Akobo Minerals receives more infill drilling assays results

Akobo Minerals (Euronext Oslo – “AKOBO”), the Scandinavian-based Ethiopian gold exploration and boutique mining company, today announced that it has released a new set of infill drilling assays from its Segele mine development project. The results are intended to allow for an upgrade of the resource classifications in the ongoing resource estimate.

  • New infill drilling results including:
    • 136.5 g/t over 2.3m, including 580g/t over 0.5m
    • 114.7g/t over 13.1m, including 686g/t over 2.0m
    • 53.6g/t over 5.2m, including 446g/t over 0.4m
    • 46.6g/t over 3.0m, including 136.0 over 1m
  • Numerous other significant intercepts have been released over the past 12 months
  • All results released to date will be used in the resource estimation, including the results in this press release
  • The mineralisation is still open at depth

The latest drill hole database is now being analyzed by Akobo Minerals’ geologists and resource estimation experts at SRK in Perth, Australia. From the results seen so far Akobo Minerals expects that parts of the previous inferred mineral resource will be upgraded to indicated resources. Indicated resources have a much higher confidence and such an upgrade would be a strong validation of the company’s revenue and cash flow potential.  However, the results do not lead Akobo Minerals to expect an increase in the gold endowment of the new resource estimate as previously indicated. The infill drilling results show a higher degree of lower grade ore body than previously estimated in the first Segele minerals resource estimate. Total tonnage is expected to increase, but the related  increase in gold resources will be offset by a lower average grade.

The updated resource is being built on a significantly expanded knowledge base and the resulting resource estimation will bring the company closer to its stated goal of becoming an exploration company supported by small scale mining. The increased understanding of the Segele geology is a key asset to Akobo Minerals as this knowledge is being put into use in the continued exploration around Segele.

Akobo Minerals released the result of its first Segele Mineral Resource Estimate in April 2021 (Inferred Mineral Resource totalling 52,410oz at an average grade of 20.9g/t). The resource estimate covered gold mineralization in a narrow high-grade shoot from 30m at the shallowest to 130m at the deepest. These new assays and visible gold observed recently (2nd March 2022) have demonstrated that the high-grade gold mineralization extends to at least 400m down plunge and quite possibly deeper. Assay results have not yet been received for large amounts of the 400m down-plunge extension and hence the updated mineral resource estimate will not cover all of the known mineralization.

The results from SRK on the final resource estimate update will be released as soon as they are available.

For underground mining, the World Gold Council defines between 8 and 10 grams per tonne as ‘high-quality’, and 1 to 4 grams per tonne as ‘low-quality’. There is no exact definition of what is considered as high or low grade. The list below is therefore a rough guide to what may be expected.

Underground Mine:

  • Low grade 0 – 5 gold grams per tonne
  • Average grade 5 – 8 gold grams per tonne
  • High grade 8 + gold grams per tonne
  • ‘Bonanza’ grade 31.1 grams per tonne

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