African Consolidated Resources Plc : Exploration Results Define Additional
Area of REE Mineralisation at Nkombwa Hill Rare Earth Project in Zambia
African Consolidated Resources plc / Ticker: AFCR / Index: AIM / Sector:
30 January 2013
African Consolidated Resources plc ('ACR' or 'the Company')
Nkombwa Hills Update
African Consolidated Resources plc, the AIM listed resource development
company notes the announcement released by Galileo Resources plc ('Galileo')
which provides an update on the detailed rock chip sampling programme at the
Nkombwa Hill Rare Earth Project and which demonstrates an extension of the
area of high grade rare earth mineralisation.
As previously notified, ACR's farm in partner Rare Earth International (REI),
funded by Galileo through an investment of $1.35 million, holds the right to
earn up to a 50% interest in the Nkombwa Project in terms of an agreement
between REI and the Company and its wholly owned Zambian subsidiary which
holds the prospecting licence. REI's interest may be increased to 75% if ACR
elects not to co-fund after REI has earned a 50% interest.
Roy Tucker, Executive Chairman of ACR said, "We are delighted that exploration
at Nkombwa Hills is now under way following the resolution of the previous
licence issue and that an extension of the area of rare earth mineralisation
has already been identified."
The Galileo announcement is reproduced below:
Galileo Resources plc announcement:
Galileo Resources Plc
("Galileo" or the "Company")
Exploration Results Define an Additional Area of REE Mineralisation at Nkombwa
Hill Rare Earth Project, Zambia
Galileo Resources Plc (AIM: GLR), the emerging African Rare Earth exploration
and development company, is pleased to report the results of a detailed rock
chip sampling programme comprising 353 samples over a second target for rare
earth element (REE) mineralisation at the Nkombwa Hill Rare Earth Project; the
second target was identified from ground radiometric surveying and orientation
rock chip sampling. This follows on from outcrop sampling on the initial
target as announced by African Consolidated Resources Plc on 17 May 2011. The
results identified the second target area to contain significant high-grade
*111 (36% ) of the outcrop samples, assayed more than 2% total rare earth
oxide ('TREO') with an average assay of 4.17% TREO
*161 (46%) of the samples, assayed more than 1% TREO with an average of
*The highest sample recorded was 22.32% TREO
*The complete suite of 353 samples averaged 1.7%TREO
*Several areas of continuous REE mineralisation are identified, the largest
being more than 350m long and 40-80m in width
*The REE mineralisation is hosted in a rock unit that contains very low
contents of acid-consuming minerals suggesting potentially readily
leachable REE with low acid cost
Colin Bird, Executive Chairman of Galileo Resources, said: "The results of
this sampling programme extend the area of high-grade rare earth
mineralisation we have identified in the Nkombwa Hill Project. We can now
progress towards establishing a resource, and in order to achieve this, have
already started work on establishing a suitable access road to the top of
Nkombwa Hill. Drilling will commence as soon as the heavy summer rains end in
late March 2013."
The Company has completed a programme of detailed surface rock chip sampling
over a second identified REE target area - the "Central" target - in the
Nkombwa Hill Project.
A total of 353 outcrop rock chip samples were collected along a series of
closely spaced traverses across the body of silicified carbonatite rock
underlying the crest area of Nkombwa Hill. Sample spacing was 4-12m along
traverses 25 to 30m apart; average sample size was 1.7 kg. The samples were
assayed for the full suite of REE and a suite of relevant major and trace
elements by Intertek Genalysis laboratories in Perth, Australia.
The average total rare earth oxide (TREO) composition of the 353 samples
assayed is 1.70% and the most enriched sample in the suite contained 22.32%
TREO, close to highest value recovered thus far at Nkombwa Hill of 23.61%.
Table 1 provides summary statistics for the suite of assayed samples.
Table 1: Summary statistics
sample range %TREO number
Total 1.70 353 (100%)
mean >1% 3.34 161 (46%)
mean >2% 4.17 111 (31%)
The sample traverses reveal several zones where successive samples have TREO
contents in excess of 3% over 80-150m of strike - the largest lies along the
south-eastern edge of the target and is at least 50m wide and 300m long.
