African Consolidated Resources starts massive resource expansion drive in Zimbabwe

African Consolidated Resources (AIM: AFCR) (ACR) has initiated an aggressive resource development plan, funded by November’s US$16m capital raising. The company has contracted Zimbabwean drilling companies to undertake an extensive drilling programme totalling over 38,000m.

ACR is aiming to obtain 4 maiden JORC resources and extend two of its existing JORC resources. The campaign will focus on the Gadzema, Pickstone-Peerless and Chakari gold projects, the Chishanya phosphate project, the Horseshoe Nickel project, the Cedric copper project, and the Snakes Head Platinum Group Elements (PGE) project.

“We are making rapid progress in implementing our development plan, since raising approximately US$16m of new funding in November 2009. ACR has planned an aggressive 18-month drilling campaign and a target to bring four projects up to a maiden JORC Resource status by December 2010”, CEO Andrew Cranswick commented, “We have been operating in Zimbabwe for many years and are positioned well to develop the huge and recognised mineral potential of Zimbabwe.” 

Through this extensive program ACR is aiming to achieve JORC resource estimates across its gold, phosphate and nickel projects. On the Gadzema Belt, ACR is aiming to achieve a maiden JORC resource at the Blue Rock gold project by April 2010 and extend the current JORC resources at the Giant Mine and at the Gadzema Belt Extensions. At the Chishanya phosphate project, drilling will commence in July, targeting a maiden JORC resource by late Q4. The Horseshoe project is also targeting Q4 2010 to determine the near surface nickel laterite resource to JORC status.

On Zimbabwe’s Gadzema gold belt, the Blue Rock discovery is currently being assessed by reverse circulation infill drilling to a depth of 150m over a strike length of 600m. Approximately 2,400m has been drilled since 1 December 2009, with the remaining 4,000m due to be completed late February and the maiden JORC estimate is anticipated to be completed by April 2010. The Giant mine’s 2,000m diamond drilling programme, which aims to extend the orebody at depth, is scheduled to start in March. A further 3,000m in infill RC drilling will follow, ACR intends to increase the current 300,000oz JORC resource. Last year’s Rotary Air Blast (RAB) drilling over 5km between the Blue Rock and Giant Mine projects are being followed up with 5,000m of RC drilling in the first half of 2010, subject to results a further 3,000m will follow and a JORC resource will be  determined before the years end.

On the Chisanya phosphate project, a 2,000m diamond drilling programme to test the mineralisation to 200m, will be started in March. Subject to results, a further 5,000m RC infill drilling programme is scheduled for July and a subsequent maiden JORC resource is pencilled in for late Q4 2010. The drilling campaign follows chip sampling and in-house assaying which returned an average P2O5 grade of 14%. Elsewhere, pitting on a 50 to 100m grid is being planned to cover a 14km₂ target area on the Horseshoe Nickel project. ACR intends to determine the near surface nickel laterite resource and present a JORC resource before the end of the year.

The joint venture with TWP Engineering to develop the Peerless Gold Plant is progressing towards production from the Peerless Sulphide Dump, hosting 200,000 tonnes at 4.2 grams per tonne gold, by May 2010. Works have commenced with site currently infrastructure under construction. Equipment has been ordered both locally and in South Africa, to be delivered onsite in the first quarter. The pilot scale metallurgical testing of the sulphide dump is complete with gold recoveries in the range 65 – 70% observed.  In addition, scoping studies have commenced to investigate the economics of treating the Peerless oxide cap through the same cyanide leach plant.

ACR also has several projects at earlier stages of exploration, which are being addressed by the extensive campaign. At the Chakari Gold project, mapping, sampling and RAB drilling will be conducted throughout 2010 to identify economic gold mineralisation. The proposed programme follows up on soil sampling, which outlined a number of anomalous targets lying on splays of the well-mineralised Lily Shear Zone.

At the Cedric Copper project, four diamond drill holes totalling 1,000m will be drilled in February to test the down dip extensions to a depth of 150m, further extension drilling may be planned following the first phase results.

In March, a heli-borne electromagnetic programme (VTEM system) is planned to cover the 35km long nickel prospective horizon of the Perseverance Greenstone Belt. Subsequently, conductors will be identified and drill tested as part of ongoing exploration during the year.

At the Snakes Head PGE property, four short diamond holes are planned in the Fundumwi Block of this northern sub-chamber of the Great Dyke. ACR is also exploring two broad areas which are believed to contain significant clusters of kimberlite indicator minerals, the company will be conducting aeromagnetic and radiometric exploration over 10,000 kilometres, to identify diamond targets.

“With a highly prospective multi mineral portfolio of projects, a defined and active development plan, a strong treasury, near term production from our gold tailings project and significant political progress in Zimbabwe, highlighted by returning foreign investment, we are extremely excited about the potential of ACR”, Cranswick concluded.  http://www.proactiveinvestors.co.uk/companies/news/12800/african-consolidated-resources-starts-massive-resource-expansion-drive-in-zimbabwe--12800.html