MAGHREB MINERALS PLC

Ticker: MMS

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Maghreb Minerals plc (“Maghreb” or “the Company”) is listed on AIM in London, UK, and is exploring and completing advanced stage evaluation on deposits containing base metals (lead and zinc), silver and industrial minerals (barite and fluorite) along the highly prospective Mejerda zone in northern Tunisia. Its principal focus is on former producing mines with existing infrastructure.

Since early 2007, the Company has established an excellent pipeline of zinc/lead/silver projects at various stages from near-production (mining and metallurgical scoping study in progress - Gite de l'Est - Bou Jabeur), advanced exploration - delineation drilling in progress (Fej Lahdoum) and exploration (near the existing Bou Grine concentrator - Lorbeus).

The Company holds 10 exploration permits in areas of known zinc-lead-barite-fluorite mineralisation, including four sites of past production. 

The Company’s principal project is at one of the past producing mines, Gite de l’Est - Bou Jabeur, where there was an earlier resource estimate¹ of 5.1Mt grading 3.76% Zn, 1.38% Pb, 33.2% BaSO₄ and 9.3% CaF₂. The first objective here was to get a resource statement for the known mineralisation in accordance with international reporting standards. 


In December 2007, a resource statement based on existing Office National des Mines (“ONM”) data, verified and compiled into the Company’s block model, was received by Maghreb from Wardell Armstrong International. It reports an audited Inferred Mineral Resource estimate for Gite de l’Est at a 1% lead and zinc (“Pb+Zn”) cut off grade of 8.836 million tonnes (Mt) grading combined 3.16% zinc and lead: 2.17% zinc, 0.99% lead, 5.06% CaF₂ and 21.66% BaSO₄. At a 2% Pb + Zn cut off grade, the Inferred Mineral Resource is 5.172 Mt grading 4.40% combined zinc and lead: 3.15% zinc. 1.25% lead, 6.42% CaF₂ and 27.76% BaSO₄, prepared in accordance with JORC (2004) reporting standards. The in situ value of this mineral resource at the 1% Pb+Zn cut off grade is estimated to exceed US$925 million at December 2007 prices: Zn US$1.06/lb, Pb US$1.19/lb, BaSO₄ US$85/t, CaF₂ US$200/t.

Verification and step out drilling has been completed by the Company at the Gite de l'Est deposit. A considerable improvement for the new resource estimate is expected with the inclusion of the Company's recent drilling results and re-analyses of old ONM cores, which appear to have under-reported zinc values by up to 40%. Mining and metallurgical scoping studies are in progress, undertaken by Scott Wilson and SGS Lakefield Europe respectively.

Delineation drilling is in progress at the Fej Lahdoum exploration permit where the past producing Dar N'Hal Nord mine is located. This mine stopped production in September 2005 when the Bou Grine mill and concentrator shut down. Indications from recent (June 2008) cores are positive.

Exploration and drilling at Djebba has confirmed and slightly extended the deposit there.  The Djebba resource estimate¹ stands at approximately 4Mt grading 6% Zn and 3% Pb.  Gravity surveys have indicated further exploration targets to the northeast at Djebel Goraa, which will be drill tested in due course.

Exploration on other permits will continue particularly around the highly prospective Lorbeus area, 4 km south west of Breakwater’s Bou Grine mill and concentrator , which is on care and maintenance. Partners are being sought to accelerate further surveys and exploration drilling on the Djebel Lorbeus permit.

The first phase of exploration drilling has been completed on the  Zriba - Guebli exploration permit. An ONM resource estimate¹ of 4.8Mt grading 25% CaF₂ is given as remaining in the fluorite deposit. The drilling results show that there are significant quantities of fluorite present but with rapidly varying thickness. A preliminary geological study indicated the deposit has mining potential. A study on the viability of mining and extending the resource is required. Expressions of interest for the provision of  funding both to accelerate towards the development for the fluorite project and production offtake have been received. 

The Company's current priority is to bring one or more of its base metal exploration permits at past producing mines through scoping to pre-feasibility, starting with Gite de l'Est - Bou Jabeur, which has produced some excellent step out drilling results. Maghreb is in discussions and welcomes enquiries regarding the possibility of joint venturing on one or more of its exploration permits.