Location and Tenure

The Ampanihy Project is the second largest of the Company’s projects. Centred north of its namesake town of Ampanihy in south-central Madagascar, the project comprises a total of 56 permits of 1,775 sq km area, covering approximately 80km of regional strike. The permits are 100% beneficially owned by MML, with title held by MDA.

Geology, Exploration History and Targets

The project overlies a prominent 20km wide zone of folded and assemblage of graphite and quartz-feldspar schists (<60% graphite), quartzite and marble units, with lesser intercalated amphibolite and leucogneiss. This zone, termed the Ampanihy Belt is a core component of the Neoproterozoic Graphite System. The belt is interpreted as a ductile shear zone accreted from rocks of both sedimentary and volcanic origin. Strong localised copper and manganese mineralisation are observed in association within the graphite schists and marble units.

Two large intrusions of lenses of Proterozoic anorthosite (i.e. labradorite – each approximately 20km in diameter), Ankafotia in the north and Saririaky in the south, intrude the central Ampanihy belt about 70km apart. The lensoid shape of the anorthosites within this belt suggests that there may be low pressure zones around the bodies (e.g. orthogonal the compressional stress direction), which could be loci for mineralisation.

Sampling of the Ampanihy Anorthosite bodies has found sulphides in the form of disseminated crystals (0.5-1mm) and small blebs (10-20cm) of massive sulphides, the latter returning results up to 0.67% Ni, 0.64% Cu, 0.12% Co, 26ppb (Pt+Pd) and 21ppb Au.

A program of stream sediment sampling to identify areas anomalous in base and precious metals was concluded in mid 2004; with follow up programmes completed in 2005. Results highlight a number of areas that are anomalous in Ni/Cu/Co/Cr with one area anomalous in Au and several others anomalous in Pt and Pd.