Thabex readies for AIM

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Thabex readies for AIM
Allan Seccombe
Posted: Mon, 04 Dec 2006

[miningmx.com] -- THABEX EXPLORATION plans to be quoted on London�s AIM during the first half of 2007 in order to raise funds for a base metals project, as it conducts testing on a diamond deposit in Lesotho and begins exploring a gold prospect in Uganda.

Thabex has removed itself from the coal business two or three weeks ago in the face of an expensive and lengthy lawsuit with Anglo American, which claims to have the old order rights over a coal deposit for which empowerment group Abarawaki had submitted an application for prospecting rights.

�I�m not going to spend money on fighting the court case with Anglo. We can�t be involved in that, it�s too expensive and time consuming, so we gave the stake (in Abarawaki) back to the BEE guys,� Marius Welthagen told Miningmx in an interview. Thabex had a 40% stake in Abarawaki.

We can�t be involved in that

The primary focus for Thabex is its drilling programme at its 95%-owned Salt River base metal project in South Africa�s Northern Cape province to lift as much of the resource into the measured category as possible ahead of an application to be admitted to London�s Alternative Investment Market (AIM).

Thabex hopes to raise R50m to fund a bankable feasibility study into Salt River where there is currently an indicated sulphide mineral resources of 42m tonnes. There is zinc, copper and lead in the deposit. The application is later than the exploration company had been hoping for.

�We are waiting for our present results so we can see how much of the resource has come into measured from indicated. That�s why we are a little late on the listing side because we thought it best to spend a little more time before going to London. An indicated resource is a little dicey.�

A new resources statement is due by mid-January.

Preliminary estimates are that it will cost R400m to develop and opencast mine and plant. The main ore body lies 500 metres below surface. Thabex would like to bring in a mining partner on the project. �We want to add maximum value before we bring someone in. It�s not our place to do it ourselves.�

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Thabex has an 80% stake in Angel Diamonds, a project in Lesotho, a tiny mountainous land-locked country surrounded by South Africa. There is a kimberlite deposit Thabex hopes to exploit.

It will spend R4.5m on treating a 50,000 tonne stockpile of kimberlitic material to build up a parcel to evaluate the deposit. It will also conduct a six-month drilling programme from January to determine the size of the kimberlite 50km southwest of the capital Maseru.

�We�d like to assemble a parcel of 3,000 carats minimum. It appears it is a low-grade deposit but with occasional big stones,� Welthagen said.

Thabex is a 50% joint venture partner with Uganda-based Devex Exploration to explore a number of alluvial gold deposits in southern Uganda. The potential deposits are thought to be from the same gold belt running up northeastern Democratic Republic of Congo.

Welthagen, fresh from a visit to the prospects, has brought back material for sampling. �It�s grassroots. But there are definitely showings of gold,� he said. �We�ll try to raise money offshore for that project in the joint venture company.�

�It�s being explored, but not in a systematic or big way. The licences are secured, work is being done and now we�ve got to find where the gold is coming from. We�ll do stream sampling to find the source,� he said.

The Ugandan government has a grant from the World Bank to do an aeromagnetic survey from January, which could help the joint venture pin down deposits.

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