Akobo Minerals maintains its fast development pace at Segele with ongoing successful extension drilling, hints of new mineralisation targets and production planning well underway

Akobo Minerals maintains its fast development pace at Segele with ongoing successful extension drilling, hints of new mineralisation targets and production planning well underway

22 Nov 2021 10:35 CET

During the first part of 2021, the Segele project was accelerated by the
resource estimate, award of the mining licence and the scoping study. Since
receiving the mining licence, resource extension drilling, surface exploration
and multidisciplinary project development work has been ongoing to advance the
project towards gold production. The fast pace of development has continued
since, resulting in a need to release a summary of all the results achieved;

· The Segele project has so far an Inferred Mineral Resource of 52,410 ounces
gold with an average world class grade of 20.9 gram gold per ton - industry avg.
of 2-4 g/t
· The Segele scoping study envisages a very high-margin operation with an
operating cost (AISC) estimated to be 243 USD per ounce of gold produced -
industry avg. of 1,000 USD/oz
· Ground breaking mining license agreement awarded with right to hold funds
offshore and repatriate profits from the same accounts
· Since the SRK Resource Estimate a total of 4,739 meters in 28 holes of deep
core drilling has been completed
· Holes range from 123m in depth to 250m in depth
· Visible gold seen in 15 of 28 holes
· A total of 1044 samples from Segele and 1171 samples from Joru are pending
assays
· High assay results from 370 samples from artisanal pits around the resource
estimate have shown 88.0g/t, 8.9g/t, 12.9g/t and 6.15g/t. New drilling is
planned to follow up these results
· Request for Expressions of Interest sent out to potential contract mining
firms
· Quotes for processing plants being collected
· Gold production planning ongoing including:
· Infill drilling to allow detailed mine planning
· Sourcing a geotechnical specialist
· Sourcing a tailings storage facility designer
· Assessments of manpower and training requirements
· Environmental and Social baseline study fieldwork completed

From the ongoing core drilling we continue to intersect visible gold deeper than
the samples used in the Mineral Resource Estimate. Also mine planning is
underway to establish optimum ways to extract the mineralisation. From the
illustration below we see a conceptual design of the planned mine shaft and also
an indication of where the latest visible gold has been found.

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Figure 1: Looking West at the Segele Mineral Resource Estimate (Orange and Red)

The April 2021 inferred resource estimate was calculated using a total of 32
holes of a total length of 3,159m of drilling at relatively shallow depths.
Because the extension drilling campaign now targets mineralisation at much
greater depths, the current resource extension drilling requires longer holes to
reach the same mineralisation. Going forward the focus will be more on exploring
new and shallower mineralized targets instead of only drilling deeper holes.
Newly analysed data from artisanal pits indicates possible new targets to the
South of the Segele Mineral Resource estimate. See illustration below for an
overview;

[image]

Figure 2: Looking West at the Segele Mineral Resource Estimate (Orange and Red)

The positive assay results from artisanal pits is an exciting development for
the company geologists who have been anticipating the discovery of new gold
mineralisation. The reliability of these grab sample results is relatively
diminished when compared to the drilling. To upgrade our understanding of these
new targets, scout drilling has been scheduled for drilling within the next 2-3
months. If the scout drilling and related mining studies is found to be
successful, these new targets may provide additional ore to the planned Segele
processing plant.

In an important step towards production, Akobo Minerals has started the
selection and contracting process for potential contract mining firms. It is
anticipated that the contract will be awarded in two stages; underground access
and stoping (ore extraction). The first process plant quote has been received
and it is anticipated that additional quotes will be received before the end of
the calendar year.

Looking forward it is anticipated that there will be two rigs working on Segele
extension drilling and infill drilling, and a third rig drilling at new Segele
mineralisation. Upon receipt of infill drilling results, resource estimation and
mine planning will be carried out - major parts of the delivery of the
Prefeasibility study. Within Q1 of 2022, the company intends to award contracts
for mining activities and processing plant production.

With regards to Joru, the current drill program has just been completed, and
assays are on their way to be analysed at ALS Ireland. More update will be given
as soon as the results are ready.

