Reaches Multi Permit Exploration Deal With Trevali Mining
Arrow Minerals Limited (ASX: AMD) (Arrow) is pleased to announce that it has signed a binding term sheet that sets out terms for an exploration joint venture with Trevali Mining Corporation wherein both parties receive reciprocal exploration rights to their exploration permits in a highly prospective gold belt in Burkina Faso.
The Agreement covers eight exploration licences – Kikio, Kordie, Pilimpikou, Semapoun, and Viveo (100% Trevali); and Divole East, Divole West and Dyapya (100% Arrow).
The Agreement provides for Arrow to perform gold exploration over the Trevali permits and a reciprocal arrangement for Trevali to undertake base metals exploration on Arrow’s permits.
The area sits within the prolific Boromo Belt that hosts the Poura, Batie West and Bissa gold mines along a highly favourable structural corridor. Within the 1,024 sq. km combined permit package, known gold mineralisation includes the Dassa, Divole East, Poa and Guido advanced gold prospects.
The agreement will provide significant upside for Arrow as it continues to consolidate its significant gold footprint surrounding the Dassa gold discovery on its Divole West permit.
The Agreement will allow Arrow to expand its exploration activities as follows:
Arrow receives the right to explore on Trevali permits in return for a 51% interest in any gold resource that is defined on Trevali’s permits.
Trevali receives the right to explore on Arrow permits in return for a 51% interest in any base metals mineral resource that is defined on Arrow’s exploration permits.
If Arrow discovers base metals on a Trevali Permit, Trevali will pay to reimburse Arrow an amount that is two times the amount of Arrow’s exploration costs and Trevali will grant a 2% NSR royalty to Arrow when mined.
If Trevali discovers gold on an Arrow permit, Arrow will pay to reimburse Trevali an amount that is two times the amount of Arrow’s exploration costs and grant to Trevali a 2% NSR royalty when mined.
Arrow’s CEO, Howard Golden, said exploration data will be shared by Arrow and Trevali.
“This arrangement is transformative for Arrow Minerals and gives us access to over 80 km of strike- length along the highly prospective gold-bearing Boromo Greenstone Belt,” Mr Golden said.
“This expanded exploration space greatly increases the probability of delivering significant additional gold to the developing Arrow portfolio of discoveries including Dassa and Divole East.
“Our new cooperative arrangement is truly mutually beneficial, exposing both parties to highly prospective exploration ground to advance their respective commodity focuses. At the same time, both companies retain exposure to exploration success in non-core minerals.
“Previous work by Trevali and others along the length of the permits has highlighted areas of elevated prospectivity that Arrow intends to aggressively explore, commencing with a program of regional stream sediment sampling to start in March 2021.”
A 4,000m reverse circulation drilling programme has been completed at the Dassa gold discovery in Burkina Faso. The drilling data are being compiled and analysed. Results from the programme will be announced in the next few weeks.