Afri-Can options Diamond Field mining leases
Afri-Can Marine Minerals Corporation and Diamond Fields International Ltd has announced an option agreement that enables Afri-Can to acquire a 90% interest in diamond Mining Leases 111, 138, 139 and 32 off the coast of Namibia in Luderitz. Mining Lease 111 hosts a historical resource of 950,000 carats of gem quality diamonds.
The option agreement is valid for 2 years and in order to complete the acquisition, Afri-Can is required to spend $800,000 of exploration expenditures on the Mining Leases before the first year anniversary and an additional $2.5 million of exploration expenditures before the second year anniversary of the option agreement.
Afri-Can entered in the option with its Namibian partner Woduna Mining Holding. Upon exercise of the option on Mining Leases 111, 138 and 139, the interests in the leases will be: Afri-Can 80%, Diamond Field International 10% and Woduna 10%. Upon exercise of the option on Mining Lease 32, the interests in the Mining Lease will be Afri-Can 90%, Woduna 10%, Diamond Field International 7% and Full Screen Investments 3%.
Afri-Can’s technical team is currently reviewing the extensive database and planning work programs. The main goal is to resume production as soon as possible. Some areas will need further exploration such as geophysical surveying and sampling in order to define properly the resource and to establish a definitive mining plan. Afri-Can intends to identify the areas that could resume mining as soon as possible.
Mining Lease 111 lies between 5 to 20 kilometres north of Luderitz. It covers 312 square kilometres and sits in water ranging from 30 to 70 metres in depth. Lease 111 hosts 4 different depositional areas. The Lease was originally granted for a period of 15 years and is renewable on 04 December 2015. A resource estimate and a feasibility study were prepared by MRDI and AGRA-Simons in 2000.
The historic resource, which is not compliant with National Instrument 43-101, mounted to 1.1 million carats with an average grade of 0.30 carats per square metre. The resource existed in the Marshall Fork, Staple Basin/Conical Beach and Diaz Reef areas.
Afri-Can is not treating the historical resource as a current mineral resource and will undertake to prepare a NI 43-101 compliant resource estimate as part of its exploration program. In order to comply with NI 43-101 and to upgrade the historical resource to an inferred or indicated level, Afri-Can will carry out a geophysical survey covering a minimum of 1,000 line kilometres and a sampling program of a minimum of 400 samples of 5 square metres over targeted areas.