Publication of Technical Report

 

 

ACR is pleased to announce the publication of a detailed technical report incorporating geochemical and geophysical data in respect of the Company's gold, nickel, platinum and diamond projects.  This report details significant exploration results from the 2007-2008 field programme.  The full report, including maps and technical diagrams, is available to download from the Company's website:  www.acrplc.com.

 

This report has been prepared by Mike Kellow BSc, a member of the Australian Institute of Geologists and technical director of ACR.

 

 

Ground electromagnetic (EM) surveys at the Perseverance Project (Nickel) have defined five conductive anomalies in the footwall of a thick ultramafic body, which could represent nickel sulphides at depth.  The targets are mostly supported with anomalous nickel and pathfinder geochemistry, and two of the conductors are overlain by outcropping gossans. At least one gossan in the trend contains >0.5% Ni at surface.  Further areas show an EM signature that is prospective for disseminated sulphides, and an IP survey covering several hundred metres strike length has been planned.  These results cover the first 8km of strike of the ultramafic unit; almost 20km remains to be explored. Diamond drill rigs have been ordered for the June quarter to test the five EM conductors.

 

Surface sampling at Horseshoe (Laterite Nickel) has returned encouraging nickel grades in the 0.5% to 3% range.  The nickel is concentrated in the saprolitic laterite weathering profile, and forms a surface layer perhaps 2-3m thick.  To date, about 3 square km of weathered serpentinite has been tested on broad spaced lines using a Niton portable XRF machine, and grades average 0.9% Ni.  Deep test pits over the full 14 sq km area are in progress.  Pit bulk samples will be submitted to a metallurgical laboratory for heap leaching tests.  ACR is targeting 20-50 mt of laterite Ni ore at Horseshoe, at grades of approximately 1% Ni.

 

At the Snakes Head PGE project, detailed mapping has discovered an additional 3.5 km strike length of platinum reefs, which outcrop in the north of the project area. Independent consultant Martin Prendergast now estimates that the chamber controlled by ACR has potential to host more than 50 million ounces of platinum group elements.  In addition to drill testing the new reefs for thickness and grade, ACR has commissioned an exploration adit to collect a 500kg sample of the sulphidic platinum mineralisation for metallurgical testing including float tests.

 

Diamond Exploration has produced encouraging results from laboratory studies on 3 kimberlites in the south of the country. Garnet and chromite chemistry and microprobe analysis has identified G10 garnets, which indicate that the kimberlites tapped the diamond stability field.  Nickel thermometry tests will now be carried out on the garnet population to assess the likelihood of diamond preservation.

 

 

ACR holds almost 30km of strike length of the ultramafic unit hosting the historical Perseverance nickel mine, approx 120km southwest of Harare.  The Perseverance mine contained both disseminated and massive-sulphide orebodies, producing overall 4000t of Ni metal at 1% nickel and 0.4% copper, with palladium also reported in concentrates.

 

Approximately two thirds of the host ultramafic strike length has been tested with MMI soil sampling, mapping, and ground magnetics and electromagnetics (EM).  The ground magnetics have been processed to map the ultramafic unit beneath cover rocks.

 

Soil Geochemistry: Over 5300 MMI soil samples covering 20km of strike have been submitted to SGS laboratories, Canada, for mobile metal ion (MMI) analysis. This has identified a large Ni anomaly (>20,000ppb Nickel (Ni) plus associated Copper (Cu), Palladium (Pd) and Cobalt (Co) extending for about 4 km centred over the existing mine. At least four additional nickel-copper-cobalt-platinum anomalies lie approximately 4.5km, 7km, 10km and 16 km south of the Perseverance mine, in an area where ultramafic outcrop is  outcropping or inferred to be lying at shallow depths beneath cover rocks. A sixth Ni anomaly lies about 1.5 km to the north of the mine in footwall rocks along the Archaean-Proterozoic basin contact.

 

Within the main mine anomaly, about 500m southwest of the old pit, the Ni-Cu-Co-Pd geochemistry forms a crosscutting "flame" that extends 300m to 500m into the footwall rocks.  As the majority of the mined nickel sulphides were hosted in the footwall rocks below the serpentinite, this anomaly is highly prospective for remobilised massive sulphides.

