Maghreb Minerals jumped 20% after the Company released a JORC compliant resource estimate for the Gite de l'Est deposit at Bou Jabeur, Tunisia.
An Inferred Resource of approximately 8.8 million tonnes grading 2.17% zinc, 0.99% lead, 5.1% fluorite and 21.7% barite using a 1% cut off for zinc and lead generated an 'in the ground value' of over US$925 million based on recent metal prices.
The Company also reminded investors that the grade and tonnage estimates are expected to increase once additional re-assay results are added into the block model - an updated resource estimate is expected in the first quarter of 2008. In the meantime, Maghreb is continuing with a scoping study and metallurgical test work.
Additional drilling will also begin shortly at Bou Jabeur to test below the water table with a second drill rig expected to arrive in January 2008 to test additional targets to the north-west and south-west of the current ore body.
Gordon Riddler, Executive Chairman commented:
'The mineral resource summary for Bou Jabeur - Gite de l'Est prepared according to JORC (2004) verifies and improves upon previous Tunisian resource estimates and potentially adds real value to the Company. We look forward to providing the updated resource statement as soon as possible with the expectation to increase further the tonnage and grade estimate. Further work on the block model as a precursor to the pre-feasibility study on mining the Gite de l'Est deposit has now commenced'.