BWA Group PLC - Granting of New Licence; Dehane 2

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF REGULATION 11 OF THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS 2019/310.

6 September 2022

BWA Group PLC

(“BWA”, or the “Company”) (AQSE: BWAP)

Granting of New Licence; Dehane 2 at the Dehane Heavy Mineral Sands Project, Cameroon

BWA Group plc [AQSE: BWAP], which has mineral exploration licences in both Cameroon and Canada and is quoted on London’s AQSE Growth Market, provides an update on its recently granted Dehane 2 rutile sands Licence, located in Central Cameroon (“Dehane 2” or the “Dehane Project”).

The permit is valid for three years from the 1^st of September 2022 until the 31^st of August 2025 and applies to the exploration for rutile, ilmenite, zircon and other related minerals. The granting of the new licence increases BWA’s in-country licence portfolio to four heavy mineral sands (“HMS”) licences, expanding the total licence area from 1,123 km² to 1,177 km².

The adjacent Dehane 1 Licence covers an area of 132 km² and the contiguous Dehane 2 Licence covers an area of 54 km², bringing the total Dehane Licence package area to 186 km², comprising part of the prospective Nyong river system and is located 166 km to the southwest of Yaoundé, and 70 km from the deep seaport and industrial zone of Kribi (See Figure 1 and 2).

A version of this announcement containing the maps can be viewed on the Company’s website, http://www.bwagroupplc.com/.

Outlook

The granting of Dehane 2 is particularly positive for BWA as this licence covers an additional 14 km of strike length of the Nyong river system, an area known to be prospective for Ilmenite, Rutile, Zircon and Kyanite heavy mineral sand mineralisation. This additional 14 km brings the total strike length of the Dehane licences to some 34 km.

Moreover, the licence covers the mouth of the river as it empties into the Gulf of Guinea. A river mouth can lead to a change in flow conditions that can cause the fluvial system to deposit any supplementary sediment (HMS) it is carrying. Furthermore, as shown in Figure 2, the licence covers some 20 km of coastal region which has the potential for marine type HMS deposition, where potentially economic accumulations of HMS are found within the lowest energy zone on the beach, the swash zone.

BWA look forward to incorporating Dehane 2 into the regional exploration programmes for this licence group (Dehane 1 and 2).

James Butterfield, interim Non-executive Chairman of BWA, commented:

“We are pleased to have the Dehane 2 Licence granted which adds additional strike length of the prospective Nyong as well as the river deltas and coastal zone. We are delighted with the continued confidence shown in BWA by the Cameroon Government in the granting of this additional licence and look forward to exploring the additional strike of river system and associated floodplains that the licence gives us access to.”

Geology and Geological Interpretation

The Dehane licence is located on the Western Cameroon Domain, which extends along the border between Nigeria and Cameroon. This domain consists of a series of medium-grade to high grade schists and gneisses of volcanic and volcano-sedimentary origin, intruded by later-stage granitoid complexes, the basement rocks are source of heavy minerals.

The Nyong river is the main river which runs through the licence areas.  The BWA licences accommodate approximately 34 km of the prospective Nyong river floodplain system, deltas, and associated tributaries.

The licences encompass a large active river system and an even larger paleo-floodplain area, and marine coastline observed in satellite imagery (Figure 2), although this has yet to be fully ground-truthed through fieldwork. This paleo-floodplain is likely to be a significant target for exploration and covers the length of the river with an initial expected width of over 2 km in the north and increasing in the south. Other rivers of various importance are found there: Owoumbé, Nkoudou, Bidinga, Mbebe, Mboke, and Ongué.

The Dehane area has been known for some historic small scale artisanal historical rutile mining. However, the extent of its exploitation has not translated to concentrated modern exploration.

Competent Person’s Statement

The information in this report which relates to the Dehane Project is based upon and fairly represents information collected and compiled by Mr Emmanuel Simo, MSc., Senior Geologist and Chief Geologist for BWA, who is a Member of the Australian Institute of Geoscientists.

The results were reviewed by Mr J.N. Hogg, MSc. MAIG, Principal Geologist for Addison Mining Services (AMS) and Non-executive Director of BWA.

Mr Simo and Mr Hogg have sufficient experience relevant to the style of mineralisation, the type of deposit under consideration and to the activity undertaken to qualify as a Competent Person as defined in the JORC Code 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.

Mr Hogg has reviewed and verified the technical information that forms the basis of and has been used in the preparation of this announcement, including all sampling and analytical data, and analytical techniques. Mr Hogg consents to the inclusion in this announcement of the matters based on the information, in the form and context in which it appears.

Forward Looking Statement

This announcement contains forward-looking statements which involve a number of risks and uncertainties. These forward-looking statements are expressed in good faith and believed to have a reasonable basis. These statements reflect current expectations, intentions or strategies regarding the future and assumptions based on currently available information. Should one or more of the risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary from the expectations, intentions and strategies described in this announcement.

No obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments.   

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