Dec 15 2010
Ardent Mines Limited (OTC Bulletin Board: ADNT) announces signing of definitive agreement for exploration and exploitation of promising gold property in Tanzania.
The property in Tanzania shows indicative potential for 500,000 to 1,000,000 ounces of gold mineral reserves, including high grade areas.
The agreement was signed with Afrocan Resources Ltd., a Canadian company that owns Capri General Trading Company Ltd., which in turn controls the mineral rights on a highly promising, licensed Gold property in Tanzania (the "Shenda License"). The transaction would provide Ardent with 100% of Capri and the mineral rights on a property of approximately 10 square kilometers situated approximately 53 kilometers West North West of Kahama in the Bukombe District, in the Shinyanga Region of Tanzania.
"Shenda was prospected in the past by Anglo Gold Exploration, Ltd. and subsequently by Barrick Exploration Africa, Ltd.," explained Brian Barret, CFO of Afrocan Resources. "Approximately 2,000 meters of drilling were completed, and significant additional geological work has been done in the property, which includes areas of very high tenor, in some cases exceeding 60 grams per ton," added Barrett. "Anglo and Barrick did not pursue the project at a time when gold prices were low, on the premise that the estimated reserve was only of 500,000 to 1 MM ounces of gold, smaller than the normal standard required by a major mining company to organize a significant operation. But under current market circumstances, Shenda is a very attractive property, and we are delighted to have reached an agreement with Ardent Mines in order to complete the exploration work, and subsequently develop Shenda."
"Our agreement with Afrocan Resources is a two-phase arrangement," stated Leonardo Riera, President and CEO of Ardent Mines. "In a first phase Ardent will conduct further exploration in the property, and will determine the areas of higher potential in order to build a solid mining plan. The previous work conducted in the property by major companies, areas of high gold concentration within Shenda, all tied to current high prices for gold, and increasing gold production activity in Tanzania indicate particularly attractive attributes regarding this property. The second phase of our arrangement in Tanzania will focus on implementation of the mining plan and exploitation of gold mineral reserves which may be found to be commercially viable."
In other company news, Riera mentioned that the due diligence on Rio San Pedro Mineracao in Brazil continues and that progress on that large and complex transaction is expected to follow on through the first two months of 2011. "In any event, Ardent will continue to pursue the other projects we have been evaluating, including Shenda in Tanzania, two other prospects in Brazil, and a highly attractive transaction in Peru. We intend to continue working even during the holidays in some of these negotiations, and we will inform the markets in a timely manner regarding the status and progress of these matters," concluded Mr. Riera.
Source: Ardent Mines Limited