TIDMAFP
RNS Number : 8824Q
African Pioneer PLC
23 October 2023
23 October 2023
African Pioneer Plc
("African Pioneer" or "the Company")
Central Africa Copperbelt: Commencement of Earn In under Option
Agreement and Update on Western Foreland exploration on the NW
Zambia Joint Venture
African Pioneer plc (" AFP " or the " Company" ) the exploration
and resource development company with advanced projects in Namibia,
Botswana, and Zambia, is pleased to;
-- update shareholders in relation to the First Quantum Minerals
Limited ("First Quantum") option agreement with AFP's 80% owned
subsidiary African Pioneer Zambia Ltd (the "Option Agreement"). The
parties to the Option Agreement, details of which were announced on
20 January 2022, have signed an Addendum dated 20 October 2023 that
confirms First Quantum have delivered a notice to exercise their
option over two out of four licences subject to the Option
Agreement thereby commencing a two year earn in period (the " First
Earn In Period ") and that in light of expenditure and work to date
First Quantum has been granted an additional 6 months to 17 January
2024 to incur US$500,000 of exploration expenditure over the other
two licences that are the subject of the Option Agreement; and
-- confirm First Quantum has identified the key structural
architecture determining the boundary between the Western Foreland
and the Central Fold and Thrust Terrain in the area of AFP's
licenses. Deep drilling on AFP's licenses has successfully
identified diagnostic features indicative of similar stratigraphy
and mineralization processes to those involved in the formation of
the Kamoa-Kakula deposit.
Highlights
-- First Quantum have delivered a notice to exercise their
option over two exploration licences XE27767-HQ - LEL and
XE27771-HQ - LEL. The First Earn In Period during which First
Quantum has to prepare a Technical Report demonstrating an
Indicated mineral resource of at least 300,000 tonnes of contained
copper for First Quantum to earn a 51% shareholding in African
Pioneer Zambia commenced on 17 September 2023 (more details
below).
-- First Quantum has stated that it has defined the key
structural architecture that determines the boundary between the
Western Foreland and the Central Fold and thrust Terrain in the
area of AFP's licences.
-- First Quantum has also noted that deep-drilling on AFP
licences has successfully delineated the key diagnostic features
indicative of similar stratigraphy and mineralising processes
likely to have played a role in the formation of the Kamoa - Kakula
deposit.
-- Based on the success of the programme to date, and in light
of total exploration expenditure by First Quantum to date of over
US$1.6 million, the Parties have agreed to extend the period until
17 January 2024 for First Quantum to deliver a notice to exercise
its option to earn in over exploration licences 27770-HQ-LEL and
27768-HQ-LEL (more details below).
-- Work completed by First Quantum includes mapping, soil
sampling, ground geophysics, air core drilling and diamond
drilling.
-- Drilling has commenced on Turaco, a prioritised near-surface
mineralised target in the fold- and thrust domain.
-- First Quantum has confirmed its intention to drill-test each
of the main near-surface targets including Chipopa, Turaco and
Chibwika during the current programme whilst planning for deeper
drilling to test the Western foreland domain for Kamoa-style
mineralisation.
Colin Bird Executive Chairman commented "We are very pleased to
be advised by First Quantum that they have exercised their Option
to commence earning in on two licences and we have agreed to extend
their option period on the other two licences , where they wish to
complete sufficient work to decide on the prospectivity of these
licences to 17 January 2024. The initial period under the Option
Agreement has been extremely successful for both First Quantum and
AFP with the Western Foreland and Kamoa-style mineralising
environment being established as well as near surface
mineralisation in the fold- and thrust domain further to the east
on some of our licences. We are particularly eager and excited to
see the outcome of the current Turaco drilling given the broad
mineralised intercepts reported at shallow levels during the 2022
programme. We look forward to our future involvement with First
Quantum, with the knowledge that they will approach the exploration
with enthusiasm and their typical technical wisdom."
Addendum to Option Agreement:
The key commercial terms of the addendum to the Option Agreement
entered into on 20 October 2023 are:
1. First Quantum has delivered an option exercise notice in
relation to exploration Licences XE27767-HQ - LEL and XE27771-HQ -
LEL ("Exercised Licences").
2. First Quantum have not yet earned a shareholding in African
Pioneer Zambia. The two year First Earn In Period in relation to
the Exercised Licences commenced on 17 September 2023; during the
First Earn In Period First Quantum in order to earn a 51% interest
in African Pioneer Zambia have to prepare and fund a Technical
Report demonstrating an Indicated mineral resource of at least
300,000 tonnes of contained copper. The First Earn In Period can be
extended by 12 months if First Quantum incur US$2M of expenditure
towards preparing the Technical Report.