 

The geochemical anomaly coincides with a magnetic thickening in the footwall of the ultramafic, and with two EM conductors.  The magnetic feature may represent a channel structure or local thickening which is very prospective for Kambalda-style nickel mineralisation.

 

Mapping; Recent field mapping has discovered nickel bearing gossans (weathered sulphides on surface) within ultramafic sub-outcrop associated with some of the geochemical anomalies.  Initial assays using ACR's Niton XRF analyser returned grades in the 0.5% to 1% nickel range. This is encouraging as surface leaching of nickel often downgrades surface assays. Gossans coincide with electromagnetic (EM) conductor targets P3 and P4 (see below).

 

SIROTEM EM surveys to date cover about 8 km of ultramafic south of the old mine, using 100m coincident ground loops.  They have identified five anomalies (P1-P5), prospective for both massive and disseminated sulphides.  These anomalies have been modelled by Peter Williams of Mark2 Geophysics, and preliminary drill targets identified. Infill EM to position drill holes in April-May is underway.  Targets are as follows:

Conductor Name	E Loc	N Loc	Dip	Dip Direction	Depth to Top	Strike Length (m)	Depth Extent
P1	49,735	95,950	75	270	95	400	350-550
P2	50,250	95,950	70	270	150	400	350-550
P3	49,210	91,050	85	270	85	400	350-550
P4	48,980	89,150	90	270	140	400	350-550
P5	50,770	88,950	90	270	95	400	200

 

• Total surface area underlain by the P1 Layer = 60 km2
• Total reef thickness (2 reefs, each 4 m thick) = 8 m
• Tonnage factor = 3.25
• Grade = 1 g/t Pt (plus Pt equivalent of Pd)

The potential resource estimated on this basis is ca.50m oz Pt. This represents a minimum resource, because the calculations assume a horizontal reef package and because the P1 Layer in the Fundumwi - Sohwe Falls blocks most likely extends northwards beneath the Rushinga gneisses at least as far as the Escarpment Fault. The subsurface configuration of the P1 Layer remains uncertain, but incorporating the down-dip extent of the P1 Layer, when accurately known, will significantly increase the size of the total potential resource.

 

Snakes Head mineralisation is typically double the width and half the grade of the platinum reefs to the south (eg Ngezi). Most reefs to date are assumed to belong to the axial facies (central zone) of the original intrusion. There are favourable geological indications the new reefs may belong to the higher-grade marginal facies which occur on the edges of the dyke. Drilling or shallow exploration shafts are required to test the grade and thickness of the new reefs. Enquiries are underway to source a helicopter or man-portable diamond drill rig to access sites in the steep terrain.

 

 

Bulk samples are required to test the MSZ for flotation characteristics and other metallurgical factors.  For this purpose an exploration adit is being planned to drive into the MSZ in the western end of the chamber.  About 500kg of unoxidised sulphide reef will be collected for laboratory work. 

 

Planning of the adit is complete, environmental approvals have been obtained for the work, and excavations will commence next month.  The adit is expected to take at least 3 months to complete.

 

 

Diamond exploration has concentrated on assessing ACR's southern Zimbabwean kimberlite pipes and associated dykes together with regional sampling over areas of similar tectonic settings.

 

Geochemical microprobe results from Mineral Services, South Africa have confirmed the garnet population was kimberlitic and consisted of both G9 and G10 garnets indicating that these kimberlites tapped the diamond stability field.  This was also confirmed by consultants Napier Exploration.

 

Chrome spinels also plot in and around the diamond stabilizing field.

 

Ongoing work will include micro-diamond analyses by caustic fusion and nickel thermometry to determine the affect of the geotherm on diamond preservation.

 

 

Large grass-roots geochemical sampling programmes continue to generate first-pass gold and basemetals anomalies in the Limpopo mobile zone, Midlands Greenstone belts, and elsewhere.

 

The company has set up an in-house sample preparation and assay laboratory, using portable Niton XRF analysers to assay for a broad range of base metals and pathfinder elements. The lab can process over 4,000 samples a month and ACR has three geochemical exploration teams in the field.

