29th Nov 2010 07:00
29 November 2010
African Barrick Gold plc (the "Company" or "ABG")
Successful Drill Hole Intercepts at Nyanzaga Project Indicate Higher Grades at Depth with Additional Near Surface Mineralisation - Supportive of Resource Base
Expansion Targeted Through Drill Programme
Following the positive results communicated last month for the initial infill drill holes on the northern end of the Tusker resource area at the Nyanzaga Project, ABG is pleased to announce further successful intersections on the southern extensions with several broad, higher-grade zones of gold mineralization.
These positive new results, in addition to the previously announced results,are very exciting and increase the potential for Tusker to add to our futuregrowth profile. High grade zones in a bulk mining project add considerablevalue to project economics, particularly at current gold prices. When combinedwith the continuing good progress on our organic growth projects and theongoing turnaround at Buzwagi, this positions ABG with a strong growth profileover the medium term and near term improvement in 2011.
Results include hole NYZRCDD0156 which intersected an extensive high grade zone of 51m at 6.44g/t Au, within a broader envelope of 121m at 3.63 g/t Au from 376m down-hole. Other notable intersections include:
NYZRCDD0145 - 203m @ 1.52g/t Au from 140 metres, including 34m @ 5.34 g/t Au,
NYZRCDD0161 - 65m @ 2.13 g/t Au from 313 metres, including 25m @ 3.57 g/t Au,
NYZRCDD0164 - 70m @ 1.68 g/t Au from 130 metres (pre-collar ended in mineralization),
NYZRCDD0166 - 23m @ 7.90 g/t Au from 122 metres
In late July 2010, ABG commenced an intensive 50,000m programme of reversecirculation and diamond core drilling at the Nyanzaga Project focusing onstep-out and infill drilling on the Tusker and Kilimani prospect areas. Thedrill programme is also testing geophysical and geochemical targets across theNyanzaga Project area for large-scale gold deposits and additional satelliteopportunities within 15 kilometres of the Tusker resource area. Tusker GoldLimited declared an inferred resource of approximately 4.2 million ounces forthe Nyanzaga Project in June 2009 and the aim of the current drill programme isto confirm and expand this resource base through delineating strike anddown-dip extensions to the Tusker and Kilimani mineralized systems, withinitial assays showing very positive results.In particular, step-out and infill drilling on the southern strike extensionsof the Tusker prospect has identified wide, higher-grade extensions of goldmineralization (Figures 1-3). These recent intercepts indicate thatmineralization on the southern extensions of Tusker occurs closer to surfacethan previously modelled, and, at the same time, the deeper intersectionsindicate the potential for grade to increase with depth in this area of thesystem. Given the success so far of the drill programme, the current step-out drillingis being expanded to allow accelerated follow-up of these positiveintersections. Two reverse circulation and two diamond core rigs are alreadydrilling on the Nyanzaga Project and a third diamond core rig is beingmobilized to site. This will enable us to focus additional resources ontargetting further resource extensions at depth and along strike to the south.A key element of this will be to scope out the upside potential of higher gradezones at depth given that the system remains open at depths below 400mvertical.We are also encouraged that infill drilling on the northern and central partsof Tusker has confirmed the width, grade and tenor of the historicalbroader-spaced drilling, and we plan to continue this programme into 2011 inconjunction with the extension drilling. Over the coming months, theaccelerated drilling programme will be prioritized with the aim of targeting anexpanded resource base, leading to an updated scoping study as soon as possiblein 2011 in order to expedite progress on the project.
For picture see www.africanbarrickgold.com
Figure 1 - Tusker Prospect drill hole location plan with historic drilling, completed 2010 holes, and planned drill holes. Red hatch shows approximate surface trace of eastern limb mineralized envelope. Location of cross sections 2240mN and 2340mN are shown as Figures 2 and 3.
For picture see www.africanbarrickgold.com
Figure 2 - Tusker Section 2320mN - hole NYZRCDD0156 indicating potential for higher grade zones at depth; and NYZRCDD0164 (ended in mineralization) has identified mineralization closer to surface.
For picture see www.africanbarrickgold.com
Figure 3 - Tusker Section 2240mN (80m south of section 2320mN in Figure 2) -Drilling to date and assays received indicate potential for additional zones ofhigher-grade gold mineralization and the for further extensions to thesystem.
