ARTEMIS VCT PLC London 15th December 2014 GXG Markets: AAM:G4 (www.gxgmarkets.co.uk) ISIN:IE00B66ML191 WKN: A0N9YH Anglo-African Minerals Completion of Scoping Study for FAR Bauxite Project, Guinea, West Africa Inferred Mineral Resource of 43 million tonnes Positive NPV of US$ 163 million Anglo-African Minerals Plc (�AAM�, GXG:AAM:G4), the GXG quoted mineral exploration company focused on bauxite in West Africa is pleased to announce that its wholly owned subsidiary, Forward Africa Resources S.A. (�FAR SA� or the �Company�), has received positive results from its recently completed Scoping Study on its FAR Bauxite Project (�Project�), located in Guinea, West Africa. Highlights for the Base Case: * Development of a 3Mtpa bauxite export operation with a planned product specification of 41.9% Al2O3, 3.4% SiO2, and a planned moisture content of 11%; * Internationally compliant Inferred Mineral Resource, with opportunity to expand the current resource of 43Mt to extend mine life; * Preliminary results from current exploration infill drilling campaign due in early 2015; * Shallow open-cut mine, utilising conventional drill and blast, truck and shovel operations, with 15 years of mine production; * Utilisation of existing third-party operated rail and port infrastructure. * LOM free cash flow of USD294 million; * Free on Board (FOB) estimated average selling price of USD33.25/t bauxite; * Positive cash flow within 12 months of commission; and * Positive Net Present Value (�NPV�)of USD163 million. James Lumley, the Company�s Chief Executive Officer commented: �The Scoping Study of the FAR Bauxite Project base case indicates a positive NPV which is a multiple of the Company�s market capitalisation. The Board considers that this can be elevated through additional drilling to increase the existing 43 million tonne resource base and potential life of the mine. The Board have elected to prioritise the development of the FAR Bauxite Project through the establishment and commencement of more detailed fast-tracked technical studies focused on the material aspects of the project. I look forward to updating shareholders over the forthcoming months as we continue the development of our priority FAR Bauxite Project.� Highlights of the Scoping Study (�the Study�) results indicate potential for an economically viable project, generating cash flow at current bauxite prices and for a relatively low capital outlay through the use of contractors, subject to completion of a formal feasibility study. Scoping Study Summary: Following the announcement of its Maiden Mineral Resource in October 2014, AAM engaged SRK Consulting (UK) Limited (�SRK�) to undertake a Scoping Study on its FAR Bauxite Project, located in Guinea. The objective of the Study was to define preliminary project economics in order to allow the Company to prioritise the next stages of the Project�s development. The Study commenced in October 2014, and various high-level engineering studies were undertaken, including; Exploration, Geology and Resources, Geotechnical Engineering, Mining and Production, Plant and Processing, Infrastructure and logistics (including Port studies), Environmental and Social and Economic assessment. The Mineral Resource Estimate (�MRE�) used for the Study totals an Inferred Mineral Resource of 43 Million tonnes grading at an average of 41.9% Al2O3 and 3.4% SiO2. The maiden Mineral Resource statement, announced during October 2014, was also prepared independently by SRK Consulting (UK) Ltd (�SRK�) in accordance with the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves, The JORC Code, 2012 Edition (�JORC� or the �JORC Code�). Throughout the Scoping Study, SRK has considered any immediate capacity constraints, processing elements, and logistical options that are available to the Project. Of the multiple potential scenarios considered, the most viable solution has been economically assessed by means of a discounted cash flow analysis. The base case logistical solution in the Scoping Study is described as �transportation of raw bauxite via Road and Rail to Conakry Port, involving: Truck/Shovel operation at 3�Mtpa bauxite, (via contract mining), crushing at the mine (via contract services), trucking and rail from bulkout (via Contract services), rail to port at Conakry (via contract rail), bauxite loading at either the existing SBK-operated port facility or a new dry stockyard bulk-out (all third party contracted services are assumed), and for bauxite export only. The Base Case focused on mining 5 resource plateaux with an average bauxite thickness of 5 metres (<0.5m of overburden) over an initial 15 year life of mine (�LoM�) has been proposed. Following completion of the Scoping Study, the Directors have decided to progress the development of this Project and to embark on a further drilling programme in an effort to upgrade the existing resource to a higher confidence Indicated Mineral Resource category, with a view to moving forward with a Feasibility Study commencing early 2015. SCOPING STUDY BACKGROUND At this stage the Study is based on the exploitation of the FAR bauxite open pit only via a contract mining operation with an expected life of mine of 15 years and a processing capacity of 3.0�million tonnes per annum (�Mtpa�) through conventional crush and dry screen process plant. Average production is expected to be 3.0�Mtpa bauxite product output over the 13 years of maximum production as part of a 15 year LOM, at an average 41.9% Al2O3 and 3.4% SiO2 grade. The base case involves a simplistic model of a non-dried end product (at 11% Moisture content) with mining being conducted from the same deposit areas. Although the Scoping Study scenario is preliminary in nature and includes Inferred Mineral Resources, encouraging economic outputs from this study support AAM�s decision to progress the development of the FAR Bauxite Project to the next level of development and technical investigation. MINING The anticipated mining schedule comprises a relatively shallow open-cut operation, focused initially on the five higher-grade plateau zones within the FAR deposit area. Sufficient bauxite resources have been identified within the FAR Permit, and SRK suggests that the entirety of this Resource should provide an effective plant feed of approximately 14 years at full production. It is envisaged that both the haulage distance and surface conditions are within the