Africo Resources Ltd.

Africo Resources Ltd.

January 30, 2007 16:16 ET

Africo Resources Returns Positive Surface Assay Results From the Kalukundi Project, DRC

further drilling planned aimed at delineating additional resources

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 30, 2007) - Africo Resources Ltd. (TSX:ARL) is pleased to announce further exploration results on two fragments additional to the four fragments comprising the Kalukundi ore reserve as identified in the feasibility study completed in 2006. The deposit is situated within the Katangan Copperbelt, near Kolwezi in the Democratic Republic of the Congo (DRC).

"We are very excited about the progress that we have made at Kalukundi in recent months and we look forward to the commencement of diamond drilling in March to follow up on these results. We have adopted an aggressive plan to convert resources into reserves and to define new resources over the coming months and look forward to reporting back to shareholders in the near future," said Africo Resources' CEO Tony Harwood.

Detailed sampling of trenches and deep artisanal pits has outlined excellent cobalt values and also implies the presence of significant copper mineralization within the Kesho and Golf fragments, which will be followed up with diamond drilling. In addition, initial mapping of the Kinshasa fragment has outlined extensive surface copper mineralization which highlights the excellent potential to further expand resources at Kalukundi (Ref Fig. Kalukundi Project, Geology).

Highlights include:

- Eight trenches on the Kesho fragment which returned high average cobalt values over significant widths, with small residual amounts of copper due to surface leaching, including a single 40cm wide hangingwall zone with 12% copper and 0.20% cobalt.

- Comprehensive sampling of pits from the Golf fragment returned consistently high cobalt values of up to 7.09% (average 2.01%) with associated copper values.

- Initial mapping of the large Kinshasa fragment has also identified extensive copper showings and with further work this may develop into a significant drilling target.

- A drill program of 6000 metres of borehole core drilling to begin in March 2007 designed to define a 43-101 compliant resource.

Kesho Fragment (Ref Fig. Kesho Fragment, Surface trenching): The inferred mineralized zone has a strike length of ±350 metres and a true width varying from 24 metres in the east to an estimated 80 metres near the western end. The trenching focused mainly on the footwall mineralized body, as the central mineralized body is difficult to excavate and the hangingwall mineralized body is inaccessible. The formations dip shallowly to the north east at about 35 degrees, making the geometry of this fragment potentially more amenable to open pit mining. One borehole drilled by Gecamines in 1986 returned significant cobalt values, but relatively poor copper.

Geology: As is the case with existing reserves and resources on the property, the mineralized zone at Kesho consists of the following units:

- a hangingwall mineralized body (SDB - "Schistes De Base");

- a central mineralized body (RSC -"Roches Silicieuses Cellulaires") unit; and

- a lower mineralized body (RSF - "Roches Siliceuses Feuilletees", D.Strat - "Dolomites Stratifiees", RAT Grise - "Roches Argilo-Talcqueuse" and RAT Breccia).

The RSC is a thick siliceous dolomite which is leached and mineralized in the near surface oxide zone. In the oxidized formations, the mineralized zone consists of all of these units in the fragments evaluated to date and at Kesho. The graded assay results from eight trenches spaced at 50m intervals are listed as follows:

Apparent True
Copper Cobalt width width
Trench % % metres metres
Trench 1 0.15 0.57 39.8 25.0
Trench 2 0.05 0.47 59.0 36.0
Trench 3 0.12 0.78 9.8 6.2
Trench 4 0.12 1.16 16.0 10.0
Trench 5 0.08 0.92 8.5 5.5
Trench 6 0.09 0.54 36.0 23.0
Trench 7 0.02 0.29 14.8 9.2
Trench 13 0.07 1.24 5.5 3.5
Note: a grade of 1% cobalt equates to 22.04 lbs cobalt per tonne. Current
cobalt prices range from $22/lb (Norilsk) to $25.50/lb (BHP).
Source: Norilsk and BHP websites, January 25, 2007.

The eight trenches returned high average cobalt concentrations over broad widths in the lower mineralized body. There are low values of copper in the trenches, largely due to near surface leaching, although significant residual amounts of copper are present, especially in the D.Strat. in the footwall and in the SBD of the hangingwall zone. A sample from a continuous copper bearing zone over a width of 0.40 metres in the SDB returned an assay of 12% Cu and 0.20% Co.

Based on Africo's previous resource drilling on other, similar, targets, it is anticipated that drilling of the Kesho fragment has good potential to yield similar results of copper and cobalt to those found in the other four fragments described in the 2006 feasibility study, and is a top priority for future drill evaluation to define additional resources.

