Fancamp acquires rights to Mali's Kangaba gold field
Fancamp Resources Ltd FNM
Shares issued 15,800,000 Jul 8 close $0.07
Fri 9 Jul 99 News Release
Mr. Peter Smith reports
Fancamp has acquired from Ddraig Mineral Developments Limited of the U.K., the rights to explore and acquire a 100-per-cent interest in a 200-square-kilometre concession in the Kangaba gold field in southwestern Mali, West Africa. The property, called Kourouba, is held under exploration permit for an initial period of three years, renewable twice for further three-year terms. The concession is at the northern end of the major north-south trending Kalana greenstone belt which hosts gold in mesothermal vein deposits, disseminated sulphide associated mineralization and mobilisate vein-type mineralization. It is situated along the eastern bank of the Niger River, approximately 90 kilometres due south of the capital Bamako.
The concession hosts a significant geochemical gold anomaly that was identified following a government regional geochemical exploration program carried out in 1997 and released in 1998. The study was based on sample points 200 metres apart, taken along lines at 500 metres spacing. An anomalous area of approximately eight square kilometres (three by two and one half kilometres) was defined with gold values in excess of 100 parts per building. This anomaly is a new discovery and has never been drill tested.
The potential significance of this anomaly can be demonstrated by the example of the Morila property of Randgold Resources Ltd. also in southwestern Mali. This deposit was discovered from a government regional soil geochemical survey that located an anomalous zone in excess of 50 ppb gold. Subsequent work on the Morila deposit has identified proven and probable reserves amounting to 25.74 million tonnes at an average grade of 4.22 grams per tonne Au. The proven reserve includes 1.21 million tonnes of oxide ore averaging 10.23 g/t Au. An open pit operation, production is scheduled to begin in January, 2001. Cash operating costs are estimated at $133 per ounce (U.S.), placing the operation in the lowest production cost quartile of the gold mining industry.
Detailed soil geochemistry over the core zone of the anomaly is to begin immediately.
To acquire a 100-per-cent interest, the company must pay out a total of $100,000 (U.S.), issue 300,000 shares and spend $700,000 (U.S.) on exploration over three years. This interest is subject to a 1-per-cent net smelter return and a 10-per-cent deemed Mali government interest. The Mali government, in addition, has the right to purchase a further 10-per-cent interest.
© Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
|
