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PET - Petmin - Successful Aeromagnetic Survey Results over Mount Ginka Iron
Ore Target
PETMIN LIMITED
Incorporated in the Republic of South Africa
Registration Number 1972/001062/06
Share Code JSE: PET & ISIN: ZAE000076014
Share Code AIM: PTMN
("Petmin" or "the Company")
Joint Announcement Petmin Limited and Hummingbird
Resources plc ("Hummingbird" or the "Company") (AIM: HUM)
Successful Aeromagnetic Survey Results over Mount Ginka Iron Ore Target
Hummingbird Resources Plc and Petmin Limited are pleased to announce the
results and interpretation of the aeromagnetic survey over the Mount Ginka
iron ore target, held by their joint venture, Iron Bird Resources Inc ("Iron
Bird") in Liberia.
Highlights
Aeromagnetic Survey proves the presence of a continuous magnetic unit,
interpreted as iron formation extending along strike for approximately 20km:
-The unit has an at surface width of between 150-250m
-The unit is shown to extend to approximately 1,000m down dip.
This Deposit is located only 20km to the south of the Arcelor Mittal Mount
Nimba project; 40km to the east of the BHP Mt Kitoma project and only 15km
east of the newly completed railway, built to transport iron ore from the
region to the newly refurbished deep water port of Buchanan.
Iron Bird has already commenced a programme of mapping, trenching and drilling
to obtain samples for metallurgical work.
Aeromagnetic Survey Results
The prospect lies approximately 20km south of the Mount Nimba ridge, a
historic major iron ore mine reportedly producing between 12Mt and 24Mt per
annum of high grade direct shipping ore during the period 1964 to 1989, which
has been re-opened by Arcelor Mittal. Approximately 15km to the west of the
Mount Ginka ridge lies the railway built to transport the Mount Nimba iron ore
to the deep water port of Buchanan.
Iron Bird has recently completed a helicopter-borne aeromagnetic and
radiometric survey over the Mount Ginka license. Flight lines were 500m apart
and flight height was 30 to 40m. Total line km was 1,650km.
The survey has successfully confirmed the presence of a continuous, elongated
ridge feature containing strongly magnetic rocks over a substantial strike
length of approximately 20km. The strongly magnetic portion of the ridge
feature is approximately 150 to 250m wide at surface, and geophysical
modelling has indicated it to extend to a depth of approximately 1,000m down
dip.
The likely source of the magnetic signature are lenses of Archaean magnetite
itabirite. Such itabirite lenses have been mapped at the prospect by the US
Geological Survey in the 1970`s.
In accordance with Phase 1 of the work programme under the agreement between
Petmin and Hummingbird, Iron Bird has already commenced a programme of
mapping, trenching and drilling to obtain samples for metallurgical work. The
aim of Phase 1 of the work programme is to identify the presence and extent of
any direct shipping ore and to demonstrate whether a commercially saleable
magnetite concentrate can be produced.
Iron Bird is a company jointly controlled by Hummingbird Resources Plc and
Petmin Limited. Currently Hummingbird Resources owns 85% of Iron Bird and as
announced on 25th January 2011, on successful completion of Phase 1 of the
work programme Petmin will invest a further US$1.5m in Iron Bird to increase
its shareholding to 50%. From that point on both companies have the option to
contribute equally to any further fund raisings that are required.
Commenting today Dan Betts CEO of Hummingbird:
"Prior to these results we knew that the deposit was exceptionally well
positioned geographically due to existing infrastructure and surface grab
samples taken ranged from 33-54% Fe magnetite iron ore. Until now we had no
knowledge of the potential size of this low lying feature. These results, and
the confirmation of the continuous widths, strike extent and depth of this
target are hugely exciting and clearly show this project to have significant
scale potential. Altogether the Iron Bird joint venture represents significant
upside potential with no cash cost to Hummingbird shareholders at this stage."
Jan du Preez, Petmin`s CEO said
"The results of phase 1 of the exploration programme are very pleasing and we
will be investing a further $1.5m in line with our commitment to Iron Bird to
fund phase 2 of the programme, the project highlights the potential value of
Petmin`s new businesses strategy of investing astutely in projects which feed
into the steel and infrastructure development value chain."
David Pelham has reviewed and approved the technical information contained
within this announcement in his capacity as a qualified person, as required
under the AIM rules. David Pelham is Technical Director of the Company and is
a member of the Institute of Materials, Minerals and Mining.
Petmin Limited is a multi-commodity mining and processing company and one of
the leading producers of quality anthracite and silica in South Africa. The
Company is primarily focused on a mix of quality, cash-producing assets and
projects, with a diverse geographical spread of commodities that feed into
infrastructure growth and urbanisation. Petmin has been listed on the JSE
Limited (JSE) since 1986 and the London Stock Exchange`s Alternative
Investment Market (AIM) since 2006).
For more information please visit www.petmin.co.za
Hummingbird Resources plc is an AIM quoted mineral exploration company
incorporated in England and Wales and headquartered in London. Since its
establishment in November 2005, the Group has been active in Liberia, West
Africa, and is currently the holder of the largest area of mineral exploration
ground in the highly prospective Birimian geological region of eastern
Liberia. The Group`s licences are prospective for gold, iron ore and other
minerals.
The Group currently holds exploration licences covering approximately 7,000
square kilometres in total, which constitutes a significant proportion of
eastern Liberia containing the Birimian sequence.
The Group`s most advanced gold exploration has taken place in the Dugbe, Joe
Village and Zia licence areas, with a recently confirmed gold resource at the
Dugbe F Project of 20.90 million tonnes at 1.208 g/t to give 812,000 oz Au
using a cutoff grade of 0.5 g/t (Indicated resource of 552,000 ounces of gold
at 1.078 g/t Au and an Inferred resource of 260,000 ounces of gold at 1.624
g/t Au). The exploration has been based on sound geological premises and has
been executed in an efficient and practical manner according to best industry
practices.
For more information, please visit
www.hummingbirdresources.co.uk
Johannesburg
27 June 2011
Enquiries:
Petmin
Bradley Doig (COO)
+27 82 459 978 18
Nominated Advisor (AIM)
Numis Securities Limited
John Harrison
+44 207 260 1000
Hummingbird Resources plc
Daniel Betts, Chief Executive Officer
Thomas Hill, Chief Financial Officer and Company Secretary
Robert Monro, Corporate Development +44 (0)203 416 3560
Liberum Capital Limited
Nominated Adviser and Joint Broker
Tom Fyson / Richard Bootle +44 (0)20 3100 2222
Mirabaud Securities LLP
Joint Broker
Peter Krens +44 (0) 20 7321 2508
Threadneedle Communications Limited
Laurence Read /Beth Harris +44 (0)20 7653 9850
Sponsor and Corporate Advisor (JSE)
River Group
Andrew Lianos
+27 834 408 365
Date: 27/06/2011 07:30:01 Supplied by www.sharenet.co.za
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