Quarterly Activities Report
For the Quarter ended 30 June 2018
HIGHLIGHTS FOR THE QUARTER
Mambasa Project, DRC
- Assay results from the Stage 1 soil sampling program received and anomalous gold results of up to 0.93 g/t gold reported
- Two lineations defined within the gold in soil results:
- +3,000 metre North-West trending fabric which is a similar orientation to regional gold projects such as Kibali and Geita interpreted from satellite imagery
- +3,000 metre North-South trend that potentially represents another structural control associated with anomalous gold.
- Stage 2 soils sampling program completed late in the June quarter and 500 samples now with ALS Laboratories in South Africa for multi chemical analysis.
Crackerjack Project, Western Australia
- Desktop review of multi element results from previous work at Crackerjack.
- Planning for the next phase of work has been completed and is planned for commencement in the September Quarter.
Katanga Copper-Cobalt Project, DRC
- Okapi secured an extension of time to finalise legal due diligence (now 180 business days to 24 September 2018) as agreed project vendor Rubamin FZC
- The Company is planning a detailed mapping project on the Tenke and Ntondo projects as a precursor to a potential airborne geophysical survey post due diligence.
- Okapi remains well funded with end of quarter cash reserves of $4.9 Million
Okapi Resources Limited (ASX: OKR, “Okapi”, “Company”) is pleased to report on activities completed during the June 2018 quarter.
OKAPI DRC PROJECTS UPDATE
Okapi Resources Limited (ASX:“OKR”) (“Okapi” & “Company”) is pleased to update the market with respect to both the legal due diligence process and technical works in process on the Katanga Cobalt/Copper Project, as well as the Mambasa Gold Project.
Legal Due Diligence – Katanga Cobalt Copper Project
Okapi has secured a further extension and now has up to 180 business days from the original agreement date of 18 January 2018, so as to finalise legal due diligence. This extension was mutually agreed with the vendor, Rubamin FZC, UAE (“Rubamin”) and its wholly owned and controlled DRC subsidiary, Rubaco Societe a Responsabilitee (“Rubaco”), to provide them additional time for presentation of all requested legal documentation to the satisfaction of Okapi and its in-country legal counsel.
The Company remains positive about the technical aspects of the projects and will continue with limited ongoing field work to further assess the assets
Operational Update – Mambasa Gold Project
Okapi has now completed collection of some 499 infill soil samples including 12 rock chips, and 24 QAQC samples (Figure 1).
Samples are being prepared on site for a duplicate to be left with the local Mines Department, as is required by law, with all 499 samples being readied for transport to Lubumbashi for sample preparation at ALS Laboratories Lubumbashi and onforwarding to ASL South Africa for determination of precious (Au, Ag) and other pathfinder elements. Results will be reported as soon as they are received and analysed by senior technical staff.
It is hoped that results of the infill soil sampling will allow targeting of scout drill holes at the project which will be undertaken in the next phase of exploration work at site.
FAVOURABLE MINERALISED STRUCTURES DEFINED AT MAMBASA
- Phase 1 Soil Sampling program completed at the Mambasa Gold Project.
- Results from the 997 soil samples were processed at ALS Johannesburg.
- Encouraging results received of up to 0.93 g/t Au returned from soil sampling.
- Anomolous gold results at Mambasa have outlined a NW trend, which is the same regional trend that hosts large-scale gold deposits within the area such as AngloGold Ashanti's Geita Gold Mine1 (20Moz) mine in Tanzania and Loncor Resources Inc's2 recently defined Makapela Gold Project (1Moz) and Kilo Gold’s3 Adumbi (1.3Moz).
- Plans for a follow-up Phase 2 sampling program is currently being planned for the June Quarter and may include some scout diamond drilling
Mr. Ferguson, Executive Director, commented: “We are pleased to report the recent soil sample results from the Mambasa project and are encouraged by the identification of the mineralised north-west regional trend that is a geological backdrop for such regional deposits as AngloGold Ashanti’s Geita Mine and Randgolds Kibali Mine. We are currently gaining a better understanding the minor element association. The follow up work is in the planning stage and will seek to ground truth anomolous results, with a view of working up some drill targets for the June or September quarter.”
Okapi Resources Limited (ASX:“OKR”) (“Okapi” & “Company”) is pleased to announce that encouraging soil sampling results have been returned from the initial Phase 1 exploration program completed during the March 2018 quarter.
The Mambasa Project, consisting of Licences PE364 and PE480 is located in the Democratic Republic of Congo (“DRC”). Location map shown in Figure 1.
The program consisted of the collection of 997 soil samples from the PE364 licence area on a 250m line by 100m soil sample grid. These samples were submitted to the ALS Laboratory, Johannesburg (ISO 9001:2008) for multi-element analysis. The results of up to a maximum of 0.93 g/t Au have been received and are all shown in Table 2.
