MMS.L Regulatory News (MMS)

29 Mar 2007 07:00

Maghreb Minerals PLC29 March 2007 MAGHREB MINERALS PLC Appointment of Wardell Armstrong to assist with preparation of Bou Jabeur JORC resource statement - drilling started at Gite de l'Est Maghreb Minerals Plc ("Maghreb" or "the Company"), the AIM-quoted explorationcompany developing base metal and industrial mineral deposits in North Africa,announces the appointment of Wardell Armstrong International ("WAI") to assistwith the preparation of a resource statement and to oversee the programme toupgrade the Gite de l'Est zinc-lead-fluorite-barite resource at Bou Jabeur inTunisia to JORC standards. This work is prior to commencing a Pre-FeasibilityStudy on the redevelopment of mining operations at Gite de l'Est at Bou Jabeur.Drilling commenced in mid-March at Gite de l'Est, with a view to verifying pastassay data at the mine. Highlights * Wardell Armstrong International appointed to prepare Bou Jabeur JORC resource statement * Verification drilling commenced - visible lead-zinc mineralisation intersected between 149m and 160m in first drillhole which is still in progress. In January 2007, Maghreb announced the successful conclusion of its negotiationswith the Office Nationale des Mines ("O.N.M.") to acquire the rights to the BouJabeur deposit, whereby Maghreb has the right to earn a 90% interest in the BouJabeur exploration permit. The Bou Jabeur exploration permit (EP) covers theground referred to in the Maghreb AIM Admission document, December 2004, as theBou Jabeur mine concession, which covers a significant area of mineralisationincluding the Gite de l'Est zinc-lead-fluorite-barite mine. In 2000 theoperators of Bou Jabeur Gite de l'Est quoted a proven, probable and possiblereserve (not to JORC standard) of 5.1 million tonnes (Mt) with a grade of 1.38%Pb, 3.76% Zn, 33.2% BaSO4, and 9.3% CaF2. The in-situ value of the deposit is estimated to be in excess of US$1,000million, based on recent prices*. (*Zn US$1.75/lb, Pb US$0.71/lb, BaSO4 US$35/t,CaF2 US$230/t.) Maghreb has commenced drilling at Gite de l'Est. The purpose of the currentdrilling programme is to verify past resource estimates and to providemetallurgical samples for test work which will form part of the proposed PreFeasibility Study. Core from 10 of the original O.N.M. drill holes has beenlocated in storage at Bou Jabeur and will be reviewed by WAI to establish ifthis core is suitable for re-assaying. The first of the verification drill holes (MBJ1) located immediately to the westof the existing Gite de l'Est headframe, is at a depth of 160m and hasintersected visible lead and zinc mineralisation between 149m and 160m. The holeis designed to verify the historic drill hole BJ-5 which has reportedmineralisation, notably within two intervals, totalling 69.2m, namely: • 5.3m grading 0.48% Pb, 5.13% Zn and 9.0 % CaF2 from 135.0m to 140.3m and • 63.9m grading 0.74% Pb, 2.56% Zn and 6.09% CaF2 from 179.5m to 243.4m, including 3.7m grading 0.82% Pb, 2.86% Zn and 3.52% CaF2, 9.6m grading 1.28% Pb, 6.11% Zn and 2.05% CaF2 and 15m grading 0.90% Pb, 2.20% Zn and 5.98% CaF2. Note: barite assays were not reported for this drill hole. A Surpac(R) geological model is currently being generated by Maghreb. The modelencompasses drill hole data and assays for 47 historic drill holes from surface,10 underground drill holes and underground sampling plans and assays at Gite del'Est that have been made available by the O.N.M. In order to reclassify the mineral resource in accordance with JORC (2004), WAIwill undertake: • A review of the geological setting and model for the deposit; • An audit of proposed/existing sampling methodology including assay procedures for both historical and new drill core sampling routines; • Monitoring of the verification and carry out an in-fill drill programme where deemed necessary to provide a more robust resource classification; and • A review of the existing block model and resource classification at a variety of cut-off grades. Gordon Riddler, Executive Chairman commented: "We believe that the known resource and past mining operations at the Bou JabeurGite de l'Est deposit offer Maghreb an exciting opportunity to move quicklytowards joining the ranks of producers. The Gite de l'Est deposit is a richpolymetallic ore body which could generate revenues from four products: zinc andlead concentrates, fluorite and barite. "The Company is focused on working towards verifying the known resource and inestablishing the parameters for recommencement of mining operations at Gite del'Est as quickly as possible. The deposit has been mined in the past fromsurface and at shallow depths. Extensive drilling already undertaken on thedeposit has established a significant resource. "The appointment of Wardell Armstrong International reflects our determinationto verify and establish a JORC compliant mineral resource for the existingsignificant Gite de l'Est deposit. This is an important first step towards aPre-Feasibility Study on the recommencement of mining at Bou Jabeur. "Gite de l'Est is potentially an exceptional deposit and the next stage in thedevelopment of the Company is to define the resource and then to commence miningas soon as practicable". The sources of some of the information in relation to the Bou Jabeur mine weresourced from O.N.M. The Company has not been able to independently verify theaccuracy of some of this information. The technical content of this press release has been reviewed by the ExecutiveChairman of Maghreb Minerals plc, Gordon Riddler, BSc, MBA, FIMMM, CEng, CSciwho has 40 years of experience in the mining sector and is a Fellow of theInstitute of Materials, Minerals and Mining, a recognised professionalassociation. ENQUIRIES: Maghreb Minerals Plc Tel: +44 (0) 20 7556 7038Gordon Riddler, Executive Chairman Hanson Westhouse Limited Tel: +44 (0) 20 7601 6100Tim Metcalfe / Anita Ghanekar Bankside Consultants Tel: +44 (0) 20 7367 8888Michael Padley / Michael Spriggs This information is provided by RNS The company news service from the London Stock Exchange