MMS.L Regulatory News (MMS)

14 Feb 2008 07:01

Maghreb Minerals PLC14 February 2008 MAGHREB MINERALS PLC BOU JABEUR: 90% EARN IN AND TITLE TRANSFER COMPLETED GITE DE L'EST: EARLY ENCOURAGING INDICATIONS FROM PHASE 2 DRILLING Maghreb Minerals Plc ("Maghreb" or "the Company"), the AIM-quoted explorationcompany developing base metal and industrial mineral deposits in North Africa,is pleased to announce that, through a wholly owned subsidiary, it has receivedwritten confirmation from the Office National des Mines ("O.N.M.") of thetransfer to it of a 90% interest in the Bou Jabeur Exploration Permit, Tunisia.Early indications from Phase 2 drilling at Gite de l'Est, are encouraging. Highlights • 90% interest in the Bou Jabeur Exploration Permit has been transferred to Maghreb • Phase 2 drilling at Gite de l'Est indicates an additional 20 metres ("m") of mineralisation intersected 50m below the previously reported Inferred Mineral Resource. This mineralisation is at a depth of 371m. The Company, through a wholly owned subsidiary, has received writtenconfirmation that, having met its obligations regarding qualifying expenditure,its right to earn a 90% interest in the Bou Jabeur Exploration Permit ("EP") hasbeen exercised and the transfer of 90% of the EP to the Company has beencompleted. The O.N.M. holds the other 10%. The EP, formerly known as the BouJabeur mine concession, covers a significant area of mineralisation includingthe Gite de l'Est lead-zinc-fluorite-barite mine. The earn-in agreement with theO.N.M. signed on 16 January 2007 included a commitment by the Company to spendTunisian Dinars 400,000 (approximately £170,000) over two years on explorationand project evaluation. A report detailing this qualifying expenditure wassubmitted to the O.N.M. by the Company in November 2007 and has now beenaccepted. This will be officially gazetted in due course. The Company has now commenced Phase 2 of its delineation and evaluation drillingat Bou Jabeur - Gite de l'Est. The focus of the programme is to increase thegrade and tonnage of the lead-zinc-fluorite-barite resource previously reportedin December 2007, by drilling laterally and to depth. Three drilling rigs havebeen deployed at Gite de l'Est and the first drill hole (MBJ12) drilled underthe known mineralisation, has just been completed. A visual inspection of the MBJ12 drill core indicates 20m of strongmineralisation at a depth of 371m, giving an extension to depth for the depositof approximately 50m. Assay results for MBJ12 will be announced in due course. Further deep drilling is planned to test for high-grade mineralisation at depth.The principal target area is to the North-East of the Gite de l'Est mine shaftwhere the first phase of verification drilling has indicated the highest gradeswith total intervals in drill core up to 44m with an average grade of 0.71%Pband 7.47% Zn (8.18% combined Pb and Zn) and where no existing drill testing hasbeen undertaken beneath the known mineralisation. Gordon Riddler, Executive Chairman, who has just returned from Tunis, commented: "The acquisition of the 90% interest in the Bou Jabeur Exploration Permitsecures the Company's interest over the significant Gite de l'Est deposit andwill allow the rapid progress in proving up this resource to be maintained.Early indications of a significant extension of the Gite de l'Est deposit atdepth at the start of the Phase 2 drilling provides considerable encouragement.A significant uplift in both tonnage and grade estimates is expected when theblock model is updated to include the verification drilling that has beencarried out. " *NOTE FOR EDITORS The Company reported in December 2007 an audited Inferred Mineral Resourcestatement, prepared in accordance with JORC (2004) reporting standards, usingonly the historical O.N.M. data for Gite de l'Est. At a 1% lead and zinc ("Pb +Zn") cut off grade, the resource contains 8.836Mt grading 3.16% combined Pb +Zn: 0.99% Pb and 2.17% Zn, 5.06% CaF2 and 21.66% BaSO4, and at a 2% Pb + Zncut off grade, 5.172 Mt grading 4.40% combined Pb + Zn: 1.25% Pb and 3.15% Zn.,6.42% CaF2 and 27.76% BaSO4. Based on the above resource statement, the in situ value of the mineral resourceat the 1% Pb + Zn cut off grade is estimated to exceed US$925 million atDecember 2007 metal prices. A significant increase in both tonnage and grade estimates for the Gite de l'Estdeposit is expected when the block model is updated to include Maghreb Minerals'MBJ verification drilling (MBJ1 to MBJ10), the results from the re-assaying of asignificant quantity of recently discovered O.N.M. core and pulps, resultsavailable from the newly started Phase 2 drilling programme (MBJ11 onwards), andwhen the geostatistical methodology for the block modelling is optimised. Anupdated resource statement is scheduled for completion in the first half of 2008 The Gite de l'Est deposit is still open laterally and in depth and three drillrigs are now testing possible extensions to the known lead-zinc-fluorite-baritemineralisation. ENQUIRIES: Maghreb Minerals Plc Tel: +44 (0) 20 7556 0940Gordon 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 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, CSci.who has 40 years of experience in the mining sector and is a Fellow of theInstitute of Materials, Minerals and Mining, a recognised professionalassociation. This information is provided by RNS The company news service from the London Stock Exchange