capabilities of articulated mining trucks which are planned to be contracted services at this stage. SRK believes that the shallow nature of the open pit operation represents exceptionally low technical risk. PROCESSING The Scoping Study anticipates a straight-forward single crushing ore circuit together with a simple screening circuit. It is envisaged that the plant and processing activities will be completed by contracted services. At this stage, the base case does not include any drying, something which requires further investigation, however it is noted that drying is not undertaken by the adjacent UC Rusal operations at the nearby Kindia Project (owned and operated by CBK). In terms of processing, the economic results are based upon a 15 year conceptual LOM (14 years mining plus 1 year construction and ramp-up) and a processing operation of 3.0�Mtpa of raw bauxite rock. INFRASTRUCTURE AND LOGISTICS The upfront capital cost under the base case scenario is USD22.4 million and assumes contractor mining, contractor processing and haulage to port and contractor port facilities to load vessels. PRICING AAM notes that the Scoping Study has assumed a relatively conservative average price of USD33.25 per tonne for the sale of a wet (11% moisture content) bauxite product for export. To incorporate price variations between the selling prices of a moisture laden product, AAM has applied a 5% discount to the average selling price which is equal to 1% discount for each 1% moisture content (mc) above SRK�s export benchmark price. This equates to USD33.25% per tonne of wet bauxite sold, in comparison to USD35.00 per tonne for a dried (~6% mc) export product. The Scoping Study assumes this selling price will remain constant over the LOM and at this stage does not take into account any potential price escalation as demand grows. KEY OUTCOMES The salient outcomes from the FAR Scoping Study report are outlined and summarised below: SRK (Base Case) Wet Bauxite End Product for Export * Estimated initial capital cost USD22.4 million which includes contingencies but however excludes a number of capital items which are assumed to be covered by contractors; * LOM free cash flow of USD294 million; * Positive NPV of USD163 million * Free on Board cost (FOB) estimated average sale price of USD33.25/t Bx (11% mc); * Positive cash flow within 12 months of commission; and * Payback period within approximately 12 months of commission. Discussions are on-going with our existing funders and other interested parties with respect to funding or joint venture options for the FAR Bauxite Project. FAR Project Background There are several Mineral Assets under control of the Company, all of which are listed below. Figure 1, shows the location of four AAM exploration license boundaries and their locations within Guinea. The FAR deposit is located within a 338�km2 exploration licence 100% owned by FAR SA, approximately 170�km North-east of Conakry, which is the Capital of Guinea (Figure 2). Figure 1: FAR SA Mineral Asset Locations in Guinea Figure 2: FAR SA Permit Boundary and Location From 2011 to 2014, the Company have drilled some 68 auger holes (635�m) at FAR, of which 28 were drilled in 2011 and 40 in 2014, roughly on a 600�x�600�m spacing, all completed under the supervision of a FAR employed resident geologist. The FAR Project comprises a number of bauxitised plateaux, formed as a result of tropical weathering of Mesozoic dolerite sills. The bauxites are stratiform in nature, lying in irregularly shaped horizontal horizons/lenses with the bauxite material comprising of highly weathered material. The lateral extents of the bauxite are controlled by the relief of the hills/plateaux on which they are located. Some 5 separate Plateaux have been delineated, ranging in size from 1-4�Km in strike length, up to 0.5�km across strike, and average around 5�m thick bauxite, with typically 0.5�m of overburden. Exploration The Company is currently undertaking an infill drilling programme for the FAR permit, which has been reviewed by SRK. It comprises 98 auger exploration and infill drillholes (in addition to 6 twin auger verification drill holes) across 3 key plateaux in the licence area (including MOMO), and 6 diamond core verification drill holes in the Samaya, and Elevation areas of the FAR exploration licence area. The main intention of the drilling programme is to better define the extent of bauxite mineralisation and to increase the confidence in the current Mineral Resource estimate. Primary auger drilling has been planned to infill the previous drilling and extend the knowledge in the Samaya, Elevation and Momo areas, all of which are within the existing permit boundary. The drilling is planned at a 300�x�300�m grid, which should be sufficient spacing for Indicated Mineral Resources to be delineated, if the geological continuity exists and the data are representative. Mineral Resources The maiden Mineral Resource statement for the FAR bauxite projects is presented in the following table: Mineral Resource Statement* for the Far Bauxite Project, Guinea, as of 2nd October 2014 Resource Category Density (t/m3) Dry Tonnes (Mt) Al2O3 (%) SiO2 (%) Measured - - - - Indicated - - - - Inferred 2.00 43.0 41.9 3.4 Total 2.00 43.0 41.9 3.4 *Reported at a cut-off grade of Al2O3>34% and SiO2<6%, stripping ratio of 1:1 (m:m), minimum bauxite thickness of 2�m and maximum overburden thickness of 2�m. Mineral Resources are not Ore Reserves and do not have demonstrated economic viability. Cautionary Statement concerning Scoping Study Results including Inferred Mineral Resources ANGLO-AFRICAN MINERALS PLC (GXG:AAM:G4), advises the Scoping Study results and production targets reflected in this announcement are preliminary in nature as conclusions are drawn from Inferred Mineral Resources. The Scoping Study is based on lower level technical and economic assessments and is insufficient to support estimation of Ore Reserves or to provide assurance of an economic development case at this stage, or to provide certainty that the conclusions of the Scoping Study will be realised. There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the production target itself will be realised. Contact details: Mr James Lumley Chief Executive Officer jlumley@aamplc.com Kelsey Traynor Yellow Jersey PR +447799003220 Notes to Editors:
Anglo African Minerals is a mineral exploration Company focused on
