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Dinguiraye - Pt-Ni-Cu  Project

Project location and tenure

The Dinguiraye Project, covering 394km2, is located in Faranah Region, Dinguiraye Prefecture approximately 400km northeast of Conakry in the central part of Guinea.  It is readily accessible by the N1 sealed road from Conakry with the final 50km to the town of Dinguiraye on the N30, an all weather unsealed road (Figure 1). 



The initial exploration licence consisting of 4 permits was granted in February 2009.  An application has been submitted for a contiguous licence covering a further 300km2 (Figure 2).




History

During reconnaissance of stream sediment nickel anomalies in central Guinea in late 2007, 8 grab samples of lateritic material were taken near the town of Dinguiraye.  They returned some highly anomalous results including: 3 samples with Pt results exceeding 100ppb up to a maximum of 292ppb (repeat 331ppb, 0.33 g/t Pt), 3 samples with Ni results exceeding 200ppm up to 293ppm and Cu up to a maximum of 142ppm.  High levels of Cr ranging from 3563ppm to 6715ppm are present in most samples. 

These highly anomalous results led to Landsat photogeological interpretation which resulted in a better definition of both the regional and local geological and structural controls.

In September 2008 the Company completed a Phase I soil geochemistry programme on a 1000m x 200m grid with north-south lines.  Highly anomalous results led to a Phase II soil geochemical programme being completed during June 2009. It infilled the previously delineated anomalies on a 500m x 200m grid and extended the existing 1000m x 200m grid to the northern boundary of the granted licence.

Prior to activities by the Company there had been no exploration undertaken within the licence area.

Geological Setting

Regionally the Dinguiraye Project lies on a on a continental scale, northeast trending crustal extensional zone, at its intersection with the contact between an Archean craton and the sediments and volcanics of the Paleo Proterozoic Siguiri Basin (Figure 3).  The Mt Kakoulima PGM-Ni-Cu-Co Project of Semafo lies on the same extensional zone.  This geological setting is similar to globally recognised platinum group metal (PGM) deposits such as the Bushveld and Great Dyke.


The Dinguiraye Intrusive, mapped as dolerite-gabbro has been interpreted to form a northeast trending oval measuring 20km x 40km (Figure 4).  The licence area including the application covers the southwestern portion of the interpreted intrusive.   The dolerite-gabbro intruded between the Archean basement and the rocks of the Siguiri Basin.  These sediments and volcanics would be an excellent source rock for the sulphur required for the scavenging and precipitation of PGM and Ni sulphides.


A DTM (digital terrain model) derived from the SRTM data has been used in both regional and local structural interpretations. This has been used in the interpretation of 3 fault bounded plateaus defined by northeast and northwest trending normal faults (Figure 5).


 
Geochemistry

A total of 1692 samples have been taken to date in the Phase I and Phase II soil geochemical programmes.  Soil sampling now covers all of the mapped dolerite-gabbro within the granted exploration licence.  All samples were analysed at Genalysis Laboratories in Perth, Australia.  Geostatistically anomalous thresholds were determined as:  Pt 115ppb, Ni 190ppm, Cr 2050ppm, Cu 33ppm, Co 40ppm and Pd 16ppb.  Maximum values are: Pt 1039ppb, Ni 1932ppm, Cr 9275ppm, Cu 129ppm, Co 1068ppm and Pd 69ppb.  Results from both the Phase I and Phase II programmes demonstrated similar anomalous thresholds, anomalous distributions and maximum values.

These soil geochemical programmes have defined anomalies which are described in relation to the structural blocks.

Block 1: east to northeast trending coincident Pt and Ni anomalism averaging 1000m in width is present over a strike length of 12,500m following the southern scarp of the Block 1 plateau (Figure 6).  This anomaly is open to the northeast.  Anomalous Ni is present over a further 2,000m on the western end of the anomaly.  The Cr anomaly capping the plateau is interpreted to result from underlying rocks of ultramafic affinity.

Both Cu and Co results define anomalies coincident with the Pt and Ni anomalism along the length of the 12,500m anomaly.  The presence of both Cu and Co further enhances the veracity of the anomaly (Figure 7).


Block 2: coincident Pt-Cr forms an anomaly measuring 7,000m long and up to 2,000m in width.  A 9,000m long Ni anomaly is coincident with the Pt-Cr anomaly over a strike of 7,000m over the southern portion of the anomaly along the southern scarp face.  As with Block 1 the Cu and Co anomalism is coincident with the Ni.

Block 3: an arcuate 5,000m x 1,500m Pt anomaly occurs in the southern portion of the block.  It is coincident in part with anomalous Pd, Ni, Cu, Co and Cr.  In addition to this anomaly Pt, Ni, Cu, Co and Cr anomalism has been traced northeast to the extent of the sampled area.

                                   
These anomalies are considered highly prospective. The distribution of anomalous values coincident with the intrusive rocks, the strong anomalous correlations of the various elements and their large size auger well for the prospect to host magmatic accumulations of PGM, Ni and Cu sulphides similar to those occurring in the Bushveld Complex in South Africa or Great Dyke in Zimbabwe.

Geophysics

Fugro Airborne Surveys have completed flying of the magnetic – radiometric survey covering the project area.  The data is presently being processed.  This survey will map the geology of the project, define layering and in conjunction with the geochemistry, enable drill targeting.

Drilling

A drill programme is planned to commence in October 2009.

Corporate

The Company was introduced to the project by, and the granting of the exploration licences was facilitated in Guinea by, Adem sarl (“Adem”) and Corporate & Resources Consultants Pty Ltd (“CRCPL”). The consideration to these parties for their involvement was renegotiated as follows (refer announcement dated 15 May 2008 for original terms). On granting of the exploration licences Adem received a cash payment of US$20,000. In addition, Adem and CRCPL each have the right to the following in respect of the Dinguiraye Project:

• Cash payment of US$35,000 24 months after granting of the exploration licence; and
• 4% project interest carried to production (costs recovered from production).The Company has the right (but not the obligation) to buy half (2%) of each parties interest upon completion of a feasibility study by payment to each party of US$1.5 million (comprising US$1 million in cash and US$0.5 million in shares).

Images/Maps

 

N1 Highway Conakry to site

Dinguiraye Town - Viewed from Block 2 Plateau

 

Dinguiraye dolerite-gabbro plateau