Agricola Resources plc
LSE : AGRI

December 16, 2009 07:00 ET

Signing of Joint Venture Gold Exploration Concession with ONHYM, Southern Morocco

                                                                               16 December 2009
                                                                           GB0003046835/GBP/PLUS-exn

                                        AGRICOLA RESOURCES PLC
                                     ("Agricola" or the "Company")
                                                   
           Signing of Joint Venture Gold Exploration Concession with ONHYM, Southern Morocco


The Directors of Agricola Resources Plc (PLUS ticker AGRI) the PLUS-quoted mineral exploration company
are  pleased  to  announce  that the Company has signed a Joint Venture agreement  with  the  Minerals
Exploration  Branch  of  the  Moroccan  State Bureau for  Mines  and  Hydrocarbons  (ONHYM)  over  two
exploration areas called Ain Kerma and Toufrite. They cover 280.5 sq kms of Tan Tan Province, Guelmin-
Es Semara region of Southern Morocco.

Location

The projects are located some 30km ENE of the town of Tan Tan and approximately 50km from the Atlantic
seaboard.  The areas are accessible from Tan Tan by 15km of main road and drivable tracks in  off-road
vehicles.

The prospect areas are within, and on the flanks of, a Precambrian inlier called Bas Draa    which  is
situated at the western end of the Anti Atlas Mountains. Numerous quartz veins are known.

The Ain Kerma Project

At  Ain  Kerma, ONHYM has studied two veins AK-1 and AK-4.  The AK-1 structure extends for 400  m  and
recorded gold surface values range from 0.1 - 6.5 grams per ton gold, with an exceptional value of 147
grams per ton of gold.

The  AK-4 structure extends for 800m including a 300m section where recorded surface values range from
4.7  to  56  grams  per ton of gold over widths of 0.3 - 1.2m. Some 50 parallel to sub-parallel  NW-SE
trending  structures  are  frequently filled with quartz.  ONHYM has conducted  some  limited  diamond
drilling not yet extensive enough to locate a gold deposit.

The Toufrite Project

At  Toufrite,  gold  occurs in a NW-SE trending quartz vein developed within  a  granitic  stock  that
intrudes  a sequence of sandstones and volcanic breccias. The quartz vein extends for 230m and  ranges
in  width  from  1  to  6m. Gold surface values vary from 0.2 to 14 grams per ton  of  gold  with  two
exceptional values of 21 and 31 grams per ton gold.

There  are  also  base metal and silver values. The vein is somewhat fractured and iron  oxides  occur
along  the  fractures.  A second vein with similar characteristics, albeit somewhat  narrower,  occurs
close by. The structures at Toufrite have not been studied in detail.

The high gold potential of the Precambrian inliers of the western Anti Atlas is illustrated by another
of  these  inliers called Tagragra de Akka. At the Iourirn deposit, gold in quartz veins is  currently
being  mined  by  the Akka Gold Mining Company, a subsidiary of the Managem Group. A resource  of  2.4
million  tones grading 12.5 grams per ton Au was initially estimated. The Iourirn deposit is  situated
some 230km ENE of the Ain Kerma - Toufrit Area in a similar Precambrian inlier.

Joint Venture Agreement

Under  the  terms  of  the  joint  venture agreement, Agricola will have  management  control  of  the
exploration phase and will spend 100% of the exploration budget from now on. If an exploitable deposit
is  located, Agricola will pay ONHYM a 2% net smelter return thereafter. ONHYM will have the option to
retain a 30% interest in the exploitation and development company.

Agricola  Resources PLC's consultant geologist Paul Hugman states that at Ain Kerma "high gold  values
are  associated with iron oxides filling fractures and occasionally coating cavities in  vein  quartz.
The  gold  occurs late in the paragenetic sequence and could well have been deposited under epithermal
conditions''

Commenting Dr Robert Young Agricola Resources PLC Chairman stated   "It is a good time to get into  an
exploration  area with high gold values as gold has been trading recently at all time  highs  and  the
Company are optimistic that the gold price will continue to trade at viable levels.

Morocco  is  offering  excellent exploration terms and we have established good working  relationships
with ONHYM at senior levels. The areas of the licences have little or no vegetation cover, which means
that  high resolution aerial photography should be able to define areas of alteration associated  with
gold mineralization and help with the initial work of finding areas with high fracturing.

Following  the disposal of our Swedish assets for the sum of £71,110 and the raising of further  funds
from  Shareholders,  Agricola is now debt free and has been able to establish this  joint  venture  in
Morocco which has a long history of gold production."

The Directors are responsible for the contents of this announcement.

Enquiries:

Agricola Resources PLC
Dr. Robert Young
Chairman
Telephone: +44 (0)1353 649 379

Corporate Adviser:
St Helens Capital Partners LLP
Mark Anwyl or Duncan Vasey
Telephone: +44 (0) 20 7368 6959












Contact Information

  • Agricola Resources plc