Afri-Can Marine Minerals Corp. has completed a qualifying report compliant with National Instrument 43-101 covering the acquisition of EPL 3403 marine diamond concession in Namibia. The report entitled “Exclusive prospecting licence 3403 offshore, Republic of Namibia, qualifying report,” by Richard Foster, is available at the company’s website and on SEDAR. Details of the acquisition can be found in Afri-Can’s news release in Stockwatch dated Oct. 12, 2010.
About EPL 3403
EPL 3403 covers about 800 square kilometres and is adjacent to the north of the Atlantic One mining lease (ML) 47 (owned by Namdeb Diamond Corp. (Pty.) Ltd., a 50:50 partnership between the government of the Republic of Namibia and De Beers Centenary AG), which is the largest marine diamond deposit in the world. ML 47 is currently producing in excess of 1.1 million carats per year. EPL 3403 is contiguous with ML 128, and is close to ML 43 and ML 44. Namdeb recently announced that it will spend $175-million (U.S.) to increase the diamond resources in ML 43 by 68 million carats. Thus EPL 3403 is well positioned relative to surrounding properties (a map available on-line shows the location of EPL 3403).
NI 43-101 report highlights
Previous work on EPL 3403 comprised geophysics, vibracoring and sampling, and was conducted mainly by International Mining and Dredging Holding Ltd. (IMDH).
About 31 diamonds were recovered during previous sampling. These diamonds and a encouraging geological setting enable the report to conclude that EPL 3403, large parts of which remain unsampled, is favourable for both the influx of diamonds and for concentration thereof.
Two large geological features have been identified on EPL 3403. The southeastern feature, where the sampling pattern was focused, is proven to carry diamonds and covers 16 square kilometres. The northwestern feature covers 160 square kilometres and is characterized by thin sediment and outcropping Eocene rocks, and has not yet been sampled. Vibracores in that valley generally indicate sparse development of gravel. Notably, early vibracores in the areas that became the Atlantic One deposits showed similar characteristics. This large valley lies directly in the path of diamond movement northwestward along the coast during the period of low sea level. These characteristics are similar to major diamond deposits adjacent to EPL 3403. A map available on-line shows the location of the target areas within EPL 3403, as well as the mineralized areas which are already known.
Previous reconnaissance sampling comprised the extraction of 199 samples of five square metres of which 14 samples recovered 23 stones ranging between 0.07 and 2.69 carats. The average diamond size was 0.39 carat, which matches the regional average. The four largest stones weighed 0.80, 1.19, 1.20 and 2.69 carats. Multiple stones were found in five samples, one of which contained six stones. In one area in the south, eight positive samples had an average size of 0.80 carat per stone, which is comparable with results from Namdeb’s ML 47.
The qualifying report concludes that the topography of the pre-Quaternary surface may be classified into broad features, and the potential for diamond deposition and concentration has been assessed in each category. Two priority targets measuring about 16 and 160 square kilometres, respectively, have been identified for further development. The work to date indicates that the EPL has definite potential for development of diamond resources and that the larger target has the potential to contain a major diamond deposit.
Mr. Foster recommends a detailed geophysical survey and a systematic sampling campaign in the known mineralized area in order to develop inferred resources. He also recommends a reconnaissance sampling program on several long lines crossing the broad valley in the northwest area to test its diamond potential. This first phase should be followed by a systematic sampling campaign to initiate the development of inferred resources.
Pierre Leveille, president and chief executive officer of Afri-Can, stated: “The qualifying report confirms EPL 3403 as a base for a strong development potential. It sits in the middle of the most productive marine diamond field in the world and is another quality asset to add to block J. Besides adding serious value for our shareholders, acquisition of the EPL solidifies our strategic alliance with IMDH with its proven track record in the marine sampling and mining industry.”
About block J
Afri-Can has finalized design of its work program for furthering development of block J. The program will comprise 257 samples of five square metres each. The sampling program will be focused on the extension of the high-grade strip in feature 8, and the connection between features 6 and 8 to define the diamondiferous potential of the extension and to extend the inferred resources.
Furthermore, the program will include 100,000 square metres of trial mining within the high-grade strip in feature 8.
Details and schedule of the program will be disclosed upon completion of the program design for EPL 3403, and of the agreement between Afri-Can and IMDH concerning the chartering of the vessels for conducting the program.
Mr. Foster is responsible for the technical part of this news release and is the designated qualified person under the terms of National Instrument 43-101.
