Volta Mining to acquire Kango Iron Ore Project in Gabon

Transcription

1 , PERTH Volta Mining to acquire Kango Iron Ore Project in Gabon Emerging West Africa focussed resources company Volta Mining Limited ( Volta Mining ) (ASX: VTM) is pleased to announce it has entered into a binding Heads of Agreement ( HOA ) with Core Mining Limited ( Core ) pursuant to which Volta Mining, through its 100% owned Mauritian subsidiary, Volta West Africa Limited ( Volta West Africa ), will acquire 100% interest in Core Mining Gabon SARL, the holder of the Kango Iron Ore Project (the Project ) in Gabon. Key Points» The Kango Iron Ore Project (1,818km 2 ) is located approximately 15km from the Trans-Gabon Railway, a bulk haulage multi-user railway, that runs approximately 125km to Owendo Port, Libreville Figure 1» Regional geophysical data identifies a 60km aeromagnetic anomalous zone» Surface samples taken throughout the licence by Core indicate the presence of iron mineralisation with grades ranging from 39% Fe to 61% Fe» Legal and technical due diligence is underway by Volta Mining and is to be completed within a specified 30 day period» Core is to become a ~15% shareholder in Volta Mining upon completion The Kango Iron Ore Project is located within the northwest margin of the Archaean Congo Craton within West Central Africa and covers a total area of 1,818km 2 Figure 1. Managing Director of Volta Mining, David Sumich said, The acquisition of the Kango Iron Ore Project is synergistic in terms of operations, exploration and future infrastructure with Volta Mining s landmark Mbombo Iron Ore Project acquired in August and as such we believe it will help position Volta Mining as a significant iron ore participant in West Africa. Socrates Vasiliades, CEO of Core, commented, We look forward to being a key shareholder of Volta Mining and the continued exposure to the Kango Project that this will provide. The current focus of Core remains developing our world class asset, Avima, in the Republic of Congo. Page 1 of 6

2 Figure 1: Volta Mining s Iron Ore Projects, Gabon: location and infrastructure Page 2 of 6

3 Geological Summary, Kango Iron Ore Project The Belinga Group formations ( Ma), considered prospective for iron ores occupy approx. 40% of the total surface of 1818 Km2 of the perimeter - Figure 2. The major lithological units of Belinga Group are represented by ferruginous quartzite (itabirite/bif), amphibolites and amphibolitic schists, ultrabasic rocks, leptynites, granites, orto/para-gneisses and metaconglomerates. Figure 2: Kango Iron Ore Project, Gabon: geology (BRGM 2009) (Source: Core Mining) The formations are disposed along a structural channel with a length of approx. 60Km and an ENE trend, defined by the transcurrents associated with the crustal fracture l Abanga. The airborne magnetic data clearly define a corridor of maximum magnetometric, visibly correlated with the ferriferous formations of the Belinga group - Figure 3. It is noticeable the relatively good overlapping of the itabirite bodies/outcrops identified by the geological mapping performed by Core with the ferruginous quartzite bodies and the occurrences of iron mineralization defined by BRGM and the Gabon Mines Department, (Direction Général de Mine et de la Géologie - DGMG, 2009). Early exploration on the Kango Iron Ore Project including analysis of available aeromagnetic survey data showed significant elevated magnetic responses of over 30km on a 60km anomaly Figure 3. Geological mapping and outcrop sampling performed by Core has identified itabirite or hematite-enriched itabirite with samples typically ranging from 39% Fe to 50%Fe, and up to 61.7% Fe - Figure 4. Page 3 of 6

4 Figure 3: Kango Iron Ore Project, Gabon: Regional (wide spaced) aeromagnetics - magnetic signature (Source: Core Mining) Figure 4: Kango Iron Ore Project, Gabon: hematite-enriched itabirite samples (Source: Core Mining) Page 4 of 6

5 Commercial Terms Volta Mining has agreed to the following consideration in relation to the acquisition of the Kango Iron Ore Project. The acquisition will be completed via the sale of 100% of the shares in Core Mining s local company, Core Mining Gabon SARL - the holder of the Kango Iron Ore Project licence. Nine (9) million Volta Mining shares will be issued to Core Mining upon completion of the agreement and any regulatory approvals. In addition, a down payment of USD200,000 will be payable to Core Mining, with an initial amount payable upon signing of the agreement and the remainder payable upon completion of commercial and technical due diligence within a specified 30 day period. The acquisition will be made via Volta Mining s 100% owned Mauritian subsidiary Volta West Africa Limited. -ENDS- For further information please contact: Company Contact: Media Contact: David Sumich Sarah Starick Managing Director Marketing Manager T T E david.sumich@voltamining.com.au E sarah.starick@voltamining.com.au Page 5 of 6

6 About Volta Mining Limited Volta Mining Limited (ASX: VTM) is an emerging West Africa focussed resources company based in Perth, Australia with current interests in the acquisition, exploration and development of iron ore and gold assets. Its vision is to become a leading mid-cap resources company with advanced, sustainable projects in Africa. Volta Mining s short term focus is to create value for its shareholders through the acquisition of strategic landholdings in West Africa and the commencement of drilling programmes on new projects. Its longer term view is to develop a pipeline of projects in Africa across multiple commodities to realise its vision. With a current landholding totalling 5,740km 2, Volta Mining is one of the largest landholders of iron ore in West Africa: through its 100% owned Mauritian subsidiary, Volta West Africa Limited, it has acquired the Kango Iron Ore Project in Gabon covering a total of 1,818km 2 ; and through its 80% owned Gabonese subsidiary, Volta Iron SA, it has been granted the Mbombo Iron Ore Project consisting of two (2) exploration licences in Gabon covering an area of 3,922km 2. In addition, through its 85% shareholding in Sahel Resources, Volta Mining s portfolio of gold projects include the Koro and Ibi Palga Gold Projects in Burkina Faso as well as having earnt a 50% interest in the Dangue Gold Project in Burkina Faso. In total the projects cover a combined area of 1,350.1km 2. Volta Mining brings together a highly capable board of directors with considerable experience in Africa across all aspects of exploration, operations, finance, corporate development and capital markets. The board is complemented by an experienced management team based in West Africa who oversee the exploration activities of Volta Mining s projects and who will manage expansion upon the identification of specific targets and that of any additional projects acquired by the company as part of its growth strategy. Volta Mining listed on the ASX on 19 October For more information please visit: About Core Mining Core Mining ( Core ) is a private company incorporated in the British Virgin Islands that is focussed on the exploration and development of world class iron ore projects in Central and Western Africa. Its current focus is fast tracking the development of its Avima Iron Ore Project in the Republic of Congo through to production. Core has received significant investment from Glencore International AG, one of the world s leading integrated producers and marketers of commodities to industrial customers around the world; and OAO Severstal, one of the world s leading integrated steel and mining companies. For more information please visit: Competent person s statement The information in this Announcement that relates to Exploration Results is based on information compiled by Mr Liviu Tusa, an employee of Volta Mining Limited and a Member of the Australian Institute of Geoscientists. Mr Liviu Tusa has sufficient experience which is relevant to the style of mineralisation and types of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves. Mr Liviu Tusa consents to the inclusion in the Announcement of the matters based on his information in the form and context in which it appears.