The Golf Fragment (Ref Fig. Golf Fragment, Geology): Although the surface expression of this fragment is relatively small, with an area of about 250m2, mapping has defined it to be an anticlinal structure at surface which has considerable potential for extensions, both laterally and at depth. Abundant artisanal pitting in the central mineralized zone (RSC and RSF units) has been sampled and has returned high cobalt values. Two types of pit sampling have demonstrated consistent distribution of mineralization:

1. Bulk samples of large pits - the results of the 31 bulk samples confirm the high cobalt concentrations in the near surface environment, up to 7.09% cobalt (average 2.01% cobalt) and the presence of copper mineralization up to 3.4% copper (average 0.24% copper).

2. Vertical channel sampling of pits - the channel sampling of 10 out of 17 pits, mainly within the central mineralized zone, returned the following cobalt values to the base of the pit:

Pit Number Depth metres Cobalt %
G53 2.4 - 4.4 0.22
G55 1.8 - 3.8 0.62
G56 0.4 - 3.3 1.21
G57 0.6 - 2.9 1.06
G58 2.7 - 5.8 1.82
G61 1.7 - 3.7 0.64
G62 3.4 - 4.3 2.06
G63 2.5 - 4.0 0.89
G66 1.3 - 3.8 0.70
G67B 0.7 - 4.0 0.55

A program of shallow vertical drilling is initially planned to search for the footwall and hangingwall ore bodies and to define the grade and the lateral and depth extent of this fragment.

Sampling was carried out by Africo personnel under the supervision of the QP and samples were shipped under secure chain of custody to SGS Lakefield Laboratories in Johannesburg, South Africa for analysis by pyrofusion XRF. This is the laboratory and the assay method used for all assays used in the Kalukundi resource evaluation.

Kinshasa Fragment. Mapping, trenching and sampling of a third fragment is currently in progress. It is located in the north-west corner of the concession and has a strike length of over 800 metres. In the past, artisanal workers have extracted cobalt as heterogenite and significant amounts of copper are exposed as malachite in shallow trenches excavated by Gecamines in 1986. Initial work indicates that this fragment has significant tonnage potential and it is anticipated that this will develop into another high priority exploration drilling target.

Planned drilling program

Borehole core drilling

A program of 6 000 metres of core drilling is planned and a contract was concluded with the drill contractor, Sondage Technique, in 2006. Commencement of the program is scheduled for March 2007. An additional drill machine is being sought to start drilling earlier, depending upon suitable access and favorable weather conditions.

Hydrogeological drilling

A part of the contract signed with Sondage Technique included specialized hydrogeological drilling for pit design purposes. This involves drilling of seven wide diameter holes (12" or 300mm) with perforated casing for high yield pump testing (840 metres), five monitoring holes (500 metres) and three potable water boreholes (300 metres). Specialized hydrogeological contractors from Knight Piesold are supervising this drilling program on behalf of Africo.

The drilling and pump testing will define the water volumes and associated pressures in the vicinity of the proposed open pits. This will define the pumping requirements to reduce water levels and hence water pressure on the open pit slopes and enable the final pit slope angles to be evaluated and defined. Currently, without this information, shallower open pit slope angles have been defined in the feasibility study for safety purposes. Should results from the drilling lead to a re-evaluation of pit slopes by allowing steeper pit walls, this would have a positive impact by reducing the strip ratio and hence costs. The five monitoring holes form part of this evaluation program.

Drilling commenced in 2006 and to date four holes have been completed (441 metres) and this program has now recommenced after the Christmas break. The drilling of the next 11 holes and related pump testing will take about six weeks to complete.

This news release has been prepared under the supervision of Michael J. Evans, Africo's Consulting Geologist, who is a Qualified Person under National Instrument 43-101 (NI 43-101).

Africo Resources Limited is a Canadian mineral company, committed to developing, acquiring and exploring for base metal and gold assets in Africa. The company's main project is Kalukundi, a development stage copper-cobalt deposit located on the Katangan Copperbelt in the Democratic Republic of Congo (DRC). The development team has an operational base in the DRC, with the company corporate offices located in Vancouver, Canada. The company listed on the Toronto Stock Exchange in December 2006.

To view the maps accompanying this press release please click on the following link:

This news release contains certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address events or developments that Africo expects to occur, are forward-looking statements.

Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although Africo believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration success, continued availability of capital and financing and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of Africo's management on the date the statements are made. Africo undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Africo Resources Limited
    Dr. Tony Harwood
    President and CEO
    27 (11) 463 0081
    Africo Resources Limited
    Bill Cavalluzzo
    Investor Relations
    (416) 265-8049