Alphamin Resources Corp.
TSX VENTURE : AFM

Alphamin Resources Corp.

October 27, 2014 11:57 ET

Bisie Project Update

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 27, 2014) - Alphamin Resources Corp. (TSX VENTURE:AFM) ("Alphamin" or the "Company") is pleased to announce that it has received initial results from the resource infill and deep drilling at Mpama North and that various technical studies to support the initiation of a definitive feasibility study (DFS) are nearing completion with the DFS on track to commence during the first Quarter 2015 on its wholly owned Bisie Tin Prospect (Bisie Project) in East central Democratic Republic of Congo (DRC). Following the successful completion of the DFS, construction of the commercial underground mine at Mpama North is anticipated to commence in early 2016.

EXPLORATION ACTIVITIES:

Since recommencement of drilling on 19th September 2014, the Company completed three holes for 895 metres at Mpama South. The drill rigs have now been moved to complete the infill resource and deep drilling programme at Mpama North where five holes will be re-drilled and the programme completed. The updated mineral resource estimate is expected to be completed in the first Quarter of 2015.

Drilling on Mpama North has confirmed that tin mineralisation continues at depths exceeding 400 metres within a plunging high grade chute with a strike length of 300-400 metres and is open to the north. Significant results are shown in Table 1 and Figure 1 and include:

  • 25m @ 7.98% Sn from 113m in infill drillhole BGC053 including 11.1m @ 15.29% Sn from 120.4m;
  • 18m @ 1.70% Sn from 202m in resource extension drillhole BGC041 including 7.6m @ 3.32% Sn from 208.3m;
  • 10.4m @ 4.28% Sn from 262.6m in resource extension drillhole BGC042 including 4.4m @ 8.21% Sn from 262.6m;
  • 7m @ 3.39% Sn from 317m in resource extension drillhole BGC043;
  • 10.95m @ 2.71% Sn from 280.7m and 8.85m @ 4.03% Sn from 297m in resource extension drillhole BGC047;
  • 11.4m @ 3.03% Sn from 397.6m in resource extension drillhole BGC056 including 3m @ 10.08% Sn from 398m.

At Mpama South visual cassiterite was observed in zones exceeding 24m of width down to depths of 350 metres. Encouraging results reported previously (32.2m @ 0.76% Sn including 22.05m @ 1.02% Sn and 11m @ 1.48% Sn) and recent observations in the drill core will be followed up as a priority with a first resource estimate targeted for the end of second Quarter 2015. Drilling will resume at Mpama South once repairs are complete on the third rig.

A significant tin in soil anomaly was identified along the ridge to the south of current areas of drilling where a number of good geophysical targets were identified. Soil and stream sediment sampling programmes will need to be redone on adjacent PR10346 where samples collected previously were destroyed during the destruction of the camp. Well defined soil and stream anomalies will be further evaluated with detailed soil sampling and drilling.

TECHNICAL STUDIES:

Bara Consulting (Pty) Ltd has confirmed that economic comparisons clearly support an underground operation at Mpama North. Backfill will be used to ensure maximum recovery of the ore body left behind in support pillars. Their mine plan will be rerun once the resource update has been completed.

Metallurgical test work and piloting is near completion at Maelgwyn Mineral Services Africa (Pty) Ltd on a 7 tonne bulk sample in conjunction with Mintek, SGS South Africa (Pty) Ltd and other leading South African laboratories and equipment suppliers. A final report is expected during December 2014.

Studies for the support of the DFS (definitive feasibility study) are ongoing at Paradigm Project Management (Pty) Ltd and are expected to be completed in the 4th Quarter of 2014. These studies include logistics and infrastructural studies, including access to site, construction facilities, employee facilities, water supply, electricity solutions, product transport and the potential for on-site smelting.

The studies will focus on maximizing local employment and services to create community involvement and a sustainable environment for the project area.

COMMUNITY DEVELOPMENT & GOVERNMENT INITIATIVES:

The base line study on the ground in Walikale is underway, led by Coastal & Environmental Services Pty Ltd (CES) to assess the local requirements and how best to utilise resources for the local communities.

The company is in the process of open dialog for incorporating the LOWA FOUNDATION, where it is planned to allocate 4% of exploration expenditure towards the foundation for local social development initiatives. The Company CEO, Mr Bruce Curling is interacting with key stakeholders at a local and national level with a positive outcome expected shortly. The Company has improved the teaching and learning ability of a school in the Logu area by supplying the school with teaching aids and stationary for all children. The road from Logu to Bisie has been designed to maximize the use of labor. The road is currently being cleared by hand and is expected to be completed late next year.

PERMITS AND TENURE:

The partial conversion of the Exploration Permit PR5266 into a Mining Permit is in progress. The application has been approved by the Environmental Department and the Technical Study has been submitted to the Mines Department. All tenements are in in good standing and compliant with the laws of DRC.

