Ndjole Project

The Ndjole license lies 120km east of the capital city of Libreville and is accessed via a paved road directly to site and is located less than 20 kilometers from a functioning railway and 10 km from a barge-able river. The area is prospective for gold and manganese and the property has had US $5.7 million spent to date on exploration initiatives that have generated some exciting targets for future drill programs.

Ndjole License - Manganese Results: A work program was completed over the last 2 years on the Ndjole license which included 5,300 meters of diamond drilling, a 3,660 line kilometer airborne electro-magnetic survey, 1:20K geological mapping and basin analysis for the Ndjole area, and 20,000 soil samples which identified a very significant manganese soil anomaly >500ppm Mn over 50 square kilometers in area. Three drill holes at the very northern end of the manganese anomaly intersected thick, near surface manganese mineralization.

Highlights from the manganese drilling include:
  • NDDD0002: 22% Mn over 34.5m from 0m; including 42% over 5m or 33.7% over 9m from surface.
  • NDDD0001: +11% Mn over 17m from 33m (detection limit for manganese for analysis is 11% - not analyzed for ore grade manganese)
  • NDDD0018: +11% Mn over 7m from 20m (detection limit for manganese for analysis is 11% - not analyzed for ore grade manganese)
    (*All intercepts are mineralized lengths of core, true thickness has yet to be determined)
    (** holes NDDD0001 & NDDD0002 each had recoveries of < 70%)
Over 90% of the manganese target identified remains untested with drilling and the soil anomaly remains open to the south and west

Key features of the Ndjole Manganese target include:
  • Soil sampling has identified a soil anomaly >500ppm Mn with a foot print in excess of 50 square kilometers that remains open to the south and west.
  • Within this soils anomaly 3 drill holes have intercepted significant manganese mineralization near surface with the best result being 22% Mn over 34.5 meters -- this includes 42% Mn over 5 meters from surface.
  • The anomaly is found 25km from the Bembele Manganese Mine (40Mt @ 30%) in the same suite of rocks.
  • The anomaly lies 20km from an existing railway, which currently transports manganese ore to the coast from several mines in Eastern Gabon.
  • The anomaly also lies 15km from the Ogooue River, which is barge-able to the coast

Figure 1. Location of the high grade drill holes in relation to the manganese soil anomalies (>500ppm Mn) within the Ndjole license. The soil anomaly has a foot print >50 square kilometers and lies within the same suite of rocks as the Bembele Manganese Mine (40Mt @ 30% Mn). The manganese mineralization occurs at or near surface and lies 20km from an existing railway and 15km from the Ogooue River -- which is "barge-able" to the coast.

Ndjole License - Gold Results: The Ndjole license also has considerable gold potential. The work program identified three large coherent gold anomalies up to 11 kilometers in length which were followed up with a first pass exploration drill program. Highlights from the drill program include:
  • NDDD0017: 7.24 g/t Au over 9m; including 13.2 g/t Au over 4.9m
  • NDDD0007: 1.98 g/t Au over 4.5m; including 7.0 g/t Au over 1m
  • NDDD0015: 3.3 g/t Au over 3m; including 1m at 4.5 g/t Au
  • NDDD0024: 4.7g/t Au over 2m
  • NDDD0026: 3.42g/t Au over 1m
  • NDDD0030: 1.94g/t Au over 4.5m
  • NDDD0028: 4.52g/t Au over 1.5m
  • NDDD0031: 5.41g/t Au over 1m
(*All intercepts are mineralized lengths of core, true thickness has yet to be determined.)

Two styles of gold mineralization were identified in the Ndjole area:
  • A pyrite-rich massive sulphide sitting at the contact of a deformed mafic volcano-sedimentary sequence and a thick black shale unit. The massive sulphide hosts the 9m at 7.6 g/t Au intercept.
  • Gold-arsenopyrite bearing quartz veins hosted on lithological contacts and within shear zones which are assaying between 2 g/t to 7 g/t Au.
In addition to the gold, intercepts of silver ranging between 5g/t to 85g/t silver and up to 85m in thickness also occur within the weathered saprolites. These intercepts are thought to be the result of supergene processes associated with ground water flow. The source of the silver mineralization in the system has not yet been identified.

Due to both the size of the license - just under 2,000 square kilometers in area, and the size of the gold soil anomalies already identified - over 11km in length, much of Ndjole license area remains untested for its gold potential.

Figure 2. Location of the drill holes on the Ndjole license from the 5,300 meter program completed in relation to gold anomalies identified in the soils

About Gabon: Gabon is a French speaking democratic country located in West-Central Africa. It has an area of nearly 270,000 square kilometres (100,000 sq mi) and has an estimated population of 1.5 million people, of which 800,000 live in the Capital city of Libreville. Gabon has the third highest GDP per capita in Africa, is the 2nd largest exporter of manganese in the world, and is the 5th largest producer of oil in Africa. In addition to manganese, Gabon is also extremely prospective for iron ore and has numerous deposits including "Belinga", thought to be one of the largest undeveloped iron ore deposits in Africa.
The information set forth above constitutes forward-looking statements. See "Cautionary note regarding forward looking statements". We also advise U.S. investors that the terms used above to estimate our mineral reserves are not recognized by the U.S. Securities and Exchange Commission. See "Cautionary note to U.S. investors concerning estimates of Measured, Indicated and Inferred Resources."