TABLE 1 - TUSKER DRILL HOLE INTERCEPTS
Significant RC/DDH Drill Intersections Tusker - Nyanzaga Project Hole Co-ordinates Depth Gold Mineralization > 0.50 g/t Precollar Total From To Length Grade UTME UTMN RL Azi Dip (m) Core (m) (m) (m) (m) (m) (g/t) NYZRCDD0138 (!) 467555.3 2600 1264.1 270 -60 100.00 172.00 272.00 0 90 90 1.05 incl: 0 64 64 1.56 125 131 6 0.75 142 165 23 0.51 176 252 76 0.91 NYZRCDD0139 467606.3 2600 1254.3 270 -63 74.00 293.00 367.00 60 85 25 2.62 93 129 36 0.93 incl: 114 128 14 1.45 169 287 118 0.77 298 321 23 0.82 333 358 25 1.08 NYZRCDD0140 (!) 467662.5 2520 1258.2 270 -59 159.60 183.85 343.45 107 110 3 1.59 130 343.45 213.45 0.85 incl: 267 314 47 1.01 NYZRCDD0141 467599.9 2640 1251.8 270 -60 138.00 161.85 299.85 115 117 2 2.08 136 163 27 1.01 251 271 20 1.11 Hole Co-ordinates Depth Gold Mineralization > 0.50 g/t Precollar Total From To Length Grade UTME UTMN RL Azi Dip (m) Core (m) (m) (m) (m) (m) (g/t) NYZRCDD0142 467475.5 72560 1274.7 90 -58 115.00 34.05 149.05 6 103 97 1.65 incl: 9 46 37 2.63 123 143 20 1.09 NYZRCDD0143 -60 190.45 114.8 116 1 1.12 150 151 1 1.08 NYZRCDD0144 467644.2 2640 1248.3 270 -60 104.00 255.20 359.20 121 126 5 4.46 145 146 1 2.88 195 196 1 1.35 208 217 9 1.01 225 226 1 1.12 241 244.7 3.70 0.59 264 271 7 1.68 286 355 69 0.83 incl: 287 308 21 1.41 NYZRCDD0145 (!) 467700.9 2560 1243.1 270 -60 178.00 398.10 576.10 140 343 203 1.52 incl: 141 175 34 5.34 376 432.75 56.75 1.41 473 576.1 103.10 1.44 incl: 545 558 13 3.61 NYZRCDD0146 (!) 467647.6 2480 1269.4 270 -62 150.00 226.95 376.95 98 237 139 1.06 243 343.78 100.78 1.19 353.58 376.95 23.37 0.75 NYZRCDD0147 (!) 467724.2 2480 1247.1 270 -62 150.00 396.15 546.15 203 204 1 1.07 210 211 1 1.34 216 262 46 2.24 incl: 216 229 13 5.84 269 392 123 0.84 incl: 297 345 48 1.08 403 446 43 1.44 483 546.15 63.15 2.31 incl: 487 501 14 4.02 NYZRCDD0148 (!) 467770.9 2440 1242.7 270 -59 150.00 480.00 530.00 244 406.6 162.60 0.78 incl: 251 399 148 1.05 412 458 46 2.70 472 481 9 1.03 502 530 28 7.02 incl: 516 517 1 145.0 NYZRCDD0149 467789.8 2400 1239.3 270 -60 150.00 230.55 380.55 277 380 103 0.86 incl: 334 377 43 1.15 NYZRCDD0151 467276.3 2520 1256.3 90 -60 202.00 197.85 399.85 280 294 14 2.37 incl: 284 285 1 19.65 311 399.85 88.85 1.96 incl: 356 366 10 4.20 NYZRCDD0152 (!) 467276.3 2520 1256.3 90 -60 202.00 208.75 410.75 277 318 41 1.26 338 354 16 0.64 360 410.75 50.75 1.23 NYZRCDD0154 467537.0 2680 1314.8 270 -67 151.00 116.72 267.72 158 164 6 1.03 168 224 56 1.20 NYZRCDD0156 467771.0 2320 1249.7 270 -60 169.00 349.35 518.35 245 343 98 1.08 incl: 274 343 69 1.26 376 497 121 3.63 incl: 378 400 22 2.26 and Incl: 432 483 51 6.44 and incl: 441 456 15 14.60 Hole Co-ordinates Depth Gold Mineralization > 0.50 g/t Precollar Total From To Length Grade UTME UTMN RL Azi Dip (m) Core (m) (m) (m) (m) (m) (g/t) NYZRCDD0157 467755.3 2360 1251.3 270 -55 187.00 256.8 443.80 236 238 2 1.58 244 259 15 0.74 266 267 1 1.57 276 323 47 1.52 335 391 56 1.72 incl: 368 385 17 3.58 NYZRCDD0158 467774.6 2640 1234.6 270 -60 175.00 518.86 693.86 290 291 1 1.45 355 392 37 1.92 402 427 25 0.69 432 482 50 0.61 501 533 32 2.70 incl: 525 532 7 9.37 542 544 2 3.28 651 693.86 42.86 1.75 incl: 670 683 13 3.21 NYZRCDD0161 467731.9 2240 1267.3 270 -60 198.00 217.3 415.30 313 378 65 2.13 incl: 348 372 25 3.57 413 414 1 2.58 NYZRCDD0162 467824.8 2160 1242.1 270 -60 184.00 400.25 584.25 543 544 1 1.43 560 579 19 0.75 NYZRCDD0164+ 467582.2 2320 1321.2 270 -57 200.00 200.00 130 200 70 1.68 incl: 135 160 25 2.56 NYZRCDD0166+ 467555.4 2240 1342.1 270 -60 153.00 153.00 122 147 25 7.32 incl: 124 139 15 11.3 NYZRCDD0168+ 467543.8 2280 1343.4 270 -60 168.00 168.00 123 130 7 0.69 NYZRC0170+ 467564.1 2640 1256.8 270 -60 31.00 31.00 0 2 2.00 1.14 NYZRC0171+ NSR NYZRC0172 (!)+ 467524.9 2560 1274.9 270 -60 100.00 100.00 0 100 100 (!) 1.26 incl: 33 67 34 1.54
! Mineralization at base of hole + Hole incomplete
