| Mon 1 Mar 2010, 17:31 | | MTX - Metorex Limited - Maiden SAMREC Mineral Resource estimate for the Dilala |
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MTX
MEMTX
MTX - Metorex Limited - Maiden SAMREC Mineral Resource estimate for the Dilala
East Resource in the DRC: 563,000 tonnes of copper and 170,000 tonnes of cobalt
METOREX LIMITED
(Incorporated in the Republic of South Africa
(Registration number 1934/005478/06)
Share code: MTX
ISIN: ZAE000022745
Issuer code: MEMTX
("Metorex")
MAIDEN SAMREC MINERAL RESOURCE ESTIMATE FOR THE DILALA EAST RESOURCE IN THE DRC:
563,000 TONNES OF COPPER AND 170,000 TONNES OF COBALT
Metorex is pleased to announce the release of a maiden SAMREC Code compliant
mineral resource estimate for the Dilala East deposit located on the Musonoi Est
prospect area immediately north of Kolwezi in Katanga Province, Democratic
Republic of the Congo. This resource estimate represents a key milestone for
the Project, providing a strong foundation to progress the Dilala East Project
to a Bankable Feasibility Study.
This resource estimate was recently completed by Integrated Geological Solutions
(Pty) Limited ("IGS") of Johannesburg on behalf of Ruashi Holdings (Pty) Ltd
("RH") and utilised all the available drillhole and assay data up to 30
September 2009. This mineral resource estimate is fully SAMREC Code compliant,
without reservation or qualification.
Metorex CEO, Mr Terence Goodlace said "The completion of our maiden resource for
the Dilala East deposit provides further diversity and depth to our copper-
cobalt asset portfolio in the Democratic Republic of the Congo. Dilala East has
the potential to progress as a high quality, long-life mining operation in a
well established mining district. The relatively high grade and polymetallic
nature of Dilala East could translate into a high value operation and on the
strength of the positive resource numbers we intend moving the project towards
completing a bankable feasibility study. At the same time, we intend to
increase the pace of resource in-fill drilling, extension and development
drilling once funds are available from the claw-back offer and capital raising
programme which is expected to be concluded during April 2010".
History of the Musonoi Est Project Areas
RH acquired rights to the mining title of the Musonoi Est prospect area in
December 2005 subject to a commitment to various exploration activities and the
completion of a positive pre-feasibility study. The property is held by
Generale des Carrieres et des Mines ("Gecamines"), and will be transferred to
Ruashi Mining sprl ("RM") on completion and submitting of a positive pre-
feasibility study, which has been done. Work is currently being progressed to
elevate all studies on the Dilala East deposit to a bankable status. Conditions
precedent have been complied with and thus transfer of titleis being addressed.
Prior to 2005, exploration activities on the Musonoi Est property were
restricted to surface mapping and the drilling of 112 drillholes by Union
Miniere du Haut Katanga ("UMHK") between 1938 and 1950. Of these historical
drillholes, only 6 were drilled in the vicinity of the Dilala East deposit of
which none intersected significant, economically viable mineralisation.
The Dilala East deposit was discovered by RH as a blind, high grade copper and
cobalt deposit in 2007. Delineation and infill drilling on the Dilala East
deposit has been the main focus for exploration activities by RH during the last
3 years. As at the end of February 2010, 53 diamond drillholes have been
drilled by RH for a total drilled length of 11,759m.
Drilling at Dilala East has been conducted along section lines spaced 100m apart
and orthogonal to the strike of the deposit, with holes sited at 50m intervals
along the section lines. Steeply dipping copper-cobalt mineralisation has been
drilled over a strike length of 600m and to a depth of 400m below surface.
Mineralisation remains open ended at depth.
Drilling activities were suspended in December 2008, but were recommenced in
August 2009. In the period to the end of December 2009, additional sulphide
orebody intersections were added. The drilling rate will increase in the period
to December 2010 to further investigate the orebody at depth.
