Dec 2 2010
Kenieba Goldfields Ltd. (TSX VENTURE:KEN) has announced that it has entered into four option agreements to acquire up to a 70% interest in each of the following properties in Mali, West Africa.
Balankomana property
The property is located within the Kangaba region of Mali. It has a total area of approximately 149 km2. Four major gold target areas and a number of lesser targets have been outlined on the Balankomana concession. The target areas are outlined by soil geochemical anomalies. The gold mineralization in found in quartz veins in metasediments with intense hydrothermal alteration with structural controls in Birimian age rocks. A maximum value of 7.76 g/t gold was returned from pit sampling.
Diban property
The property is located within the Sikasso region of Mali. It has a total area of approximately 96 km2.The gold mineralization, on the Diban concession, is related to a sulphide bearing formation containing quartz veins and veinlets in a shear zone hosted in a granodiorite intrusive of Birimian age. A gold geochemical anomaly measuring 1,500 meters by 1,500 meters has outlined the highest priotity target. Previous diamond drilling returned a high intercept of 5.50 g/t gold over one meter and the widest intercept was 1.1 g/t gold over 11 meters.
Diban North property
The property is located within the Sikasso region of Mali It has a total area of approximately 143 km2.The gold mineralization, on the Diban North concession, is related to a sulphide bearing formation containing quartz veins and veinlets in a shear zone hosted in a granodiorite intrusive of Birimian age. Previous work on the property returned gold values as high as 12.5 g/t gold in samples from pitting and as high as 31.16 g/t gold over 1.0 meter in a diamond drill hole.
Kouroufing property
The property is located within the Kenieba region of Mali. It has a total area of approximately 101 km2. The Kouroufing concession contains the Kouroufing and the Kome gold zones. At the Kouroufing, gold mineralization is found in a silica-carbonaceous stockwork containing sulphides in a microdiorite of Birimian age. Previous work included RAB (Rotary Air Blasting) drilling, which returned a best value of 12.2 g/t gold over 4 meters. The Kome gold zone is a 1,700 meter long gold geochemical anomaly. Gold mineralization is found in quartz veining in a biotite-sericite altered host rock. Selected samples grading up to 500 g/t gold were collected from smoky quartz containing visible gold. The highest value returned from RAB drilling, was 2.50 g/t gold over 4 meters.
Under the terms of each of the option agreements, Kenieba must make aggregate cash payments of US$300,000, an issue of 2,000,000 common shares of the Company and to incur a total of US$750,000 on exploration work on each of the Mali properties.
Cash payment schedule:
- US$75,000 within 5 business day of Exchange Approval;
- US$75,000 on or before the first anniversary of Exchange Approval;
- US$75,000 on or before the second anniversary of Exchange Approval; and
- US$75,000 on or before the third anniversary of Exchange Approval.
Shares payment schedule:
- 500,000 shares within 5 business days of Exchange Approval;
- 500,000 shares on or before the first anniversary of Exchange Approval;
- 500,000 shares on or before the second anniversary of Exchange Approval; and
- 500,000 shares on or before the third anniversary of Exchange Approval.
Exploration expenditures:
- US$125,000 on or before the first anniversary of Exchange Approval;
- a further US$250,000 on or before second anniversary of Exchange Approval; and
- a further US$375,000 on or before second anniversary of Exchange Approval.
The vendor retains a 1-per-cent net smelter return royalty on the Diban North property. After vesting, a joint venture will be formed to further develop the property. These agreements are subject to receipt of TSX Venture Exchange approval for this transaction. The maximum allowable finder's fee shall be paid in shares and cash with regard to the value derived from the Agreements as per the TSX Venture Exchange's policy guidelines.
Mali is currently the third largest gold producer in Africa after South Africa and Ghana. Gold production in Mali was 53.7 tonnes in 2009. The prospective Birimian rocks of Mali host the 13.1 million ounce Sadiola gold deposit (Iamgold-Anglogold) and the 4.3 million ounce Loulo gold deposit (Randgold) in western Mali; and the 11 million ounce Morila gold deposit (Randgold-Anglogold) and 5 million ounce Syama gold deposit (Resolute) in southern Mali. The Birimian rocks, in nearby Ghana, have produced in excess of 120 million ounces of gold.
Technical information in this news release has been reviewed and prepared by Mike Magrum, P.Eng., Director and Qualified Person as defined in NI 43-101 for Kenieba.
Source: Kenieba Goldfields Ltd.