Agricola Resources plc
LSE : AGRI

September 16, 2008 02:00 ET

INFERRED RESOURCE FOR THE LULEPOTTEN COPPER-GOLD DEPOSIT,



16/09/2008
                                                                                          GB0003046835/GBP/PLUS-exn
                                                            
                                                 AGRICOLA RESOURCES PLC
                                                            
                      AGRICOLA ANNOUNCES INFERRED RESOURCE FOR THE LULEPOTTEN COPPER-GOLD DEPOSIT,
                                              BALLEK JOINT VENTURE, SWEDEN
                                                            

HIGHLIGHTS

*        A  JORC-compliant  Inferred Resource has been completed for the Lulepotten copper-gold deposit  at  the  Ballek
    Joint Venture, Sweden:

                                              Lulepotten Inferred Resource
                     5.4 Million Tonnes at 0.8% Cu and 0.3g/t Au, for a total of 43,000 Tonnes of Cu
                             and 52,000 ounces Au contained metal (at 0.3% Cu cut -off grade)


*       Mineralisation is open along strike and at depth, providing excellent potential for further resource upgrades.

*        Agricola  Resources plc can earn up to 70% interest in the Ballek JV from Beowulf Mining plc by  completing  an
    agreed work programme of drilling by June 2009, and completing a further US$500,000 exploration expenditure on the JV.


LULEPOTTEN RESOURCE ESTIMATION

The  Directors of Agricola Resources Plc advise that a maiden Inferred Resource estimate has been completed to JORC  code
reporting  standard for the Lulepotten copper-gold deposit on the Ballek Joint Venture project, located in the Norrbotten
region  of Northern Sweden (Figure 1 www.agricolaresources.com)).  This represents the first stage review of known copper
resources  in  the Ballek area following the diamond drilling program completed by Agricola earlier in  2008  which  also
intersected copper sulphide mineralisation.

The  estimate for the Lulepotten deposit has outlined a total Inferred Resource of 5.4 million tonnes grading 0.3% Cu and
0.3g/t  Au, representing a total of 43,000 tonnes of contained copper metal and 52,000 ounces of contained gold  using  a
cut-off value of 0.3% for copper.

     Deposit                             Inferred Resource                                   Contained Metal
                       Tonnes (Mt)                        Grade                       Copper (t)           Gold (oz)
                                               Cu (%)              Au (g/t)                            
    Lulepotten             5.4                  0.8                  0.3                43,000              52,000

Diamond  drilling by the Swedish Geological Survey (SGU) in the 1960's and 1979's identified fracture-hosted  copper-gold
sulphide  mineralisation at the Lulepotten deposit.  Re-evaluation of these drilling data by Agricola suggests  that  the
drilling  has  intersected  locally  significant thicknesses and grades  of  copper-gold  mineralisation  that  may  have
sufficient continuity to be amenable to economic extraction through a bulk mining method.

The  Lulepotten  resource has been estimated on the basis of historical diamond drilling information  and  assay  results
recovered  from the SGU archives in Malå, Sweden.  These data have been verified by field checking of drill  hole  collar
locations, visual inspection of the drill core and a full review of geological logging, sampling and assaying procedures.
Confidence  in  the  available  data is sufficient to establish the geological and grade continuity  appropriate  for  an
Inferred Resource classification for the deposit.

The resource model for the Lulepotten deposit was defined by a total of 49 diamond drill holes, drilled perpendicular  to
strike  and  completed  on  a nominal 50 metre by 50 metre grid.  The model comprises a series of  sub-parallel,  tabular
bodies  that  show continuity over approximately 600 metres of strike length and down dip to the limit of  drill  testing
(Figure  2  www.agricolaresorces.com).  The resource estimate has been constrained to model wireframe volumes defined  by
the available geological and geochemical data.

An  average  specific  gravity  (SG)  value  of 2.7 has been used for the  resource  estimate,  in  the  absence  of  any
representative density measurements for the deposit.  This value has been chosen on the basis of average accepted  values
for the rock types observed in the diamond drill core.


THE LULEPOTTEN COPPER-GOLD DEPOSIT

The  Lulepotten  copper-gold  mineralisation  is  localised along the contact  between  a  granitoid  and  a  package  of
intercalated  mafic to felsic volcanic rocks and sedimentary units (Figure 3 www.agricolaresources.com)  which  have  all
been  metamorphosed and strongly foliated.  The mineralisation occurs in a series of sub-parallel structures that  follow
the  local  fabric, which strikes southwest-northeast and dips steeply to the northwest.  Sulphide mineralisation  within
the  deposit  comprises  irregular  veinlets  and  disseminations of  chalcopyrite  plus  bornite,  with  lesser  pyrite.
Mineralisation  is mainly developed within the metavolcanic and metasedimentary sequence but also locally  occurs  within
the adjacent granite.

During  the  period  1960 to 1978, 104 diamond drill holes were completed over the deposit area for approximately  22,265
metres of drilling on a nominal 50 metre by 50 metre grid spacing.  These drill holes, which are currently stored at  the
SGU core archive, effectively tested the mineralised structure to a depth of about 250-300 metres below surface, and over
a  strike  length of about 1,500 metres.  Only a single hole has tested the structure at depth (600 metres below surface)
and results indicate that the mineralisation extends down-dip.

