• 1.37 Moz Gold JORC-complaint Exploration Target on only Prospect Area 1. • Mining Concession granted over 17 000 hectares. • Gold mineralisation from surface.
• Substantial Artisanal workings with historical gold extraction estimated at 1 075 oz of Gold per month.
• All 4 000 Artisanal miners have been removed without violence.
• Discrete high-grade zones surrounded by wide disseminated mineralisation:
– High-grade channel sample of 124 g/t gold across 0.72 m from a mining face.
– Drilling delivered results of up to 46,02 metres gram/ton (m g/t).
• Metallurgy indicates extraction up to 97% through leaching. • Early-stage cash flow from stockpile processing.
African Lion Gold plc’s (“ALG” or the “Company”) Flagship Chifunde Gold Project is located in the northern portion of the Chifunde District of north-western Mozambique, approximately 220 km north of the provincial capital of Tete and 60 km west of Lilongwe, Malawi.
In September 2021, ALG was granted a Mining Concession across the entire 17 000 ha which is valid for 25 years (with the option to extend for an additional 25 years). This was a significant achievement further de-risking the Project for ALG. Obtaining the Mining Concession is one of the biggest risks to any project as this process can take between 5-7 years.
To date, ALG have completed field mapping and sampling; an airborne aeromagnetic and radiometric survey; a structural interpretation using the various datasets; channel sampling of high-grade faces from the primary historical artisanal mining pit (Table 1 below); 7,200 m of reconnaissance and exploration drilling (both diamond and RC); 3-D geological modelling of the primary prospect areas and target generation across the remainder of the Concession.
Project Infrastructure
Strike Length Exceeding 2km
Table 1: Chanel samples taken from the primary artisanal pit
EXPLORATION TARGET
ALG achieved an JORC-compliant Exploration Target of 220 500 – 1 369 600 oz of Au content at grades ranging between 0.88 – 2.3 g/t, completed by VBKOM. The average drill spacing was 180 m.
CPR Report by SRK – April 2022
Additional Prospects Identified Across the Concession
Phase 3 Exploration Program
• 6 000-meter Resource and extensional drilling between Chatsunda Pit 2 and 3.
• JORC-compliant Resource Estimate is planned to be completed at an Indicated confidence level, as well as a feasibility Study thereafter.
• Geochemical Sampling Program on other Prospect Areas (500 m x 500 m grids).
• Auger Drilling, Trenching and Channel Sampling at the best Prospect Areas as identified through Geochemical Sampling Program.
• Our strategy also involves drilling the other Target Areas, including:
- Between Messengereze Pit 5, Pit 1, and Chatsunda Pit 2
- The major anomaly area at Copper Hill
- At promising structural intersection points adjacent to the main Target Areas
Our ultimate aim is to delineate and prove up to a multi-million-ounce resource.
Multi-million Ounce Resource Plan
ALG’s ultimate aim is to delineate a multi-million-ounce resource:
Reference:
1. VBKOM Resource Geologist Report
2. http//munknee.com/how-to-value-a-junior-miners-gold-in-the-ground
Mining Strategy
The Mining Concession has been granted over the entire 17,000-hectare license, providing comprehensive access to the area. Historically, 80,000 tons of mined ore have been stockpiled on the surface, concentrated around the Messengereze and Chatsunda Target Areas. This stockpiled ore presents a valuable opportunity for immediate processing and production.
The planned operation is expected to yield approximately 3,600 ounces of gold, generating a monthly net cash inflow of £390,000 with only a modest capital outlay. A conservative stockpile grade estimate of 2 g/t has been used in the financial model, ensuring realistic projections.
A new 20 tph pilot processing plant has been identified in Zimbabwe to facilitate the processing of stockpiled material. This plant, along with the required equipment, will also be employed to continue mining and processing shallow mineralized areas at depths of 15–30 meters.
The revenue generated from these operations will be strategically used to offset future exploration costs, minimizing the need for additional shareholder dilution. This approach aligns with the goal of maximizing value for all stakeholders while advancing exploration and development activities.
Historical Artisanal Mining
Over the past five years, more than 4,000 artisanal miners have been actively extracting primary gold deposits from the surface to a depth of approximately 120 meters along a 2-kilometer strike. During this period, they produced an estimated 42,439 ounces of gold. With support from the Mozambican government, all artisanal miners, along with their illegal settlements and compounds, have been peacefully removed. As a result, the Company now has unrestricted access to and full control of all mining pits.
