Acquires Highly Prospective Mali Project from Newmont
Perth, Nov 27, 2013 AEST (ABN Newswire) - Taruga Gold Limited (
ASX:TAR) is very pleased to announce the acquisition of the highly prospective SLAM project located in southern Mali. Taruga will acquire 100% of the project from Newmont Ventures Limited ("Newmont") who completed initial geochemical sampling that defined highly anomalous zones for initial drill testing. Taruga's landholding in southern Mali has now increased to over 830km2 (Figure 1 in link below).
Highlights
- Extensive geochemical anomalies up to 6.4g/t gold with numerous +1g/t gold samples defining high-priority anomalous zones
- Artisanal mining in area highlights prospective geology and gold mineralised structures
- SLAM project is more than 350km2 and consists of option agreements granting access over four granted concessions within 100kms of Bamako, the capital city of Mali.
- Project area located in highly prospective margin of Siguiri Basin - the host to major gold deposits including Siguiri (AngloGold Ashanti - 5.2Moz gold), Lefa (NordGold - 7.8Moz gold) and Tri-K (Avocet - 4Moz gold)
- Acquisition terms include:
-- Taruga to assume responsibility for Option Agreements
-- Newmont has first right of refusal on sale or transfer to third party
-- Newmont has claw-back agreement upon completion of 7,500m of RC and diamond drilling and 7,500m of aircore drilling. Clawback to maximum 51% by completing three times level of Taruga expenditure
-- 1% Net Smelter Royalty on any discovery exceeding 1Moz gold in Measured and Indicated Pit Constrained JORC compliant resource
"The acquisition of the SLAM project continues our focus on obtaining excellent ground holdings in highly prospective terrains for minimum cost. This allows us to focus our expenditure on high priority targets maximizing our chance for discovery," Taruga's Managing Director Bernard Aylward said.
"The SLAM project complements our existing Nangalasso and Diendo project in southern Mali where we now have secured a very exciting landholding in excess of 830km2. Our existing administration and geological team will be able to rapidly explore the SLAM project in conjunction with our existing field campaign. We have commenced field reconnaissance at the SLAM project and will continue exploration when our current program at Nangalasso is complete."
The SLAM project is the second significant acquisition for Taruga in the past four months and continues our focus on the highly prospective southern Mali and Cote d'Ivoire regions. Taruga has identified areas of high prospectivity and proven gold mineralisation and has acquired very exciting projects for low entry cost. Taruga has focused on projects where maximum value can be added through exploration programs. Taruga has acquired projects where the initial exploration has highlighted opportunities for discovery with early stage and reconnaissance exploration completed. Taruga is maintaining a disciplined approach to expenditure and project ranking and rationalisation to ensure we focus our exploration in the most prospective regions.
SLAM Project
The SLAM project consists of four granted concessions - Djelibani, Djelibani Sud (forming a contiguous landholding of 230km2), Balala and Kambali (Figure 2). The concessions are held as Option agreements with local landholders - the agreements grant Taruga exclusive access for all exploration activities upon payment of an annual option fee, and also grant the right for Taruga to purchase 100% of the concession for an agreed amount.
The SLAM project is approximately 100km to the southwest of Bamako, the capital city of Mali, and access to the project area is via a well-maintained sealed highway. The project is located within the Siguiri Basin - a geological terrain that hosts major gold deposits at Anglo Gold's Suguiri (5.2Moz) and Nordgold's Lefa (7.8Moz).
Extensive regional surface geochemistry has been completed by Newmont on the project. The surface geochemistry has highlighted numerous high-priority anomalous zones within the Djelibani and Djelibani Sud concessions, with surface anomalism returning up to 6.4g/t gold. In addition to the surface geochemistry, Newmont has compiled a significant baseline dataset that includes detailed aeromagnetics, satellite imagery and geological interpretation.
The SLAM project is being acquired from Newmont and as part of the acquisition Taruga will receive the full geological data package, including all available GIS information, geophysical data and images, geochemical data and geological information. A summary of the acquisition agreement terms include:
- Taruga to assume all obligations and payments under the four option agreements from and after August 1, 2013.
- Taruga shall have the right to terminate any option agreement after (a) giving Newmont 30 day notice and (b) delivering a full and complete data package.
- Newmont shall have the right to earn-back to a 51% by spending three times what Taruga has spent after Taruga has completed at least 7,500 meters of Aircore drilling and 7,500 meters of RC or diamond drilling - for a total of 15,000 meters.
- Newmont shall have right of first refusal on any proposed sale or transfer by Taruga to a third party - any third party offer for other than cash shall be expressed in USD cash equivalent.
- Newmont to receive a 1% NSR on any discovery if over 1MM ounces of gold in a pit-constrained JORC Measured and Indicated Resource.
Exploration Program
Taruga has commenced its field campaign at the Nangalasso project, located in southern Mali (refer ASX announcement 21/11/2013) with a program of geological mapping and geochemical sampling in preparation for an aircore drilling program.
At the SLAM project, Taruga has commenced field reconnaissance and mapping. Taruga intends to undertake reconnaissance drilling to test the surface anomalous zones following a program of check sampling and infill definition. The key anomalies identified for initial exploration are located within the Djelibani and Djelibani Sud concessions (Figure 2 in link below).
To view figures, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-TAR-659350.pdf
Contact
Bernard Aylward
Executive Chairman
Taruga Gold Limited
Mob: +61-418-943-345
Simon Hinsley
Investor Relations
NWR Communications
Mob: +61-401-809-653
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