REG - African Pioneer PLC - Mining Licence Approval & Ongombo Drilling Update

African PioneerAnnouncement

29/09/2022 07:00

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RNS Number : 0769B  African Pioneer PLC  29 September 2022

29 September 2022

African Pioneer Plc

("African Pioneer" or "the Company")

 

Granting of Mining Licence and Drilling Programme Update at Ongombo Project in
Namibia

 

African Pioneer plc ("APP" or the "Company"), the exploration and resource
development company with projects located in Namibia, Botswana, and Zambia, is
pleased to inform shareholders that the Ongombo Mining Licence has been
approved and that ongoing shallow drilling continues to define near-surface
copper - gold mineralisation to be assessed for possible open pit extraction
in addition to the already defined underground mineral resource.

 

Highlights:

 

·    Mining Licence approved by the Ministry of Mines and Energy of
Namibia

 

·    The Company is in the process of completing an Environmental and
Social Impact Assessment ("ESIA") which will trigger the start of the mine
development process

 

·    Current drill programme is targeting potential near-surface copper -
gold mineralisation not included in the existing underground mineral resource
estimate. 26 holes completed to date with copper - gold mineralisation present
in 25 holes

 

·    Peak assay intercepts from near-surface drilling include 5.39% Cu eq
over 0.82m, 4.72% Cu eq over 1.15m, 3.96% Cu eq over 1.15m, 3.24% Cu eq over
0.945m, 2.64% Cu eq over 1.39m and 2.46% Cu eq over 1.42m

 

·    Assays are pending on a further 15 holes drilled to test the up-dip
and both SSW and NNE strike extensions of near-surface mineralisation

 

·    Additional 8 infill holes provisionally planned subject to the
results of pending assays

 

·    A zone of near-surface copper mineralisation extending over an area
of approximately 750 metres by 185 metres at an average grade of greater than
1% Cu

 

·    A coincident gold zone covering an area of 500 metres strike length
and a variable width of between 50 metres and 185 metres at an average gold
grade of greater than 0.4g/t Au

 

·    External resource consultant to undertake a mineral resource estimate
for near-surface mineralisation once all assay data has been received.

 

 

Colin Bird, Executive Chairman of African Pioneer commented:

"We are very pleased to announce our mining licence for Ongombo has been
approved by the Ministry of Mines in Namibia.  This is a significant step
forward for the company.

 

Our near surface drilling programme has been very successful, providing good
copper and gold results on a consistent basis.  The effect of this drilling
programme will be to provide an open cast opportunity for the first two years
of operation, thus reducing the effect of onerous early capital on the DCF
model and bringing in the operation into cashflow very quickly.  We
anticipate accessing the underground resource ex-open pit and this will reduce
both capital and time in opening up the underground resource.  We intend to
move into project implementation which will include final plant design, open
pit and mine design and contractor appointments.

 

We intend to fast track all our activities to meet what we anticipate to be
huge copper demand during the latter part of 2023."

 

Update on the Near-Surface Mineralisation & Drill Programme

 

A zone of presumed mineralisation extending approximately 180m from the
outcropping gossan that identifies the Ongombo orebody at surface down-dip has
been drilled. Historic low-density drilling failed to define any
mineralisation and it was assumed that as the orebody progressed up-dip
towards the gossan outcrop that sulphide mineralisation in the form of pyrite
and chalcopyrite would give way to oxides of copper. Recent drilling has
broadly defined a zone of predominantly copper sulphide mineralisation to
depths of around 10 to 15m vertical depth.

 

On completion of the balance of drilling and the receipt of outstanding
assays, a mineral resource estimate will be generated by external consultants
that is expected to add to the existing underground resource and generate a
new open pittable mineral resource. Open pit excavation will potentially
reduce the amount of primary underground development required to access
underground ore by stripping waste rock to expose the mineralised horizon and
ultimately leaving a highwall that can be used to develop a portal for the
planned decline. Work will be done to optimise the open pit resource to
generate a mineable resource sufficient to feed a plant for a minimum of 12
months whilst primary development advances to access underground ore.

 

Further studies are required to confirm the amenability of Ongombo ore to
standard flotation processing. Provisional assessment indicates that the ore
is typical of that found on this part of the Matchless Belt and therefore
suitable for recovery of copper and gold through flotation.

 

Table 1: Ongombo Near-surface Drill Programme Selected Average Weighted Assay
Results for First 26 Drillholes

