MMS.L Regulatory News (MMS)

18 Jan 2007 07:00

Maghreb Minerals PLC18 January 2007 MAGHREB MINERALS PLC Maghreb signs agreement on Fej Lahdoum zinc-lead deposit Maghreb Minerals Plc ("Maghreb" or "the Company"), the AIM-quoted explorationcompany developing base and precious metal and industrial mineral deposits inNorth Africa, is pleased to announce the successful conclusion of itsnegotiations with the Office Nationale des Mines ("O.N.M") to acquire the rightsto an exploration permit (EP) covering the former Fej Lahdoum mining concessionwhich includes the Dar N'Hal Nord and Dar N'Hal Sud zinc-lead deposits. This is the second major announcement made by the Company this week and followsyesterday's announcement regarding the agreement signed on the Bou Jabeur EPwhich hosts a significant barite-zinc-lead-fluorite deposit. The two agreementsexpand Maghreb's resources portfolio to four deposits, all of which hostsignificant known mineralisation: Fej Lahdoum Dar N'Hal Nord and Dar N'Hal Sud(zinc-lead), Bou Jabeur (barite-zinc-lead-fluorite), Djebba (zinc-lead) andZaghouan (fluorite). Three of the deposits have been the basis of miningoperations. The Company believes that it can move quickly towards mine planningand a feasibility study with a view to commencing mining operations on thesedeposits. • Maghreb has the right to earn a 90% interest in the Fej Lahdoum EP. • The Fej Lahdoum EP covers the ground referred to in the Maghreb AIM Admission document, December 2004, as the Fej Lahdoum mine concession, which covers the Fej Lahdoum Dar N'Hal Nord zinc-lead mine and Dar N'Hal Sud zinc-lead deposit. • Reserves, not reported to JORC standard, for the Dar N'Hal Nord deposit were estimated at 1.4 million tonnes (Mt) grading 5.6% Pb and 6.0% Zn in 1991, of which an estimated 1.2 Mt grading 11.6% Pb+Zn remains unmined. The O.N.M. Resource estimate for the Dar N'Hal Sud deposit was 400,000 tonnes grading 5.6% Pb and 7.7% Zn (13.3% combined Pb+Zn). Drilling by Maghreb in 2005 expanded the footprint of known mineralisation at the Fej Lahdoum mine by an estimated 20%. Both deposits are within the Fej Lahdoum EP. • During 2006 the Company has put all the known drill results and the plans of old mine workings at Fej Lahdoum into Surpac, a computer resource assessment and mine modelling programme. • Having completed a data compilation exercise, Maghreb's focus is to recommence drilling at the Fej Lahdoum mine and target a further expansion of the known resource and conversion of resources to mineable reserves. • The known resources have an in-situ value estimated to be in excess of US$123 million, based on current prices*. * Zn US$1.75/lb, Pb US$0.71/lb Gordon Riddler, Executive Chairman commented: "The agreement between the O.N.M. and Maghreb is the culmination of severalyears of dedicated work and discussions, and consolidates our strong portfolioof permits in Tunisia. We now look forward to moving rapidly to delineate anexpanded resource that is expected to form the basis of a resumption of miningoperations at Fej Lahdoum. The Company has identified areas of potentialmineralisation to the north and south of the Dar N'Hal Nord and Dar N'Hal Suddeposits. We believe there is the opportunity to significantly expand resourcesboth inside the Fej Lahdoum EP which is the subject of this new agreement aswell as in the Company's existing surrounding exploration permit. "The Bou Jabeur and Fej Lahdoum deposits add significantly to the Maghrebresource base in Tunisia, with a combined in-situ value estimated to be inexcess of $1 billion. Both have significant established resources and have untilquite recently been operating mines. It is our intention to move quickly towardsmine planning and a feasibility study on the deposits which should see theCompany in a position to join the ranks of junior base metal and industrialminerals producers. These two projects, in conjunction with Maghreb's existingportfolio of assets, provide a very strong foundation on which to build a robustfuture for the Company in North Africa.". 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 Consultantsv Tel: +44 (0) 20 7367 8888Michael Padley / Michael Spriggs The terms of Maghreb Minerals agreement with the O.N.M. gives Maghreb the rightto earn a 90% interest in the Fej Lahdoum exploration licence by spendingTunisian Dinars ("TND") 457,000 (c£175,000) on or before October 6th 2008. TheAgreement further confers on Maghreb an option, at the O.N.M. discretion and ata price to be agreed, to acquire the O.N.M.'s remaining 10% interest in theproject and the obligation that Maghreb will pay the O.N.M. the sum of TND1,000,000 (c£390,000) from cash flow from mining, not to exceed 10% of net cashflow from operations in any one year. The Fej Lahdoum EP covers the ground referred to in the Maghreb AIM Admissiondocument as the Fej Lahdoum mine concession, which covers the Fej Lahdoum DarN'Hal Nord zinc-lead mine. Reserves, not reported to JORC standard, for the Dar N'Hal Nord deposit wereestimated at 1.4 million tonnes (Mt) grading 5.6% Pb and 6.0% Zn in 1991, ofwhich an estimated 1.2 Mt grading 11.6% Pb+Zn remains unmined. Drilling byMaghreb in 2005 expanded the footprint of known mineralisation at the FejLahdoum mine by an estimated 20%; this is not included the resource estimateabove. The O.N.M. Resource estimate for the Dar N'Hal Sud deposit was 400,000tonnes grading 5.6% Pb and 7.7% Zn (13.3% combined Pb+Zn). Both deposits arewithin the Fej Lahdoum EP. Maghreb has drilled (holes MFL1 to MFL24) a total of 5,244 m with depths rangingbetween 80 m and 465 m. Zn and Pb mineralisation was intersected in seventeendrill holes. Drill holes MFL1 - MFL7 were drilled around Dar N'Hal Sud. MFL2confirmed the mineralisation previously identified by the O.N.M. Ten drill holes(MFL8 to MFL17) were targeted principally to confirm the down-dip and lateralextent of the mineralisation over a strike length of 1,200 m between the DarN'Hal Nord mine and the Dar N'Hal Sud deposit. Seven drill holes (MFL18 toMFL24) in un-tested ground to the north of the Dar N'Hal Nord Mine extended theprojection of the surface area of the mineral resource at the Dar N'Hal Norddeposit by around 20%. Three of these drill holes also verified the results fromprevious O.N.M. drill holes: DNH25 and DNH26. Table: ONM Drill Hole results: DNH25 and DNH26DDH From To Metres %Pb %Zn %(Pb+Zn)DNH 25 84.9 m 30.0 m 7.0 m 12.1% 4.3% 16.4%DNH 26 238.0 m 244.8 m 6.8 m 12.8% 0.8% 13.6% Including 3.0 m 17.7% 7.4% 25.1% Drilling at Fej Lahdoum is expected to resume in the first quarter of 2007. The sources of some of the information in relation to the Fej Lahdoum 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,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. This information is provided by RNS The company news service from the London Stock Exchange