Geovic Mining Corp.: Progress Update on East Mada Drilling Programadmin
Geovic Mining Corp., on behalf of its 60%-owned subsidiary Geovic Cameroon PLC (GeoCam), announce progress from its drilling program at the Mada cobalt-nickel-manganese property in Cameroon, Africa. Mada is a northern, adjoining extension of the Nkamouna deposit, with very similar geologic properties and mineral grades. The purpose of drilling Mada is to determine if it contains additional high-grade reserves to optimize cash flow in the early years of production at the planned Nkamouna processing plant, as well as provide additional reserves to increase production if supported by market conditions.
As noted in earlier press releases, Pincock Allen & Holt conducted an initial NI 43-101-compliant resource evaluation of the Mada deposit in August 2006. The total inferred resource was 145 million tonnes grading 0.21% cobalt, 0.48% nickel, and 1.15% manganese. However, many of the hand-dug pits used in the study did not penetrate to or though the mineral zone due to a high perched water table, averaging just 13 meters deep.
In 2008, Geovic has been carrying out an in-fill and deepening drill program, with 1,254 drill holes and pits completed (totaling 24,202 meters) within the eastern portion of the 59-square kilometer deposit. The results of this part of the program are being posted on the Company’s website, www.geovic.net. Such results will include a location map showing the extent of on-going drilling, as well as an outline of the eight square kilometer Nkamouna deposit, which currently holds 54.7 million tonnes of proven and probable reserves grading 0.25% cobalt, 0.69% nickel, and 1.33% manganese. Additional drilling is underway in the West Mada and Northwest Nkamouna areas, which will be reported in subsequent press releases.
Thus far, 41% of the holes from East Mada have been assayed and tabulated on the website, compared to just 16% as of Geovic’s June 25th press release. The assayed results can be viewed at http://www.geovic.net/nkamouna_updates.php. An additional 9,500 samples are awaiting analysis at an independent assay lab, and will be reported over the next several months. Cumulatively, the new data will be utilized in the calculation of an updated reserve/resource estimate, in compliance with applicable United States and Canadian regulations. By year-end, the company anticipates completion of a National Instrument 43-101 report calculating updated reserves and resources for both Nkamouna and Mada.
Geovic is a U.S.-based corporation whose principal asset is a significant cobalt-nickel-manganese deposit in the Republic of Cameroon, with initial production scheduled for late 2010. Geovic owns 60% of seven cobalt-nickel-manganese deposits located on a 1,250 square kilometer Mine Permit in Cameroon. Nkamouna, the first property planned for production, has proven and probable reserves of 299 million pounds Cobalt, 829 million pounds Nickel, and 1,605 million pounds Manganese. Characteristics of these unique Cameroonian deposits can be found on the Company’s website www.geovic.net.