Bisie Project Update and Alphamin Appoints Chairman to the Board
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jul 10, 2014) - Alphamin Resources Corp. (TSX VENTURE:AFM) ("Alphamin" or the "Company") is pleased to announce that it has commenced various technical studies to support a definitive feasibility study (DFS) which is on track to commence by end 2014 on its wholly owned Bisie Tin Prospect (Bisie Project) in east central Democratic Republic of Congo (DRC). Following successful completion of the DFS, construction of the commercial mine at Mpama North is scheduled to commence in 2016.
Exploration Activities:
Since drilling commenced in February 2014, the Company has completed the metallurgical drilling programme at Mpama North (Figure 1) and has intersected visible tin mineralization down to 400m below surface in the deep drilling programme. Twenty seven PQ holes resulting in 2,783m were drilled in the metallurgical programme and all samples have been shipped to South Africa for metallurgical testing. As part of the infill and step-out drilling programmes at Mpama North, a total of 5,673m were diamond drilled from twenty two holes along strike and at depth. A Mineral Resource update is expected during the fourth quarter of 2014.
A third rig is on site and will commence drilling on Mpama South and along strike of the Bisie Ridge on selected regional targets as defined from soil sampling and geophysics.
An airborne magnetic and radiometric survey was completed in the second quarter of 2014 over the project area. Data has been interpreted. Soil and stream sediment sampling programmes have been completed over prospective areas on PR5266, which holds the Mpama North and South anomalies, and adjacent PR10346. Well defined soil and stream anomalies will be further evaluated with detailed soil sampling and drilling.
Technical Studies:
Bara Consulting (Pty) Ltd have been contracted to develop the mine design, equipment selection and production schedule for the Mpama North mine.
Metallurgical testwork and piloting has commenced at Maelgwyn Mineral Services Africa (Pty) Ltd on a 7 tonne bulk sample in conjunction with Mintek, SGS South Africa (Pty) Ltd and other leading South African laboratories and equipment suppliers.
Logistics and infrastructural studies for the project including access to site, construction facilities, employee facilities, water supply, electricity solutions, product transport and the potential for on-site smelting has commenced at Paradigm Project Management (Pty) Ltd.
The studies will focus on maximizing local employment and services to create community support and a sustainable environment within the project area.
Pangea Exploration (Pty) Ltd is over-seeing and managing the various technical studies which are expected to be completed during the fourth quarter of 2014 prior to commencing with the DFS before year end.
Community Development Initiatives:
The Company is committed to the initiation of community development projects to benefit the local and regional communities from the project's operating presence in the area. An example of this is the labor intensive construction of a road joining Bisie to the main Walikale-Kisangani Road, which has employed a number of members from the local community.
The Company is in the process of establishing a Foundation encompassing the local communities, which will collectively facilitate the implementation of a number of social and community upliftment and development programmes. The Company has contracted Coastal and Environmental Services (CES) to conduct a detailed socio-economic baseline study. CES will identify suitable projects which together with the Company and the Foundation, will be earmarked for implementation during the study or once the project development commences.
Mining Permit Application:
The conversion of part of Exploration Permit PR5266 into a Mining Permit is in progress. The application is currently being assessed by the Environmental Department and once approved the technical study will need approval. Granting of the Mining Permit is key to the timing and development of the project.
Artisanal Mining and Validation:
The Ministry of Mines initiated an evaluation of prospective artisanal mining sites for Conflict Free Validation in North Kivu raised expectations that Bisie would be included in the list of sites that would be considered for Conflict Free Validation. The evaluation team disproved Bisie as a potential Validation site for artisanal mining as a consequence of the depletion of all shallow ore at depths above 35m. The resultant deep artisanal tunnels are extremely hazardous to those working in them.
Whilst it is the Company's view that the Validation of the Bisie Project cannot legally occur, continued efforts are being made to get the necessary support from the authorities in the DRC. As a result of the Validation matter being unresolved, the Bisie Project has seen an increase in the number of artisanal miners on site. Whilst to date this has not caused any issues to the current operations or drilling activities, this matter does need to be resolved if a commercial mine is to be developed at Bisie.
Appointment of Chairman:
The Company is further pleased to announce the appointment of Mr Charles Needham as Chairman of the Board of Directors to steer the Company as it moves towards production on its wholly owned Bisie Tin Prospect. Mr Needham has a long and distinguished career in stewardship of mining companies and brings considerable experience in the development of mining projects in the DRC.
Mr Needham started his career doing his articles with Bernstein & Malkin before moving to Rand London Corporation in 1978, becoming the Group Financial Manager. He then joined Metorex Ltd. in 1983, going on to become the CEO, and Chairman of its subsidiary companies in the group. Mr Needham currently serves as the Corporate Affairs Executive for Metorex Ltd. and Chairman of its subsidiary companies. During his tenure at Metorex he was involved in the development of Ruashi Copper mine in Katanga, DRC. This was one of the first commercial mines to be developed in Katanga after the DRC opened up to international investment. Mr Needham has been instrumental in developing and maintaining the good relations Ruashi now enjoys in the DRC.
Security:
The Company continues to conduct work programmes on the project with minimal interruption since commencement in February 2014. Reports have been received that the National DRC Army (FARDC) together with MONUSCO have commenced an operation to reduce rebel activity in the region which will further stabilize the area making it more conducive to foreign investment.
Jeremy Witley, a qualified person under National Instrument 43-101, has verified technical data relating to Mineral Resources and Exploration disclosed in this release.
ON BEHALF OF THE BOARD OF DIRECTORS
Brendon Jones, Interim Chief Executive Officer
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 News Release.
CAUTION REGARDING FORWARD LOOKING STATEMENTS
Information in this news release that is not a statement of historical fact constitutes forward-looking information. Such forward-looking information includes statements regarding the Company's planned exploration programs. Actual results, performance or achievements of the Company may vary from the results suggested by such forward- looking statements due to known and unknown risks, uncertainties and other factors. Such factors include, among others, that the business of exploration for tin and other precious and base minerals involves a high degree of risk and is highly speculative in nature; few properties that are explored are ultimately developed into producing mines; geological factors; the actual results of current and future exploration; changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company's publicly filed documents.
There can be no assurance that any mineralisation that is discovered will be proven to be economic, or that future required regulatory licensing or approvals will be obtained. However, the Company believes that the assumptions and expectations reflected in the forward-looking information are reasonable. Assumptions have been made regarding, among other things, the Company's ability to carry on its exploration activities, the sufficiency of funding, the timely receipt of required approvals, the price of tin and other precious and base metals, that the Company will not be affected by adverse political events, the ability of the Company to operate in a safe, efficient and effective manner and the ability of the Company to obtain further financing as and when required and on reasonable terms. Readers should not place undue reliance on forward-looking information.
Alphamin does not undertake to update any forward-looking information, except as required by applicable laws.
NOTES
Prospect Name Changes
The two main target areas at Bisie, previously referred to as Gecomines and Golgotha, have been renamed to Mpama North and Mpama South respectively.
To view "Figure 1: Location of deep drill holes and metallurgical drill holes at Mpama North," please visit the following link: http://media3.marketwire.com/docs/alphamin_resources_956794_fig01_july10.pdf