Afri-Can Marine Minerals Corporation
TSX VENTURE : AFA

Afri-Can Marine Minerals Corporation

October 01, 2013 11:30 ET

Afri-Can Marine's 43-101 Report Estimates Indicated Resource of 413,000 Carats and 453,000 Carats of Inferred Resource on Diamond Fields Mining Lease 111 Off the Coast of Namibia

MONTREAL, QUEBEC--(Marketwired - Oct. 1, 2013) - Afri-Can Marine Minerals Corporation ("Afri-Can") (TSX VENTURE:AFA) today announced that the newly-completed National Instrument 43-101 report estimates the remaining diamond resources on Diamond Fields International Ltd ("DFI") Mining Lease ("ML") 111 (see Map 1 below), of which of 413,000 carats are in the indicated category and 453,000 carats are an inferred resource (see Map 2 below). A portion of the indicated resource, some 255,000 carats grading at 0.30 carats per square metre will be the object of a trial mining program, for which Afri-Can's team is currently preparing a preliminary feasibility study and preparing mine planning. The company did not carried out yet a feasibility study on this resource and it is uncertain that the trial mining program will prove to be economic.

Findings from the NI 43-101 report, which is available on Afri-Can's website at www.afri-can.com and on Sedar at www.sedar.com, are as follows:

  • ML 111 has 3 geological features that host Indicated or Inferred Resources;
  • Marshall Fork is the main deposit that has seen intermittent production between 2001 and 2007. Diaz Reef has seen some small-scale production. North Bay is composed of 3 deposits and has never been in production;
  • The remaining indicated resource on the 3 areas stands at 413,000 carats at a grade of 0.17 carat per square metres and the remaining inferred resource stands at 453,000 carat at a grade of 0.15 carats per square metre.
  • Part of the remaining indicated resource on Marshall Fork and Diaz Reef has mineable potential, and a preliminary feasibility study and mine management planning are currently being prepared in order to quantify the economics of the project and allow possible re-classification of some of the Indicated Resources as Probable Reserves. The indicated resource, which is the object of the study stands at 255,000 carats at a grade of 0.30 carats per square metre on an area totalling 855,000 square metres (see map 3 below);
  • Remaining inferred resources will be the object of further sampling programs in order to enhance the resources to the indicated category;
  • Blocks of indicated resources are based on a sample density of 100 metres x 100 metres or closer. 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 indicated resource estimates to a high level of confidence;
  • Blocks of inferred resources are based on sampling that has a spacing wider than 100 metres x 100 metres;
  • Diamond resources are based on a review of all previous records and, in compliance with NI 43-101, a re-estimation based upon historical exploration work that includes over 7,500 line-kilometres of geophysical survey data, over 3,000 samples with footprints ranging from 2.1 to 10 square metres, and 7 years of intermittent production history.

A preliminary feasibility study is currently being prepared in order to determine the detailed operational and financial scenarios, to define the risks and opportunities and to create Probable Reserves from the Indicated Resources and undertake detailed mine planning before production commences.

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's existing resources in order to resume production in the shortest time frame possible. There are also 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 features will be investigated. 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 was not compliant with National Instrument 43-101 and which Afri-Can is not treating as a current mineral resource, 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 published an Historical Estimate, which Afri-Can is not treating as a current mineral resource, 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 NI 43-101 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.

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.

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.

To view the maps accompanying this press release please click on the following link: http://media3.marketwire.com/docs/1001AFA.pdf

Shares outstanding: 91,527,864

Contact Information

  • Afri-Can Marine Minerals Corporation
    Pierre Leveille
    President & CEO
    (514) 846-2133 or TOLL FREE North America: 1 (866) 206-7475

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