| Thu 8 Jul 2010, 16:30 | | MTX - Metorex Limited - Metorex Declares A Lubembe Resource Estimate Of 1.5 |
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MTX
MEMTX
MTX - Metorex Limited - Metorex Declares A Lubembe Resource Estimate Of 1.5
Million Tonnes Of Copper
Metorex Limited
(Incorporated in the Republic of South Africa)
(Registration number 1934/005478/06)
Share code: MTX
ISIN: ZAE000022745
Issuer code: MEMTX
("Metorex" or "the Company")
METOREX DECLARES A LUBEMBE RESOURCE ESTIMATE OF 1.5 MILLION TONNES OF COPPER
In addition to the maiden South African Mineral and Resources Committee
("SAMREC") mineral resource estimate for the Dilala East deposit released on 1
March 2010, Metorex is now pleased to announce the release of a mineral
resource estimate for the Lubembe deposit south of Kinsenda in southern
Katanga Province, Democratic Republic of the Congo ("DRC"), compliant with the
South African Code for Reporting of Mineral Resources and Mineral Reserves
("the SAMREC Code").
This resource estimate was recently completed by Integrated Geological
Solutions (Pty) Limited ("IGS") of Johannesburg and for which all the
available drillhole and assay data up to 30 March 2010 were utilised. This
mineral resource estimate is fully compliant with the SAMREC Code.
Metorex CEO, Terence Goodlace said "We are encouraged by the outcome of the
resource estimate at Lubembe with total contained copper of over 1.5 million
tonnes. In line with our base metals growth strategy, we will continue to
advance the pre-feasibility study to establish the viability of building a
large scale operation at Lubembe."
History of the Lubembe Project Area
Kinsenda Copper Company sprl ("KICC"), effectively 77% held by Metorex, is the
holder of the Kinsenda and Lubembe permits ("the KICC Projects"):
- The Kinsenda permit comprises the Kinsenda Mine, a brownfields site
having been operational up to the early 1990s and the Kinsenda
prospecting permit; and
- The Lubembe Mining permit being a greenfields copper prospect.
The KICC Projects are located in the Pedicle region of the southern Katanga
Province of the DRC. Both the Kinsenda Mine (latitude 1215`S and longitude
2758`E) and the Lubembe project (latitude 1223`S and longitude 2806`E) are
located within 10km of the border between DRC and Zambia, and are located
equidistant between the border towns of Mokambo in the southeast and
Kasumbalesa in the northwest. The Zambia- DRC international border forms the
western margin of the Lubembe prospect (see Figure 1).
Lubembe is a greenfield site and infrastructure is limited to the road between
Kinsenda and the Mokambo border post and a railway line crossing the property
on the western side of the property. No primary mining activity has taken
place on the Lubembe property in the past.
Drilling on the Lubembe area commenced in 1933 with 41 drillholes totaling
12,300m drilled across a larger area. Historical exploration activities in
the Lubembe area were carried out by Union Miniere du Haut Katanga ("UMHK") in
the 1930s and later sporadically by Societe de Developpement Industriel et
Miniere du Congo ("Sodimico") between 1972 and 1991. The Lubembe deposit was
prospected by Sodimico in three separate exploration campaigns in 1972, from
1985 to 1986 and from 1990 to 1991. In total, 33 drillholes were drilled by
Sodimico for a total of 9,800m. Sodimico determined an historical non-SAMREC
resource of 47.5mt at 2.1% copper for Lubembe using an assay grade cut-off of
1% copper.
An infill drilling programme on the Lubembe deposit was funded by Metorex in
June 2008. In total, 7,506m of reverse circulation drilling and 5,272m of
diamond core drilling were completed during this period. Exploration
activities were stopped in November 2008 in response to the global financial
crises. Recent work on the prospect in the period up to March 2010 has been
limited to detailed collar survey and density determinations.
Lubembe Deposit - Local Geology and Mineralization
The Lubembe deposit is a sedimentary `Copperbelt Style` deposit hosted in the
Lower Roan Group of the paleo-Proterezoic Katanga Supergroup. Copper
mineralization is hosted in a thick (>400m) sequence of predominantly arkosic
sandstones, quartz sandstones and clastic grits dipping at approximately 25 to
the east, and lying unconformably on the pre-Katangan `basement` consisting of
granites and gneisses (see figures 2 and 3).
