8th August 2012
Sovereign Mines of Africa PLC
(“SMA” or “the Company”)
Phase 2 Assay Results
Continuity of a Major Gold Mineralizing System for over a Kilometer at the
The Company is pleased to report completion of a second phase of drilling, consisting of 35 reverse circulation (RC) holes totaling 4,590 metres, which confirms and extends gold mineralisation discovered by the Company last year at the Mandiana-Magana gold project in The Republic of Guinea.
- RCY36 in the Yagbelen zone, intersected 6 metres averaging 10.66g/t gold from 50 metres depth, within a broader 30 metre interval, averaging 3.25g/t gold from 39 metres depth;
- RCY37, also at Yagbelen and 200 metres northwest of RCY36, intercepted a 76 metre interval averaging 2.62g/t gold (1.41g/t with high grades cut to 31g/t gold) including the last metre sample at the bottom of the drill hole assaying 123g/t gold;
- At the Damantere Prospect, located 3km to the northwest, along trend, RCY56 intercepted three metres averaging 33.86g/t gold (18.5g/t applying a topcut to 31g/t gold) with a 44 metre interval from surface containing 1.78g/t gold (1.48g/t applying a topcut to 31g/t gold) ;
- It is also noteworthy that 34 out of 35 drill-holes intersected anomalous gold mineralization (defined as at least six to eight metres averaging between 0.12 and 0.15g/t) within the enveloping altered weathering zone extending to an impressive vertical depth of about 120 metres, which envelopes the higher grade mineralisation.
Highlights from the drilling along the Yagbelen Zone are:
1. Composited assays for the above Table were calculated at a cut off grade of 0.25 gpt gold.
2. Mineralised intervals presented above do not represent true widths. All drill holes are inclined 50° WSW. The Company currently interprets the mineralized zones to dip to the north east and therefore the true widths approximate to about 80 percent of the reported core intervals. Confirmation of this interpretationconfirmation will require structural analysis, which will include measurements of oriented cores.
3. A map showing positions of the drill holes and a comprehensive table of drilling results for this Phase of drilling can be viewed on the Company website (www.sovmines.com).
Higher-grade shoots as intersected in drill-hole RCY36 are particularly important in building resources at economic grades and occur at structurally-controlled dilation zones within the higher-grade lodes which can extend to hundreds of metres in depth.
The drill program tested two major northwest-trending zones of mineralization at Yagbelen and Woyondjan, identified and defined by extensive artisanal mine workings and within mineralized corridors traceable for several kilometres within the project area. The objective was to test the strike and depth (down-dip) extensions of wide intervals of potentially economic gold grade intersected at several zones in the First-Phase of drilling. At the Yagbelen Zone an additional four profiles consisting of 17 inclined head-to-toe drill holes were completed to extend and infill the mineralized zone, which now extends for just over a kilometer (http://www.sovmines.com/maps).
Higher grade gold mineralization is lenticular and discontinuous along NW-trending and NE-dipping zones. The drilling intersected high-grade lodes from one to three metres in width within much broader lower-grade (cut-off of 0.25g/t gold) intervals of 10 to 30 metres considered to be at least partially generated by the mobilization of gold within the deep weathering profile. These broad zones are further characterized by hydrothermal alteration including quartz veining and iron oxides after sulphide mineralization forming a disseminated aureole of low-grade gold mineralisation around the high grade zones described above.
Given the depth of intense weathering down to over one hundred metres coupled with high-grade shoots within much broader intervals of lower grade gold mineralization, the directors believe the Mandiana-Magana project has the potential for a low-grade, low-cost bulk mineable deposit amenable to open pitting.
To facilitate recovery of oriented diamond core for structural measurements and to obtain fresh rock for improved geological understanding of the style of mineralization and controls on its distribution, three RC holes (RCDW-58, RCDW-59 and RCDW-60) were extended by diamond core for a total of 328 metres in fresh rock. All three diamond-core tails ntersected alteration, quartz veining and sulphides, with gold mineralization in unweathered meta-sediments
John Barry, SMA’s Director of Exploration, commented:
“We have achieved our objective. Results from this second phase of drilling increase our understanding of the gold mineralisation at Mandiana. It is clear that gold is related to quartz veining within an extensive alteration zone. These results have focused our attention on the potential of the Yagbelen Zone in particular, to delinate a large bulk-mineable economic resource within the deep weathering zone.”
The property is located within the productive Siguiri gold region close to Gold Fields’ Yanfolila multi-million ounce gold development project in Mali. Despite being the site of extensive artisanal gold mining, this is the first time that it has ever been drilled or evaluated by modern exploration methods.
The technical information in this release has been reviewed by John Barry, P.Geo, SMA’s Exploration Director who is a Competent or Qualified Person as defined by PERC, JORC and NI 43-101. Mr. Barry is a geologist with 23 years’ experience in gold exploration.
Quality Assurance/Quality Control (QA/QC)
Samples are sent to the ALS laboratory in Bamako in Mali. ALS is part of the ALS Group, which is a global leader in the provision of analytical services to the international mining industry. At the laboratory in Bamako, samples were prepared (code Prep 22-2) and then decomposed by fire assay (code Au-AA26) with AAS finish. The entire sample is dried, coarse crushed and pulverized to better than 85 % of the material passing through a 75 micron (Tyler 200 mesh) screen. A split of 250g is then pulverized to better than 85% passing 75 micron and homogenised. A 50g sample is then decomposed by fire assay fusion FA-FUS03 & FA-FUS04 and analysed by atomic absorption spectroscopy (AAS).
ALS Chemex has developed and implemented a Quality Management System (QMS) at each of its laboratories. ALS Chemex laboratory operations are covered by ISO 9001:2000 certification for the “provision of assay and geochemical analytical services” by QMI Quality Registrars, and accredited to ISO 17025 standards in various jurisdictions. All laboratories are operating under the same quality system and use the same standard operating procedures (SOP). : The ALS (Chemex) Laboratory in Bamako is working under a combination of ALS Chemex Vancouver and Johannesburg supervision. At ALS Chemex an internal Quality Control Group coordinates all inter-lab round robin work, and also directs all laboratories to participate in various external proficiency testing programs.
ALS Chemex QA/QC involves the preparation of every 50th sample at the crushing stage and 20th sample at the pulverization stage are tested for fineness by screening. Samples are analysed in batches of 24which includes one, blank, certified reference material (standard) and two repeats. In addition SMA inserts one standard, blank and duplicate in every 20 samples submitted to the laboratory.
SOVEREIGN MINES OF AFRICA PLC
David Pearl, F.C.A. – Chairman +44 207 586 4145
John Barry – Exploration Director +353 87 669 5608
SHORE CAPITAL – NOMINATED ADVISER & BROKER
Toby Gibbs/Bidhi Bhoma – Corporate Finance
Jerry Keen – Corporate Broking +44 207 408 4090
PETERHOUSE CORPORATE FINANCE LIMITED, JOINT BROKER
Jon Levinson – Corporate Broking +44 207 562 3373
SQUARE1 CONSULTING LIMITED
David Bick/Mark Longson +44 207 929 5599