Afri-Can Marine Minerals Corp.’s newly completed National Instrument 43-101 report estimates the remaining diamond resources on Diamond Fields International Ltd.’s (DFI) mining lease (ML) 111, of which of 413,000 carats are in the indicated category and 453,000 carats are an inferred resource. A portion of the indicated resource, about 255,000 carats grading at 0.30 carat per square metre will be the object of a trial mining program, for which Afri-Can’s team is currently preparing a preliminary feasibility study and preparing mine planning. The company did not carried out yet a feasibility study on this resource and it is uncertain that the trial mining program will prove to be economic.
Findings from the NI 43-101 report, which is available on Afri-Can’s website and on SEDAR, are as follows:
ML 111 has three geological features that host indicated or inferred
resources.
Marshall Fork is the main deposit that has seen intermittent production
between 2001 and 2007. Diaz Reef has seen some small-scale production.
North Bay is composed of three deposits and has never been in production.
The remaining indicated resource on the three areas stands at 413,000 carats
at a grade of 0.17 carat per square metres and the remaining inferred
resource stands at 453,000 carat at a grade of 0.15 carat per square
metre.
Part of the remaining indicated resource on Marshall Fork and Diaz Reef
has minable potential, and a preliminary feasibility study and mine
management planning are currently being prepared in order to quantify
the economics of the project and allow possible reclassification of
some of the indicated resources as probable reserves. The indicated
resource, which is the object of the study stands at 255,000 carats at a
grade of 0.30 carat per square metre on an area totalling 855,000
square metres.
Remaining inferred resources will be the object of further sampling
programs in order to enhance the resources to the indicated category.
Blocks of indicated resources are based on a sample density of 100
metres by 100 metres or closer. The majority of the areas in Marshall
Fork and Diaz Reef had a sample density (usually sampling on a 50 m by 50 m
grid or closer) that supports the indicated resource estimates to a high
level of confidence.
Blocks of inferred resources are based on sampling that has a spacing
wider than 100 metres by 100 metres.
Diamond resources are based on a review of all previous records and, in
compliance with NI 43-101, a re-estimation based upon historical
exploration work that includes over 7,500 line-kilometres of geophysical
survey data, over 3,000 samples with footprints ranging from 2.1 to 10
square metres, and seven years of intermittent production history.
- ML 111 has three geological features that host indicated or inferred
resources.
- Marshall Fork is the main deposit that has seen intermittent production
between 2001 and 2007. Diaz Reef has seen some small-scale production.
North Bay is composed of three deposits and has never been in production.
- The remaining indicated resource on the three areas stands at 413,000 carats
at a grade of 0.17 carat per square metres and the remaining inferred
resource stands at 453,000 carat at a grade of 0.15 carat per square
metre.
- Part of the remaining indicated resource on Marshall Fork and Diaz Reef
has minable potential, and a preliminary feasibility study and mine
management planning are currently being prepared in order to quantify
the economics of the project and allow possible reclassification of
some of the indicated resources as probable reserves. The indicated
resource, which is the object of the study stands at 255,000 carats at a
grade of 0.30 carat per square metre on an area totalling 855,000
square metres.
- Remaining inferred resources will be the object of further sampling
programs in order to enhance the resources to the indicated category.
- Blocks of indicated resources are based on a sample density of 100
metres by 100 metres or closer. The majority of the areas in Marshall
Fork and Diaz Reef had a sample density (usually sampling on a 50 m by 50 m
grid or closer) that supports the indicated resource estimates to a high
level of confidence.
- Blocks of inferred resources are based on sampling that has a spacing
wider than 100 metres by 100 metres.
- Diamond resources are based on a review of all previous records and, in
compliance with NI 43-101, a re-estimation based upon historical
exploration work that includes over 7,500 line-kilometres of geophysical
survey data, over 3,000 samples with footprints ranging from 2.1 to 10
square metres, and seven years of intermittent production history.
A preliminary feasibility study is currently being prepared in order to determine the detailed operational and financial scenarios, to define the risks and opportunities and to create probable reserves from the indicated resources and undertake detailed mine planning before production commences.
Afri-Can is currently in advanced discussions with its contractor in order to charter vessels that would allow the resumption of mining in targeted areas and fill-in sampling in other targeted areas.
Afri-Can signed and announced on March 21, 2013, an option agreement with Diamond Fields International Ltd. (DFI). The option agreement is valid for two years and in order to complete the acquisition, Afri-Can is required to spend $800,000 of exploration expenditures on the MLs before the first-year anniversary and an additional $2.5-million of exploration expenditures before the second-year anniversary of the option agreement. Afri-Can entered in the option with its Namibian partner Woduna Mining Holding (Pty.) Ltd. Upon exercise of the option on MLs 111, 138 and 139, the interests in the MLs will be: Afri-Can 80 per cent, DFI 10 per cent and Woduna 10 per cent. Upon exercise of the option on ML 32, the interests in the ML will be Afri-Can 80 per cent, Woduna 10 per cent, DFI 7 per cent and Full Screen Investments (Pty.) Ltd. 3 per cent.
Afri-Can’s immediate goal is to focus on ML 111’s existing resources in order to resume production in the shortest time frame possible. There are also several other features, additional to those containing historical resources, within the four DFI leases that hold potential for diamond mineralization but have been insufficiently sampled, and these features will be investigated. The second goal is to complete the sampling program on EPL 3403, which remains a high priority exploration target.
About ML 111
The licence lies between five and 20 kilometres north of Luderitz. It covers 312 square kilometres and sits in water ranging from 30 to 70 metres in depth. ML 111 hosts at least three mineralized geological features. The ML was originally granted for a period of 15 years and is renewable on Dec. 4, 2015. A resource estimate and a feasibility study were prepared by MRDI and AGRA-Simons in 2000. The historical estimate, which was not compliant with National Instrument 43-101 and which Afri-Can is not treating as a current mineral resource, amounted to 1.1 million carats with an average grade of 0.30 carat per square metre. The resource existed in the Marshall Fork, Staple Basin/Conical Beach and Diaz Reef areas. DFI produced intermittently between 2001 and 2007 about 158,200 carats, mainly from the Marshall Fork area. Special stones recovered from Marshall Fork included a gem-quality 17.42-carat stone, a rare 5.26-carat light blue diamond which sold for $10,457 (U.S.) per carat, and a 2.45-carat pink gem diamond which sold for $16,771 (U.S.) per carat.
In 2006, SRK Consulting published a historical estimate, which Afri-Can is not treating as a current mineral resource, on a small area of ML 111 called Diaz prospect 1 of 63,000 carats over 315,000 square metres with an average grade of 0.2 carat per square metre. Production to the end of September, 2007, amounted to 16,245 carats with an average size of 0.43 carat per stone. DFI ceased production following the world financial crisis.
Pierre Leveille, president and chief executive officer of Afri-Can, stated that: “We are very pleased with the conclusions of the report as it gets us to a level that will allow mining and provide regular development and value for our shareholders. The DFI portfolio of mining leases complements EPL 3403 and offers very good development potential. We feel that we are sitting in a strong project in a very solid industry.”
Richard Foster, BSc (honours, geology), PrSciNat, is the qualified person who has prepared the NI 43-101 report, reviewed this press release and is responsible for the technical part of this press release, and is the designated qualified person under the terms of National Instrument 43-101.
