AMN - DRC: Rain does not deter Mpokoto gold project drilling

Armadale, the AIM quoted investment company focused on natural resource projects in Africa, has updated its ongoing exploration program at its Mpokoto gold project in the Katanga Province of the Democratic Republic of Congo (DRC). It has initiated a 2000 metre auger drill program consisting of approximately 150 auger holes.

Despite the ongoing rainy season, to date approximately 53 holes have been completed and qualitative sampling by panning the drill spoil demonstrates that the gold mineralisation previously identified extends to both the north-west and south-east of the current defined resource zone at Mpokoto, which hosts 678,000oz of gold.

The present exercise will, on completion, be followed up with further auger drilling on a tighter grid to delineate target mineralisation which will then be the focus of apportion of the planned 2500 metre diamond drill program. As well as focussing on the north and south oxide extension a portion of the program will test for high-grade gold extensions around hole MPD 064 which intersected 55 metres @ 3.3 grams/tonne gold from 45 metres including 15.4 metres @ 10.5 grams/tonne from 80 metres.

The objective of the overall exploration program is increasing the planned life of mine, which currently stands at four years for Phase 1 production, expanding the current Total Mineral Resource of 678,000oz gold from 14.58 million tonnes @ 1.45 grams/tonne gold at a cutoff grade of 0.5 grams/tonne and improving the overall project economics which are benefiting from the current gold price environment.

With regards to overall project financing, Africa Mining Contracting Services group (A-MCS) continues to undertake its review of the feasibility study and the parties remain in discussions with a view to finalising the project finance of at least $20 million for Mpokoto.

Armadale chairman Peter Marks says: “We continue to work to develop and add further value to Mpokoto alongside our funding discussions. The exploration program has initially targeted, with auger drilling, oxide mineralisation to the north and south of the main orebodies where mineralisation remains open along strike, and has made good progress despite the ongoing rainy season. The completion of an initial 50 holes has demonstrated the extensions of gold mineralisation the north and southwest, which is very positive.

“There is increasing interest in near term gold projects in particular as the gold price continues rise. The Mpokoto feasibility study projected operating costs of $792/oz and a pre-tax NPV of $19.05 million has been established for Phase 1, which importantly relates only to the shallow oxide orebody (30-40 metres) and a gold price of $1250/oz.”

Armadale Capital Plc is focused on investing in and developing a portfolio of investments, targeting the natural resources and/or infrastructure sectors in Africa. The Company, led by a team with operational experience and a strong track record in Africa, has a strategy of identifying high growth businesses where it can take an active role in their advancement.

Armadale owns an 80% interest in Mpokoto, which is subject to four Mining Licences which are valid for an initial term of 30 years from 30 September 2014.

www.armadalecapitalplc.com

News courtesy of International Mining