 

Results of infill sampling of the first-pass anomalies will be detailed as results become available.

 

 

This report was compiled by Mr. Michael Kellow (Technical Director, ACR).

 

Michael Kellow (BSc) is a Member of AIG and a full-time employee of African Consolidated Resources plc.  Mr. Kellow has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resource and Ore Reserves' (JORC Code).  Michael Kellow consents to the publication of the report in the form and context in which it appears.

 

African Consolidated Resources plc Andrew Cranswick       Roy Tucker	+44 7920 189010 +44 1622 816918 / +44 7920 189012
Ambrian Partners Limited Richard Brown Richard Greenfield	+44 20 7634 4700

Term	Explanation	Acronym
adit	mining term describing a horizontal underground excavation (tunnel) to access a mining target
aeromagnetics	Magnetic survey carried out with a sensor in an aircraft	aeromags
archaean	rocks greater than 2,600 Ma in age
As	chemical symbol for arsenic
Au	chemical symbol for gold
banded iron-formation	chemical sedimentary rock consisting of iron and quartz	BIF
base metal	Nickel, copper, lead, zinc	BM
capex	"capital expenditure"; cash amount required for non-operating costs such as plant construction and equipment
chromite	A chromium-rich mineral of the spinel group, abundant in kimberlite pipes
claims	areas allocated by the government of Zimbabwe for the purposes of exploration and exploitation of minerals, may be either for gold, diamonds or base minerals.  Synonymous with leases, tenements.
concentrate	normally of metallic minerals such as pyrite and arsenopyrite after removal of gangue
Conductor	See electromagnetic survey
core	Cylindrical sample of rock as cut by a diamond drill
Co	Chemical symbol for cobalt
Cu	chemical symbol for copper
diamond drilling	Drilling method using a diamond-impregnated cutting bit to obtain a core sample of rock
dip	the orientation of a planar geological feature relative to horizontal
disseminated sulphide	Accumulations of sulphide minerals where the grains are not separated by other minerals and are not in physical contact with each other.
electromagnetic survey	Geophysical technique using electrical currents to detect conductive bodies below surface. Conductive bodies include massive-sulphides that may contain base metals	EM, TEM, SIROTEM
EM survey	See electromagnetic survey
environmental impact assessment	assessment of impacts to the environment likely to be caused by any activity	EIA
environmental management act	legislation encompassing and replacing all previous environmental legislation	EMA
environmental management plan	report detailing mitigation or avoidance of environmental impacts associated with any activity; for mining activity usually incorporates a mine closure plan	EMP
fault	a fracture or break within a body of rock across which some movement has occurred
felsite	silica rich igneous rock, aka felsic volcanic
flotation	the process of concentrating minerals from finely ground slurry by the addition of reagents and air
fold	geological term for a curve or bend of planar surfaces in rocks
foliation	geological term for planar features within rocks
G10 garnet	A chemical classification of garnets whereby the calcium/chromium ratios in the G10 field indicates the garnets were likely to have formed in diamondiferous kimberlites.
Garnet	An aluminium-silicate mineral common in igneous and metamorphic rocks
geophysics	Mineral prospecting systems designed to detect mineralisation using the physical properties of rocks.
global positioning system	Navigation and  positioning system allowing survey by satellite	GPS
gossan	Oxidized sulphide minerals which form distinctive iron-rich outcrops with sponge-like weathering textures; gossans often overlie sulphide-rich deposits of base metals and gold.
greenstone belt	belts of metamorphosed sedimentary and igneous rocks of Archaean age
hydrothermal	hot, water-rich fluid which dissolves and transports metals and deposits these in suitable geological traps
igneous rock	originally molten can be volcanic or intrusive
IP survey	"Induced Potential" - a geophysical technique to detect disseminated sulphide mineralisation
JORC	Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy
kimberlite	igneous rock of ultramafic composition forming volcanic-pipe structures which can host diamonds
komatiite	volcanic rock with low silica and high magnesium and iron contents, common host to nickel deposits
