MMS.L Regulatory News (MMS)

20 Jun 2006 07:01

Maghreb Minerals PLC20 June 2006 MAGHREB MINERALS PLC Djebba - Drilling programme significantly expands target area Pre-feasibility scheduled for H2 2006 Maghreb Minerals Plc ("Maghreb" or "the Company"), the AIM-listed explorationcompany developing both base and precious metal deposits in North Africa,announces that its recent drilling programme in Tunisia has significantlyincreased the potential areas of mineralisation. The exploration programme has extended the zinc-lead target zone at Djebba inTunisia beyond the area where a 2.7 million tonne resource is known. HIGHLIGHTS • Recent drilling at Djebba has significantly extended the area of zinc and lead ("Zn+Pb") mineralisation. o Drill holes MDJ1 and MDJ2, located 400 metres south of the previously established 2.7Mt grading 6.14% Zn and 3.34% Pb measured mineral resource in Miocene sediments, have significantly extended the target zone for mineralisation. MDJ1 reported 5.2 metres @ 19.2 % combined Pb+Zn and MDJ2 10.45 metres @ 19.1% combined Pb+Zn, at depths of just over 20 metres below surface. o Drill holes MDJ7 and MDJ 9, intersected strong mineralisation in part of a 3km long brecciated contact zone between the Cretaceous and Triassic rocks, interpreted as the probable feeder for the mineralisation, and in addition intersected a zone of previously unknown mineralisation associated with faulting within impure Cretaceous limestones. MDJ 7 reporting mineralisation over 28 metres of better than 3% Zn with the best intersection being 8.55 metres grading of 9.55% Zn and 10.36% combined Zn+Pb at a depth of 32.85 metres from surface including 4.55 metres grading of 14.25% Zn and 15.5% combined Zn+Pb. • Previous preliminary metallurgical test-work on samples from the Miocene Basin demonstrated good recoveries for Zn+Pb to zinc and lead to concentrates using conventional flotation. • On completion of the planned follow-up drilling which will test the recent gravity survey results, the Company plans to commence a pre-feasibility study on the development of a mining operation at Djebba, mining both high grade near surface mineralisation in the Miocene Basin rocks and extensions to the mineralisation to the north and south discovered in the recent drilling programme in the contact zone between the Triassic and Cretaceous rocks and in the Cretaceous limestones. TARGET ZONES EXTENDED AND STILL OPEN The Company's drilling programme at Djebba over the past 4 months hassignificantly extended the zone of known mineralisation and has confirmed threetypes of target: 1. the Miocene Basin to the west of the Triassic-Cretaceous contact, 2. the breccia zone at this unconformable contact which likely represents the probable feeder zone for the mineralisation at Djebba and 3. the discovery of extensive mineralisation MDJ7 and MDJ9 in impure limestones of Cretaceous age. The Miocene Basin lies to the north-west of the main Triassic-Cretaceous contactand Miocene brecciated clays and sandstones, which increase in thickness to thewest, remain open and untested for mineralisation. The recently completed residual gravity interpretation suggests high anomalieswhich may reflect extensions to the Zn+Pb mineralisation. To the south near where the Miocene Basin goes under Eocene cover rocks, recentdrilling by the Company (MDJ 1 and MDJ2) has established significant mineralisedintersections within 25 metres of the surface. Zinc and lead sulphidemineralisation has also been discovered nearby in a recently dug water well tothe east of these drill holes. Along 3km of the brecciated contact between the Triassic and the Cretaceousrocks strong mineralisation has been intersected (MDJ7, MDJ8 and MDJ9) and therest of this brecciated contact remains to be explored to the north and to thesouth. Drill holes MDJ7 and MDJ9 have also established the presence of mineralisationwithin fault zones in the Cretaceous rocks which has hitherto not been evaluatedand closed off. DRILL ASSAY DATA FROM RECENT DRILLHOLES HOLE FROM TO INTERVAL ZN PB COMBINED (m) (m) (m) (%) (%) ZN%+PB% MDJ1 23.05 28.25 5.2 5.91 13.24 19.15 including 2.05 6.63 25.86 32.49MDJ2 21.85 32.3 10.45 17.52 1,57 19.09 including 6.8 24.58 1.04 25.62MDJ7 32.85 41.40 8.55 9.55 0.81 10.36including 34.00 38.55 4.55 14.25 1.11 15.35 44.44 64.44 20.0 2.67 0.42 3.09including 47.40 49.70 2.0 6.25 1.46 7.71 96.8 100.15 3.50 5.22 0.21 5.43including 97.95 100.15 2.2 6.08 0.20 6.27MDJ9 63.40 82.65 19.25 3.54 0.56 4.10including 65.40 69.15 3.70 5.13 0.76 5.90including 79.60 80.00 3.10 4.52 1.54 6.06 Drill hole MDJ 8, which intersected the Cretaceous and the brecciatedCretaceous-Triassic contact zone, reported low grade zinc mineralisation over aninterval of 14 m. Note: for a map showing the drill hole locations, please refer to the company'swebsite www.maghrebminerals.co.uk PREVIOUS PRE-FEASIBILITY STUDY METALLURGICAL TESTWORK AT DJEBBA A pre-feasibility study undertaken in 1989 by a Canadian group, SIDAM-Minorex,on the then known mineralisation in the Miocene basin sediments, established a "reserve" of 2.7 Mt grading 6.14% Zn and 3.34% Pb, including an open-pit "mineable reserve" of 805,000 tonnes at 6.59% Zn and 4.09% Pb . Metallurgical test work on samples of near surface partially oxidized materialgrading 9% Zn and 3.5% Pb reported recoveries of better than 70% using standardflotation to a 48% Zn in Zinc concentrate and 60% Pb in lead concentrate. Metallurgical test work on samples of less oxidized material reported higherrecovery rates of 75% for Zn to a 52% Zn in zinc concentrate and 70% recovery ofPb to a 64.8% Pb in lead concentrate. STRONG LOCAL SUPPORT The exploration project at Djebba has the strong support of the local communityand employs a number of the people from the local village. DJEBBA AND FEJ LAHDOUM COULD FEED CENTRAL PROCESSING PLANT Djebba is located only 10 km from the Company's other major centre ofexploration in Tunisia, Fej Lahdoum. It is expected that a centrally locatedprocessing plant could process ore from both Fej Lahdoum and Djebba. The Companyexpects to resume drilling at Fej Lahdoum on the completion of the currentcomputing modelling of the known areas of mineralisation. Gordon Riddler, Executive Chairman of Maghreb Minerals plc, said: "This latest phase of exploration drilling has extended significantly the targetzones for zinc and lead mineralisation by successfully establishing threeseparate host rocks for the mineralisation: one, the basin sediments of Mioceneage, a second, the probable contact feeder zone and lastly within the Cretaceouslimestones. The recent gravity interpretation has identified a number ofadditional drilling targets which will be pursued prior to moving into apre-feasibility study stage. In the last 6 months the Company has made significant progress and has nowidentified a number of potentially large deposits within both Tunisia andAlgeria. It is our intention to develop these areas, in particular in Tunisia,and we expect to be able to prove a minimum combined resource of 10 Mt, in thenot too distant future". The technical content of this press release has been reviewed by the ExecutiveChairman of Maghreb Minerals plc, Gordon Riddler, BSc, MBA, FIMMM, CEng, CSci,CMkt, MCIM, MCMI who has 40 years of experience in the mining sector and is aFellow of the Institute of Materials, Minerals and Mining, a recognisedprofessional association. ENQUIRIES: Maghreb Minerals PlcGordon Riddler, Executive Chairman Tel: +44 (0) 20 7556 7038 Westhouse Securities LLP Tel: +44 (0) 20 7601 6100Tim Metcalfe / Richard Morrison Bankside Consultants Tel: +44 (0) 20 7367 8888Michael Padley / Michael Spriggs About Maghreb Minerals Plc Maghreb Minerals Plc is an AIM listed exploration company developing both baseand precious metal deposits in Tunisia and Algeria where it holds the rights toseveral licence areas. The Company is targeting base metals, mainly lead andzinc, but has also identified areas containing barite and fluorite in Tunisiaand gold and copper in Algeria. This information is provided by RNS The company news service from the London Stock Exchange