Resource Statement Gde l'Est

13 Dec 2007 07:01

Maghreb Minerals PLC13 December 2007 MAGHREB MINERALS PLC 8.8 MILLION TONNES GRADING 3.16% COMBINED ZINC AND LEAD AT THE GITE DE L'EST DEPOSIT, BOU JABEUR Maghreb Minerals Plc ("Maghreb" or "the Company"), the AIM-quoted explorationcompany developing base metal and industrial mineral deposits in Tunisia, ispleased to announce it has received an audited Resource Statement from WardellArmstrong International ("WAI") regarding the Company's mineral resourceestimation for the Gite de l'Est deposit at Bou Jabeur, Tunisia, prepared inaccordance with the JORC (2004) reporting standard. Highlights • The audited Inferred Mineral Resource estimate for Gite de l'Est at a 1% lead and zinc ("Pb+Zn") cut off grade is 8.836 million tonnes (Mt) grading combined 3.16% zinc and lead: 2.17% zinc, 0.99% lead, 5.06% CaF2 and 21.66% BaSO4 . At a 2% Pb + Zn cut off grade, the Inferred Mineral Resource is 5.172 Mt grading 4.40% combined zinc and lead: 3.15% zinc. 1.25% lead, 6.42% CaF2 and 27.76% BaSO4, prepared in accordance with JORC (2004) reporting standards. • The in situ value of the mineral resource at the 1% Pb+Zn cut off grade is estimated to exceed US$925 million at recent metal prices. • A significant increase in both tonnage and grade estimates for the Gite de l'Est deposit is expected following the updating of the block model to include re-assay results of all available ("Office National des Mines") O.N.M. core, the Company's verification drilling and optimisation of the geostatistical methodology. This will be included in an updated resource statement scheduled for completion in the first quarter of 2008. • The Gite de l'Est deposit is still open laterally and at depth. One drill rig is due to start work at Bou Jabeur, with another being mobilised to test possible extensions to the known lead-zinc mineralisation. • A scoping study including preliminary metallurgical testwork and mine planning is in hand to establish parameters for an illustrative cash flow model for the project. Resource Summary for Bou Jabeur - Gite de l'Est WAI completed a review of the Company's Gite de l'Est Resource Model whichlooked at all stages of the model from the raw data through the geostatisticalappraisal to the final resource figures. Following the review, an audited Resource Statement on the mineral resourceestimation methodology for the Gite de l'Est deposit at Bou Jabeur, was receivedfrom WAI on 10 December 2007. The report states: "Wardell Armstrong International ("WAI") confirms that the mineral resourceestimation methodology for the Gite de l'Est deposit in the Bou Jabeur mineconcession, Tunisia audited in December 2007 has been undertaken in accordancewith the requirements of JORC (2004) and as such, to the best of our knowledge,the Mineral Resource Statement dated 10 December 2007 is an accurate estimationof the geological resources contained within the Gite de l'Est deposit. Asummary of the Inferred audited Mineral Resources for Gite de l'Est at 1%combined Pb+Zn cut off grade and at 2% combined Pb+Zn cut off grade respectivelyis given in the table below." Summary of the estimated Inferred Mineral Resources for Gite de l'Est at 1% combined Pb+Zn Cut Off Grade (COG) (Maghreb Minerals December 2007) Pb+Zn Volume Tonnage Density Zn Pb BaSO4 CaF2 Zn Pbcombined (m3) (t) (g/cm3) (%) (%) (%) (%) Contained Contained COG Metal (t) Metal (t) (%) 1 2,561,949 8,836,000 3.34 2.17 0.99 21.66 5.06 191,741 87,476 Summary of the estimated Inferred Mineral Resources for Gite de l'Est at 2% combined Pb+Zn Cut Off Grade (Maghreb Minerals December 2007) Pb+Zn Volume Tonnage Density Zn Pb BaSO4 CaF2 Zn Pbcombined (m3) (t) (g/cm3) (%) (%) (%) (%) Contained Contained COG Metal (t) Metal(t) (%) 2 1,465,159 5,172,000 3.45 3.15 1.25 27.76 6.42 162,918 64,650 Summary of the estimated Inferred Mineral Resources for Gite de l'Est at 4% combined Pb+Zn Cut Off Grade (COG) (Maghreb Minerals December 2007) Pb+Zn Volume Tonnage Density Zn Pb BaSO4 CaF2 Zn Pbcombined (m3) (t) (g/cm3) (%) (%) (%) (%) Contained Contained COG Metal (t) Metal (t) (%) 4 606,848 2,195,000 3.54 5.05 1.48 33.12 7.34 110,941 32,464 The Company has estimated the in-situ value of this reported mineral resource atGite de l'Est, which consists of lead, zinc, barite and fluorite, at the 1%Pb+Zn cut off grade, to be in excess of US$925 million, based on