Black Fire Minerals (ASX: BFE) has the ability to expand exploration operations to the south of the Democratic Republic of Congo (DRC), by entering into an option to acquire a stake in the Kangeshi Copper-Silver Project.
The strategic move by Black Fire is due to the project being located in a copperbelt with the second largest global copper endowment after Chile, running from the DRC south into Zambia.
Highlighting the prospectivity of the area, major global players are already active nearby to Black Fire's potential acquisition interest, including Vale (NYSE: VALE), Glencore (LON: GLEN), Freeport (NYSE: FCX) and Anvil Mining (TSE: AVM).
The ASX listed contingent includes Tiger Resources (ASX: TGS).
The option gives Black Fire the right to acquire up to a 54% effective interest in the project, which holds a significant ground holding of 271 square kilometres.
Some exploration has already been undertaken, with the Kangeshi mineralisation occurs as an outcropping, shallowly dipping sedimentary horizon that has returned extensive plus 1% copper and plus 10g/t silver rock chip assay results over in excess of 10 kilometres of strike.
Broad spaced diamond drilling at the Kangeshi prospect by Vale in 2008 comprised nine holes along a 5 kilometre strike, which intersected significant near surface copper-silver mineralisation up to 1.3 kilometres down dip (but less than 180 metres down-hole) from the surface copper outcrops.
The best true width drill intersections included:
- 11.00 metres at 1.10% copper and 23.6g/t silver;
- 10.50 metres at 1.20% copper and 22.6g/t silver;
- 4.70 metres at 1.42% copper and 37.2g/t silver; and
- 9.85 metres at 0.85% copper and 16.3g/t silver.
Black Fire is looking to unlock the potential of the project quickly and has already established an initial exploration target for the Kangeshi prospect of 25Mt to 35Mt at 0.8% to 1.2% copper and 15g/t to 20g/t silver.
Better still for the potential of the project, the Kangeshi prospect is just one of five known prospects in the project area.
The Kangeshi copper mineralisation is in the form of highly favourable chalcocite which generally produces a very high grade concentrate.
At the moment a 5,000 metre diamond and reverse circulation drilling program infilling and extending Vale’s drill coverage is planned, targeting a maiden JORC Resource within 6-8 months - scheduled to commence before the end of September.
Black Fire’s acting chairman, Anthony Baillieu, commented “We are very excited about the potential of the Kangeshi Project to deliver a large tonnage, mid- grade copper and silver deposit in the highly copper prospective and very active mining province of Katanga, where a number of other ASX & TSX listed companies are also having success."
The option is with Canadian private company, Rift Valley Minerals Ltd (RVM) and private DRC company, TSM Entreprise s.p.r.l.
To assist in the funding of the minimum investment of US$1.5 million under the terms of the Kangeshi transaction, Black Fire has received applications from sophisticated investors for around 7.9 million shares at $0.10 to raise $792,500.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/18158/black-fire-minerals-eyes-copper-silver-acquisition-interest-in-worlds-second-biggest-copper-belt-18158.html