The mineralisation occurs within basal clastic sediments of the Lower Roan
which have been deposited in a syn-sedimentary fault bounded graben. The
graben edges are defined by east-west and north-south oriented extensional
faults forming a 3-dimensional array of paleo topographic highs and lows. The
deposit extends over a strike length of 1,200m and has been drilled to a
vertical depth of 550m below surface. At a 0.5% total copper cut-off, the
mineralisation averages 25m in width, with a maximum intersected width of 88m
at 1.85% TCu (true width 79m) in drillhole LUBD007.
Mineralisation consists largely of mixed oxide and sulphides as finely
disseminated malachite and chalcocite within a succession of sandstones and
siltstones, with sub-ordinate conglomerates.
Geological Data
The historical resource estimate was not SAMREC or Joint Ore Reserves
Committee compliant as the original Sodimico drillhole data was limited to
data sheets and geological logs with no record of quality assurance or quality
control procedures and results.
The Metorex drilling programme carried out in 2008 was spaced on a 100m grid,
with some infill at 50m spacing in the shallower parts of the body. The
drilling, logging and sampling was carried out to a high standard by GeoQuest
Limited, an independent geological contractor operating out of Lusaka, Zambia.
The assay quality control results are good and show no significant errors or
bias. The recent drilling has also provided a greater level of confidence in
the older Sodimico drilling, with assay data from a number of Metorex twinned
boreholes agreeing closely with older Sodimico drillholes.
Resource modeling
The mineralised zone was defined using a 0.5% total copper cutoff, and has
been constrained by both lithological and faulting structures. A rotated
Surpac Vision Block model was created using 100m x 100m x 5m blocks, with
blocks aligned parallel to the strike and dip of the orebody. Geostatistical
modelling and grade estimation was carried out using ordinary kriging with 2m
downhole composites. Geostatistics for both Total Copper ("TCu") and Acid
Soluble Copper ("ASCu") show variograms with ranges in the order of 200m.
Bulk Densities were measured on 5 boreholes, and based on the weathering
profile, the following densities were applied:
a. The ore between surface and 1280m elevation is intensely weathered and
has an assumed density of 2.0,
b. The ore between 1280 and 1050 is assigned the average of the measured
densities being 2.29, and
c. The ore below 1050m elevation is predominantly fresh material and has an
assumed density of 2.5.
Classification
The new mineral resource has been classified according to the SAMREC Code.
The geological model shows reasonable continuity, but with some uncertainties
on positions and orientations of interpreted fault positions.
The shallower part of the resource, where the grade estimates and the
geological model are informed by predominantly recently drilled boreholes,
have been classified as Indicated. The deeper parts of the resource whose
grade estimates were informed only by boreholes of the older Sodimico dataset,
or by isolated Metorex boreholes have been classified as Inferred. See figure
4 for distribution of mineral resource zones.
Mineral Resource Estimate
Mineral resources for Lubembe at a 0.5% copper equivalent grade cut-off are
presented in the table below, split into different fault bounded zones and
resource confidence categories.
Resource Class Tons Total Contained Total
Copper Copper
(Mt)
(% TCu) (`000t`)
Mixed Ore
Indicated 43.3 1.85 801
Inferred 32.0 2.32 742
Total 75.3 2.05 1,544
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. A pre-feasibility study is currently in progress
to establish the viability of a mining operation at Lubembe, to be completed
by during 2011.
Competent Persons
The Lubembe 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 reviewed 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.
A copy of the announcement including the relevant Figures referred to in the
announcement is available on the Company`s website - www.metorex.co.za
Johannesburg
08 July 2010
For further enquiries please contact:
Metorex CEO, Terence Goodlace Tel: 011 880 3155
CFO, Maritz Smith
College Hill Jacques de Bie Tel: 011 447 3030
Sponsor
Barnard Jacobs Mellet Corporate Finance (Pty) Limited
Date: 08/07/2010 16:30:01 Produced by the JSE SENS Department.
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