Argosy Minerals Limited
ASX : AGY

Argosy Minerals Limited

March 04, 2011 14:51 ET

Argosy Minerals Limited: Bembeye Iron Ore Project

LANGLEY, BRITISH COLUMBIA--(Marketwire - March 4, 2011) - Argosy Minerals Limited ("Argosy") (ASX:AGY) is pleased to announce that it has been granted three exploration licences, through its wholly owned subsidiary Argosy Exploration (SL) Limited, for iron ore in Sierra Leone known as the Bembeye Iron Ore Project (Argosy 93 Prospect). 

The government of Sierra Leone has granted Argosy a four year exploration license to explore for iron ore in an area covering 136.2 square kilometres in the south of the country, 100 kilometres from the major city of Bo, the second largest city in Sierra Leone and 120 kilometres from the coast. 

Argosy owns 100% of the exploration license.

Argosy's consultant and advisors have substantial experience and expertise in dealing with mineral prospects in Sierra Leone.

Argosy's Chief Consultant Geologist qualified at Durham University in England and upon his return to Sierra Leone joined the Geological Survey working for the government services in a senior capacity for several years. His unparalleled knowledge of the geology in Sierra Leone has enabled Argosy to make application for and be granted this exploration license.

Sierra Leone is a former British colony with a population of approximately 6.5 million.

The country has had a stable government since the end of the civil war in 2001. The last election was held in July 2007 and the country has remained stable under the present President Ernest Bai Karoma. 

Argosy applied for the license on the basis of previous work on the tenement as follows:

1. A pronounced airborne magnetic anomaly shown by N.W. Wilson (1958/1959) of the S.L. Geological Survey to be caused near Bembeyema by a hard hypersthenes-quartz-magnetite. 

2. The Bembeye is the southern mass of a range of hills that run in a north-easterly direction for about 30 kilometres. It is perceived that the magnetic lithology will run throughout the strike length of the range of hills, thus providing the possibility of substantial tonnage. 

3. J. Middleton of the S.L. Geological Survey reported useful results from crushing and sieving a composite sample from selected high grade bands of the hard quartz-hyperthene-magnetite gneiss to determine the extractable percentages of magnetite. 

Mesh Fraction Total Weight Wt of washed Magnetite % Magnetite
-30, +60 355 189 53.3
-60, +100 247 109 44.1
-100, +200 237 102 43.1
-200 265 94 35.4
Total 1104 494 44.6

4. An analysis of a representative sample of the separated magnetite and chats was undertaken by Mrs. I.I. Huhtta of the Sierra Leone Geological Survey. Her findings are shown below:

Oxide/Element %
SiO2 8.70
TiO2 0.35
Fe2O3 61.81
FeO 25.71
P2O5 0.18
S 0.04
Total 96.79

Proposed Exploration Programme

The exploration programme to be carried out over the next twelve months will include: 

  • geological mapping
  • geochemical sampling and trenching
  • aero magnetic and ground magnetic surveys over the permit area
  • drill testing of all target areas. 

Terms of the Transaction

Argosy has resolved, subject to shareholder approval to issue 2 million shares to each of its consultants in Sierra Leone, being in total 4 million shares, together with a further 500,000 shares to its consultants in South Africa and Australia. 

ON BEHALF OF THE BOARD

Peter Lloyd, Chief Executive Officer

Disclaimer

This information has been prepared by Argosy Minerals Limited ("Argosy" or "the Company"). It is not a disclosure document and should not be considered as an offer or invitation to subscribe for, or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to these securities. No agreement to subscribe for securities in the Company will be entered into on the basis of this information. 

This document contains forecasts and forward looking information. Such forecasts, projections and information are not a guarantee of future performance, involve unknown risks and uncertainties. Actual results and developments will almost certainly differ materially from those expressed or implied. Argosy has not audited or investigated the accuracy or completeness of the information, statements or opinions contained in this document. Accordingly, to the maximum extent permitted by applicable laws, Argosy makes no representation and can give no assurance, guarantee or warranty, express or implied, as to, and takes no responsibility and assumes no liability for, the authenticity, validity, accuracy, suitability or completeness of, or any errors in or omission, from any information statement or opinion contained in this presentation. 

Throughout this document all figures are quoted in A$ dollars unless otherwise stated. 

You should not act or refrain from acting in reliance on this presentation material. This overview of the Company's Bembeye Iron Ore Project ("Bembeye Project") does not purport to be all inclusive or to contain all information which its recipients may require in order to make an informed assessment of the Bembeye Project's prospects. You should conduct your own investigation and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this presentation before making any investment decision. 

This presentation does not constitute financial product advice (nor investment, tax, accounting or legal advice) and has been prepared without taking account of any person's investment objectives, financial situation or particular needs. 

ACN 073 391 189

NEWS RELEASE No. 06 - 11

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