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From: Dale
ArtDate: 6 July 2004
Section: (FILLYABOOTS NEWS RELEASES)
Remote Name: 195.92.168.178
Date: 09/07/04
Time: 16:23
6th July 2004
Southern African Resources to take Full Control of Tau Mining Ltd and its Molopo Farms Botswana
News Item - St Brides Media and Finance Ltd
PLATINUM PROJECT
Southern African Resources Plc (‘SAR’ or ‘the Company’), the AIM listed mineral exploration company, has made an offer to acquire the remaining 48% stake in its Australian exploration subsidiary Tau Mining Limited (“TML”), which owns the Molopo Farms PGM Project (“MFP”) situated in the Molopo Farms Igneous Complex ("MFIC") in southern Botswana. As announced on 23 January 2004, the Company acquired its original 52% holding for a cash payment of AU$4.7 million
SAR is offering one of its own shares, for every two TML shares. If the Offer is accepted in full, SAR will issue 10.775 million ordinary shares for the outstanding 21.55 million shares it does not already own. The directors of TML recommended acceptance of the Offer. Roy Pitchford, Chief Executive of SAR who is also a director of TML has taken no part in the discussions of the TML Board.
The MFP comprises 10 granted Prospecting Licences covering an area of approximately 6,185 square kilometres. MFIC has similar geological characteristics to the PGM rich Bushveld Complex in South Africa, where SAR owns significant properties. These include the flagship 4,600-hectare Leeuwkop 402JQ, the 460-hectare Wolwekraal 407JQ and the 605-hectare Kareepoort 407JQ properties.
Recent exploration by TML has included the update and verification of its drill hole database, a new integrated geophysical and geological interpretation, and the flying of a trial sophisticated airborne electro-magnetic (“EM”) survey.
This database work, undertaken by independent consultant Geoff Blackburn, also incorporated new drill information, which included water bore data and mineral drill holes not previously recorded. As part of this work, a programme of re-logging and re-sampling of existing diamond drill core from the Keng area in the northern part of the MFIC was undertaken.
The work enabled a new integrated geophysical and geological interpretation to be prepared using new gravity and aeromagnetic data. The interpretation highlighted the potential for the occurrence of nickel sulphide mineralization in the Keng and Tubane areas in addition to potential for platinum and palladium mineralization.
A trial airborne EM and magnetic survey evaluated some of these targets areas. This survey, flown by Spectrem Air Limited, a division of Anglo American, involved detailed work in the Keng area and reconnaissance lines over a wide area in other parts of the project area.
In addition to testing specific targets already identified from the interpretation referred to above, the trial airborne EM and magnetic survey was able to reliably penetrate the surface cover materials formed by Kalahari sands. This has opened up new areas to cost effective survey methods and is enabling the Company to define new target areas.
Specific target areas for nickel sulphide mineralization in the Keng area were defined by the airborne EM survey. In addition, the survey indicated previously untested zones that may be prospective for platinum and palladium mineralization. A ground EM survey is in progress to locate these various targets prior to a large-scale drilling programme, which is being planned to evaluate the project over the coming year.
SAR Executive Roy Pitchford said: “The acquisition of the remaining 48% of TML secures SAR full control of the Molopo Farms Project in southern Botswana. As we have always stated we want to fulfil our ambitions of becoming a substantial player in the PGM arena in southern Africa. Botswana, like South Africa has good infrastructure and a transparent mining code. It operates under commercial, legal and accounting practices similar to the United Kingdom and the Botswana government is supportive of the mining sector and actively encourages foreign investment.
“Early test results have been extremely encouraging and through the initiation of a comprehensive drilling programme, we hope to locate deposits that will dramatically increase our platinum and associated mineral resources.”
**ENDS**
Issued on behalf of Southern African Resources Plc by St Brides Media & Finance Ltd, 46 Bedford Row, London WC1R 4LR.
Contacts:
Roy Pitchford Southern African Resources Plc Tel: 0845 108 6060 Hugo de Salis St Brides Media & Finance Ltd Tel: 020 7242 4477
St Brides Media & Finance Ltd 46 Bedford Row London WC1R 4LR Tel: 020 7242 4477 Fax: 020 7242 4488 Email: info@sbmf.co.uk
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