ARTISANAL MINING & VALIDATION:

Subsequent to the attack and then destruction of the camp and equipment at Bisie the Governor of North Kivu issued a Provincial Order No-1/215/CAB/GP-NK/2014 suspending all artisanal activities and issued instructions to the artisanal miners to vacate the area. The Government together with the United Nations body called JMAC/OIM (Joint Mission Analysis Cell of the International Organization for Migration) supported by USAID and other international organizations validated 7 new official artisanal mining sites. It is anticipated that many of the artisanal miners at Bisie will move to these validated sites. Since the Governor's order, the number of artisanal miners at Bisie has been decreasing, though the situation remains tense.

SECURITY:

The Company continues to conduct work programmes on the project with minimal interruption since recommencement. The efforts of the National DRC Army (FARDC) together with MONUSCO have reduced rebel activity in the region, which will further continue to stabilize the area, making it more conducive to foreign investment.

CORPORATE UPDATE:

The cash position remains strong with over CAD$5 million of working capital available. A significant portion of spend continues to be focused on exploration and resource definition with overhead expenditure in line with industry expectations.

Further fund raising is anticipated in the coming months and negotiations with strategic investors continue to ensure the continued success of the project.

The continuation of Alphamin from Canada to Mauritius has now been completed effective September 30, 2014. The Company is now incorporated in Mauritius.

Jeremy Witley, a qualified person under National Instrument NI43-101, has verified technical data relating to Mineral Resources and Exploration disclosed in this release.

ON BEHALF OF THE BOARD OF DIRECTORS

Bruce Curling, Chief Executive Officer

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 News Release.

CAUTION REGARDING FORWARD LOOKING STATEMENTS

Information in this news release that is not a statement of historical fact constitutes forward-looking information. Such forward-looking information includes statements regarding the Company's planned exploration programs. Actual results, performance or achievements of the Company may vary from the results suggested by such forward-looking statements due to known and unknown risks, uncertainties and other factors. Such factors include, among others, that the business of exploration for tin and other precious and base minerals involves a high degree of risk and is highly speculative in nature; few properties that are explored are ultimately developed into producing mines; geological factors; the actual results of current and future exploration; changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company's publicly filed documents.

There can be no assurance that any mineralisation that is discovered will be proven to be economic, or that future required regulatory licensing or approvals will be obtained. However, the Company believes that the assumptions and expectations reflected in the forward-looking information are reasonable. Assumptions have been made regarding, among other things, the Company's ability to carry on its exploration activities, the sufficiency of funding, the timely receipt of required approvals, the price of tin and other precious and base metals, that the Company will not be affected by adverse political events, the ability of the Company to operate in a safe, efficient and effective manner and the ability of the Company to obtain further financing as and when required and on reasonable terms. Readers should not place undue reliance on forward-looking information.

Alphamin does not undertake to update any forward-looking information, except as required by applicable laws.

NOTES

• Drilling

Drilling results are quoted as length weighted downhole intersections. True mineralisation width is approximately 80% of intersection length for all holes. The reported grades were determined using a cut-off grade of 0.1% Sn, 25g/t Ag, 1% Zn, 1% Pb and 0.1% Cu to select significant and anomalous intersections, with a maximum of 3m internal dilution being incorporated into the composite where appropriate. A top cut of 60% was applied to Sn, 30% to Zn and 20% to Pb.

Half core samples for all drillholes were submitted to accredited ALS Chemex laboratory in Johannesburg where samples were analyzed using ME-XRF05 conducted on a pressed pellet with 10% precision and an upper limit of 10 000ppm Sn. Over limit samples were sent to Vancouver for ME-XRF10 which uses a Lithium Borate 50:50 flux with an upper detection limit of 60% Sn and precision of 5%. ME-ICP61, HF, HNO3, HCL04 and HCL leach with ICP-AES finish was used for 33 elements including base metals. ME-OG62 a four acid digestion was used on ore grade samples for Pb, Zn, Cu & Ag. Industry accepted QA/QC checks were applied including use of duplicates, blanks and standards.

• Prospect Name Changes

The two main target areas at Bisie, previously referred to as Gecomines and Golgotha, have been renamed to Mpama North and Mpama South respectively.