laterite	highly weathered rock, usually conforms to a consistent weathering pattern from surface and often redistributes gold, nickel or aluminium to ore grade concentrations above the primary source at depth.
lodes	Higher grade portion of mineralised zones, usually with specific orientation
lower sulphide zone	tabular, layered mineralised portion of the Great Dyke, generally of lower PGE grade than the MSZ	LSZ
magnetic survey	measurements of the perturbation in the earth's magnetic field caused by magnetic minerals in rocks
main sulphide zone	tabular, layered mineralised portion of the Great Dyke	MSZ
massive sulphide	Bodies of sulphide minerals where the grains are in physical contact; these bodies can become electrical conductors (see EM surveys)
metamorphism	changes in the mineral compositions of rocks due to increased temperature and/or pressure normally during burial
mineralisation	metallic minerals such as gold, base metals, pyrite and arsenopyrite incorporated in rocks
mineralised zones	hydrothermally altered structural features containing potentially valuable minerals
Mobile metal ion analysis	assay technique using a proprietary chemical leach to obtain a broad range of elements from soil samples	MMI
Ni	chemical symbol for nickel
orebody	economically viable portion of a mineralised zone
Pd	Chemical symbol for palladium
platinum group elements	platinum, palladium, rhodium (ruthenium and iridium)	PGE
Pt	Chemical symbol for platinum
pyrite	iron sulphide mineral often associated with gold
pyrrhotite	iron sulphide mineral
quality control	procedures to ensure the accuracy of all results obtained from any activity, particularly sampling and assays	QC
quality assurance	process of recording all quality control procedures	QA,  QA/QC
quartz	silicon oxide mineral very common in hydrothermal deposits
resource	mineral resource as defined by the JORC Code 2004
reverse circulation drilling	rotary percussion drilling whereby the sample is returned from the cutting head inside the rod string to surface thereby avoiding contamination from the walls of the hole	RC
rotary air blast drilling	Open-hole drilling whereby drill cuttings are returned to surface by compressed air in an un-lined hole; contamination is possible from the walls of the hole.	RAB
saprolite	In-situ weathered rock vertically located at the bottom of the lateritic weathering profile.  Can be host to nickel laterite ore
schist	metamorphic rock with well developed foliation
serpentinite	magnesium iron silicate of metamorphic origin
shale	clay-rich sedimentary rock, when black or carbonaceous normally contains carbon	Black shale
shear zone	zone of multiple fractures or discontinuities in rock, either ductile or brittle
siltstone	fine grained usually quartz rich sedimentary rock; where calcareous contains calcium or magnesium carbonate
SIROTEM	See electromagnetic survey	EM, TEM
siting of works plan	statutory submission required ahead of any mining activity
stockworks	zone of multiple quartz filled fractures with individual veins often of random orientation
strike	the horizontal orientation of a planar geological feature
sulphide	sulphur bearing metallic mineral
synform	geological term for an upward facing fold
talc	magnesium iron silicate mica of metamorphic origin
tenement	an area encompassing a number of blocks of claims
thrust	shallow dipping fault where the upper body of rock overrides the lower portion
ultramafic	dark silicate mineral or rock with high magnesium and iron
variogram	mathematical representation of spatial variability between data
wireframe	computer generated volume boundary, usually around lithological or Resource zones
XRF	X-Ray fluorescence; an assay technique using x-rays to measure element concentrations in a sample
UNITS
cm.g/t	centimetre grams per tonne - metal content expressed as grade times thickness
g	gramme
g/t	grammes per metric tonne - metal concentration
ha	hectare
kg	kilogramme, a thousand grammes
km	kilometre
koz	thousand ounces
kt	thousand metric tonnes
kv	thousand volt
kva	thousand volt amperes
m	metre
mm	millimetre
µm	micron, or millionth of a metre
mt	million metric tonnes
moz	million ounces
oz	fine troy ounce equaling 31.1048 grammes - normal unit used in selling gold
ppb	parts per billion
ppm	parts per million, equivalent to g/t
t	metric tonne
t/m3	density measured as metric tonnes per cubic metre
°	degrees