Arlington Asset Investment Cor (AIW) 24.20 $AIW
AusAmerican Mining to acquire high grade DSO operating mine and major copper development project
PRWeb - Sun Sep 07, 10:45PM CDT
- Exclusive Option to purchase high grade direct shipping ore ("DSO"
operating mine and major copper development project in the Republic of Congo ("ROC" Ground holding of 372km2 with granted mining permits encompassing numerous historic mines and advanced exploration prospects The two main projects have valid exploitation permits until 2036 one of the projects currently in production Moubiri project is a high grade, cash flow positive underground Cu/Pb/Zn DSO operation currently in production Most recent shipment of ore graded: O 6.3% Cu O 23.1% Pb O 25.2% Zn 2,500 tonne Stockpile of Moubiri DSO at site ready to sell CIF Mindouli copper project o Foreign resource estimate and extensive technical work AusAmerican is in discussions with a number of parties to provide US$60 million debt off take funding package Copper and gold focused resource company AusAmerican Mining Limited (ASX: AIW) ("AusAmerican" or "the company" is pleased to report that it has entered into a binding term sheet for an exclusive option to acquire a 77.58% interest Shenglong International Investment Limited ("Shenglong" , a BVI company that is engaged in exploration and production of copper, lead and zinc in the Republic of Congo ("ROC" . Further details of the option are set out elsewhere in this announcement and on our website http://www.ausamerican.com. Shenglong owns 100% of a Congolese company called Societe Lulu De Mine which holds 90% of two Polymetalic exploitation permits titled M'Passa-Moubiri and Mindouli under which rights are granted over a total of 372km2. The exploitation permits are valid until 2036. The other 10% of the projects are owned by the Congolese Government. "This acquisition together with discussions on acquisition and development funding represents a transformative milestone for the company" Executive Chairman, Mr Peter Landau said. "The Moubiri project is a Cu/Pb/Zn DSO asset currently in production. We believe we can ramp up production in the short term to provide significant cash flow margins for the company. Mindouli is a development project with significant exploration and feasibility work undertaken to date and, importantly, a clear path forward to establish the next stage forward for development. We believe this opportunity represents outstanding value to current and prospective shareholders". Unique asset package The M'Passa-Moubiri and Mindouli exploitation assets that AIW is purchasing are high grade copper and base metal assets located in the Republic of the Congo. Moubiri - High Grade DSO Operation The Moubiri project is a structurally controlled Cu/Pb/Zn ore body. Mineralisation is of a direct shipping ("DSO" quality. Shenglong International currently operate an underground mine which is producing ore at a rate of approximately 50 tonnes per day (tpd). Two DSO shipments have been completed and delivered to customers in China. The most recent 1,100 tonne shipment returned the following assayed content in line with the grades of the first shipment: 6.3% Cu 23.1% Pb 25.2% Zn Analysis of the vendor's historical operating costs indicates that the cost per ton of ore delivered to China is US$150. The revenue generated by each tonne of ore is presently approximately US$625 per tonne, producing a significant margin per tonne. Moubiri Work Completed and Exploration Target Shenglong have completed the following exploration work on the project: surface geological mapping & sampling, 16 diamond core drill holes 4 surface trenches underground exploration audit and mine development No drill holes have been assayed as mineralisation is assessed visually for mine planning purposes. Assaying of the drill holes can be done immediately and this is a priority of the company once work commences at the project. The exploration target at the Moubiri project is 400,000 tonnes to 800,000 tonnes at 4%-6% copper and 30% to 50% combined lead/zinc . This exploration target is based on a review of work undertaken by Shenglong and a site visit completed by AusAmerican. The exploration target is based upon the assumption that mineralisation is 2 to 3 metres wide and is known to occur over a strike length of at 150 to 200 metres and to a depth of at least 200 m below the surface. These dimensions are supported by underground exposure of the ore body, surface geological mapping and the geological logs for 16 diamond drill holes. The potential quantity and grade is conceptual in nature. There has been insufficient exploration drilling to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource. The Company has not itself completed any assaying; the grade ranges quoted in the exploration target are based upon independent 3rd party assay results for DSO shipments. The tonnages are estimated by multiplying the approximate dimensions of the deposit by specific gravity determined by comparable deposits. The range of tonnages were generated by a +/- 33% sensitivity. AusAmerican has commenced a 2 month work program to validate the assumptions used to generate the exploration target, the work program will include: geological mapping and sampling of the existing underground exposures of the ore body surface geological mapping and geochemical sampling geological logging and sampling of the existing 16 drill holes.
