Cape Lambert Resources Limited is pleased to advise the market as to the progress of its interest in a land position, totaling approximately 1,560km2, in an emerging iron ore region in the Republic of Gabon, central West Africa. Cape Lambert acquired this interest by entering in to an agreement with the Genmin Group (Genmin) late in 2012 over exploration applications Cape Lambert had made on two prospective land positions in Gabon during 2012 (Projects).

Genmin is a private company founded by former DMC Mining, African Iron and Territory Resources director, Joe Ariti, former DMC Mining director Kim Bischoff and former African Iron CFO and Company Secretary, Shane Volk. Pursuant to the terms of the agreement, Genmin agreed to fund, manage and progress the exploration applications to grant and to subsequently fund, manage and progress the exploration activities and studies on the Projects in return for an 80% interest in the Projects. Cape Lambert holds a 20% interest in the Projects and is free carried to “decision to mine”.

The Projects comprises two exploration tenements located near Franceville in south-east Gabon known as Baniaka (774km2) and Mafoungui. The exploration licences were granted late in 2012. Cape Lambert Executive Chairman, Mr Tony Sage, said “its 20% free carried interest in the Projects in a highly prospective iron ore region, which hosts Exxaro’s Mayoko, Xstrata’s Zanaga and Equatorial’s Mayoko-Moussondji projects, proximal to established rail and power infrastructure with a large Exploration Target and excellent potential for early DSO production.”

Exploration Setting

The Baniaka and Mafoungui iron ore projects are situated in the Archaean Chaillu Massif in southeast Gabon. The Chaillu Massif extends south into the Republic of Congo where it hosts the Mayoko (Exxaro Resources), Mayoko-Moussondji (Equatorial Resources) and Zanaga (Xstrata/Zanaga Iron Ore Company) iron ore deposits. Previous regional geological mapping in south-east Gabon by Bureau de Recherches Geologiques et Minieres (BRGM – French Geological Survey) identified several occurrences of banded iron formation (BIF) associated with greenstone belts within the Baniaka and Mafoungui exploration licences. Genmin acquired medium resolution (250-500m line spacing) airborne magnetic data covering Baniaka and part of Mafoungui from the Gabon Ministry of Industry and Mines early in 2013.

Processed images of the magnetic data covering Baniaka shows two major curvilinear magnetic anomalies with an aggregate strike length of approximately 30km. The strongest anomalies have peak amplitudes of 4,000 to 5,000nT, typically diagnostic of BIF, with a strike length of approximately 16km, and an additional strike of approximately 14km of low amplitude and/or remnant anomalies. The southern anomaly covers the Tsengue, Bingamba and Bambono prospects. The northern anomaly covers the Ngaila, Kopa and Lendzoubi prospects.

Geological Mapping and Sampling

Genmin geologists completed a program of reconnaissance geological mapping and geochemical sampling at Baniaka during February – March 2013. A total of 39 rockchip  geochemical samples were collected during the program. Mapping and sampling focused on the Bingamba prospect but some field traverses were also undertaken to the Tsengue, Kopa and Bambono prospects. The area has extensive vegetation and windblown sand cover. A total of 13 outcrops of BIF were located during the mapping program, plus more than 30 occurrences of iron mineralisation located in slope and creek deposits. This mapping program confirmed the occurrence of BIF along the trends shown by the airborne magnetic survey data, and defined the potential for transported and in-situ weathered and enriched iron ore in the oxide zone, overlying primary magnetite BIF at depth.