Announcements - 27th February 1996

Niassa Gold Results

Kenmare Resources announces positive gold results.

Kenmare Resources which hold options over exploration licences in northern Mozambique has completed the first phase of its exploration programme in the area and received results from the samples taken during the programme.

Kenmare believes that the area is a greenstone belt of Proterozoic age and that a major shear zone is present on its acreage. Reconnaissance exploration has identified 14 veins of more than one metre in width, which contain significant gold concentrations at surface. Many other veins have still to be sampled. Trenching across the veins in some instances has identified gold in rocks surrounding the vein.

Detailed trenching work has concentrated on two zones. In both of these zones the vein system has been identified at surface through a distance of 450 to 500 metres. One of these zones, OD1, has also been the subject of an initial diamond drilling programme. During this programme 6 holes were drilled into the structure identifying continuity 150 meters down dip and for 350 metres along the structure at depth. Zone OD1 remains open in every direction.

Drilling is presently suspended due to heavy rains. When the rains finish in late March, Kenmare intends to recommence drilling on the OD1 zone and is presently mobilising for a much more intensive drill programme. This programme will drill 24 hours a day using two drill machines with the twin objectives of developing a proven tonnage on OD1 and investigating some of the many other targets in the area.

The drill intersection results from OD1 are as follows:

Hole	Length of intersection (m)	Grade (g/t)
D3	1.4	27.00
D4	3.05	7.06
D6	3.0	10.23
D7	4.0	0.00
D8	4.0	18.26
D9	2.0	11.33

Holes 1, 2 & 5 failed due to drilling problems.

In a comment Charles Carvill, Chairman of Kenmare, said "While much work still needs to be done; we couldn't have asked for anything better at this stage and are delighted by the results".