Overview

The Abenab North project lies in the Otavi Mountain Land region of northern Namibia located approximately 450km by road from the capital of Windhoek in an area comprising the towns of Tsumeb and Grootfontein.

The region is a significant well mineralised base metal province with historic production from several mines including Tsumeb, Kombat, Abenab and the Berg Aukas mines. Tsumeb is a world-famous Cu-Pb-Zn-Ag-Ge-Cd mine renowned for its wealth of rare and unusual minerals and was mined from 1897 to 1996.

The project is highly prospective for base metal and rare earth element (REE) mineralisation as evidenced from the results of previous but limited exploration.

There is excellent infrastructure in the region well served by sealed roads, rail to port, high voltage power, telephone lines, and water. The project is close to major towns and mining processing facilities.

Rare Earth Element (REE) Mineralisation

In 2004 Kudu Minerals (Pty) Ltd applied for a portion of the ground abandoned by Anglo American. Kudu Minerals interpreted and modelled airborne and ground magnetic data, the results highlighted 9 targets for follow up drilling. Carbonatite was intersected in six of the nine targets drill tested.

Drilling conducted by Kudu Minerals intersected significant rare earth element mineralisation in drillhole B6 testing Anomaly 10 (A10) including 45m @ 0.73% TREO to end of hole (including 4m @ 2.53%).

In 2010 Avonlea Minerals Ltd gained access to the property to further test the anomalous rare earth element mineralisation at A10. This follow up drilling returned highly encouraging assay results from drilling including:

• 16.7m @ 0.66% TREO (including 1.2m at 1.89%)
• 39.7m @ 0.55% TREO (including 3.6m @ 1.22%)
• 19.9m @ 0.48% TREO
• 3.0m @ 1.19% TREO

EL Application

The application for a new prospecting licence for Abenab North, has progressed to notification of intention to grant. The grant is subject to an Environmental Clearance Certificate (ECC) issued by the Ministry of Environment and Tourism. The ECC will be issued upon approval of the Environmental and Social Impact Assessment and an Environmental Management Plan.

Discussions have commenced with key stakeholders including newly appointed government officials and local landowners in relation to the new EPL.