MMS.L Regulatory News (MMS)

11 Jul 2005 10:30

Maghreb Minerals PLC11 July 2005 MAGHREB MINERALS PLC ACQUIRES AN 85% INTEREST IN THE TAN CHAFFAO GOLD RICH POLYMETALLIC PROJECT IN ALGERIA HIGHLIGHTS • Maghreb Minerals is pleased to announce that it has acquired an 85%interest in the Tan Chaffao gold rich base metal project, and a 100 sq. kmExploration License, in Algeria. • The O.R.G.M. has estimated a resource at Tan Chaffao of 6.6 Mt grading1.6 g/t Au (300,000 ounces contained gold), 0.55% Cu, 1% Pb and 1.6% Zn. • Tan Chaffao occurs adjacent to the deep NS fault with which the golddeposits of Tirek and Amesmessa and Pb-Zn mineralisation in the south of Algeriaare associated. • Maghreb Minerals will commence an exploration programme at Tan Chafaoat the beginning of the field season (late September 2005). • Maghreb Minerals looks forward to a strong working relationship withthe O.R.G.M., on this project and on other projects in Algeria, where MaghrebMinerals and the O.R.G.M. have a strong mutual interest. Maghreb Minerals PLC ("Maghreb Minerals" or "the Company") is pleased toannounce that it has acquired an 85% interest in the Tan Chaffao gold rich, basemetal project in Algeria. The Company, through an Algerian subsidiary, will bethe operators of the project. The remaining 15% interest is to be held by GOLDIMFILIALE O.R.G.M., the investment arm of the Algerian O.R.G.M. (Office Nationalde Recherche Geologique et Miniere). Commenting on the acquisition of this advanced exploration project, MaghrebMinerals' Chairman Gordon Riddler said, "This is Maghreb Minerals' first step inits planned strategy to extend its exploration efforts throughout the underexplored mineral rich region of North Africa. The Company looks forward toworking closely with the O.R.G.M to advance this project rapidly. In additionthe Company looks forward to a strong working relationship on this project aswell as on other projects in Algeria where Maghreb Minerals and the O.R.G.M havea strong mutual interest." The polymetallic (Zn, Pb, Cu, Au) orebody of Tan Chaffao is located about 250kmnorthwest of Tamanrasset in the Hoggar region of Algeria. Discovered in 1971, itwas explored during two field seasons (1972 and 1973) by Russian supervised ORGMteams. The work consisted of geological and geophysical studies and a 10drill-hole programme (to a depth ranging between 100m and 200m). The ORGM has estimated a resource at Tan Chaffao of 6.6 Mt grading 1.6 g/t Au(300,000 ounces contained gold), 0.55% Cu, 1% Pb and 1.6% Zn, from surface. Themineralisation is open at depth and along strike. Mineralisation at Tan Chaffao occurs as disseminated and massive sulphide withinvolcano-sedimentary formations of upper Proterozoic age. Structurally themineralisation occurs within a large north-south trending syncline, adjacent tothe deep seated north-south fault with which the gold deposits of Tirek andAmesmessa and Pb-Zn mineralisation in the south of Algeria are associated. Several other mineralised occurrences have been identified within the immediatesurroundings of the known Tan Chaffao resource. Only limited exploration hasbeen carried out of the remainder of the 100 sq. km exploration licence. Inaddition, Maghreb Minerals has the option to extend the area covered by theExploration License and will seek an early exercise this option. Maghreb Minerals' 85% interest in Tan Chaffao is subject to the Companyundertaking an exploration programme. Maghreb Minerals will commence anexploration programme at the beginning of the field season (late September 2005)to explore the known orebody further and identify other economic mineralisationwithin the area covered by the exploration licence. Maghreb Minerals' proposed exploration programme will entail detailedgeophysical, geochemical and geological ground survey over the area of the knoworebody at Tan Chaffao, in order to better define drilling targets. Drilling, totarget extensions to the known mineralisation, is planned to commence in late2005. A reconnaissance survey will be conducted over the remainder of theexploration licence to identify additional areas of potential mineralisation. Maghreb Minerals has been assisted in Algeria by CSA Group Limited. CSA hassubstantial experience in Algeria and has a close relationship with the ORGM,having assisted them with their restructuring over the past 2 years and workedwith them on a number of exploration programmes. John Cole-Baker of CSA has commented that "Algeria has great underdevelopedmineral potential. The recent revision of the mining legislation allied to thepolicy of the Government to Algeria to encourage foreign investment provides anopportunity for Maghreb to play an early role in realising that mineralpotential. The Tan Chaffao project is, we believe, a good example of thepotential to prove a significant resource by applying modern exploration methodsin Algeria". For further information please contact: Maghreb Minerals Plc Westhouse Securities LLPRobyn Storer/ Richard Collier Richard Morrison / Tim MetcalfeTel: 44 (0) 20 7618 6411 Tel: 44 (0) 20 7601 6100 This information is provided by RNS The company news service from the London Stock Exchange