Table 1: Drill holes summary with mineralised intercepts
Hole ID GPS Easting GPS Northing EOH Azi-muth Incli-nation Element From (m) To (m) Width (m) Grade Type
BGC038 583054 9885970 293.5 270 -70 Sn (%) 247 271.5 24.5 2.03 Extension
Incl. Sn (%) 252.12 267.3 15.18 2.94
Zn (%) 260 260.5 0.5 1.19
Cu (%) 247.88 268 20.12 0.55
BGC039 582990 9885757 219.5 270 -75 Sn (%) 193.84 205 11.16 0.37 Extension
Incl. Sn (%) 197.9 201.17 3.27 0.66
Cu (%) 189.23 191.9 2.67 0.26
Cu (%) 197.45 200.7 3.25 0.34
Cu (%) 206 208 2 0.22
BGC040 583096 9885706 336.6 270 -60 Sn (%) 248.15 251 2.85 0.11 Extension
Cu (%) 294.8 301 6.2 0.89
Cu (%) 320.85 322.42 1.57 0.39
Cu (%) 323 325 2 0.34
BGC041 583012 9886006 225.5 270 -60 Sn (%) 202 220 18 1.70 Extension
Incl. Sn (%) 208.3 215.9 7.6 3.32
Cu (%) 213.3 220 6.7 0.93
Incl. Cu (%) 215.45 219 3.55 1.36
BGC042 583102 9886005 296.5 270 -60 Sn (%) 262.6 273 10.4 4.28 Extension
Incl. Sn (%) 262.6 267 4.4 8.21
Sn (%) 282 282.55 0.55 9.31
Cu (%) 267 283.5 16.5 0.10
BGC043 583143 9886050 352.2 270 -60 Sn (%) 317 324 7 3.39 Extension
Sn (%) 329 333 4 0.18
Cu (%) 318 331 13 0.21
BGC044 583177 9886094 400 270 -60 Sn (%) 373 386 13 0.82 Extension
Incl. Sn (%) 376 385 9 1.08
Cu (%) 375 385 10 0.32
BGC045 583040 9886053 283.5 270 -60 Sn (%) 251.65 263 11.35 1.36 Extension
Incl. Sn (%) 252.3 257 4.7 2.86
Ag (g/t) 253.5 254 0.5 35.2
Cu (%) 255 264 9 0.33
BGC046 583098 9885853 287 270 -61 Sn (%) 266 267 1 0.91 Extension
Sn (%) 274 284 10 1.18
Incl. Sn (%) 276 278.25 2.25 2.59
Zn (%) 279 280 1 1.07
Cu (%) 274 282.5 8.5 0.80
Incl. Cu (%) 275 279 4 1.34
BGC047 583093 9886054 321.5 270 -60 Sn (%) 280.7 291.65 10.95 2.71 Extension
Sn (%) 297 305.85 8.85 4.03
Ag (g/t) 289.6 290 0.4 113.0
Pb (%) 289.6 290 0.4 1.21
Cu (%) 298.6 305.85 7.25 0.15
BGC048 583000 9885908 177 270 -60 Sn (%) 151 164 13 1.84 Infill
Incl. Sn (%) 157 163.3 6.3 2.78
Cu (%) 152 154 2 0.17
Cu (%) 159 161.5 2.5 0.33
BGC049 583120.7 9886101 355 270 -60 Sn (%) 301.5 306.5 5 0.24 Extension
Cu (%) 306.5 308 1.5 0.48
BGC050 583000 9885905 210.5 270 -75 Sn (%) 181 195 14 3.12 Infill
Incl. Sn (%) 187.35 191 3.65 7.50
Zn (%) 182.7 183.5 0.8 1.18
Cu (%) 164 166 2 0.24
Cu (%) 181.9 192 10.1 0.45
BGC051 583192 9886051 395 270 -60 Sn (%) 364 376 12 2.18 Extension
Incl. Sn (%) 364 369.45 5.45 4.53
Zn (%) 348 349 1 1.09
Cu (%) 365.5 375 9.5 0.26
BGC052 582910.5 9885705 126 270 -75 Sn (%) 81 114 33 1.40 Infill
Incl. Sn (%) 99.5 104 4.5 4.55
Zn (%) 77 78 1 1.08
Zn (%) 87 88 1 1.18
Cu (%) 83 107 24 0.34
BGC053 582952.5 9885705 141.35 270 -70 Sn (%) 113 138 25 7.98 Infill
Incl. Sn (%) 120.4 131.5 11.1 15.29
Ag (g/t) 130.5 131 0.5 35.1
Zn (%) 109 110 1 1.94
Zn (%) 130 130.5 0.5 1.57
Cu (%) 115.5 135 19.5 0.78
Incl. Cu (%) 130.5 134 3.5 1.92
BGC054 583119.3 9885905 300.75 270 -60 Sn (%) 288 295 7 3.62 Extension
Incl. Sn (%) 288.9 291.5 2.6 8.45
Ag (g/t) 292 292.45 0.45 36.5
Cu (%) 288.9 293 4.1 1.01
BGC055 582943 9885749 113.75 270 -54 Sn (%) 88 103 15 0.80 Infill
Incl. Sn (%) 88 96.6 8.6 1.02
Cu (%) 88 91 3 0.31
Cu (%) 94.5 96.6 2.1 0.17
BGC056 583221 9886096 419.2 270 -60 Sn (%) 397.6 409 11.4 3.03 Extension
Incl. Sn (%) 398 401 3 10.08
Cu (%) 398.6 407 8.4 0.33
BGC057 582917.5 9885800 100 270 -60 Sn (%) 79 94 15 0.86 Infill
Incl. Sn (%) 86 92 6 1.79
Zn (%) 75 77 2 4.09
Cu (%) 91.6 94 2.4 0.11
BGC058 582948 9885803 144.5 270 -70 Sn (%) 122 134 12 2.14* Infill
Cu (%) 124 132 8 0.30
*Incomplete interval: samples after 134m lost

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/F1AFM.pdf

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