TORONTO, Sept. 12 /CNW/ - Odyssey Resources Limited ("Odyssey" or the "Company") (TSX-V: ODX), released today the contents and recommendations of a Project Review Study on the Alous Copper-Silver prospect undertaken by the Scott Wilson Mining Group (Kent, UK) and the results of a Reverse Circulation drilling Programme.
The Project Review is part of a larger company review of both the Alous prospect and other known deposits within the "Anti Atlas Copper-Silver Property" in Morocco.
The "Anti Atlas Copper-Silver Property" comprises a series of adjacent and/or geographically closely spaced permits held either solely by Odyssey Resources Limited or by l'ONHYM under an option agreement with Odyssey in Morocco.
The Alous Project Review Study
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The Study undertook:
- a review of the Geology and Resource Model constructed by P&E
Mining Consultants (completed to NI 43-101 and
NI 43-101 F1 standards, September 2006)
- Mine planning and design, and general site layout
- a review (undertaken by Aker Kvaerner Engineering Services) of the
available metallurgical testwork documentation
- a site visit
- a preliminary processing flow sheet and performance estimates
- the compilation of preliminary Capital and Operating Costs
- a review of potential project economics based on all classes of
Mineral Resources including "Inferred" category material.
The previously prepared Geology and Resource Model was determined to be
suitable for the use of the Study. The mining potential of the mineral
resource and alternative processing routes were evaluated using Whittle open
pit optimization analyses.
From the P&E Mining Consultants Resource Model the total resource of the
Alous prospect at a 0.3%TCu cut-off comprises:
- an "Indicated Resource" of 5.407M t @ 0.8% TCu + 10g/t Ag
- an "Inferred Resource" of 2.586M t @ 0.55% TCu + 4.2g/t Ag
From the review of the limited available data on historical processing testwork and based on the parameters of the P&E Mining Consultants Resource Model it was concluded that the heap leach process was potentially the more applicable processing technique. New metallurgical testwork, specifically on the heap leach route, is however required in order to properly ascertain the metal recoveries and related costs before the viability of the economic analyses conducted by the Scott Wilson Mining Group could be considered complete. The use of conventional flotation processing could be viable if a significant increase in either the grade and/or available resource were attained.
The results of the economic analyses are not yet admissible as "Inferred Resources" were utilized in the calculations and due to the high level of uncertainty with regard to achievable recoveries and costs of heap leaching for the Alous mineralogy.
The priority recommendations of the Study were:
- metallurgical testwork to determine the recovery and cost
parameters of the two processing options
- undertake an exploration drilling programme to locate sufficient
water resources for the processing options
- infill drilling - further infill drilling is required in order to
re-classify Inferred resources into the Indicated classification
before they can be used in project economic calculations
- complete an Environmental Impact Assessment
- determine the availability and cost of the requisite acid for a
heap leach operation
Recent Exploration and Development Activities
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Following completion of the Alous Project Review Study, additional field
programmes were undertaken with a view to locating further mineralization
around the Alous prospect. These comprised:
- a ground geophysical (Induced Polarisation (IP)) survey conducted
by SAGAX Maghreb, independent geophysical contractors/consultants
based in Marrakesh (Morocco), over two areas:
- to the north of the Alous prospect and south of the Assif
Imider deposit along the extrapolated strike extension of the
mineralized fault that is host to the previously exploited
Assif Imider deposit
- to the south of the presumed feeder fault of the Alous
mineralization below the sedimentary cover units around the
edge of the Wawfengha inlier
- an 8 hole, 617m Reverse Circulation drilling programme at Alous to
test for extensions to areas of known mineralization and to test
new areas of potential mineralization
The Reverse Circulation (RC) drilling was undertaken by Novafor, a Moroccan drilling company. The programme was designed to test for both mineralized extensions and new areas of mineralization and was based on the results of detailed geological, structural and alteration mapping, combined with the results of the IP survey, (for the location of the RC holes see Figure One below): http://files.newswire.ca/627/Sep10.07FigureOne.pdf
Figure One: Geological map of the Alous prospect. The insets illustrate the location of the prospect on the structural map of Morocco (Saadi 1982, upper inset), and on the Taroudannt and Igherm geological maps (Choubert et al. 1983 and, Choubert and Faure-Muret 1983, lower inset). On the lower inset the permits that cover the Alous prospect and are held by l'ONHYM under the option agreement with Odyssey Resources Limited are shown. On the main map the "red star" symbol indicates a drill hole that intersected (greater than or equal to)2m at (greater than)0.3% TCu (drill intersect thickness).
Assay results greater than a cut-off of 0.3% TCu are given below in Table One. These comprise:
- 0.36% TCu from 8-10m (drill intersect thickness) in Hole OA07-29
located in the northern portion of Zone A
- 0.38% TCu from 40-46m (drill intersect thickness) in Hole OA07-24,
located along the southern extension of the north-northeast
oriented fault system at the contact between the limestone
sedimentary cap and the underlying andesite
- 0.45% TCu from 32-34m (drill intersect thickness) in Hole OA07-27
located in the southwestern extension of Zone D (as defined by
Popescu, 1973) at the contact between the limestone sedimentary cap
and the underlying andesite
Table One: Results of the RC drilling programme at the Alous prospect
Lambert Lambert Drill
conical conical hole
conformal conformal length Angle Azimuth From To Grade
Hole East(m) North(m) (m) (degree) (degree) (m)(1) (m)(1)(Cu%)(2)
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OA07-23 196443 371195 91 90 0 - - -
OA07-24 196499 370348 114 90 0 40 46 0.38
OA07-25 196323 370376 114 90 0 - - -
OA07-26 196098 370309 82 90 0 - - -
OA07-27 196799 370239 70 90 0 32 34 0.45
OA07-28 196922 370355 60 60 15 - - -
OA07-29 196717 371324 40 60 260 8 10 0.36
OA07-30 196746 371445 46 60 290 - - -
(1) sample chips returning chemical analysis above a cut-off grade of
0.3% copper
(2) average
Recommendations of the Overall Company Project Review
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An Overall Company Project Review including the Alous prospect and other known prospects and deposits in the "Anti Atlas Copper-Silver Property" was undertaken. Based on the conclusions and recommendations of the Alous Project Review Study and the results of the subsequent field exploration programmes the main recommendations of this review comprise:
- The preliminary economic estimates suggest that further drilling
and metallurgical testwork may be justified to support a more
robust economic evaluation of the project
- Appraise alternative testwork opportunities for the treatment of
the Alous mineralization
- Completion of historical data acquisition, compilation and
assessment for each of the known prospects in the "Anti Atlas
Copper-Silver Property"
- Undertake design and implementation of exploration programmes on
known historical deposits in the "Anti Atlas Copper-Silver
Property", some of which have defined resources, with the aim of
defining either additional feed for a central processing facility
based at Alous or separate facilities
- Continue Target Generation for base and precious metal
opportunities and assessment of projects submitted to the company
John Lauderdale (BSc. (Geol.), F.G.S., C. Geol. (Geol. Soc. London)) is the qualified person for this project under the terms of National Instrument 43-101 and is responsible for the information contained in this news release.
About Odyssey Resources
Odyssey Resources Limited is a Canadian-based junior mining company dedicated to becoming Morocco's preeminent metal mining company. Odyssey is developing the Alous copper-silver deposit in the heart of a large and underexplored copper-silver belt in Morocco, a country that hosts several world class mineral deposits. The Company is simultaneously pursuing additional opportunities across the country spanning several metal commodities including gold, silver, copper, lead, zinc and uranium.
Forward-Looking Statements:
The statements made in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.
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