REG - African Pioneer PLC - Ongombo Copper-Gold Project Update, Namibia

African PioneerAnnouncement

07/02/2024 07:00

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RNS Number : 2297C  African Pioneer PLC  07 February 2024

 

 

7 February 2024

African Pioneer Plc

("African Pioneer" or "the Company")

Ongombo Copper-Gold Project Update

 

African Pioneer plc ("AFP"), the exploration and resource development company,
is pleased to inform shareholders of Permitting and Ore Processing Testwork at
its 85% owned Ongombo (copper-gold) Project located within Exclusive
Prospecting Licence EPL 5772, 40km NE of the capital city, Windhoek, Khomas
Region, Namibia.

Highlights re Ongombo Project

·    Company has been notified that EPL 5772 has been renewed for two
years, the exact expiry date to be confirmed once stamped off

·    Environmental and Social Impact Assessment (ESIA) is at an advanced
stage of completion

·    X-ray transmission ("XRT") ore sorting sensor tests returned positive
results and that laser or colour sensor technology can be used to separate ore
and waste

·    Independent updated total (gross)* Indicated Mineral Resource
Estimate (MRE) of 5.7Mt at 1.1% Cu Equivalent (CuEq), 0.94% Cu and 0.23g/t Au
and a very substantial Inferred underground potential Resources of 23Mt at
1.1% CuEq, 0.95% Cu and 0.24g/t Au as announced on 16 May 2023

·    Advanced discussions with multiple parties about project level
funding of the Ongombo Project.

*gross representing 100% MRE and African Pioneer has 85% interest in the
Project

 

Colin Bird Executive Chairman commented "We have made good progress on the
Ongombo Project with very significant increases to the previous 'Indicated'
and 'Inferred' Mineral Resources and the potential for a 'starter' mine using
low-cost open-pit methods. We plan to combine XTR with laser dry sorting
technology to separate ore from waste and generate a high-grade concentrate
for transport to an in-country processing plant for final separation before
metal recovery. We are now sequencing the primary development infrastructure
and the process flowsheet. As we advance towards the completion of the ESIA we
expect to soon be in a position to move towards project implementation and the
completion of development financing."

 

The 85% owned Ongombo Copper - Gold Project is situated in Exclusive
Prospecting License (EPL) 5772 which has just been renewed for a period of two
years, the exact expiry date to be confirmed once stamped off. Mining Licence
(ML 240) was granted on 10 August 2022 for 20-Years**, and covers a portion of
EPL 5772 and approximately one third of the open pit resource. An extension to
the Mining Licnece was submitted on 6 September, 2022 to encompass the wider
Resource Area. African Pioneer is now completing the permitting process by way
of the near-term submission of an Environmental and Social Impact Assessment
(ESIA) and the Environmental Management Plan (EMP). These are required to
re-affirm the Environmental Clearance Certificate (ECC) first awarded in April
2023 by the Ministry of Environment, Forestry and Tourism (MEFT): Department
of Environmental Affairs (DEA). The EMP accompanies mine development and ore
processing operations.

**in the Highlight to the announcement of 16 May 2023 there was a
typographical error stating that this is a 25-Year Mining Licence whilst it is
a 20-Year Mining Licence granted on 10 August 2022

Updated Mineral Resource Estimates (MRE) for the Ongombo project, revised by
Addison Mining Services (AMS) and reported on 16 May 2023, delineates a
potential combined open pit and underground mining operation based on
JORC-2012 Resources of 5.7 Mt at 1.1% CuEq, 0.94% Cu and 0.23g/t Au
(Indicated) (gross). This Resource includes 930 Kt at 0.57% Cu and 0.19g/t Au
open pit potential resource believed to be amenable to a 'starter' mine using
lower-cost, open pit methods. Significantly, the AMS update reports previously
unstated Inferred underground potential Resources of 23Mt at 0.95% Cu and
0.24g/t Au. This very significant upside revision more than doubles previously
reported potential resources within the Ongombo Project envelope.  Full
details of the MRE for the Ongombo Project were reported in the Company's 16
May 2023 announcement.

Pre-production planning for the Ongombo Project to make the transition from
exploration to mining is now underway. In that regard, critical items
including the location and design of marginal ore and dry tailings storage
areas have been identified within the ESIA. Moreover, low water demand and
modern X-ray transmission ore-sorting technology (XTR) and gravity
concentrators (GC) have been shown by an independent party, Steinert of
Germany, that XRT technology can differentiate between high-grade ore,
low-grade ore, and waste. Laser tests confirmed the potential to differentiate
between ore and waste with induction sensor tests returning the required
response to distinguish waste and ore fractions. This means that the Project
intends to use XTR to initially process crushed ore for transportation to an
external flotation plant where the copper and gold will be recovered into
concentrates for export for final smelting. The proposed off-site processing
arrangement would significantly reduce the capital requirements of the Ongombo
Project.

 

In parallel, with metal recovery testwork, Addison Mining Services (AMS) has
indicated significant increases in resources with further scope for another
meaningful increase in Project CuEq grade contingent upon follow-up work to
test gold content in the East/Ost Shoots. The Board has approved a short drill
programme to twin some historic Goldfields Namibia holes to assess the Au
content. Goldfields Namibia often did not assay for gold but in some of their
drill holes in areas of East/Ost Shoots that were assayed for gold they
returned values ranging from 9.6g/t Au over 0.17m to 0.12g/t Au over 1.1m. The
average calculated gold grade based on a limited population of samples, if
repeated across the shoots, potentially offers a significant addition to the
overall CuEq* grade of the deposit.

 

Studies are underway to optimise both the mining methodology most suited to
the narrow orebody and the primary development required to ensure access to
sufficient ore to maintain production. The Company has engaged the services of
a highly experienced mining engineer with a career in narrow orebody
exploitation in African projects.

The Company is in advanced discussions with parties regarding project level
funding that will enable progression of the initial Ongombo open-pit to
exploit the easily-accessible surface ore resources. In this context
engineering design of pre-production works has commenced along with design of
the lay-out of internal access roads and the accommodation, office upgrades
and fencing required to securely operate the mine site.

 

 African Pioneer Plc

+44 (0) 20 7581 4477
 Colin Bird

 Executive Chairman
 Beaumont Cornish (Financial Adviser)    +44 (0) 20 7628 3396

Roland Cornish/Asia Szusciak
 Novum Securities Limited (Broker)

 Jon Belliss                             +44 (0) 20 7399 9400

+44 (0) 20 7581 4477

 

Beaumont Cornish (Financial Adviser)

Roland Cornish/Asia Szusciak

+44 (0) 20 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").

 

Beaumont Cornish Limited, which is authorised and regulated in the United
Kingdom by the Financial Conduct Authority, is Financial Adviser to the
Company in relation to the matters referred herein. Beaumont Cornish Limited
is acting exclusively for the Company and for no one else in relation to the
matters described in this announcement and is not advising any other person
and accordingly will not be responsible to anyone other than the Company for
providing the protections afforded to clients of Beaumont Cornish Limited, or
for providing advice in relation to the contents of this announcement or any
matter referred to in it.

 

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.

 

 

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

"CuEq*" 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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