Akobo Minerals (Euronext Oslo - "AKOBO"), the Scandinavian-based Ethiopian gold
exploration and boutique mining company, today announced that it has released
its updated Mineral Resource estimate for the Segele deposit.
The results from SRK (Australasia) Pty Ltd shows;
· significant increase of 31% in the gold ounces
· world class gold grade of 40.6 gram per ton for Indicated Mineral Resources
· improved potential for high margin gold production
The increase in ounces is derived from an increase in the tonnage and better
than expected average gold grade than previously indicated in our press release
of 19.04.22. At time of the previous press release the indications were that we
would see a drop in average gold grade. However, after improvements to the
estimation method and after the application of a higher cut-off grade to match
the planned underground mining methodologies, the average grade shows a more
similar average grade as seen in the previous resource estimate from April 2021.
In addition to the increase in the Mineral Resources, the classification of
parts of the mineralisation has been upgraded from Inferred to Indicated,
increasing the confidence in the figures. The average grade of 40.6 g/t for
Indicated Mineral Resources will have a positive impact on the cash flow
potential for the mine operations as this part of the resource is assumed to be
possible to access in the early stages of the mine operations
The updated Mineral Resources for the Segele deposit are tabulated in Table 1,
and is based upon all relevant assays related to the Segele infill and extension
drill program. The Mineral Resources are reported above a 2.65g/t Au cut off.
Table 1: Segele Deposit Mineral Resources as of 22 April 2022
Classification Cut off Grade1 Tonnes (kt) Au (g/t) Gold Ounces (kOz)
(Au g/t)
Measured 2.65 0 0 0
Indicated 32 40.6 41
Inferred 62 13.6 27
Total Mineral 94 22.7 69
Resources
1.
The Mineral Resource cut-off grade was calculated using a gold price of USD
1,600 per ounce, costs per tonne for mining, processing, administration, and
environment, social and governance (ESG) and a 5% royalty for the federal
Government of Ethiopia on gold sales.
The increase in Mineral Resources is due to the results of the Segele drilling
campaign completed in March 2022. A total of 99 drill holes have been added to
the database, and the results returned several spectacular high-grade and
bonanza intersections that are incorporated into the present estimate. The
updated Mineral Resource estimate now covers gold mineralization in a series of
narrow stacked lodes that extends from surface to approx. 280m vertical depth
and the Indicated Mineral Resources stretching from approx. 20m to 110m below
surface.
The mineralisation covered in this Mineral Resource estimate is still open at
depth and several deep boreholes have confirmed that the gold zone is
continuing. It must be assumed that this can lead to new gold resources, which
in turn will lead to a longer life of the mine than expected.
Jørgen Evjen, CEO of Akobo Minerals, stated: "We are thrilled about the latest
resource estimate update, and look very much forward to start the production.
With the current gold price and low estimated operation costs, the cash flow
from mining will support our continued exploration efforts and also make room
for dividend pay-outs."
And further: "In addition to the significant increase in resources, the leap in
understanding of the mineralisation is just as important for us. This new
knowledge will make us even more capable of discovering new targets and deposits
in the highly prospective Segele area that at some point will be mined. "
More results from ongoing exploration of new targets in the vicinity of the
Segele deposit will be released soon in addition to an update on mining relevant
contracts.
The estimates for the Segele deposit has been prepared according to the 2012
Australasian Code for Reporting of Mineral Resources and Ore Reserves (Joint Ore
Reserve Committee - JORC-code).
About Akobo Minerals
Akobo Minerals is a Scandinavian-based gold exploration and boutique mining
company, currently with ongoing exploration and mine development in the Gambela
region and Dima Woreda, southwest Ethiopia. The Company has established itself
as the leading gold exploration company in Ethiopia through more than 12 years
of on-the-ground activity.
Akobo Minerals holds a mining licence and is working to start up mining of its
very promising Segele target. It has a combined Mineral Resource (Indicated and
Inferred) yielding a world-class gold grade of 22.7 gr/ton, combined with an
estimated all-in sustaining cost (AISC) of 243 USD per ounce. Still open to
depth, the gold mineralised zone continues to expand and will have a positive
impact on future resource estimates and mine-life. The exploration license holds
numerous promising exploration resource-building prospects in the vicinity of
Segele, in addition to the lower grade high volume area of Joru. These areas
will continue to be explored.
Akobo Minerals has an excellent relationship with local communities all the way
up to national authorities and it places environment, social and environment
(ESG) at the heart of its activities - as demonstrated by a planned ground
-breaking community program.
Akobo Minerals has built a strong local foothold based upon the principles of
good ethics, transparency, and communication, and is ready to take on new
opportunities and ventures as they arise. Akobo Minerals is uniquely positioned
to become a major player in the future development of the very promising
Ethiopian mining industry.
Akobo Minerals has a clear strategy aimed at building a portfolio of gold
resources through high-impact exploration and mining, while adhering to a lean
business operation. The company is headquartered in Oslo and is listed on the
Euronext Growth Oslo Exchange under the ticker symbol, AKOBO.
Competent Person for Mineral Resources
The information in this press release that relates to Mineral Resources is based
on information compiled by Mr Michael Lowry who is a member of the Australasian
Institute of Mining and Metallurgy and is a full-time employee of SRK Consulting
(Australasia) Pty Ltd. Mr Lowry has sufficient experience which is relevant to
the style of mineralisation and type of deposit under consideration and to the
activity which he is undertaking to qualify as a Competent Person as defined in
the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves'. Mr Lowry consents to the inclusion in the
report of the matters based upon his information and context in which it
appears.
For more information, contact:
Jørgen Evjen, CEO, Akobo Minerals
Mob: (+47) 92 80 40 14
Mail: jorgen@akobominerals.com
LinkedIn: www.linkedin.com/company/akobominerals
Web: https://akobominerals.com
Important information
This release is not for publication or distribution, directly or indirectly, in
or into Australia, Canada, Japan, the United States or any other jurisdictions
where it would be illegal. It is issued for information purposes only and does
not constitute or form part of any offer or solicitation to purchase or
subscribe for securities, in the United States or in any other jurisdiction. The
securities referred to herein have not been, and will not be, registered under
the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), and may
not be offered or sold in the United States absent registration or pursuant to
an exemption from registration under the U.S. Securities Act. Akobo Minerals
does not intend to register any portion of the offering of the securities in the
United States or to conduct a public offering of the securities in the United
States. Copies of this publication are not being, and may not be, distributed or
sent into Australia, Canada, Japan, or the United States.