Mar 5 2011
Argosy Minerals Limited (ASX:AGY) has announced that it has been granted three exploration licences, through its wholly owned subsidiary Argosy Exploration Limited, for iron ore in Sierra Leone known as the Bembeye Iron Ore Project.
The government of Sierra Leone has granted Argosy a four year exploration license to explore for iron ore in an area covering 136.2 square kilometres in the south of the country, 100 kilometres from the major city of Bo, the second largest city in Sierra Leone and 120 kilometres from the coast.
Argosy owns 100% of the exploration license.
Argosy's consultant and advisors have substantial experience and expertise in dealing with mineral prospects in Sierra Leone.
Argosy's Chief Consultant Geologist qualified at Durham University in England and upon his return to Sierra Leone joined the Geological Survey working for the government services in a senior capacity for several years. His unparalleled knowledge of the geology in Sierra Leone has enabled Argosy to make application for and be granted this exploration license.
Sierra Leone is a former British colony with a population of approximately 6.5 million.
The country has had a stable government since the end of the civil war in 2001. The last election was held in July 2007 and the country has remained stable under the present President Ernest Bai Karoma.
Argosy applied for the license on the basis of previous work on the tenement as follows:
1. A pronounced airborne magnetic anomaly shown by N.W. Wilson (1958/1959) of the S.L. Geological Survey to be caused near Bembeyema by a hard hypersthenes-quartz-magnetite.
2. The Bembeye is the southern mass of a range of hills that run in a north-easterly direction for about 30 kilometres. It is perceived that the magnetic lithology will run throughout the strike length of the range of hills, thus providing the possibility of substantial tonnage.
3. J. Middleton of the S.L. Geological Survey reported useful results from crushing and sieving a composite sample from selected high grade bands of the hard quartz-hyperthene-magnetite gneiss to determine the extractable percentages of magnetite.
4. An analysis of a representative sample of the separated magnetite and chats was undertaken by Mrs. I.I. Huhtta of the Sierra Leone Geological Survey. Her findings are shown below:
Proposed Exploration Programme
The exploration programme to be carried out over the next twelve months will include:
- geological mapping
- geochemical sampling and trenching
- aero magnetic and ground magnetic surveys over the permit area
- drill testing of all target areas.
Terms of the Transaction
Argosy has resolved, subject to shareholder approval to issue 2 million shares to each of its consultants in Sierra Leone, being in total 4 million shares, together with a further 500,000 shares to its consultants in South Africa and Australia.
Source: Argosy Minerals Limited