Afri-Can Marine Minerals Corporation
TSX VENTURE : AFA

Afri-Can Marine Minerals Corporation

September 11, 2013 11:11 ET

Afri-Can Marine: 868,000 Carats Historical Diamond Resource on Diamond Fields Mining Lease ML 111 Off the Coast of Namibia

MONTREAL, QUÉBEC--(Marketwired - Sept. 11, 2013) - Afri-Can Marine Minerals Corporation ("Afri-Can") (TSX VENTURE:AFA) today announced that the analysis of the Historical Estimate remaining on Diamond Fields International Ltd ("DFI") Mining Lease ("ML") 111 (see Map 1 below) is of 868,000 carats of diamonds. The interim report can be consulted on www.afri-can.com and outlines the techniques and results of the re-estimation of the Historical Resources (see Map 2 below). Afri-Can is not treating the Historical Estimate as a current mineral resource. The Historical Estimate report will be followed by a National Instrument 43-101-compliant resource estimation technical report, which is in preparation and will be completed and disclosed, as required, within 45 days.

The Historical Estimate report summary is as follows:

  • The analysis has estimated the remaining Historical Estimate from the two following reports:

  • A resource estimate and a feasibility study prepared by MRDI and AGRA-Simons in 2000;

  • A resource estimate prepared by SRK Consulting on a small area of ML 111 called Diaz Prospect 1, in 2006;

  • ML 111 has 3 geological features that host Historical Estimates;

  • Marshall Fork is the main deposit that has seen intermittent production between 2001 and 2007, and the Historical Estimate remaining in Marshall Fork stands at about 148,000 carats;

  • Diaz Reef has seen some small scale production and the Historical Estimate remaining there stands at about 479,000 carats;

  • North Bay is composed of 3 deposits, has never been in production, and the Historical Estimate remaining stands at about 241,000 carats.

The NI 43-101 report in preparation will identify and classify the areas and will define which will support immediate mining.

The majority of the areas in Marshall Fork and Diaz Reef had a sample density (usually sampling on a 50m x 50m grid or closer) that supports the remaining historical estimates to a high level of confidence, but there are some areas, plus those in North Bay, in which the sample spacing (typically 200m x 200m) is too wide to support the revised historical estimates to a confidence level that would allow immediate mining of those deposits. It is therefore recommended that, as a priority, fill-in sampling should be carried out in those areas to increase the confidence in the estimates to a level that would support mining.

Afri-Can is currently in advanced discussions with its contractor in order to charter vessels that would allow the resumption of mining in targeted areas and fill-in sampling in other targeted areas.

Afri-Can signed and announced on March 21, 2013 an option agreement with Diamond Fields International Ltd ("DFI"). The option agreement is valid for 2 years and in order to complete the acquisition, Afri-Can is required to spend $800,000 of exploration expenditures on the MLs before the first year anniversary and an additional $2.5 million of exploration expenditures before the second year anniversary of the option agreement. Afri-Can entered in the option with its Namibian partner Woduna Mining Holding (PTY) Ltd ("Woduna"). Upon exercise of the option on MLs 111, 138 & 139, the interests in the MLs will be: Afri-Can 80%, DFI 10% and Woduna 10%. Upon exercise of the option on ML 32, the interests in the ML will be Afri-Can 80%, Woduna 10%, DFI 7% and Full Screen Investments (PTY) Ltd 3%.

Afri-Can's immediate goal is to focus on ML 111 existing resources in order to resume production in the shortest time frame possible. In addition there are several other features, additional to those containing Historical Resources, within the four DFI leases that hold potential for diamond mineralisation but have been insufficiently sampled, and these will be developed. The second goal is to complete the sampling program on EPL 3403, which remains a high priority exploration target.

About ML 111

The License lies between 5 and 20 kilometres north of Luderitz. It covers 312 square kilometres and sits in water ranging from 30 to 70 metres in depth. ML 111 hosts at least 3 mineralised geological features. The ML was originally granted for a period of 15 years and is renewable on December 4th, 2015. A resource estimate and a feasibility study were prepared by MRDI and AGRA-Simons in 2000. The Historical Estimate, which is not compliant with National Instrument 43-101, amounted to 1.1 million carats with an average grade of 0.30 carats per square metre. The resource existed in the Marshall Fork, Staple Basin/Conical Beach and Diaz Reef areas. DFI produced intermittently between 2001 and 2007 some 158,200 carats, mainly from the Marshall Fork area. Special stones recovered from Marshall Fork included a gem quality 17.42 carat stone, a rare 5.26 carat light blue diamond which sold for US$10,457 per carat, and a 2.45 carat pink gem diamond which sold for US$16,771 per carat.

In 2006, SRK Consulting estimated a Historical Estimate on a small area of ML 111 called Diaz Prospect 1 of 63,000 carats over 315,000 square metres with an average grade of 0.2 carats per square metre. Production to the end of September 2007 amounted to 16,245 carats with an average size of 0.43 carats per stone. DFI ceased production following the world financial crisis.

Pierre Léveillé, President and CEO of Afri-Can, stated that, "We are very pleased with the conclusions of the report as it gets us to a level that will allow mining and provide regular development and value for our shareholders. The DFI portfolio of Mining Leases complements EPL 3403 and offers very good development potential. We feel that we are sitting in a strong project in a very solid industry."

Richard Foster, B.Sc. (Hons. Geology), Pr. Sci. Nat., is the Qualified Person who has prepared the Historical Estimate report, reviewed this press release and is responsible for the technical part of this press release, and is the designated Qualified Person under the terms of National Instrument 43-101.

Afri-Can is not treating the Historical Estimate as a current mineral resource, nor has the Qualified Person done sufficient work to classify the Historical Estimate as current mineral resources or mineral reserves.

About Afri-Can Marine Minerals Corporation

Afri-Can is a Canadian company, actively involved in the acquisition, exploration and development of major mineral properties in Namibia. Afri-Can's creative and scientific approach targets large marine diamond deposits in prospective territories.

Shares outstanding: 91,527,864

This press release contains certain "forward-looking statements," as identified in the Afri-Can's periodic filings with Canadian Securities Regulators that involve a number of risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. 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 release.

Map 1 and Map 2 are available at this address : http://media3.marketwire.com/docs/african_maps_0911.pdf.

Contact Information

  • Pierre Leveille
    President & CEO
    (514) 846-2133
    TOLL FREE North America: 1 (866) 206-7475
    (514) 372-0066 (FAX)
    info@afri-can.com

    Bernard J. Tourillon
    Executive V.P. and CFO
    (514) 846-2133
    TOLL FREE North America: 1 (866) 206-7475
    (514) 372-0066 (FAX)
    info@afri-can.com
    www.afri-can.com