African Copper cuts mineralization on Matsitama project (June 18, 2007)

Delineation drilling by African Copper (ACU-T, ACU-L) has cut several long intersections of copper mineralization on the Thakadu copper prospect, part of the company’s Matsitama property in northeastern Botswana.

Matsitama, immediately south of African Copper’s Dukwe development project and about 80 km west of the mining centre of Francistown, is home to a series of disseminated sulphide deposits in sedimentary rocks. There is primary chalcopyrite-bornite mineralization, with a pyritic halo zone around it, and a supergene zone about 50 metres deep with secondary copper minerals like chalcocite and malachite.

The recent drill program tested relatively shallow-dipping calcareous quartzite units. Shallow drill holes in the southeast part of the prospect (which strikes southeast and dips southwest) intersected some of the best mineralization, including hole TN11.7B, which cut a 32.7-metre intersection that ran 3.53% copper and 40 grams silver per tonne, followed by a 16.7-metre intersection that ran 3.57% copper and 28 grams silver.

Another hole in the same area cut 24.4 metres grading 4.2% copper and 40 grams silver, while a third averaged 3.51% copper and 35 grams silver over 34.5 metres.

Surface trenches on the northwestern extension of the surface showings were mineralized for about another 250 metres along strike. The widest was a 20-metre trench that averaged 3.74% copper and 23 grams silver per tonne.

Step-back holes collared about 500 to 600 metres southwest of the trenched surface showings intersected mineralized core lengths between 3 and 10 metres, mostly with grades of 2% to 3% copper. One hole, TB11A, cut a 7.1-metre zone grading 2.62% copper and 27 grams silver, with a second, deeper intersection of 10.3 metres grading 1.83% copper and 17 grams silver per tonne.

Drilling continues, with the object of providing a resource estimate some time in June.

Drilling on another prospect on Matsitama, Makala, turned up similar grades over core lengths in the 1- to 7-metre range.

Makala has been tested sporadically over a 1.5-km strike length, but most of the drilling has concentrated in a 750-metre-long zone covering two showings, Makala and Logolo, which strike east-southeast and dip moderately to the southwest.

Most of the drill holes intersected mineralized lengths of 1 metre to 3 metres, with copper grades between 1% and 2% and silver grades of 20 to 40 grams per tonne. There were two longer drill intersections, one of 7.4 metres grading 3.24% copper and 32 grams silver, and another of 7.4 metres grading 2.19% copper and 70 grams silver; a 4.1-metre intersection ran 3.06% copper and 61 grams silver per tonne.

African Copper’s Dukwe project, 120 km northwest of Francistown, is now fully licensed for production, and prestripping started in May. The company engaged South African mining contractor Moolman Mining for the development and production phase at Dukwe.

In a 17,000-metre program of infill drilling on the shallow part of the resource at Dukwe, African Copper has confirmed grades in the supergene zone of the deposit. Oxide and supergene-enriched copper mineralization goes to a depth of about 150 metres at Dukwe, coincidentally the likely practical limit on the depth of an open pit.

A strike length of 2.4 km was covered by 114 diamond drill and reverse-circulation holes, mainly drilled at near-vertical angles into the east-dipping deposit. The copper grades of the intersections mainly fell into the 0.4% to 3% range, with some local higher-grade material returning copper grades over 4%.

The drilling also showed widths consistent with the previous resource model on Dukwe, done at the end of 2006. That estimate gave Dukwe an indicated resource of 33 million tonnes grading 1.62% copper and an inferred resource of 14 million tonnes grading 1.38% copper.

Another resource estimate is planned for the end of June, which will include the infill drilling data.

What the resource calculation will also include is an extension of the Dukwe deposit to the south. A Titan induced-polarization and magnetotelluric survey showed anomalies for a 350-metre strike length south of previous drilling.

Five inclined drill holes, cutting the mineralized body at nearly right angles, returned mineralized intersections of 12 to 157 metres, core lengths that would be close to true widths. Those intersections included 15.5 metres grading 1.3% copper and 6 grams silver, 37.1 metres grading 1.18% copper and 6.2 grams silver, 75.8 metres grading 0.37% copper and 2.6 grams silver, and 157 metres averaging 0.32% copper and 1.7 grams silver per tonne.

Near-vertical holes drilled on the southern target area, as part of the infill program, showed the mineralization in the south is continuous as far as 165 metres vertical depth. The grades were comparable to those found in the main part of the deposit, mainly between 0.4% and 3% copper, with local narrower intervals grading 4% to 5%.

The best hole graded 2.23% copper and 23.6 grams silver per tonne over a drilled length of 116.5 metres, though this would not be a true thickness.

The geophysical survey also located chargeable zones and conductors north of the known deposit, and drilling on those targets is planned.

The company also bought put options covering 5,850 tonnes copper at US$6,600 per tonne (US$3 per lb.) with delivery dates between April and December 2008, the time the Dukwe project is scheduled to start production. The puts need not be exercised if the copper price remains above the strike price.