For more information contact

Jørgen Evjen, CEO
Mob.: (+47) 92 80 40 14
Mail: [email protected]

About Akobo Minerals:

Akobo Minerals, is a Norway-based gold exploration company, currently with
ongoing exploration and small-scale mine development in the Gambela region and
Dima Woreda, southwest Ethiopia. The operations were established in 2009 by
people with long experience from the public mining sector in Ethiopia and from
the Norwegian oil service industry. Akobo Minerals holds a mining licence and an
exploration license over key targets in the area. Economic mineralisation was
discovered and the company is engaged in mining studies to advance the project
to production, alongside exploration core drilling. Akobo Minerals is
transforming its organisation to support an increased pace of core drilling. At
both the key targets Segele and Joru the company has so far released
exceptionally high-grade gold results including the Segele deposit with an
Inferred Mineral Resource of 78ktons at 20.9g/t.?A scoping study for Segele
includes an up-front capital expenditure of USD $8m and all-in sustaining cost
of USD $243 per ounce of gold produced. Core-drilling and trenching at Joru have
intersected both high-grade gold zones and large wide zones near surface. The
company has an excellent partnership with national authorities and places ESG at
the heart of its activities - a ground-breaking community program is being
planned.

Important information:

This release is not for publication or distribution, directly or indirectly, in
or into Australia, Canada, Japan, the United States or any other jurisdictions
where it would be illegal. It is issued for information purposes only and does
not constitute or form part of any offer or solicitation to purchase or
subscribe for securities, in the United States or in any other jurisdiction. The
securities referred to herein have not been, and will not be, registered under
the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), and may
not be offered or sold in the United States absent registration or pursuant to
an exemption from registration under the U.S. Securities Act. Akobo Minerals
does not intend to register any portion of the offering of the securities in the
United States or to conduct a public offering of the securities in the United
States. Copies of this publication are not being, and may not be, distributed or
sent into Australia, Canada, Japan or the United States.

Competent Person for Mineral Resources

This press release includes information from the Segele Mineral Resource
Estimate released by Akobo Minerals AB on the 6th of April 2021 ("Announces
encouraging Maiden Mineral Resource Estimate at Segele"). Akobo Minerals AB
confirms that it is not aware of any new information or data which materially
affects the information contained in the press release regarding the Segele
Mineral Resource (5/4/2021). All material assumptions and technical parameters
underpinning the estimate are relevant and have not materially changed. The
information in this press release that relates to Mineral Resources is based on
information compiled by Mr. Michael Lowry who is a member of the Australasian
Institute of Mining and Metallurgy and is a full-time employee of SRK Consulting
(Australasia) Pty Ltd. Mr. Lowry has sufficient experience which is relevant to
the style of mineralisation and type of deposit under consideration and to the
activity which he is undertaking to qualify as a Competent Person as defined in
the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves'. Mr. Lowry consents to the inclusion in the
report of the matters based upon his information and context in which it
appears.

Competent Persons for Mining Engineering, Metallurgy and ESG (Environment,
Social and Governance)

This press release includes information from the Segele Scoping Study released
by Akobo Minerals AB on the 27th of September 2021 ("Akobo Minerals completes
its Segele scoping study"). Akobo Minerals AB confirms that it is not aware of
any new information or data which materially affects the information contained
in the press release regarding the Segele Mineral Resource (24/9/2021). All
material assumptions and technical parameters underpinning the scoping study are
relevant and have not materially changed. The information in the press release
to which this statement is attached that relates to the Segele Scoping Study is
based on information compiled by the persons named above. All persons listed are
Competent Persons who are Members or Fellows of The Australasian Institute of
Mining and Metallurgy or a 'Recognised Professional Organisation' (RPO) included
in a list posted on the ASX website from time to time. All persons listed above
have sufficient experience that is relevant to the style of mineralisation and
type of deposit under consideration and to the activity being undertaken to
qualify as a Competent Person as defined in the 2012 Edition of the
'Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves'.

Competent persons for Mining Engineering, Metallurgy and ESG (Environment,
Social and Governance) are as follows.

Competent Person Dr Matthew Jackson Akobo Minerals AB

(Exploration BSc PhD MAusIMM(CP)
Results)
Competent Person Prof Steven Rupprecht Borrego Sun Pty
Ltd
(Mining PhD (Mech Eng), (BSc Mining
Engineering) Eng.), Honorary Life Fellow
SAIMM
Competent Person John Derbyshire Goshawk Network
Technologies CC
(Chemical BSc Eng (Chem), Pr Eng, FSAIMM
Engineering)
Competent Person Dr Cathryn MacCallum Sazani Research
and Development
(Environment, MSc(econ) CEnv, CSci FIMMM Ltd
Social and
Governance)

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Source

Akobo Minerals AB (publ)

Provider

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