Hot Features
Premium
Register for real-time alerts, custom portfolio, and market movers
trategic Co-operation Agreement signed with Desert Gold Ventures Inc. to develop the Kossanto East Gold Project and Farabantourou Gold Permit in Mali towards potential production
Alecto Minerals (LSE:ALO), the AIM quoted mineral exploration company focussed on West and East Africa, has signed a co-operation agreement with Desert Gold Ventures Inc. (TSX.V:DAU), a TSX.V quoted mineral exploration company and titleholder of the Farabantourou Gold Permit which is situated adjacent to Alecto’s Kossanto East Gold Project in Mali, with a view to jointly developing both deposits to bring them into potential production.
The Kossanto East project is comprised of two deposits shown as GRB East and GRB West.
Highlights:
· Delivering on Alecto’s strategy to work closely with owners of similarly sized gold projects within a 10km radius of Kossanto East which can potentially be developed collectively towards production
· The companies will pool their respective resources and expertise to assess the potential for developing both deposits into production through a best endeavours and cost-efficient collaborative effort
· Combined, Farabantourou and Kossanto East have a total estimated resource of over 365,000 oz Au (at a 0.5g/t Au cut-off)
o Further to a September 2014 filing, the Barani East deposit within Farabantourou has an NI 43-101 compliant inferred resource estimate (at a 0.5g/t Au cut-off) of 73,175 oz Au grading at 2.15g/t Au and an NI 43-101 compliant indicated resource estimate (at a 0.5g/t Au cut-off) of 45,268 oz Au grading at 1.99g/t Au
· Alecto has a JORC code compliant inferred resource estimate of 247,000 oz Au grading at 1.14g/t Au at Kossanto East (at a 0.5g/t Au cut-off). Both projects fall within a potential 10km trucking radius from a central location
· Both companies have other targets within their respective permit boundaries which could provide additional tonnage for a collaborative processing plant
o Upside potential is currently recognised at Alecto’s Kossanto West Gold Project (‘Kossanto West’), which is immediately to the west of the Kossanto East resource
Alecto’s CEO, Mark Jones, commented:
“With a combined estimated indicated and inferred resource of over 365,000 oz Au and falling within a 10km radius of each other, we believe there is significant scope to develop the Kossanto East and Barani East deposits into a commercial mining opportunity. Accordingly, working in collaboration via the sharing of information and resources with Desert Gold marks a significant step towards achieving this goal.
“We have already had preliminary discussions with potential funding partners for this venture and, whilst such discussions remain at an early stage, the initial interest has been highly positive. We look forward to working with Desert Gold during 2015 and we hope that this Agreement will lead to a strong and productive working relationship going forwards as we seek to bring both deposits into potential production.”
Desert Gold’s President and CEO, Roeland van Kerckhoven, commented:
“Our collaboration with Alecto should enable both companies to benefit from shared knowledge and economies of scale and thereby create shareholder value more quickly. We have already filed an NI 43-101 technical report for our Barani East deposit and it is only natural that we should now look at bulking up the resource tonnage with the concomitant lower unit processing costs. We are excited to be working alongside Alecto on this collaboration as each party brings much to the table in terms of experience, resource ounces and significant further exploration upside potential.”
