Feb 2 2011
SearchGold Resources Inc. (TSX VENTURE:RSG)(FRANKFURT:S1O) has announced that it has entered into an joint venture agreement dated January 28th 2011, with Swala Resources plc on the Gueguere Gold Property located in Burkina Faso, West Africa.
The Gueguere property is located 180 km west of Ouagadougou, Burkina Faso's capital, in the Boromo birimian greenstone belt between the past producing Poura mine and Orezone Resources' Bondi project. The Poura past producing mine is located approximately 35 km north-east of Gueguere and produced over 800,000 ounces of gold before its closure in 1999. The Bondi project is located approximately 30 km south-west of the Gueguere property and is presently being developed by Orezone Resources Inc. which has outlined measured and indicated resources of 4.1 million tonnes @ 2.12 g/t Au for 282,000 ounces of gold.
Swala can acquire an interest of up to 80% in Gueguere by meeting the following conditions :
- Swala can earn 25% upon paying SearchGold the sum of US$50,000 and agreeing to take over SearchGold's exploration expenditure commitments for the two Gueguere exploration licences.
- Swala can earn a further 26%, for a total of 51%, upon the completion of a Phase 1 program entailing exploration expenditures of US$400,000 on each of the exploration licences, for total of US$800,000 over the entire property, prior to March 29th 2012.
- Providing positive results from the Phase 1 exploration program, Swala can earn a further 9%, for a total of 60%, upon the completion of a Phase 2 program entailing the execution of a NI 43-101 compliant report demonstrating the existence of indicated and inferred resources. Phase 2 will be executed within such time frame and with the necessary associated expenditures to insure full compliance with the Burkina Faso Mining Code.
- Providing positive results from the Phase 2 program, Swala can earn a further 20%, for a total of 80%, upon the completion of a Phase 3 program entailing the execution of a NI 43-101 compliant preliminary feasibility study, followed by a NI 43-101 compliant bankable feasibility study concerning any promising targets identified on the Property.
Thereafter SearchGold will participate in the development costs or will be diluted pro-rata its interest. Swala will be project operator and a technical committee will be established to overview the development work to be executed on the property. In the event of commercial production, both parties agree to be diluted by the 10% Burkina Faso state free carry participation pro-rata their respective interest in the project.
A first step of the Phase 1 program on Gueguere will involve using the equipment mobilized to Burkina Faso to execute a low-altitude airborne geophysical survey to cover the property.
Source: SearchGold Resources Inc.