w Wet Sample ? Data subject to verification NSR - no significant results
The intercepts reported are the down-hole length of the drill hole (reversecirculation) or drill core intersection. Estimated true width is 60-100% ofdown-hole interval. Intervals were calculated a 0.5 g/t Au cut-off. Less than5% of internal intercepts were accepted below the cut off grades and no cappingwas used in the calculations. Sample preparation by ALS Chemex Laboratories inMwanza Tanzania. Sample analysis by ALS Chemex laboratories in Vancouver for Audetermination by 50g Fire Assay with AAS finish. Rigorous QA/QC consisting ofduplicates, repeats, standards and blanks. Collar positions have all beenlocated using DGPS, and are reported in a truncated grid. Down-hole surveysshown are design for all holes.
ENQUIRIES
For further information contact:
African Barrick Gold plc
Andrew Wray, Head of IR & Corp Devt +44 (0)207 129 7155
Finsbury +44 (0)20 7251 3801 Andrew Mitchell Charles Chichester
This announcement is for information purposes only and does not constitute an invitation or offer to underwrite, subscribe for or otherwise acquire or dispose of any securities of ABG in any jurisdiction.
This announcement includes "forward-looking statements" that express or implyexpectations of future events or results. Forward-looking statements arestatements that are not historical facts. These statements include, withoutlimitation, financial projections and estimates and their underlyingassumptions, statements regarding plans, objectives and expectations withrespect to future production, operations, costs, products and services, andstatements regarding future performance. Forward-looking statements aregenerally identified by the words "plans," "expect," "anticipates," "believes,""intends," "estimates" and other similar expressions.All forward-looking statements involve a number of risks, uncertainties andother factors, many of which are beyond the control of ABG, which could causeactual results and developments to differ materially from those expressed in,or implied by, the forward-looking statements. Factors that could cause orcontribute to differences between the actual results, performance andachievements of ABG include, but are not limited to, political, economic andbusiness conditions, industry trends, competition, fluctuations in the spot andforward price of gold or certain other commodity prices, changes in regulation,currency fluctuations (including the US dollar, South African rand andTanzanian shilling exchange rates), ABG's ability to successfully integratefuture acquisitions, ABG's ability to recover its reserves or develop newreserves, including its ability to convert its resources into reserves and itsmineral potential into resources or reserves, and to timely and successfullyprocess its mineral reserves, risk of trespass, theft and vandalism, changes inits business strategy as well as risks and hazards associated with the businessof mineral exploration, development, mining and production. Although ABG'smanagement believes that the expectations reflected in such forward-lookingstatements are reasonable, ABG cannot give assurances that such statements willprove to be correct. Accordingly, investors should not place reliance onforward looking statements in this announcement. Any forward-looking statementsin this announcement only reflect information available at the time ofpreparation. Subject to the requirements of the Disclosure and TransparencyRules and the Listing Rules or applicable law, ABG explicitly disclaims anyobligation or undertaking publicly to release the result of any revisions toany forward-looking statements in this announcement that may occur due to anychange in ABG's expectations or to reflect events or circumstances after thedate of this announcement. Nothing in this announcement should be construed asa profit forecast or estimate.
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