| Thu 27 Jul 2006, 9:48 | | Thabex - Mineral Resource Update: Salt River Base |
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TBX
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Thabex - Mineral Resource Update: Salt River Base Mineral Project
THABEX EXPLORATION LIMITED
("Thabex" or "the Company")
Registration No 1988/000763/06
(Incorporated in the Republic of South Africa)
JSE share code: TBX
ISIN Code: ZAE000013686
Young Lions Exploring Africa
THABEX - MINERAL RESOURCE UPDATE: SALT RIVER BASE MINERAL PROJECT
Shareholders are referred to the SENS announcement of 4 April 2006 an updated
list of vertical diamond drilling results is listed below:
Borehole Mineralised Depth Inter- Cu Pb Zn Ag Au
cept
Number Zone (m) (m) (%) (%) (%) (g/t) (g/t)
TBX1 Lower Zone 86.33 - 3.41 1.34 0.65 2.66 50 0.42
89.74
TBX2 Lower Zone 10.50 - 3.50 oxidised zone
14.00
TBX3 Upper Zone 64.71 - 1.02 0.06 0.21 0.66 11 0.08
65.73
Lower Zone 80.23 - 1.45 0.81 0.18 1.13 20 0.19
81.68
TBX4 Upper Zone 192.42 - 1.41 0.28 0.00 0.02 6 0.20
193.83
Lower Zone 203.85 - 0.58 0.14 0.12 1.11 15 0.11
204.43
TBX5 Upper Zone 525.93 - 3.22 1.11 0.55 3.35 34 0.43
529.15
Lower Zone 536.08 - 4.01 4.05 0.28 2.72 37 1.65
540.09
TBX6 Upper Zone 108.02 - 2.12 0.51 0.06 0.39 <5 0.19
110.14
Middle Zone 114.58 - 2.82 0.37 0.35 1.99 19 0.17
117.40
Lower Zone 124.81 - 0.35 0.51 0.65 1.50 <5 0.11
125.16
Lower Zone 128.29 - 0.63 0.95 0.09 1.08 10 0.08
128.92
TBX7 Upper Zone 71.74 - 2.39 0.75 0.26 4.41 <5 0.23
74.13
Lower Zone 87.88 - 0.39 1.44 0.05 1.89 25 0.16
88.27
Lower Zone 89.87 - 0.81 0.56 0.82 2.17 38 0.23
90.68
TBX8 Lower Zone 116.83 - 0.90 0.97 1.68 8.68 54 0.21
117.73
The recent drilling, coupled with ongoing advances in the modeling of similar
base metal deposits elsewhere, has enabled project geologists to substantially
improve the understanding of the sulphide mineralization at Salt River. It
appears that there are three distinct "stacked" layered zones dipping
approximately 25 degrees to the northeast and carrying base metal sulphides that
vary in concentration from massive to disseminated. The sulphides resulted from
the release of base- and precious metal-enriched brines onto the sea floor,
probably from more than one fumarolic vent, and occurring at the same time as
sedimentation that was mostly related to nearby volcanic activity. The whole
package has been metamorphosed and tectonised, though compared to deposits
farther west (Aggeneys and Gamsberg) the tectonism appears considerably less
complex. This aspect of the Salt River geology should constitute a significant
advantage in mine planning and management.
Boreholes TBX18 and TBX19 are at present in progress and a further 6 cored
boreholes will be drilled. The purpose of the additional drilling is to
establish a 3 million tonne measured resource. The results for boreholes TBX9 to
TBX19 will be published as soon as the final results are available.
As a result of the increased certainty about the mineral resources obtained by
additional drilling, Thabex is pleased to report that the revised inferred and
indicated resources for the Salt River Base Mineral Project has increased by
51,19% from 28,11Mt to an indicated resource of 42,5Mt.
This figure, contained in a Competent Person"s Report ("CPR") submitted by Lower
Quartile Solutions ("LQS") and compiled by Dexter Ferreira, uses a Zn cut-off
grade of 0,0%, and gives an insitu grade of 1,47% Zn, 0,65% Cu, and 0.28% Pb,
12,27g/t Ag and 0,18g/t Au. Using 4 April 2006 metal prices (copper US$5 260/t;
lead US$1 229/t; zinc US$2 541/t; gold US$585/oz and silver US$10.92/oz) the
insitu value of the indicated resource is US$92.50/t or US$3 931 million (R23
588 million at R6.00/US$ on 4 April 2006).
Following the same methodology used in an evaluation published earlier this year
at the JSE for a similar base metal resource in South Africa the total value
attributable to the Salt River project is US$359 million (R2 154 million at
R6.00/US$ on 4 April 2006).
Mr Ferreira, a senior geostatistician with over 15 years experience in mineral
project evaluation throughout South America and Africa, is a member of the South
African Council for Natural Scientific Professions ("SACNASP") and qualifies as
an `Expert", `Competent Person" and `Qualified Person" as defined in National
Instrument 43-101, the SAMREC code and the JORC code.
Together with the recently acquired results of 18 percussion boreholes drilled
between 1976 and 1988, the most recent drilling is expected to further enhance
the total mineral resources of the Salt River Base Mineral Project.
Following the recommendations of the results the mineralogical study referred in
the SENS announcement of 4 April 2006, an initial metallurgical bench scale
flotation test conducted by independent metallurgical laborotary - General
Metallurgical Reasearch and Services (Pty) Ltd, indicated that the base minerals
are easily concentrated by conventional flotation.
The board believes the project to be sufficiently robust for the Company to
raise the funding required to turn it to account.
LQS has been requested to compile a CPR, incorporating the additional borehole
information, for Thabex"s proposed secondary listing, subject to all regulatory
requirements, on the Alternative Investment Market ("AIM") in London. The
Company plans to raise an initial amount of R50 million in the diversified
capital markets of the AIM to complete a bankable feasibility study and a pilot
plant on the project area. A further R400 million will be raised to construct a
mine and recovery plant after the successful commissioning of the pilot plant.
Marius Welthagen (MEng (Mining), MPhil (Mineral Economics), Hons BCom
(Economics), MECSA, MSAIMM, FGSSA, MPDAC) was responsible for compiling this
update report. As Chief Executive of Thabex he has sufficient experience
relevant to the style of mineralization, type of deposits under consideration,
activities undertaken and evaluation thereof to qualify as a Compentent Person
in terms of the SAMREC Code.
All updates about the Salt River project are available on the Company"s website
www.thabex.com
Johannesburg
26 July 2006
Sponsor
PSG Capital Limited
Date: 27/07/2006 09:48:38 AM Produced by the JSE SENS Department