Previous mineralogical studies of the silicified carbonatite demonstrated that
the predominant REE mineral is a green, low-The monazite accompanied by lesser
amounts of bastnaesite and traces of cerianite. The host material is
predominantly composed of fine-grained cherty silica and iron-oxides with very
low carbonate (acid-consuming) minerals; content -less than 2%. This suggests
that rare earths should potentially be able to be extracted into solution from
the milled (run of mine) ore by simple acid cracking and leach.
The current focussed sampling programme is the second to be completed at
Nkombwa Hill. An equivalent surface sampling programme undertaken in December
2011 over the "North West Crest" target, 300m to the north-west, revealed a
well-defined tabular zone of REE mineralisation 25-50m wide and continuous
over at least 350m of strike and open at each end. Here, the mineralisation
is hosted in sub-vertically disposed coarse-grained ankeritic- carbonatites
and was traced over more than 150m of elevation: this suggests that the high
REE grades encountered at surface should persist at depth.
An access road is currently being constructed to the crest of Nkombwa Hill. A
drilling programme has been designed to establish the extent of the
mineralisation in each of the delineated targets and will commence as soon as
the heavy summer rain season ends in late March to early April 2013.
The Nkombwa Hill Project
The Nkombwa Hill project is located in the north east of Zambia, 22km east of
the major T2 paved national road between Lusaka (Zambian capital) and the
Through a Heads of Agreement concluded with Rare Earth International (REI),
Galileo earned the right to acquire 70% of REI's interest in a joint venture
signed with Fisherman Ltd, a wholly-owned subsidiary of African Consolidated
Resources plc, who hold a prospecting right over the Nkombwa Hill area. REI
will earn a 30% interest in the REE on completion of a JORC compliant Inferred
Resource and spending US$750,000 within 2 years; increasing to 50% once at
least half of the inferred resource is converted to Indicated category, within
a further 2 years with an additional expenditure commitment of US$600,000.
ACR/Fisherman can elect thereafter to contribute with REI as manager or REI
can achieve a 75% interest by fully funding a bankable feasibility study. If
ACR elects not to co-fund the feasibility study then Galileo could earn up to
a maximum of 75% interest in the Nkombwa Project.
The Nkombwa Hill carbonatite plug is situated in the upper Luangwa Valley,
which forms part of the Western Limb of the East African Rift system. The
carbonatite intrusive forms a prominent oval-shaped (1800 x 1500m) hill rising
300 m above the surrounding flat countryside. The complex is composed of
several carbonatite types, all predominantly dolomitic in character.
Mica-rich carbonatite is common in the outer parts of the complex while a
medium-grained, uniform-textured dolomite carbonatite ("rauhaugite") makes up
most of the central parts of the carbonatite body. Several lenticular and
dyke-like bodies of vari-textured, coarse-grained to pegmatoidal iron-rich
(ankerite and siderite bearing) carbonatite are found in the central parts of
the complex. Much of the central crest area of Nkombwa Hill is underlain by
fine-grained silicified carbonatite produced by pervasive replacement of
earlier formed carbonatites. Boulder rubble from these outcrops drapes much
of the south-western face of the Hill.
The Nkombwa Hill carbonatite has been investigated by several institutions for
a range of commodities since it was first recognised as a carbonatite by
geologists of the country's Geological Survey in 1952. These endeavours
focussed primarily on phosphate and niobium with little attention on REE.
REE-focussed exploration commenced in late 2010 when REI concluded an earn-in
agreement with Fisherman Mining Ltd, a wholly-owned subsidiary of African
Consolidated Resources and holder of a Large Prospecting License over the area
enclosing the Nkombwa Hill carbonatite. Roan Selection Trust drilled two
diamond core holes (NB-1 and NB-2) into the northern margin of the complex
during 1966/67 that intersected several zones having elevated La and Ce
concentrations. Cores from these holes are stored in the Chamber of Mines
core shed in Kalulushi and were re-sampled: assaying selected sections for the
full suite of REE confirmed the presence of REE mineralisation in
coarse-grained iron-rich dolomitic carbonatite zones, the most significant
having 7.98% TREO over 6.2m and 5.47% TREO over 4.1m.
A low altitude, high resolution airborne magnetic and radiometric survey of
the area was flown and processed to delineate prospective areas. Systematic
surface sampling, accompanied by ground radiometric traversing, enabled three
areas to be targeted for higher density sampling: these are termed the North
West Crest, Central and South East targets. Both close-spaced outcrop
sampling has now covered the North West Crest and Central targets and
drill-ready zones of REE mineralisation have been identified in both.
