14th Jul 2008 07:00
14 July 2008
Zambezi Resources Limited
("Zambezi" or "the Company")
Uranium Joint Venture Update
VTEM survey on Rio Uranium JV highlights electromagnetic conductors in regional shear zone over 30 kms strike length
Conductors associated with interpreted graphitic shale and uranium anomalism evident in radiometric data
Preliminary geophysical modeling completed
Trenching, geological mapping, PIMA survey and drilling to commence in Q3 2008
ZRL and Rio agree to expand JV area to incorporate newly identified prospective area
Zambezi Resources Limited ("Zambezi" or the "Company") (AIM: ZRL; ASX:ZRL) today announces progress on its Uranium Mineral Rights joint venture with Rio Tinto in southern Zambia.
The joint venture recently completed a major VTEM survey at Mulofwe and identified several electromagnetic conductors within a regional shear zone interpreted to form part of the continent-scale Mwembeshi Shear system. The shear zone is evident in electromagnetic and radiometric data over a strike length in excess of 30km, and continues beyond the survey boundary to the east and west. Preliminary interpretation suggests that the conductors are associated with the position of a regionally extensive graphitic shale unit. Previous radiometric surveys carried out by Zambezi have highlighted uranium anomalism believed to be associated with this unit. Geophysical modelling has been carried out on the eastern-most conductor within the shear zone. The modelling suggests the presence of a conductor of approximately 2km strike length dipping about 60o to the north and plunging gently to the east.
The joint venture plans to conduct follow up work to investigate the potential for an association between the conductive graphitic shales, the uranium radiometric anomalism and potential uranium mineralisation. This work will commence in Q3 2008 under the management of Rio as joint venture operators, and will comprise trenching, geological mapping, PIMA surveying and drilling.
In order to maximise the chances of success for the project, the joint venture partners have agreed to extend the area of the joint venture to cover the entirety of the prospective stratigraphy. This will be under the same terms of the existing Uranium Mineral Rights agreement.
Downloads available from the Zambezi website at: www.zambeziresources.com
For more information contact:
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Julian Ford, Managing Director Zambezi Resources (Australia) +61 (08) 9216 9000 +61 (0) 418 949 580 |
Jeremy Wrathall, Non-Executive Director Zambezi Resources (London) Mob: +44 7712 776 100 |
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Fiona Owen Grant Thornton UK LLP +44 20 7383 5100 |
Simon Edwards / Adam Lloyd Evolution Securities Ltd + 44 20 7071 4300 |
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Nicholas Read / Kate Bell Read Corporate +61 (08) 9388 1474 +61 (0) 419 929 046 |
Laurence Read / Graham Herring Threadneedle Communications +44 20 7936 9600 |
ADDITIONAL INFORMATION
Zambezi is listed on London's AIM market and the Australian Securities Exchange (ASX & AIM Ticker: ZRL) and currently has two main projects, Cheowa and Kangaluwi. Zambezi is one of Africa's most active exploration companies with a large exploration execution capacity consisting of over 20 geologists and at least eight contracted drill rigs. The company is focused on discovering and developing large Copper-Gold projects in southern Zambia. At Kangaluwi, which is 100% owned, Zambezi is conducting extensive exploration drilling, as the company believes that the Kangaluwi project has the potential to be a world class open pit copper deposit. Zambezi plans a major resource drill out campaign in 2008 and 2009. The company also has entered into two Uranium Joint Ventures on approximately 50% of its tenement area, one with Rio Tinto and the other with Lithic Metals and Energy.
Under terms agreed in the Letter of Intent with Rio Tinto, Rio have committed to spend US$1 million minimum to assess the potential for uranium mineralisation over approximately 1,250 km2 of the Mulofwe prospect. Rio Tinto may elect to spend an additional US$5 million to earn 51% of the Uranium Minerals rights, in which case the parties have agreed to form an Incorporated Joint Venture. Once Rio Tinto has earned a 51% interest in the project, Zambezi may elect to retain their 49% interest by meeting their share of expenditure or elect to dilute to 20% in which case Rio Tinto may earn an addition 29% for a total of 80% by completing a Bank Feasibility Study. Zambezi may elect to convert their interest to a 2.5% Net Smelter Royalty at any time after Rio Tinto has earned its 51% share of the project. Rio Tinto will be the manager of the exploration program and any Joint Venture entered into.
The greater Mulofwe project covers 3,183 km2 and also contains Zambezi's Mulofwe Dome, a priority exploration target, and parts of the Chongwe Copper Belt which has been joint ventured to Glencore. Only the newly discovered Mwapula prospect falls within the Rio Tinto LOI area. Mwapula has returned high grade, lead, silver and copper rock chips. Zambezi will retain rights to explore for and develop all non-Uranium minerals over this area.
The information in this report that relates to Exploration Results is based on information compiled by Exploration Director Geoffrey Johnson BSc (Hons), PhD, Grad Dip Env Sc. Dr Johnson is a full-time employee of Zambezi Resources, and a Fellow of the Australian Institute of Geoscientists. Dr Johnson is a Competent Person as defined in the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, and consents to the inclusion in the report of the matters based on the information in the form and context in which it appears. The information in this report that relates to the interpretation of geophysical survey data is based on information compiled by Mr Bill Peters BSc (Hons), who is a Director and Senior Consulting Geophysicist of Southern Geoscience Consultants. Mr Peters is a Member of the Australian Institute of Geoscientists, and a Fellow of the Australasian Institute of Mining and Metallurgy, and is a Competent Person as defined in the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Peters consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.
Related Shares:
Rio Tinto