AfriOre jumps on Akanani drilling

Encouraged by early drilling results, AfriOre (AFO-T) has taken an initial 20% stake in the Moordkopje and Zwartfontein farms, which comprise the Akanani project in the Bushveld complex in South Africa.

Hole ZF4, AfriOre’s second on the project, has intersected a wide swath of Platreef platinum-group-element and base metal mineralization. The hole’s longest core interval runs 31.9 metres (beginning 1,020 metres downhole), and grades 1.68 grams platinum, 1.94 grams palladium, 0.16 gram rhodium, and 0.23 gram gold per tonne; the interval also contained 0.17% nickel and 0.11% copper.

Meanwhile, three other holes have also cut the Platreef unit. Hole ZF2 cut the Platreef at depths between 929 and 1,152 metres, and was terminated in basement granites at 1,166 metres. Hole MO2 cut 206 metres of Platreef, beginning at a depth of 1,433 metres, and also ended in basement granitic rocks. Hole ZF3 cut the upper contact of the Platreef unit at a down-hole depth of 1,108 metres. Assay results from hole ZF2 are expected by the end of April, those from MO2 will follow in May.

The holes are part of Afriore’s initial 13,000-metre drilling program at Akanani; all of the holes are being collared vertically, and are situated near the project’s eastern boundary.

In late March, Afriore’s first hole at Akanani (ZF1) returned multiple zones of high-grade platinum group elements, highlighted by a 6.5-mrtre interval (from 1,093.3 metres below surface) running 13.6 grams platinum, 8.7 grams palladium, 0.8 gram rhodium, 0.6 gram gold, and 0.2% nickel and 0.1% copper. The hole was collared around 2.5 km away from ZF4, in the southeastern part of the property.

In all, Afriore has encountered the Platreef unit in six holes over a strike length of 6 km along the eastern boundary of the project.

Akanani is underlain by the Platreef unit, which hosts Anglo American Platinum’s Potgietersrus platinum mine, adjacent to the east. The southeastern corner of Akanani is also less than a kilometre from Anglo’s Zwartfontein South open pit, and about 1.5 km from that company’s main open pit at Sandsloot.

At Akanani, the Platreef unit dips at 35 to 45 to the west-southwest, and is estimated to extend from a depth of about 600 metres in the southeastern, increasing toward the west.

AfriOre plans to focus its initial exploration on the unit at depths of 600-1,500 metres, which comprise a zone measuring around 6 km along strike, and about 1,500 metres in a down-dip direction.

Afriore will acquire its initial stake in Akanani by buying Metals Technology Inc. (MTI) for 750,000 shares. The deal is expected to close on April 21, 2005.

AfriOre will also inherit MTI’s option on another 54% of Akanani Mining’s shares, a private South African Black Economic Empowerment company that holds the prospecting rights at Moordkopje and Zwartfontein. The price tag for those shares is another 750,000 Afriore shares, delivered in three batches, with the final payment due on commencement of a bankable feasibility study. The transaction is subject to approval by certain South African regulators.

The news sent shares in Afriore 22, or more than 12%, higher to a new 52-week high of $1.99 in late afternoon trading in Toronto on April 18.