Taruga and Newcrest Execute Binding Farm-In Agreement on Dabakala Gold Project, Cote d'Ivoire
Perth, Dec 15, 2015 AEST (ABN Newswire) - Taruga Gold Limited (
ASX:TAR) is pleased to announce the signing of a binding Farm-in Agreement ("Agreement") with top-tier gold producer, Newcrest Mining Limited (ASX:NCM) ("Newcrest"). This agreement formalises the Heads of Agreement announced on 17 September 2015.
Highlights:
- Taruga and Newcrest finalise farm-in agreement for potential joint venture over Taruga's Dabakala concession
- Newcrest to spend up to US$1.7 Million to earn 75% of a proposed joint venture within 3 years, including a minimum US$750,000 before withdrawal
- Taruga to receive US$100,000 payments, with first US$50,000 received
- Newcrest concessions adjacent to Dabakala and exploration programs will target high priority mineralised trends
- Strong existing Geochemical anomalies defined by Taruga sampling within the Dabakala concession
Taruga is the 100% owner of the Dabakala Project, Cote d'Ivoire (Figure 1, see link below) and under the terms of the Agreement, Newcrest will have the ability to earn a 75% interest in a joint venture company in Cote d'Ivoire by incurring exploration expenditure of US$1.7m over three years.
Managing Director Bernard Alyward stated "Taruga is very pleased to have formalised this agreement. Newcrest are committed to advancing Dabakala with initial extensive auger drilling campaign designed to infill and define the gold anomalous zone prior to initial drilling".
The current Taruga strategy of procuring early stage assets, adding value and attracting Joint venture partners continues to prove successful.
"Taruga has now successfully completed two agreements in Cote d'Ivoire, with exploration activity increasing on our ground through geochemical sampling, auger drilling and potential reconnaissance drilling. The projects are very prospective and with the amount of exploration undertaken, the potential for discovery is increasing".
Summary Terms of the Farm-In Agreement
- Newcrest can earn a 75% interest in a joint venture company to be incorporated to hold the Dabakala concession by incurring exploration expenditure of US$1.7m within three years, with Taruga maintaining a 100% interest until this time.
- Newcrest to incur a minimum of US$750,000 expenditure before withdrawal.
- Newcrest have made a signature payment of US$50,000 on signing of the HoA and will make a further payment of US$50,000 on registration of security documents in Cote d'Ivoire.
This Agreement and potential joint venture with Newcrest will allow Taruga to achieve extensive exploration on the ground while maintaining significant exposure to exploration success. Newcrest holds adjacent concessions and the geological interpretation indicates a continuity of geological structures and trends. Proposed exploration programs consist of infill auger drilling to further define the gold anomalous zones prior to an initial drill program.
About Dabakala
The Dabakala concession is located in central Cote d'Ivoire and is 100% owned by Taruga subsidiary International Goldfields CIV SARL. The concession was granted to Taruga in 2014.
Taruga has completed first pass geochemical sampling that outlined extensive surface gold anomalism associated with a major shear structure. The anomalies are regionally extensive and require infill geochemistry to define targets for reconnaissance drilling.
Newcrest has completed a regional stream sediment, rock chip and laterite sampling program as part of the project review which confirms the anomalous gold trends.
Taruga in Cote d'Ivoire
In February 2015, Taruga announced a Joint venture with mid-tier gold producer, Resolute Mining Limited, in respect of three of the Company's concessions in Cote d'Ivoire. In addition to the proposed JV with Newcrest over the Dabakala concession, the Company retains 100% ownership in a further three highly prospective concessions in the country.
Taruga is continuing to receive interest in its very prospective Cote d'Ivoire concessions from various parties. These continuing approaches indicate the value of the Company's significant landholding and Taruga will assess any proposals to maximise shareholder value.
To view the release including Figures, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-TAR-746568.pdf
Contact
Bernard Aylward
Managing Director
Taruga Gold Limited
M: +61 418 943 345
Taruga Gold Ltd
T: +61 8 9486 4036
E: admin@tarugagold.com.au
WWW: www.tarugagold.com.au
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