 Borehole ID  From   To     Mineralised Width  Grade    Grade      Grade

              (m)    (m)    (m)                (% Cu)   (g/t Au)   (Cu eq)*
 APD001       11.81  14.81  3.0                0.42     0.78       0.96
 APD002       21.25  22.2   0.945              2.42     1.19       3.24
 APD003       8.82   10.37  1.55               2.18     0.50       3.0
 APD004       20.5   21.5   1.0                0.75     0.27       0.94
 APD005       11.69  13.11  1.42               2.12     0.49       2.46
 APD006       36.63  38.04  1.41               0.73     0.15       0.83
 APD007       50.42  51.42  1.0                0.47     0.14       0.56
 APD008       50.58  51.73  1.15               2.95     1.47       3.96
 APD009       30.41  31.80  1.39               2.36     0.41       2.64
 APD010       7.9    9.0    1.1                0.11     0.66       0.56
 APD011       16.7   17.48  0.78               0.69     0.17       0.80
 APD012       33.26  34.05  0.785              1.11     0.21       1.25
 APD013       46.04  47.2   1.15               4.44     0.40       4.72
 APD014       66.74  68.79  2.05               0.60     0.14       0.70
 APD015       39.14  39.82  0.68               1.03     0.19       1.16
 APD016       25.88  27.25  1.37               0.98     0.31       1.19
 APD017       16.0   16.57  0.57               1.33     0.33       1.56
 APD018       No Mineralised Intercept
 APD019       27.33  28.56  1.23               1.48     0.26       1.65
 APD020       53.9   54.72  0.82               4.59     1.17       5.39
 APD021       41.27  43.0   1.73               1.56     0.33       1.78
 APD022       13.86  14.84  0.975              2.03     0.21       2.17
 APD023       50.33  51.77  1.44               1.55     0.73       2.05
 APD024       66.47  67.08  0.61               0.99     0.32       1.21
 APD025       38.49  39.62  1.13               0.90     0.15       1.00
 APD026       19.59  21.42  1.83               1.31     0.43       1.60

*A copper price of US$8,000 and a gold price of US$1,700 were used for the
purposes of calculating a copper equivalent grade.

 

 

The Company has elected to investigate the potential for an open pit to mine
copper sulphides and oxides. Oxides are known to occur at or near surface from
the outcrop of the Ongombo deposit coincident with the Central Shoot.
Initially assumed to extend for a strike length of approximately 350m, recent
drilling has extended the zone coincident with copper grades >1% Cu to over
750m.  Drilling has also demonstrated that the down-dip extension from the
gossan outcrop extends in some locations to approximately 185m, considerably
wider (in the horizontal plane) than initially anticipated at 100 to 150m.

 

Subject to mineral resource estimation work following the completion of
drilling and the return of assay data, indications are that a viable copper
resource suitable for open pit extraction may occur. There also appears to be
scope to add to the existing underground resource with deeper mineralised
intercepts expected to be beyond any future pit floor. The bulk of
mineralisation defined to date with the exception of the zone closest to the
Ongombo gossan outcrop and to a vertical depth of between 10 and 15m is
sulphide-type mineralisation dominated by pyrite and chalcopyrite.

 

The Ongombo orebody plunges to the NNE and an area has broadly been defined
suitable for mine infrastructure where any future ore extraction would be from
underground.

 

Environmental and Social Impact Assessment ("ESIA")

The ESIA process is well-advanced, and documentation is expected to be
completed ready for final submission to the relevant authorities in the near
future.

 

 

 African Pioneer Plc

+44 (0)20 7581 4477
 Colin Bird

 Executive Chairman
 Beaumont Cornish (Financial Adviser)    +44 (0) 020 7628 3396

Roland Cornish
 Novum Securities Limited (Broker)

 Jon Belliss                             +44 (0) 20 7399 9400

+44 (0)20 7581 4477

 

Beaumont Cornish (Financial Adviser)

Roland Cornish

+44 (0) 020 7628 3396

Novum Securities Limited (Broker)

Jon Belliss

 

 

+44 (0) 20 7399 9400

 

 

or visit  https://africanpioneerplc.com/ (https://africanpioneerplc.com/)

 

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

 

Qualified Person:

The technical information contained in this announcement has been reviewed,
verified, and approved by Colin Bird, CC.ENG, FIMMM, South African and UK
Certified Mine Manager and Director of African Pioneer plc, with more than 40
years' experience mainly in hard rock mining.

 

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

 

Glossary

 

A 'Mineral Resource' is a concentration or occurrence of solid material of
economic interest in or on the Earth's crust in such form, grade (or quality),
and quantity that there are reasonable prospects for eventual economic
extraction. The location, quantity, grade (or quality), continuity and other
geological characteristics of a Mineral Resource are known, estimated or
interpreted from specific geological evidence and knowledge, including
sampling. Mineral Resources are sub-divided, in order of increasing geological
confidence, into Inferred, Indicated and Measured categories.

 

An 'Indicated Mineral Resource' is that part of a Mineral Resource for which
quantity, grade (or quality), densities, shape and physical characteristics
are estimated with sufficient confidence to allow the application of Modifying
Factors in sufficient detail to support mine planning and evaluation of the
economic viability of the deposit.

 

An 'Inferred Mineral Resource' is that part of a Mineral Resource for which
quantity and grade (or quality) are estimated on the basis of limited
geological evidence and sampling. Geological evidence is sufficient to imply
but not verify geological and grade (or quality) continuity. It is based on
exploration, sampling and testing information gathered through appropriate
techniques from locations such as outcrops, trenches, pits, workings and drill
holes.

 

"Au"      Gold

"Cu"       Copper

"Cu eq"  A copper price of US$8,000 and a gold price of US$1,700 were used
for the purposes of calculating a copper equivalent grade.

"g/t"      grammes per tonne

"Kt"        thousand tonnes

"Mt"      million tonnes

 

 

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