Afri-Can Marine Minerals Corp. (
TSX: V.AFA,
Stock Forum) said that the analysis of the historical estimate remaining on
Diamond Fields International Ltd. (
TSX: T.DFI,
Stock Forum) (DFI) mining lease, located in Namibia, Africa, is of 868,000 carats of diamonds.
Afri-Can is not treating the historical estimate as a current mineral resource. The historical estimate report will be followed by a NI 43-101-compliant resource estimation technical report, which is in preparation and will be completed and disclosed, as required, within 45 days.
According to the
Afri-Can Marine Minerals press release, the analysis has estimated the remaining historical erstimate from a resource estimate and a feasibility study prepared by MRDI and AGRA-Simons in 2000. Also a resource estimate prepared by SRK Consulting on a small area of mining lease 111 called Diaz Prospect 1, in 2006.
Mining lease 111 has three geological features that host historical estimates; Marshall Fork is the main deposit that has seen intermittent production between 2001 and 2007, and the historical estimate remaining in Marshall Fork stands at about 148,000 carats, Diaz Reef has seen some small scale production and the Historical Estimate remaining there stands at about 479,000 carats and North Bay is composed of three deposits, has never been in production, and the historical estimate remaining stands at about 241,000 carats.
The majority of the areas in Marshall Fork and Diaz Reef had a sample density on a 50 metre by 50 metre grid or closer that supports the remaining historical estimates to a high level of confidence, but there are some areas, plus those in North Bay, in which the sample spacing of 200 metre by 200 metre grid is too wide to support the revised historical estimates to a confidence level that would allow immediate mining of those deposits.
It is therefore recommended that, as a priority, fill-in sampling should be carried out in those areas to increase the confidence in the estimates to a level that would support mining.
Afri-Can is currently in advanced discussions with its contractor in order to charter vessels that would allow the resumption of mining in targeted areas and fill-in sampling in other targeted areas.
Afri-Can signed and announced on March 21, 2013 an option agreement with DFI. The option agreement is valid for two years and in order to complete the acquisition, Afri-Can is required to spend $800,000 of exploration expenditures on the mining leases before the first year anniversary and an additional $2.5 million of exploration expenditures before the second year anniversary of the option agreement.
Afri-Can entered in the option with its Namibian partner Woduna Mining Holding (PTY) Ltd. Upon exercise of the option on mining leases 111, 138 and 139, the interests in the mining leases will be held 80% by Afri-Can, 10% by DFI and 10% by Woduna.
Upon exercise of the option on mining lease 32, the interests in the mining lease will be held 80% by Afri-Can, 10% by Woduna, 7.0% by DFI and 3.0% by Full Screen Investments (PTY) Ltd.
Afri-Can's immediate goal is to focus on mining lease 111 existing resources in order to resume production in the shortest time frame possible. In addition there are several other features, additional to those containing historical resources, within the four DFI leases that hold potential for diamond mineralization but have been insufficiently sampled, and these will be developed. The second goal is to complete the sampling program on EPL 3403, which remains a high priority exploration target.
Afri-Can is a Canadian company actively involved in the acquisition, exploration and development of major mineral properties in Namibia.
On Wednesday, Afri-Can rose 33.3% and was trading at $0.04 a share. The company had a market cap of $3.7 million, based on 91.5 million shares outstanding.