AIW: 24.20 (+0.01)
AusAmerican Mining to acquire high grade DSO operating mine and major copper development project
PRWeb - Sun Sep 07, 10:45PM CDT
- Exclusive Option to purchase high grade direct shipping ore ("DSO"
operating mine and major copper development project in the Republic of Congo ("ROC" Ground holding of 372km2 with granted mining permits encompassing numerous historic mines and advanced exploration prospects The two main projects have valid exploitation permits until 2036 one of the projects currently in production Moubiri project is a high grade, cash flow positive underground Cu/Pb/Zn DSO operation currently in production Most recent shipment of ore graded: O 6.3% Cu O 23.1% Pb O 25.2% Zn 2,500 tonne Stockpile of Moubiri DSO at site ready to sell CIF Mindouli copper project o Foreign resource estimate and extensive technical work AusAmerican is in discussions with a number of parties to provide US$60 million debt off take funding package Copper and gold focused resource company AusAmerican Mining Limited (ASX: AIW) ("AusAmerican" or "the company" is pleased to report that it has entered into a binding term sheet for an exclusive option to acquire a 77.58% interest Shenglong International Investment Limited ("Shenglong" , a BVI company that is engaged in exploration and production of copper, lead and zinc in the Republic of Congo ("ROC" . Further details of the option are set out elsewhere in this announcement and on our website http://www.ausamerican.com. Shenglong owns 100% of a Congolese company called Societe Lulu De Mine which holds 90% of two Polymetalic exploitation permits titled M'Passa-Moubiri and Mindouli under which rights are granted over a total of 372km2. The exploitation permits are valid until 2036. The other 10% of the projects are owned by the Congolese Government. "This acquisition together with discussions on acquisition and development funding represents a transformative milestone for the company" Executive Chairman, Mr Peter Landau said. "The Moubiri project is a Cu/Pb/Zn DSO asset currently in production. We believe we can ramp up production in the short term to provide significant cash flow margins for the company. Mindouli is a development project with significant exploration and feasibility work undertaken to date and, importantly, a clear path forward to establish the next stage forward for development. We believe this opportunity represents outstanding value to current and prospective shareholders". Unique asset package The M'Passa-Moubiri and Mindouli exploitation assets that AIW is purchasing are high grade copper and base metal assets located in the Republic of the Congo. Moubiri - High Grade DSO Operation The Moubiri project is a structurally controlled Cu/Pb/Zn ore body. Mineralisation is of a direct shipping ("DSO" quality. Shenglong International currently operate an underground mine which is producing ore at a rate of approximately 50 tonnes per day (tpd). Two DSO shipments have been completed and delivered to customers in China. The most recent 1,100 tonne shipment returned the following assayed content in line with the grades of the first shipment: 6.3% Cu 23.1% Pb 25.2% Zn Analysis of the vendor's historical operating costs indicates that the cost per ton of ore delivered to China is US$150. The revenue generated by each tonne of ore is presently approximately US$625 per tonne, producing a significant margin per tonne. Moubiri Work Completed and Exploration Target Shenglong have completed the following exploration work on the project: surface geological mapping & sampling, 16 diamond core drill holes 4 surface trenches underground exploration audit and mine development No drill holes have been assayed as mineralisation is assessed visually for mine planning purposes. Assaying of the drill holes can be done immediately and this is a priority of the company once work commences at the project. The exploration target at the Moubiri project is 400,000 tonnes to 800,000 tonnes at 4%-6% copper and 30% to 50% combined lead/zinc . This exploration target is based on a review of work undertaken by Shenglong and a site visit completed by AusAmerican. The exploration target is based upon the assumption that mineralisation is 2 to 3 metres wide and is known to occur over a strike length of at 150 to 200 metres and to a depth of at least 200 m below the surface. These dimensions are supported by underground exposure of the ore body, surface geological mapping and the geological logs for 16 diamond drill holes. The potential quantity and grade is conceptual in nature. There has been insufficient exploration drilling to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource. The Company has not itself completed any assaying; the grade ranges quoted in the exploration target are based upon independent 3rd party assay results for DSO shipments. The tonnages are estimated by multiplying the approximate dimensions of the deposit by specific gravity determined by comparable deposits. The range of tonnages were generated by a +/- 33% sensitivity. AusAmerican has commenced a 2 month work program to validate the assumptions used to generate the exploration target, the work program will include: geological mapping and sampling of the existing underground exposures of the ore body surface geological mapping and geochemical sampling geological logging and sampling of the existing 16 drill holes. AIW: 24.20 (+0.01)
