African Metals Corporation is Pleased to Announce Delivery of DMS Plant, Spirals Bank and Ancillary Plant Equipment at the Luisha South Project, Katanga Provence, Democratic Republic Of Congo
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/07/11 -- African Metals Corporation ('AFR')(TSX VENTURE: AFR)(FRANKFURT: OWW) is pleased to report the delivery of the Dense Media Separation (DMS) plant, spirals bank and ancillary equipment (the DMS Plant) to the Luisha South Project. Clarification of pre-existing import documentation issues with DRC Customs caused a delay in the transfer of ownership registration to Kundelungu Mineral Resources Sprl (KMR), a subsidiary of AFR.
Delays
A discrepancy in the original importation documents associated with the DMS Plant resulted in a delayed transfer of ownership registration to KMR. The DMS Plant was originally imported under a two year temporary importation certificate in 2010. A failure to comply with importation protocols and procedures resulted in Customs delaying transfer of registration of equipment to KMR until the previous owners resolved the documentation issues. The issues have since been resolved to the satisfaction of Customs, and all necessary documentation for full registration of the DMS Plant with KMR and the payment of due taxes by the previous owner have been finalized.
Mobilisation and Construction
M&J Investments Sprl ('M&J') have successfully decommissioned and mobilised the DMS Plant to the Luisha South Project (Photos 1, 2, 3). M&J will complete site preparation and commence construction during week 2 of November. Scheduling is targeting dry commissioning of the Plant by mid-December.
Nigel Ferguson, CEO and President of African Metals Corp, commented:
'The Company is very pleased to report the delivery of the DMS plant. The delays with import documentation issues have been unfortunate and beyond the Company's control, but with the successful resolution of the issues the Company now has a clear way forward for commercial operation. The experience of the M&J team should enable efficient construction and commissioning of the plant in a timely manner, targeting oxide copper concentrate production by year end.'
ON BEHALF OF THE BOARD OF DIRECTORS OF
AFRICAN METALS CORPORATION
Nigel Ferguson, President & CEO
Nigel Ferguson, AusIMM, President and CEO of the Company and a qualified person under National Instrument 43-101, has verified data disclosed in this release.
Photo 1: Delivery of DMS Unit; Luisha South Project.
To view Photo 1, please visit the following link:
http://media3.marketwire.com/docs/800Photo1.jpg
Photo 2: Delivery of DMS plant, 'scrubber' and spirals bank to the Plant Site, Luisha South Project.
To view Photo 2, please visit the following link:
http://media3.marketwire.com/docs/800Photo2.jpg
Photo 3: DMS plant (foreground), and 'scrubber' (background); Luisha South Project.
To view Photo 3, please visit the following link:
http://media3.marketwire.com/docs/800Photo3.jpg
This News Release contains forward-looking statements. Forward-looking statements are statements which relate to future events. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our industry, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested herein. Except as required by applicable law, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results.
About African Metals Corporation.
African Metals Corporation (TSX VENTURE: AFR) is a Canadian listed company focused on the discovery and development of Copper and Cobalt deposits in the highly mineralized Katanga Copper Belt of the world renowned Africa Copper Belt in the Democratic Republic of Congo ('DRC').
AFR purchased all the assets of Chevalier Resources Inc. in March 2010 including a 57% interest in the Luisha South Project contained within licence PEPM 4881, Katanga Provence, Democratic Republic of the Congo ('DRC') through subsidiaries incorporated in the DRC. In July AFR negotiated a further 18% interest in the project with the option to increase the equity interest to 90% based on results. The project is located 75 kilometres northwest of Lubumbashi, the capital of Katanga Province and consists of approximately 16.2km2.
The Luisha South Project includes a small historical open pit mine and associated stockpile and is underlain by Roan Group sediments which host major Cu-Co deposits in the DRC. The Luisha South ore body was explored between 1923 and 1928 and an oxide deposit with an estimated pre-production tonnage of approximately 350,000 tonnes at 8.6% Cu was delineated (the resource estimate non-compliant in terms of NI 43-101). The results of a 2,002 metre RC percussion drilling program completed by Titan Drilling Sprl in June 2010 enabled the estimation of a NI 43-101 compliant maiden Inferred Resource of 5.8 Million tonnes at 1.3% Cu for 75,400 tonnes of contained copper metal and 0.4% Co for 23,200 tonnes of contained cobalt metal (using 0.5% Cu cut-off). Rubaco Sprl and DrillTek Sprl combined to complete a total of 1,538.73 metres of diamond core drilling at the project in January 2011. The results of the drilling program enabled a re-estimation of the resource to produce a NI 43-101 compliant Inferred Resource of 14.7 Million tonnes at 1.1% Cu for 161,700 tonnes of contained copper metal and 0.3% Co for 44,100 tonnes of contained cobalt metal (using a 0.5% Cu cut-off). The revised resource represented an increase of 114% and 90% respectively of the previous contained copper and cobalt metal estimates.
The Luisha South Project also covers some three kilometres of the Roan Group strike length which is favorable for Cu-Co mineralization. AFR is targeting commencement of an oxide concentrate production by the end of Q4 2011.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEW RELEASE.
Contacts:
African Metals Corporation
Jag Sandhu
Corporate Development
604-306-1950
