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

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.

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;

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: jorgen@akobominerals.com 

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.