Afri-Can ups stake in Block J

Using proceeds from a private placement, Afri-Can Marine Minerals (afa-v) will renew sampling at the Block J marine diamond concession, 105 km north of Luderitz, Namibia.

Block J extends 45 km northward and 21 km seaward from the northwestern corner of a diamondiferous concession held by Namibian Minerals (nmr-t). Water depths range from 70 to 167 metres.

In 1998, Marine & Coastal Geoscience carried out a geophysical survey over the shallower, eastern sliver of the property to highlight favourable sites for diamond deposition. It was that possibility that prompted Afri-Can to option the property and carry out reconnaissance sampling.

The program, performed by De Beers Marine and completed last year, confirmed that eight of the 17 features tested were diamondiferous. Twenty-three gems were picked from 728 sq. metres, though most were two-tenths of a carat in weight.

More than half the stones came from so-called Features 6 and 8, which sit in water depths of 105 and 125 metres, respectively. Six weighed more than 0.3 carat, with the largest tipping the scales at 0.64 carat.

Feature 6 covers more than 3 sq. km of the inner shelf and is said to be geologically similar to features mined by Namibian Minerals and Diamond Fields International (dfi-t). Feature 8 is considerably larger and more akin to the deeper, middle-shelf deposits mined by Namdeb, the joint venture between the Namibian government and De Beers.

The upcoming program will focus on the two features and be carried out by contractors, similar to the previous program. Each will be sampled at more than 100 spots, a spot being 10 sq. metres, or 100 sq. metres if warranted.

Pending time constraints, another 179 samples will be taken to cover a broader area of the paleo-surf zone. About 1,790 sq. metres will be covered in all.

Afri-Can issued more than 5.8 million units at 30 apiece to raise $1.75 million. That’s 3 million units less than had been expected, but a unit is still equivalent to a share and half a warrant. A full warrant entitles the holder to buy another share at 40 in the next 18 months.

Afri-Can now holds a 60% stake in Block J, having paid its Australian partner, Woduna Mining, $125,000 for 10% of its interest. Another 10% can be had for a similar payment.

The securities are subject to hold periods which end in early December or early July. Thereafter, they can be freely traded.