This announcement has been reviewed by Mike Kellow BSc, a member of the
Australian Institute of Geologists and Technical Director of ACR. Mr Kellow
meets the definition of a "qualified person" as defined in the AIM Note for
Mining, Oil and Gas Companies.
For further information visit www.acrplc.com or please contact:
Roy Tucker African Consolidated Resources plc +44 (0) 1622 816918
+44 (0) 7920 189012
Craig Hutton African Consolidated Resources plc +44 (0) 7920 189010
Andrew Godber Panmure Gordon (UK) Limited +44 (0) 207 886 2500
Callum Stewart Panmure Gordon (UK) Limited +44 (0) 207 886 2500
Susie Geliher St Brides Media & Finance Ltd +44 (0) 20 7236 1177
Acid cracking a process of disintegrating minerals in ore by the
addition of acid and heating
Bastnaesite (or a rare earth fluoro-carbonate ore mineral having
bastnäsite): the generalised formula RCO3.F (R denoting a mix of
REE). The shorthand bastnaesite-(Ce) is often used
to denote bastnaesite containing mostly LREE and
bastnaesite-(Y) for bastnaesite enriched in HREE.
Cerianite: nominally CeO2 but can contain appreciable amounts
of other REE along with fluorine; usually
represents a late alteration product of primary REE
Monazite: a rare earth phosphate ore mineral having the
generalised formula RPO4 (R denoting a mix of REE).
The shorthand monazite-(Ce) is often used to denote
monazite containing mostly LREE and monazite-(Y)
for monazite enriched in HREE.
Phosphate (P2O5): an oxide of phosphorus
Rare earths (REE): a set of sixteen chemically similar elements in the
periodic table made up of the fourteen stable
lanthanoids lanthanum to lutetium, plus yttrium and
scandium. On the basis of their chemical
properties, the REE may be subdivided into the
light REE (LREE), being the elements from lanthanum
to gadolinium; and the heavy REE (HREE), the
remaining seven lanthanides terbium to lutetium and
REO (rare earth oxide): the oxide form of the rare earth elements
Rock chip sampling: Collection of rock samples from surface exposures
Th: The element Thorium
TREO: total rare earth oxides
The economically significant rare earth elements include:
La: Lanthanum Used extensively as a catalyst in the refining of
crude oil; its ability to store 400 times its volume
of hydrogen is utilised in rechargeable NiMH
batteries that are an essential component of hybrid
motor vehicles; La changes the refractive index of
glass and is used in the manufacture of lenses for
Ce: Cerium Primary uses are in high quality polishing of glass,
silicon wafers, solar cells; in auto catalytic
converters; rich red colour pigments; low energy
Pr: Praseodymium As an additive Pr gives a pure yellow colour to glass
and brilliant pastel greens and yellows for glazes;
can be used along with Nd in permanent magnets (see
Nd: Neodymium Major application is in the manufacture of
NdFe(iron)B(boron) permanent magnets (neo-magnets),
the most powerful permanent magnets currently known.
NdFeB magnets are essential in new "clean energy"
technology such as wind turbines and hybrid and
electrical motor vehicles; their high strength have
allowed the miniaturising of hard disc drives and
personal audio devices. Nd, with Y, is widely used
in the manufacture of lasers.
Eu: Europium Widely used as a phosphor: Eu alloys uniquely provide
a perfect red colour for LED, LCD and plasma
television and monitor screens; also used in thin
film superconductor alloys and in lasers
Gd: Gadolinium Uses include neutron capture capability and in
compounds as a contrasting agent in radiography and
magnetic resonance imaging in medical diagnostics
Sm: Samarium Alloyed with cobalt, Sm forms a strong permanent
magnet that has the highest resistance to thermal
Y: Yttrium Uses include lasers, as host for europium in TV red
phosphor; alloyed with boron and cobalt high
temperature superconductors and microwave filters
This announcement is distributed by Thomson Reuters on behalf of Thomson
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(i) the releases contained herein are protected by copyright and other
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(ii) they are solely responsible for the content, accuracy and originality of
information contained therein.
Source: African Consolidated Resources Plc via Thomson Reuters ONE
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