African Metals Corporation
TSX VENTURE : AFR
FRANKFURT : OWW

African Metals Corporation

October 18, 2010 09:01 ET

African Metals Corporation Exceeds Initial Projected Targets With Its Maiden Resource at the Luisha South Project, Katanga Provence, Democratic Republic of Congo

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 18, 2010) - African Metals Corporation ("AFR") (TSX VENTURE:AFR)(FRANKFURT:OWW) is pleased to provide initial figures for resources estimated by Geosure Exploration & Mining Solutions Pty Ltd, independent geological consultants, for its Luisha South Project in the Democratic Republic of the Congo.

The resource as estimated includes:

An Inferred 5.8 Million tonnes at 1.3% Cu for 75,400 tonnes of contained copper metal and 0.4% Co for 23,200 tonnes of contained cobalt metal.

Resource modeling was also completed at various cut off grades as presented in Table One below and includes a higher grade inferred resources of some 1.8 million tonnes at 2% Cu and 0.4% Co for 36,000 tonnes of contained copper metal and 7,200 tonnes of contained cobalt metal.

The resources stated above are more than double those which the company had targeted through its initial drilling program at the Luisha South Project.

Nigel Ferguson, CEO and President of African Metals Corp, commented:

"The Company is very pleased with this maiden resource estimate, which is expected to continue to grow in the coming months. A diamond drill rig will be mobilising to site soon to infill and extend zones of mineralisation untested by the previous RC drilling program., Management expects further significant increases in the total contained metal content estimated for the Luisha South Project.

Concurrently the Company will continue surface drilling to seek extensional mineralisation outside the current resource area."

MINERAL RESOURCE MODEL

Discussion

Titan Drilling Sprl completed a 2,002 meter RC drilling program at the Luisha South Project in June 2010. Nineteen angled and two vertical holes were drilled in the vicinity of the historical Luisha South Pit. Drilling tested the potential for mineralization both down dip and along strike from the current excavated open pit and also tested significant high grade copper and cobalt assay results returned from trench and adit sampling completed in March of this year and reported on the 15th June 2010.

Drill samples were collected from all holes at one meter intervals and riffle split to produce approximately a one kilogram sub-samples for analysis. A total of 1,462 samples including QC samples were dispatched to SGS Minerals laboratory in Kalulushi, Zambia for sample processing and analysis.

An independent resource consultant, Geosure Exploration & Mining Solutions Pty Ltd, visited the project between the 15th and 17th August as part of the due diligence requirements for resource estimation for the Luisha South Project. All data was made available to the consultant in order for the resource to be estimated.

Further Drilling at the Luisha South Project

A diamond drilling program has been planned to be underway on the 15th October 2010. The program is a combination of new holes from surface and tails to existing RC drill holes. Geological interpretation of the June RC drill program indicated that a number of the holes either finished short of, or within, zones of mineralization; ground water being the common cause of early hole termination. Positive data from the diamond holes would enable an upgrade to the maiden resource assessment, which will be released to the market once all data has been reviewed and assessed.

Mineral Resource Classification

The Luisha South Mineral Resource Estimate has been prepared by Mr. Michael Montgomery, Director of Geosure Exploration & Mining Solutions Pty Ltd. Mr. Montgomery has sufficient experience which is relevant to the style of mineralization under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined the by NI 43-101 standards. The resource is currently being reviewed by AFR personnel and will be submitted to the TSX Venture Exchange in order to meet their pre-filing guidelines for resource disclosures. A NI 43-101 compliant technical report documenting the resource estimate will be filed on SEDAR within 45 days of the date of this news release.

The Inferred Resource is detailed in the Table One below.

Table One: Luisha South Inferred Mineral Resource

  Cut-off (CU%) Tonnes ('000's)   Cu (%)   Co (%)   Contained Cu (million tonnes)   Contained Co (million tonnes)  
  *0.50 5800   1.3   0.4   75,400   23,200  
  0.75 4900   1.4   0.4   68,600   19,600  
  1.50 1800   2.0   0.4   36,000   7,200  
  2.00 800   2.4   0.4   19,200   3,200  
  3.00 70   3.7   0.6   2,590   420  
  *Base case scenario for resource estimate  

Bulk Density Measurements

SGS Minerals Laboratory in Kalulushi, Zambia as well as undertaking all analytical work for the RC drill samples also provided all bulk density data based on work completed on a suite of 266 samples taken from RC drill chips. A bulk density of 2.09 was used to complete the resource estimate.

Mineralisation Modelling

Geosure Pty Ltd of Brisbane, Australia was contracted to undertake the resource estimations. A wireframe model of the mineralised system was based on all available information as at August 2010.

The Luisha South deposit was modelled using Surpac 6.1.4 software. A digital terrain model was supplied to Geosure for topography. Closed 'wireframe' solids were created to define geological domains. All modelling was completed in supplied WGS 84 co-ordinate system.

Variography was used to describe the spatial variability of both copper and cobalt. This variability was measured in the form of a mathematical model known as a variogram. These models were then used with a kriging algorithm to recreate the spatial continuity determined through variogram modelling. Drill data was composited to two (2) metre intervals within geological domains to standardise sample support.

A 3 dimensional block model was constructed using Surpac Mining Software. The block model was constructed with a parent cell size of 20mN by 10mE and 5mRL. These cells were further sub-blocked to 5mN by 2.5mE and 1.25mRL. All relevant attributes were coded into the block model.

Grade estimation was performed using OK methodologies in Surpac Mining Software. Grade estimates were constrained to within the mineralized geological domains. Grade estimation parameters were derived from several trials and included comparing block estimates to mean composite drill grade.

ON BEHALF OF THE BOARD OF DIRECTORS OF AFRICAN METALS CORPORATION

Nigel Ferguson, President & CEO

Information in this report relating to Exploration Results has been reviewed and is based on information compiled by Nigel Ferguson, who is a member of The Australian Institute of Mining and Metallurgy. Mr. Ferguson is the CEO and President of African Metals Corp. and has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activity which he is undertaking to qualify as a "Competent Person" as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" and is a "Qualified Person" as defined in "National Instrument 43-101" of the Canadian Securities Administrators. Mr. Ferguson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Information in this report relating to Mineral Resources has been estimated and compiled by Michael Montgomery of Geosure Consulting Pty Ltd of Brisbane, Queensland, Australia. Mr Montgomery is a member of The Australasian Institute of Mining & Metallurgy and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" and is a "Qualified Person" as defined in "National Instrument 43-101" of the Canadian Securities Administrators. Mr Montgomery consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

A complete Technical Report will be lodged with SEDAR within 45 days of this announcement.

This News Release contains forward-looking statements. Forward-looking statements are statements which relate to future events. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our industry, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested herein. Except as required by applicable law, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results.

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 NEW RELEASE.

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