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YOJEE LIMITED — Capital/Financing Update 2011
Nov 17, 2011
66110_rns_2011-11-17_edff03ff-057e-436d-8ba4-0996a3ef87c2.pdf
Capital/Financing Update
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ASX Release
17 November 2011
Southern Crown Resources Limited
ABN: 52 143 416 531 Level 1, Suite 2 415 Riversdale Road HAWTHORN EAST VIC 3123 T: (+61) 3 9813 3882 F: (+61) 3 9813 4882 www.southerncrown.com.au
Contact:
Jock Harmer Managing Director T +27 823 239 768 [email protected]
Rhod Grivas Chairman T: +61 419 919 321 [email protected]
Directors / Officers:
Robin “Jock” Harmer Rhod Grivas Mark Papendieck David Reeves Adrian Hill
Issued Shares and Options:
Shares: 35 million Listed options: 10 million Unlisted options: 6 million
ASX Codes: SWR, SWRO
NKOMBWA PROJECT UPDATE
The Directors of Southern Crown Resources Limited ("Southern Crown" or “the Company”) are pleased to provide encouraging news on the progress regarding the improper excision of part of the Nkombwa Hill Project tenement.
Southern Crown is earning up to 75% of the Nkombwa Hill Project in Zambia through a joint venture agreement with African Consolidated Resources (“ACR”). The Nkombwa Project forms part of a large prospecting licence held by a subsidiary of ACR. On 4 October 2011 Southern Crown reported that it had suspended planned exploration drilling on its Nkombwa Project as a consequence of the Nkombwa Hill area having been improperly excised to a third party.
A comprehensive legal argument for the removal of the excision was submitted to the legal sub-committee of the Mining Advisory Committee (the statutory body empowered to decide on disputed mining rights in Zambia) and to the Ministry of Mines on 7 October 2011. On 20 October the Minister of Mines, Wylbur Simuusa, announced that the Ministry had “suspended the issuance of new applications, renewal and transfer of mining and non-mining rights” in order to “root out potential corruption and ‘clean up’ the [licensing] process”. In his statement, Mr Simuusa stated that he had "observed irregularities, litigation and allegations bordering on corruption" in the licensing process[1] .
Based on information gathered at subsequent meetings with representatives of the Ministry of Mines, including the Minister and Deputy Minister, the Company is confident that the improper excision of an area within the Nkombwa Hill tenement will be resolved in Southern Crown’s favour.
As a consequence, Southern Crown has resolved to undertake further low-cost surface exploration sampling (including trench and sawed-channel sampling) over its priority REE targets at Nkombwa Hill. The prime aim of the program will be to establish the continuity of the “high silica type” REE mineralisation within the “North West” and “Central” target areas – defined largely on the basis of a high proportion of >5% TREO samples collected at wide (mostly >1020m) sample spacing. This will help fine tune the proposed drill program that is planned to commence on successful resolution of tenure.
Southern Crown will continue to provide updates on this matter as and when further information becomes available.
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For further information please contact:
Jock Harmer Rhod Grivas Managing Director Chairman [email protected] [email protected] Ph: +27 823 239 768 Ph: +61 419 919 321
About Southern Crown Resources Limited
Southern Crown Resources Limited, named after a prominent arc constellation in the Southern Hemisphere, listed on the ASX on 2[nd] December 2010 with the purpose of acquiring, exploring and developing mineral deposits.
In early June 2011 the Company completed the acquisition of Rare Earth International which holds the Nkombwa and Xiluvo projects located in Zambia and Mozambique respectively. Southern Crown immediately commenced exploration on these projects.
Both Nkombwa and Xiluvo are large rare earth enriched carbonatite complexes. Historical core drilling at Nkombwa has identified intercepts of mineralised carbonatite returning high grades between 5 - 8% TREO. Sampling at Xiluvo has highlighted enriched soils up to 3.2% TREO at shallow depths between 1 - 8m.
The Company continues to evaluate additional mineral projects considered likely to add value to shareholders.
The Board of Directors has a strong mix of technical, financial and corporate skills to successfully explore the Company’s existing projects as well as source and develop further acquisition opportunities globally.
Competent Person’s Statement
The information in this report that relates to Exploration Results, Mineral Resources and/or Ore Reserves is based on information provided by Dr R.E. “Jock” Harmer, PrSciNat, FGSSA an employee of Southern Crown Resources Limited. Dr Harmer has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity they are undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.
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