M on the
four exploration licences that are the subject of the Option Agreement. Given
the accelerated programme and extensive drilling planned in the second half of
the year it is expected that significant additional expenditure will be spent
by the end of 2023 and that it is likely that the US$500,000 expenditure
requirement in relation to both of the Not Yet Exercised Licences will exceed
the threshold under Option Agreement of US$500,000 per licence by 17 January
2024.

 

For further information, please contact:

 

 African Pioneer Plc                           Tel +44 (0) 20 7581 4477

 Colin Bird, Chairman
 Beaumont Cornish Limited (Financial Adviser)  Tel +44 (0) 20 7628 3396

 Roland Cornish/Asia Szusciak
 Novum Securities Limited (Broker)             Tel +44 (0) 20 7399 9400

 Jon Belliss

 

or visit   https://africanpioneerplc.com/

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the
European Union (Withdrawal) Act 2018 ("UK MAR").

 

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