3. To extend until 17 January 2024 the initial option period in
relation to the two exploration licences that have not yet been
exercised where First Quantum can if the exploration expenditure on
exploration licence 27770-HQ-LEL (US$363,866 spent as at 31 July
2023 ) and 27768-HQ-LEL (US$248,624 spent as at 31 July 2023)
increases to US$500,000 per licence (the "Not Yet Exercised
Licences") deliver a notice to exercise their option in relation to
the two licences within 60 days of meeting the US$500,000
exploration expenditure. If First Quantum delivers a notice to
exercise their option over either of the two Not Yet Exercised
Licences then the First Earn In Period over that licence may be
extended by up to 6 months.
First Quantum confirmation on exploration through 31 July
2023
First Quantum has stated that they are pleased with results
achieved during the initial option period which confirm the
presence of the Western Foreland stratigraphy and elements of
Kamoa-style mineralisation on AFP's licences. The recognition of
the Western Foreland domain along with the delineation near-surface
targets in the adjacent fold and thrust domain (Kolwezi-style)
represents an important development for Zambia. First Quantum, the
Company and its local partners look forward to progressing work on
all targets and deploying maximum resources, both financial and
expertise, with a view to finding a commercially viable orebody for
near term development.
Work Programme to 31 July 2023
First Quantum has completed an extensive work programme on all
the optioned licences including, mapping, soil sampling, ground
geophysics, air core drilling and diamond drilling.
Several near surface targets have emerged (as detailed in prior
quarterly reports), and three of these prospects at Turaco, Chipopa
and Chibwika have been selected for follow-up work including air
core and diamond drilling.
In addition to the near surface targeting using soil
geochemistry, First Quantum has conducted a broadscale 'Generative'
programme employing comprehensive proprietary datasets such as
airborne gravity, magnetics and radiometrics as well as remote
sensing imagery. These datasets have been combined with detailed
litho-structural mapping, geochronological analysis and
deep-sensing magneto-telluric (MT) traverses to generate an
integrated interpretive model of the district. This model has, for
the first time, clearly defined the key structural architecture
domains of the area including the important boundary between the
Western Foreland and Central fold and thrust terrain of the
Katangan basin.
In 2022 First Quantum utilised this architecture model to site
two deep diamond holes ('framework holes') in the Western Foreland
succession. These holes were designed to test prospective
stratigraphic positions in the sequence for mineralisation similar
to that found in north of the border in the DRC at Kamoa-Kakula.
The framework holes successfully delineated the Katangan sequence
including a key reduced 'diamictite' horizon. Localised intercepts
of chalcocite copper mineralisation on the boundary of reduced and
oxidised strata suggest that the same mineralising processes are
occurring on the African Pioneer licences as seen north of the
border in the DRC.
Further modelling and MT lines have recently been conducted to
define the crucial structural and sedimentalogical features known
to be associated with the high-grade copper accumulations at
Kamoa-Kakula.
2023 Drill programmes
First Quantum has informed the Company that follow-up drilling
of the near surface targets at Turaco, Chipopa and Chibwika is
planned using aircore and diamond drilling. Drilling aims to better
define the extent and continuity of mineralisation discovered
during 2022.
On the Western Foreland, 750m-1000m deep holes are planned to
test the key prospective positions in the sequence in areas where
relevant structures have been defined in recent MT traverses.
First Quantum Expenditure
To the end of July 2023 First Quantum has expended approximately
$1.6M on the four exploration licences that are the subject of the
Option Agreement. Given the accelerated programme and extensive
drilling planned in the second half of the year it is expected that
significant additional expenditure will be spent by the end of 2023
and that it is likely that the US$500,000 expenditure requirement
in relation to both of the Not Yet Exercised Licences will exceed
the threshold under Option Agreement of US$500,000 per licence by
17 January 2024.
For further information, please contact:
African Pioneer Plc Tel +44 (0) 20 7581 4477
Colin Bird, Chairman
Beaumont Cornish Limited (Financial Tel +44 (0) 20 7628 3396
Adviser)
Roland Cornish/Asia Szusciak
Novum Securities Limited (Broker) Tel +44 (0) 20 7399 9400
Jon Belliss
or visit https://africanpioneerplc.com/
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 as it forms part of
UK Domestic Law by virtue of the European Union (Withdrawal) Act
2018 ("UK MAR").
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
UPDUUSNROVURUAA
(END) Dow Jones Newswires
October 23, 2023 02:04 ET (06:04 GMT)
African Pioneer (LSE:AFP)
Historical Stock Chart
From Oct 2024 to Nov 2024
African Pioneer (LSE:AFP)
Historical Stock Chart
From Nov 2023 to Nov 2024