The  mineralisation is open along strike and at depth and the prospective strike length of the mineralised  structure  is
approximately  5,000 metres.  Geological and geophysical targets with similar characteristics to the known mineralisation
have  been identified to both the north and southwest of the deposit, along the same geological structure that hosts  the
mineralisation.  Further diamond drilling has been planned in the Q4 2008-Q1 2009 drilling season to test  these  targets
and the company has secured a drilling rig for this purpose.

BACKGROUND

Agricola has signed an option and earn-in agreement with Beowulf Mining plc on the Ballek exploration permits that cover
110  square  kilometres of Arjeplog County of Northern Sweden.  This project is considered prospective  for  iron-oxide,
copper-gold-uranium (IOCG) style mineralisation. Agricola will acquire a 51% interest in the Ballek exploration  permits
by  completing 3,200 metres of diamond drilling before June 30, 2009. Of this, 1,617 metres has been completed to  date.
Agricola's  interest can be increased to 70% through funding a further USD $500,000 of exploration  expenditure  on  the
project.

COMPETENT PERSONS

In  accordance  with AIM Rules, the information in this announcement has been reviewed and signed off  by  Dr.  Jan  Ola
Larsson, (Fil. Kand, PhD, DIC). Technical Director of the Company, who has over 30 years relevant experience within  the
sector.

Mr Lachlan Reynolds, Energy Ventures Ltd, Exploration Manager
BSc (Hons Geology), MAusIMM

Mr  Reynolds  is  a  geologist  with over 17 years experience in mineral exploration, development  projects  and  mining
operations.   Commencing  his  career with WMC Resources, Mr Reynolds has been involved in Greenfield  gold  and  nickel
exploration   projects in the Eastern Goldfields of Western Australia, resource development at the Ernest Henry  copper-
gold  deposit  (Queensland), the Tampakan copper-gold deposit (Philippines) and supervision of near-mine exploration  at
the giant Olympic Dam copper-uranium-gold-silver mine in South Australia.

Prior to joining Energy Ventures, Mr Reynolds held the senior position of Principal Exploration Geologist for OceanaGold
Corporation,  managing  exploration for the open pit and underground mines in the Macraes and  Reefton  Goldfields,  New
Zealand.  Mr Reynolds currently manages the company's uranium and iron-oxide copper gold exploration projects in Sweden.

Lauritz Barnes, Trepanier Pty Ltd, Principal
BSc (Hons Geology), MAIG

Mr  Barnes is a geologist specialising in resource estimation and project evaluation with over 10 years experience.   Mr
Barnes  began  working  with Mitchell River Group in 1999 as a Geologist and consultant to Sally Malay  Mining  Limited,
Albidon Limited, Exco Resources NL and Valdera Resources Limited. Prior to this, Mr Barnes worked for BHP Minerals  (now
BHP Billiton) working on laterite nickel projects.

Recently  his  primary consulting roles have been as a Senior Resource Geologist to Mirabela Nickel  Limited  and  as  a
consultant to African Energy Resources and Energy Ventures Limited.

The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves (the 'JORC Code') sets out minimum standards, recommendations and guidelines
for Public Reporting in  Australasia of Exploration Results, Mineral Resources and Ore
Reserves. The information contained in this announcement has been presented in
accordance with the JORC Code and references to "Inferred Resources" are to that term
as defined in the JORC Code.

Information in this report relating to Mineral Resources has been compiled or reviewed by Mr Lachlan Reynolds  (a  full-
time  employee of Energy Ventures Ltd) and Mr Lauritz Barnes (an employee of Trepanier Pty Ltd, a consultant  to  Energy
Ventures).  Mr Reynolds is a member of The Australasian Institute of Mining and Metallurgy and Mr Barnes is a member  of
the  Australian  Institute of Geoscientists.  Mr Reynolds has sufficient experience which 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 under the 2004 Edition of the Australasian Code for reporting of Exploration Results, Mineral Resources
and Ore Reserves.  Mr Barnes has sufficient experience which is relevant to the modelling and resource estimation and to
the  activity which he is undertaking to qualify as Competent Person under the 2004 Edition of the Australasian Code for
reporting  of  Exploration  Results, Mineral Resources and Ore Reserves.  Mr Reynolds  and  Mr  Barnes  consent  to  the
inclusion of the data in the form and context in which it appears.

                                                            
Glossary of Technical Terms

JORC - The Australian Code for Reporting of Mineral Reverses Ore Reserves issued by the Joint Ore Reserves Committee.

Grade (g/t) - Grammes per tonne, the unit measurement of grade.

Au - The chemical symbol for gold.

Cu - The chemical symbol for copper.


The Directors of the Issuer accept responsibility for this announcement.
Contact :
Agricola Resources plc
Dr. Robert Young,
Chairman
Tel: +44 (0) 1353 649 701

St Helen's Capital Plc
Duncan Vasey/Barry Hocken
Tel: +44 (0) 207 628 5582
                                                            

Contact Information

  • Agricola Resources plc