Afri-Can Marine Announces Positive Pre-Feasibility Study on Mining
Lease 111 Off the Coast of Namibia
MONTREAL, QUEBEC--(Marketwired - Jan 23, 2014) - Afri-Can Marine
Minerals Corporation ("Afri-Can") (TSX-VENTURE:AFA) has completed a
preliminary study of the feasibility of resuming mining during 2014
on Mining Lease ("ML") 111 situated off the coast of Namibia (see
Map 1 and Map 2), for which Afri-Can has an option to acquire an
80% interest from Diamond Fields Ltd ("DFI"). The Pre-Feasibility
Study ("PFS") is based on existing Probable Diamond Reserves of
319,000 carats, which are estimated from portions of the Indicated
Mineral Resources that were press released on October 1st,
2013.
A National Instrument 43-101 compliant technical report covering
the Pre-Feasibility Study has been filed on Sedar and can be viewed
at: www.sedar.com or on the web site of Afri-Can at
www.afri-can.com.
Pre-Feasibility Study Highlights:
Afri-Can's share of Net Present Value (NPV) (after tax) |
|
US $20.2 million |
Afri-Can's share of Internal Rate of Return (IRR) (after tax) |
|
31% |
Probable Diamond Reserves |
|
319,000 carats |
Average annual production |
|
159,500 carats |
Diamond price (projected average) |
|
US $484 per carat |
Initial Mine Life |
|
2 years |
Salient features of the Pre-Feasibility Study are as
follows:
- |
Estimated Probable Diamond Reserves of 319,000 carats at an average
grade of 0.24 carats per square metre are based upon the
economically extractable portions of the Indicated Mineral
Resources only - and none of the Inferred Resources - that were
press released on October 1st, 2013. The economic cut-off grade for
the project will be 0.126 carats per square metre. |
|
|
- |
Diamond prices are estimated based upon the last sales from ML 111
in 2008, escalated by the amount which Namibian diamonds have
subsequently risen, adjusted to take into account the different
average diamond sizes in each area of ML 111, which gives a
weighted average value of $484 per carat. |
|
|
- |
The
most efficient mining method for ML 111 is the seabed crawler
system. The joint venture with International Mining and Dredging
Holding Ltd (IMDH) announced on December 5th, 2013, will facilitate
the charter of the mining vessel m.v. "Ya Toivo", which
has an efficient seabed crawler system; |
|
|
- |
Vessel operating costs for the first three months are to be funded
by Afri-Can and are estimated from reported 2002 operating costs
for the same vessel, escalated by the South African inflation rate
to 2014. The estimated operating costs of the vessel and equipment
are $122,000 per day, which after the first three months of
operations, are expected to be financed from diamond sales revenue.
The Memorandum of Understanding between Afri-Can and IMDH announced
on December 5th, 2013, provides for the costs of preparing the
vessel for the work to be covered by IMDH. Afri-Can has no
requirement for capital expenditure to acquire equipment. Afri-Can
is committed to fund the vessel's operating costs of $3.7 million
per month for a maximum of three months, by which time the
operations are expected to be cash flow positive. |
|
|
- |
Afri-Can's share of the total net earnings before interest and
taxes for the two years of initial mine life will amount to an
estimated $20.4 million (due to corporate losses carry forward,
taxes for the first 2 years will be zero); |
|
|
- |
It is
anticipated, but not guaranteed, that additions will be made to the
Probable Reserves by sampling in areas of Inferred Resources, by
re-classification of the Reserves because of favourable working
attributes or by exploration of areas which potentially contain
undiscovered deposits. |
Recommendations of the Pre-Feasibility Study
- |
Probable Reserves can be economically mined, and it is recommended
that mining operations should commence as soon as practicable; |
|
|
- |
Sampling should be undertaken in the areas of Inferred Resources to
generate more Indicated Resources and thus additional Probable
Reserves; |
|
|
- |
An
exploration program should be drawn up with the objective of
generating new resources. |
Pierre Léveillé, President and CEO of Afri-Can, stated that, "We
are very pleased with this Pre-Feasibility Study. It confirms that
ML 111 forms a strong basis for the start of a mining venture that
will 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 on a
strong project in a very solid industry."
Afri-Can's immediate goal is to focus on ML 111's existing
reserves in order to resume production in the shortest time frame
possible. Afri-Can's technical team is currently designing a
sampling program of up to 800 samples that will serve to establish
mining blocks and mining grades as well as serve to increase some
or all of the Inferred Resources to the Indicated category. A
detailed mine plan will be design upon completion of the sampling
program. It is anticipated, but not guaranteed, that it will be
possible to re-classify portions of the new Indicated Resources as
additional Probable Reserves. The schedule for this program will be
communicated to our investors once discussions with IMDH, as per
the Memorandum of Understanding announced on December 5th, 2013,
are finalized.