Together with high grade copper mineralisation, the Dilala East deposit carries
a significant amount of cobalt mineralisation and is geologically similar to the
Kamoto Underground Mine some 8km to the west-southwest.
No primary mining activity has taken place on the Musonoi Est property in the
past.
Dilala East Mineral Resource Estimation
A geological resource block model was completed by IGS using Surpac geological
and mine planning software. Metorex has taken due care and followed the
appropriate due process to ensure confidence in the sample assays and geological
interpretation.
Grades have been interpolated by ordinary kriging into discrete geological
(lithological and structural) domains with geostatistical estimation parameters
matched to each domain. A hard boundary approach has been applied to oxide and
sulphide zones of the same lithological unit to more accurately reflect the
statistical difference in grades between the weathered and unweathered units.
The Dilala East mineral resource has been classified into geological risk
categories based on the range of the variogram models and using the SAMREC Code
definitions as a guideline.
Using this methodology, blocks estimated using samples within a distance of two
thirds of the sill variance were classified as Measured Resource, blocks within
the range of the average variogram were classified as Indicated Resource, and
blocks beyond the range of the variogram were classified as Inferred Resource.
Applying this methodology to Dilala East, a large portion of the mineral
resource would be classified as Measured using the variograms.
Consequently, these ranges were subjectively reduced by the Competent Person to
reflect a higher level of risk in the continuity than is suggested by the
variograms. Classification of the Dilala East mineral resource blocks into
categories was conducted as follows and schematically presented in Figure 44:
Measured - blocks <50m from a sample point
Indicated - blocks <100m from a sample point
Inferred - blocks <150m from a sample point
Mineral resources for Dilala East at a 2 per cent copper equivalent grade cut-
off are presented in the table below:
Classification Tons Copper Contained Cobalt Contained
(Mt) Grade Copper Grade(%) Cobalt
(%) (`000t`) (`000t)
Oxide Material
Measured 4.1 3.0 122 0.95 39
Indicated 1.1 3.2 36 0.86 10
Inferred 0.0 1.3 0 0.45 0
Sub-Total 5.2 3.0 158 0.93 48
Sulphide Material
Measured 3.5 3.0 106 0.85 30
Indicated 6.5 2.9 189 0.89 58
Inferred 3.9 2.8 110 0.86 34
Sub-Total 13.9 2.9 404 0.87 121
Oxide +Sulphide Material
Measured 7.6 3.0 228 0.85 68
Indicated 7.6 2.9 225 0.89 68
Inferred 3.9 2.8 110 0.86 34
Total 19.1 2.9 563 0.89 170
Rounding errors may occur
Further exploration drilling is planned and additional expenditure is being
committed for environmental, mine design, metallurgical test-work and
engineering design studies to elevate this project to a Bankable Feasibility
Study level.
Competent Persons
The Dilala East geological resource estimation was completed and signed off by
an independent consultant as stated below.
Resource Estimation
Independent Competent Persons Mr. S. Savage, PrSciNat, BSc(Hons)
IGS (Pty) Ltd
This report has been compiled and checked by Mr.T.P.Williams, PrSciNat (SA
Council of Natural and Scientific Professionals Registration No 400387/04),
Fellow of the Southern African Institute of Mining and Metallurgy, BSc (Hons).
Mr Williams is Group Mineral Resource Manager and is a full-time employee of the
Company. He is a mining geologist with 19 years experience in exploration,
resource development and estimation and mining geology in gold and base metals
through west, central and east Africa. Mr Williams is based at the Company`s
Head Office at 2nd Floor, Cradock Heights, 21 Cradock Avenue, Rosebank 2146,
Johannesburg.
Johannesburg
1 March 2010
For further enquiries please contact:
Metorex CEO, Terence Goodlace Tel: 011 880 3155
CFO, Maritz Smith
College Hill Jacques de Bie/Hayley Crane Tel: 011 447 3030
Sponsor
Barnard Jacobs Mellet Corporate Finance (Pty) Limited
Date: 01/03/2010 17:31:14 Produced by the JSE SENS Department.
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