Angola

ANGOLA

CHITAMBA PROJECT

WHY ANGOLA
The fourth largest diamond producer in the world with with an annual revenue of US$1.1 BILLION, 2/3 of which is derived from alluvial production and 1/3 from kimberlite (CATOCA) production.

whilst the country is exceptionally prospective for new diamond discoveries, exploration was sterilized between 1975 to 2001 due to civil war.
the end of the civil war has heralded a new era of stability and opportunity.
Metalex’s Chitamba permit covers one of the most prospective diamond areas in Angola.

ANGOLA - TARGETS
Discovery and exploration of commercial alluvial diamond deposits within the Cuango and Cucumbi Rivers and their flood plains.

Discovery and exploration of commercial kimberlite hosted diamond deposits.

INTERESTS OF METALEX IN ANGOLA
PRIOR TO PAYBACK OF METALEX INVESTMENT AFTER PAYBACK OF METALEX INVESTMENT

Alluvial

Kimberlite

Alluvial

Kimberlite

Metalex

51%

55-60%

33%

25%

Endiama

26%

25%

35%

51%

24%

15%

32%

24%

*Note: Metalex pays all costs up to the end of feasibility studies. Underlying contributing interest may reduce Metalex interest

LOCATION OF CHITAMBA WITH RESPECT TO KNOWN KIMBERLITES
AND ALLUVIAL DIAMOND DEPOSITS

ANGOLA ALLUVIAL DIAMONDS - TARGET AND RATIONALE
Metalex considers the Chitamba alluvial project exceptionally prospective for commercial alluvial diamond deposits for the following reasons:

Large quantities of alluvial diamonds have been mined from gravels within and flanking the Cuango River downstream from the Chitamba permit since 1978.(e.g. current alluvial production by SDM is $106 million a year.)
this demonstrates that gravels of the Cuango arecommercially diamond bearing at certain locations.
For geological reasons the Cuango diamonds are thought to be the sourcefrom the Chitambo-Lulo kimberlite cluster approximatley 80 to 150km upstream from the SDM alluvial operations.
Metalex’s Chitamba permit contains the western part of the Chitamba-Lulo kimberlite cluster
51 of the known kimberlites (perhaps many more based on aeromagnetics) lie in the catchment of rivers that drain into the Cuango within the Metalex ground. Many of these rivers are fairly energetic and it is postulated that, when they they enter the flat lying (low energy) Metalex ground, they will deposit many of their diamonds, particularily the larger stones.
As the Chitamba license contains more than 30km length of the broad alluvial channel of the Cuango River, as well as tributary rivers, potential exists for a substantial alluvial diamond deposit.
The exploration target is alluvial diamond deposits within gravels of the Cucumbi and Cuango Rivers.
These can be explored for by sampling of yet to be discovered gravels.

ANGOLA ALLUVIAL DIAMONDS - PREVIOUS WORK

Some exploration work was done by Diamang in the 1970’s but the data is longer in Endiama’s archives and Mtalex has not been able to locate the results of this work.
Endiama reports that 12,000 cts have been recovered form the Cucmbi RIver within the Metalex ground.
Metalex has not been able to substantiate this as the area is overlain with >5 metres of waterlogged sand and could not be tested with the Metalex equipment previously available.
Endiama reports that a 216 ct. diamond was recovered from the Cuango within or near the northern boundary of the Chitamba permit. Metalex has not verified this report.
Gravels in the Cucmbi River upstream from the Chitamba lease reported to contain grades of 0.01 to 2.6ct./m³

ANGOLA - METALEX ALLUVIAL DIAMOND WORK

Satellite data acquired.
96 heavy mineral drainage samples collected and analyzed over 3,000km²
About 100 auger holes drilled in the Cucumbi river flats.
Twin 8 inch Riverine Dredge System purchased along with a camp for 30 people.
Also facilities for digging cased pits.

CHITAMBA RATIONALE FOR ALLUVIAL PROPECTIVITY

Angola_Chitamba_Rationale600

12,000 CTS REPORTED TO HAVE BEEN MINED NEAR THIS GRAVEL BAR IN THE CUCUMBI RIVER

PROSPECTING FOR ALLUVIAL GRAVELS IN THE CUCUMBI RIVER USING A 6 INCH SUCTION DREDGE

angola_river2

DIVERS MANIPULATE A SUCTION PIPE

GRAVELS DREDGED FROM THE RIVER BOTTOM ARE SIZED USING A TROMMEL, SEEN HERE ON THE BANKS OF THE CUCUMBI RIVER

rivercamp500

SIZING OF GRAVEL THROUGH A TROMMEL TO RECOVER CONCENTRATE INCLUDING DIAMONDS

ANGOLA ALLUVIALS - FUTURE WORK

The satellite data shows many abandoned river channels of both the Cucumbi and Cuango Rivers.
These priority targets will be prospected for pitting and sampling.
Prospecting for and testing of gravels within the present day and old channels of the Cucumbi and Cuango Rivers by dredging.

ANGOLA KIMBERLITES - TARGET AND RATIONALE

Metalex considers the Chitamba permit prospective for commercial kimberlite hosted diamonds for the following reasons:

The source of the abundant diamonds in the Cuango River is considered to be the Chitamba-Lulo kimberlite cluster
There appears to be two generations of kimberlite within the Chitamba lease.
There are up to 100 aeromagnetic targets to be tested ranging in size from 10 meter dykes to pipe-like bodies of 20 hectares.
The exploration target is commercial diamond bearing kimberlite pipes. These can be explored for by drill testing the project’s aeromagnetic anomolies and staged sampling of discovered kimberlites.

ANGOLA KIMBERLITES - PREVIOUS WORK

Previous exploration by Diamang identified at least 13 kimberlite deposits within the Chitamba lease. Whilst no diamonds were found in the kimberlites, the technology and security of the time were not as advanced as of today.
The aeromagnetic survey indicates potential for the discovery of new kimberlites.

ANGOLA KIMBERLITE - METALEX WORK/RESULTS

Kimberlite indicator mineral sampling over the entire licens shows that the eastern part of the area to be the most interesting.
67 out of 96 reconaissance samples contain kimberlite indicator minerals.
The indicator sampling suggests that there may be two populations of kimberlite, one containing both peridotitic and eclogitic garnets, the other containing mainly peridotitc garnets.
About 100 priority aeromagnetic anomolies have been identified.
Testing selected aeromagnetic anomolies by pitting is now in progress.

AREAS OF INTEREST FOR KIMBERLITE HOSTED DIAMONDS WITHIN THE CHITAMBA LEASE

Angola_Chitamba_area_of_interest2600

ANGOLA KIMBERLITES - FUTURE WORK

Continued pitting and drilling of priority aeromagentic anomolies.
Microdiamond and diamond indicator testing of newly discovered and know kimberlites.
Staged bulk sampling of potentially commercial deposits.