The Independent PFS was compiled by Richard Foster, B.Sc. (Hons.
Geology), Pr. Sci. Nat., for Afri-Can with inputs from other
specialised consultants under the management of Afri-Can. As per
National Instrument 43-101, Mr. Foster is independent from the
corporation. Mr. Foster has over 40 years of direct experience in
the marine diamond exploration and mining industry off the Namibian
coast. He 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 ML 111
Mining Lease 111 lies between 5 and 20 kilometres north of
Luderitz, covers 312 square kilometres, and lies in water depths up
to 130 metres. 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 recent Afri-Can NI 43-101
report estimated the remaining diamond resources on ML 111 at
413,000 carats as indicated resources and 453,000 carats in the
inferred category. The resources exist in the Marshall Fork, Staple
Basin/Conical Beach and Diaz Reef areas. Diamond Fields
International Ltd ("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. DFI ceased production following the
world financial crisis.
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.
Shares outstanding: 91,527,864
Forward-Looking Statements
This press release contains forward-looking statements,
which reflect the Corporation's expectations regarding future
growth, results of operations, performance and business prospects.
These forward-looking statements may include statements that are
predictive in nature, or that depend upon or refer to future events
or conditions, and can generally be identified by words such as
"may", "will", "expects", "anticipates", "intends", "plans",
"believes", "estimates", "guidance" or similar expressions. In
addition, any statements that refer to expectations, projections or
other characterizations of future events or circumstances are
forward-looking statements. These statements are not historical
facts but instead represent the Corporation's expectations,
estimates and projections regarding future events.
Forward-looking statements are necessarily based upon a
number of estimates and assumptions that, while considered
reasonable by the Corporation, are inherently subject to
significant business, economic and competitive uncertainties and
contingencies. Known and unknown factors could cause actual results
to differ materially from those projected in the forward-looking
statements. Such factors include, but are not limited to: the
future financial or operating performance of the Corporation and
its subsidiaries and its mineral projects; the anticipated results
of exploration activities; the estimation of mineral resources; the
realization of mineral resource estimates; capital, development,
operating and exploration expenditures; costs and timing of the
development of the Corporation's mineral projects; timing of future
exploration; requirements for additional capital; climate
conditions; government regulation of mining operations; anticipated
results of economic and technical studies; environmental matters;
receipt of the necessary permits, approvals and licenses in
connection with exploration and development activities; changes in
commodity prices; recruiting and retaining key employees;
construction delays; litigation; competition in the mining
industry; reclamation expenses; reliability of historical
exploration work; reliance on historical information acquired by
the Corporation; optimization of technology to be employed by the
Corporation; title disputes or claims and other similar
matters.
If any of the assumptions or estimates made by management
prove to be incorrect, actual results and developments are likely
to differ, and may differ materially, from those expressed or
implied by the forward-looking statements contained herein. Such
assumptions include, but are not limited to, the following: that
general business, economic, competitive, political and social
uncertainties remain favorable; that actual results of exploration
activities justify further studies and development of the
Corporation's mineral projects; that the future prices of minerals
remain at levels that justify the exploration and future
development and operation of the Corporation's mineral projects;
that there is no failure of plant, equipment or processes to
operate as anticipated; that accidents, labour disputes and other
risks of the mining industry do not occur; that there are no
unanticipated delays in obtaining governmental approvals or
financing or in the completion of future studies, development or
construction activities; that the actual costs of exploration and
studies remain within budgeted amounts; that regulatory and legal
requirements required for exploration or development activities do
not change in any adverse manner; that input cost assumptions do
not change in any adverse manner, as well as those factors
discussed in the section entitled "Risk Factors" in the
Corporation's Annual Management Analysis and Discussion of the
audited Financial Statements for the year-ended August 2013 found
on sedar.com.
The Corporation disclaims any intention or obligation to
update or revise any forward-looking statements whether as a result
of new information, future events or otherwise, except as required
by applicable law.
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 associated with this press release, please
visit the following link:
http://media3.marketwire.com/docs/Map1_Map2.pdf.
Afri-Can Marine Minerals CorporationPierre LeveillePresident
& CEO(514) 846-2133 or TOLL FREE North America: 1 (866)
206-7475Afri-Can Marine Minerals CorporationBernard J.
TourillonExecutive V.P. and CFO(514) 846-2133 or TOLL FREE North
America: 1 (866) 206-7475(514)
372-0066info@afri-can.comwww.afri-can.com
(TSXV:AFA)
Historical Stock Chart
From May 2024 to Jun 2024
(TSXV:AFA)
Historical Stock Chart
From Jun 2023 to Jun 2024