Anomalous gold results show a +3km NW trend which is very encouraging as it is a similar geometry shown by some of the more significant gold projects in the region, including Kibali and Geita. A similar NW fabric can be seen in satellite imagery and the lineation is currently interpreted as the same structural trend that hosts deposits in the Ngayu Greenstone Belt. Refer to Figure 2 and 3.
INTERIM FINANCIAL REPORT
FOR THE HALF-YEAR ENDED 31 DECEMBER 2017
The Mambasa Gold Project is a brownfields project with several historical colonial gold workings and current artisana gold activity of covering over a 600m strike length and up to 25m in depth. The Mambasa Project consists of two granted licences, PE364 and PE480, located approximately 18km to the south of the town of Mambasa, in the Mambasa District of Ituri Province in the north-eastern DRC.
These two licences are located in a region with impressive exploration potential within favourable stratigraphic and structural settings, similar to other large-scale gold deposits within the region including AngloGold Ashanti's Geita (20Moz) mine in Tanzania and Loncor Resources Inc's recently defined Makapela (1Moz) and Kilo Gold’s Adumbi (1.3Moz) gold projects. Map 1 shows the Mambasa licences with the interpreted NE trending structural fabric.
Earn-in Agreement Terms
The Company executed the Mambasa Joint Venture Agreement with Kalubamba Sarl and Medidoc FZE which granted the right to earn a 70% interest in the Mambasa Project and to act as the manager. The agreement was conditional upon the successful ASX listing of Okapi Resources Limited and which was achieved 28 September 2017.
The Mambasa Joint Venture Agreement provides for an exploration expenditure earn-in by the Company over an approximately 4 year period, with a minimum spend of US$150,000 on exploration work (Phase 1 Assessment) within 12 months of the ASX listing date and before it has the right to withdraw from the joint venture.
Exploration Activities for the Half-year
During the half-year and post its successful ASX listing, the Company commenced its Phase 1 Assessment exploration program at Mambasa. A total of 997 soil samples were collected from the licence areas and subsequently submitted to a commercial laboratory for analysis. This work is designed for drill target generation and to facilitate scoping of the next phase of work. These results are expected before the end of the March 2018 quarter and remain pending at the date of this report.
PLACEMENT COMPLETED, APPENDIX 3B &
Okapi Resources Limited (ASX:“OKR”) (“Okapi” & “Company”) is pleased to announce that,
further to its announcement of 24 January 2018, it has completed the issue of 2,142,857 fully paid
ordinary shares at an issue price of $0.70 per share raising A$1.5 Million before costs.
An Appendix 3B is attached with respect to the new securities issued and the Company gives notice
- it issued the securities without disclosure to investors under Part 6D.2 of the Corporations Act
- this notice is being given under section 708A(5)(e) of the Act;
- as at today’s date, the Company has complied with:
(i) the provisions of Chapter 2M of the Act as they apply to the Company; and
(ii) section 674 of the Act; and
- as at today’s date there is no other information that is excluded information which is required to be set out in this notice pursuant to section 708A(6)(e) of the Act.
POSITIVE INITIALRESULTS FROM TECHNICALDUE
DILIGENCE ON THE KATANGA COPPER-COBALT PROJECT
- Due diligence field work has produced early positive indicators on the “Tenke”, “Ntondo” & “Luisha” licences as part of the OptionAgreement with RubaminFZC. These include identification of undiscovered coppermineralisation in highlyprospective rocks of the Roan Group.
- Initial rock chip results from immediately west of the Tenke licence have returned encouraging copper results up to 30.9% Cu.
- Positive mapping results have identified Roan & Kundulungu Group sediments in the project areas, these rocks are well known to host world class copper-cobalt deposits.
- Potentially 5 kilometres of strike-extent of the Roan sediments interpretedfrom field observations. This type of geological setting hosts the world class Kamoa-Kakula deposit.
- Mapping has identified new areas of copper mineralisation at the Luishaand Tenke properties.
- Sampling has been conductedto validate work conducted by Rubaco SARL (100% owned subsidiary of Rubamin FZC) at Luisha with results pending.
- Outcrop sampling has been undertaken at the Tenke project from areas of newly discovered copper mineralisation.
- Logistics assessment for the Ntondo project completed
Mr. Eckhof,Chairman commented, “We are verypleased to report on duediligence progress of the Katanga Copper and Cobalt Project.The assetsare withinthe worldclass copper cobalt belt ofthe DRCand contain substantial strike lengths ofuntested, but what appear tobe mineralisedRoan GroupMine sequenceand Kundulungu units. These rock unitsare hostto severalworld class Cu & Codeposits such as Tenke and Kamoa. We look forward toannouncing further updates on thisexciting phase of the developmentof the Company.”