Ann: Mumbwa JV - Renewal of Licence Granted , page-2

From "Proactive Investor"
Blackthorn Resources and BHP Billiton renew Mumbwa prospecting licence


Blackthorn Resources (ASX: BTR) and joint venture partner BHP Billiton have been granted renewal of the Mumbwa prospecting licence in Zambia for a further two years to allow continuation of exploration activity in the region.

The Mumbwa prospecting licence application submitted to the Mining and Cadastral office was for an area covering 500 sq km. This area represents a reduction in the former prospecting licence by 50% which is in accordance with existing Zambian legislation.

BHP is the manager and holder of the Mumbwa large-scale prospecting licence (LPL 374).

The JV partners worked in collaboration to mutually decide on the area retained under the Mumbwa prospecting licence.

The Mumbwa JV is targeting an Iron-Oxide Copper Gold style of mineralisation and has been encouraged by exploration efforts since inception of the joint venture in late 2004.

Currently the JV partners have focused exploration over three anomalous regions (the Kitumba, Mutoya and Mushingashi anomalies) which extend along strike for a distance of approximately 20 kilometers.

The Kitumba Anomaly extends for approximately 1km along strike and is at the most advanced stage of exploration being the focus of previous drilling programs.

An initial Inferred Mineral Resource for the Kitumba Anomaly was released in late 2009.

Exploration activity at Mumbwa is now focusing on the Mushingashi anomaly. However, drilling has been suspended due to the annual wet season although some on-site work is continuing to improve safety and upgrade the office and accommodation facilities.

In January 2010 BHP Billiton made its election to manage and fund Phase 4 exploration work including a concept study. A decision has been made to award drilling contract work to Boart Longyear.

The current plan is to establish 2 drill rigs to commence operations once the wet season is over. Exploration work is planned to recommence in April 2010.