Charter Pacific Corporation Outlines Investment Highlights In Mauritania

Charter Pacific Corporation (ASX: CHF) is an investment company, which holds controlling interests in mining properties in Mauritania, including Kaoua El Khadra which has an exploration target of up to 4.4 Billion tonnes (Bt) of magnetite iron ore.

The company has the potential to emulate previous ASX-listed Sphere Minerals in Mauritania, which was acquired by Xstrata in a $514 million takeover offer.

While early days at the Kaoua El Khadra Prospect, there are similarities with Sphere's Lebtheinia iron ore deposit, currently being developed by GlencoreXstrata in Mauritania.

Kevin Dart is the managing director of CHF, and brings extensive experience in capital raisings, new listings, mergers and acquisitions.

CHF latest investment highlights and project details are below.

INVESTMENT HIGHLIGHTS

Kaoua El Khadra (Permit 792), the southern project of some 960km2, is 250km northeast of the capital, Nouakchott, and has an exploration target of up to 4.4 Billion tonnes* (Bt) of magnetite iron ore. This target has been established on the Permit through examination of surface outcrop, sampling and an intensive ground magnetics program.

Permit 792 is located approximately 35km south east to the regional centre of Akjoujt. There is a sealed road between Akjoujt to Nouakchott currently being used to transport iron ore and copper concentrate to the Port. Akjoujt is 160km south of the railway line at its closest point and approximately 300km east, by rail, of the port of Nouadhibou.

Exploration to date:

- Infill ground magnetics survey has been completed which took in the Eastern section of the permit.
- Rock chip samples taken from exposed outcrops.
- The continuity of the Banded Iron Formation (BIF) has been enhanced.
- Previously unexplored BIF has been discovered in the Eastern section of the permit.
- Upgraded the potential exploration target to 4.4Bt Fe (magnetite) from a 130km long interpreted strike horizon.
- Phase 1 trenching program completed.

Exploration highlights:

- Davis Tube Recovery (DTR) tests show concentrate grades up to 69.76% Fe and mass recoveries of up to 43.7%.
- High grade BIF sampled above 40%Fe.
- Field inspection and sampling confirms earlier exploration results and confidence in the exploration target of 4.4Bt.
- A number of direct drill targets have been identified along with further trenching targets.
- To date mapping, ground magnetics and surface sampling has identified extensive magnetite BIF which has characteristics typical of magnetite iron ore deposits with potential to produce high grade Fe, low impurity, concentrates.

Sampling:

DTR concentrate analysis from trench sampling showed low levels of deleterious components SiO2, Al2O3, P and S assays and a high of 69.76% Fe concentrates, which is consistent with the previous rock chip sampling undertaken.

Results are:

- BIF assay results range between 27.45% Fe and 44.55% Fe.
- Identification of extensions to known BIF under sand dune cover.
- Additional anomalies in the east quarter of Permit 792 confirmed as BIF in outcrop and under sand cover.

SURROUNDING PROJECTS

- Jindal Steel and Power Limited has acquired an adjacent Permit to Charter Pacific's Kaoua El Khadra and is conducting its own exploration program.

- SOMASO SA, a joint venture between TransAfrika Resources Limited (70%) and Agrineq SA (30%), is conducting a resource definition and feasibility study at the Kaouat Iron Ore Project (Permit 273B1), which is adjacent to Kaoua El Khadra.

- PT Bumi Resources Minerals Tbk has an interest in two projects in Mauritania and is active in the Tamagot region south of the town of Akjoujt.

- Gryphon Minerals owns the Akjoujt copper-gold project, located west of First Quantum Minerals Limited's Guelb Moghrein gold-copper mine, as well as several other gold projects.

- Societe' Nationale Industielle et Miniere' (SNIM) and Sphere (GlencoreXstrata) operating and developing iron ore projects to the north of Kaoua El Khadra.

INFRASTRUCTURE

Mauritania is serviced by three international airports, two deepwater ports and an existing bulk rail facility. The two deep water ports are Nouakchott, adjacent to the capital city, with capacity recently expanded to 6Mtpa, and Nouadhibou (formerly Port-Etienne), in the north of the country close to the border with Western Sahara.

PROJECT MANAGEMENT

Abdel Kader Ould Saleh is the Director (Country) Mauritania. Kader is a geological engineer with over 40 years experience in Mauritania. He was heavily involved in the development of the Mauritanian Ministry of Oil, Energy and Mines, and was Director of the Mines and Geology for more than a decade.

SEMS Exploration is the leading full-service mineral exploration and mining consultancy company in West Africa that look after the work on our Permits.

SEMS provide a full range of geological, mining engineering and environmental services; from grassroots reconnaissance exploration through to completion of feasibility studies and mine design.

With offices in Ghana, Burkina Faso, Cote d'Ivoire, Mauritania and Liberia and a workforce of more than 100 employees, SEMS is a local company with a large regional footprint.

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