prices as at 7December 2007: Zn US$1.06/lb, Pb US$1.19/lb, BaSO4 US$85/t, CaF2 US$200/t. Re-assaying of all available O.N.M. core is in progress in view of the recentlyrecognised systematic under-reporting of zinc in core assays by the O.N.M. Theresults of the re-analysis of some of the core pulps recently discovered from 10of the original O.N.M. drill holes, showed that historical analyses of the corepulps for zinc are systematically too low, by as much as between 33% and 43%. Ifthis under-reporting of zinc values applies to the O.N.M. drill cores over theremaining 36 drill holes previously assayed by the O.N.M., and as indicated alsoby higher zinc values in core from Maghreb's verification drilling results, there-assaying of this core (now in progress) could result in a significant upwardrevision on the total mineral resource zinc grades reported. Introduction to the block model of the re-assay results of all the availableO.N.M. original drill core, the results from Maghreb's verification drilling onthe Gite de l'Est deposit as well as a review of the estimation procedures willbe completed over the next two months. This will lead to an updated Resource Statement that is scheduled for completionin the first quarter of 2008. A scoping study including preliminary metallurgical testwork and mine planningis in hand to allow the Company to establish parameters for an illustrative cashflow model for the project. Second Drilling Programme at Bou Jabeur The Gite de l'Est deposit is still open laterally, and at depth. The historic mining was restricted to the zone above the water table somineralisation is largely untested at greater depth. Consequently, one drill righas been mobilised to the Bou Jabeur exploration permit to drill two scout holestesting a deeper target, hosted by possible fore reef breccias with thepotential for lead-zinc mineralisation occupying more extensive primaryporosity. A second rig is being mobilised and will start in January 2008 on tendrill holes in the south west of the Bou Jabeur exploration permit and fivedrill holes to the north-west which will test higher grade, smaller targetsaround the historic surface mining area which previously fed the mill andconcentrator at Bou Jabeur. Gordon Riddler, Executive Chairman commented: "The mineral resource summary for Bou Jabeur - Gite de l'Est prepared accordingto JORC (2004) verifies and improves upon previous Tunisian resource estimatesand potentially adds real value to the Company. We look forward to providing the updated resource statement as soon as possiblewith the expectation to increase further the tonnage and grade estimate. Furtherwork on the block model as a precursor to the pre-feasilbity study on mining theGite de l'Est deposit has now commenced". NOTE FOR EDITORS In January 2007, Maghreb announced the successful conclusion of its negotiationswith the O.N.M. to acquire the rights to the Bou Jabeur deposit, whereby Maghrebhas the right to earn a 90% interest in the Bou Jabeur exploration permit. TheBou Jabeur exploration permit covers the ground referred to in the Maghreb AIMAdmission document, December 2004, as the Bou Jabeur mine concession, whichcovers a significant area of mineralisation including the past producing Gite del'Est zinc-lead-fluorite-barite mine. In March 2007, Maghreb appointed WAI to assist in the preparation of a mineralresource statement to International Reporting Standards, prior to Maghrebcommencing a Pre-Feasibility Study on the resumption of mining operations at BouJabeur - Gite de l'Est. The former operators, COMINO, made resource estimates for the Gite de l'Estdeposit based on an O.N.M. drilling programme, on December 31 2000. It quotedproven and probable reserves in the range of 4.2 Mt at 3.90% Zn; 1.36% Pb;30.09% BaSO4; and 8.28% CaF2. In addition approximately 0.9Mt of possibleresources at 3.08 % Zn; 1.49 % Pb; 36.28 % BaSO4; and 9.21 % CaF2 wereidentified. These "reserves" and "resources" were calculated based on 46 diamonddrill holes on an approximately 50m by 100m grid pattern, and are not confirmedto International Reporting Standards. 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 Information relating to this announcement will be posted on the Company websiteat www.maghrebminerals.co.uk. 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, CSc,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