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Brinkley Mining is pleased to announce that its wholly-owned Chad subsidiary, Brinkley Exploration (Tchad) S.A. ('Brinkley Exploration'), has been granted three exploration permits in Chad. The three permits include Ribao, Zalbi and Massonebare which together cover an area of 423km in the Mayo-Kebbi area of South West Chad adjacent to the Cameroon border (the 'Permits'). The Permits, which have been granted for a five year period expiring on 7 March 2013, provide for the exploration of uranium, gold and base metals. Osumare Investments Limited, Brinkley Mining's commercial partner in Chad, has a beneficial 30 per cent. interest in the Permits.
The Mayo-Kebbi region covers an area of approximately 8000km of exposed basement complex with syntectonic alkaline intrusions and Cretaceous platform cover with historical occurrences of copper, nickel, gold and tin. Following a wide-spaced airborne radiometric survey, uranium mineralisation was discovered in 1977 at Mandagzang. Subsequent diamond drilling confirmed disseminated mineralization within a syenite body in at least three holes with a reported best intersection of 29 meters at a grade of 761ppm Uranium. Shorter intercepts returned values in excess of 1 per cent. Uranium and surface investigations showed zones of supergene enrichment. The Zalbi Permit issued to the Company is contiguous with the Mandagzang discovery permit.
Recent work undertaken by Brinkley Mining includes stream sediment sampling with significant gold values identified at rates of up to 975ppb. A detailed 100 meter-spaced airborne survey has been conducted over the area by Brinkley Mining which has delineated a number of radiometric anomalies that are currently being followed up by ground surveys.
Brinkley Mining believes that the Mayo-Kebbi region has potential for uranium and gold mineralisation and the exploration of this region is part of the Company's broader strategy to develop its interests in prospective areas of Sub-Saharan Africa.
Brinkley Mining will provide a loan of up to US$5 million to Brinkley Exploration to finance exploration and drilling costs. Brinkley Mining has an option to acquire Osumare Investments Limited's 30 per cent interest in the Permits at market price should a feasibility study be completed in relation to the Permits. Brinkley Mining has also agreed to issue 5 million new Brinkley Mining ordinary shares to Osumare Investments Limited in respect of services and assistance provided to date.
Dunbar Dales, Chief Executive Officer, commented:
'We are pleased to be operating in South Western Chad. Our field crew is on the ground and has a detailed work programme to undertake. The aim of this current programme is to identify drill ready targets with the intention of starting drilling towards the end of 2008.'
Qualified Person
Kiran Morzaria has reviewed the information contained in this announcement. Kiran Morzaria holds a B. Eng Honours degree in Industrial Geology and a MBA in Finance. Kiran is a Non-executive director of Brinkley Mining. He has compiled, read and approved the technical disclosure in this regulatory announcement.