Afri-Can boosts Block J stake (July 17, 2002)

Junior Afri-Can Marine Minerals (AFA-V) has increased its stake in the Block J marine concession in Namibia by 10% to 60% by paying $125,000 to Woduna Mining Holding.

Consequently, Woduna now holds a 40% stake in the concession.

Under a 1999 option agreement, Afri-Can can acquire up to a 70% interest in the concession in 10% increments priced at $125,000 each. Block J covers about 1,000 sq. km of seafloor in water as deep as 167 metres. The concession is near one owned by Namibian Minerals (NMR-T), about 105 km north of Luderitz Bay.

Afri-Can’s president Pierre Leveille said in a prepared statement, “the positive exploration results to date have led to the decision to increase Afri-Can’s interest in the Block J. We are convinced that the Block J is a prime area for further development.”

Earlier this year, De Beers Marine, a unit of De Beers, collected 338 samples from 29 sites across 728 sq. metres of ocean floor. Each sample represents 2.1 sq. metres of sediments, and two of the samples yielded more than two stones.

In all, 23 stones weighing in at 4.65 carats were recovered. The largest stone tipped the scales at 0.64 carat, with another five exceeding 0.3 carat.

Fourteen of the stones, including all of the larger stones were collected from the concessions’ features 6 and 8.

Afri-Can has outlined three main features at Block J – features nos. 6, 8 and 17. Combined, they cover about 10 sq. km.

Some 3.1-sq. km of gravels contained in the 3.7-sq.-km feature 6 have been confirmed as diamondiferous. At the 11.7-sq.-km feature 8, Afri-Can has delineated about 2 sq. km of weakly cemented diamondiferous conglomerate. Feature 17 covers an area of about 0.7 sq. km of diamondiferous gravels.

Afri-Can says the area contains up to another 25 sq. km of prospective diamondiferous ground.

The company plans a three-phased attack on the Woduna option. Initially, the company plans to collect about 109, 10-sq.-metre samples plus three bulk samples of about 100 sq. m each from feature 6.

Sampling will next move to feature 8, where the company plans on taking 105, 10-sq.-metre samples and three 100-sq.-metre bulk samples.

A third round of sampling to be completed by contractors will see about 179, 10-sq.-metre samples collected from the paleo-surf zone on the two features.

The sampling program is designed to provide data for an inferred resource calculation, a preliminary economic assessment of the property, and to determine the extent and continuity of mineralization.

Afri-Can holds interests in three other 1,000-sq.-km concessions adjacent to Block J. The company can earn a 55% undivided interest in Block N concession from Karas Mineral Holding. The company also has a deal to earn a similar interest in Block M concessions from Kuwelai Delta Mining. It can also earn up to a 70% stake in Block K from Tsondab Gem Exploration.

An option and joint venture agreement with Together Quando Mining Consortium paves the way for Afri-Can to earn up to an 80% interest in Block B, a 250-sq.-km shallow water concession stretching out about 30 metres from the surf zone. Afri-Can is the operator of the joint venture.

In mid-June, Afri-Can announced it would privately place a maximum of about 8.3 million units at 30 apiece for proceeds of $2.5 million. Each unit comprises one share plus half a non-transferable warrant. One full warrant allows the holder to buy one share for 40 for 18 months after closing. Shares issued under the private placement will be subject to a 4-month hold period. The deal is subject to regulatory approval.