Preparing To Commence Guinea Drilling Programme
West African gold explorer Golden Rim Resources Ltd (ASX: GMR) has received approvals from the Guinean Government for the Kada Gold Project Joint Venture to proceed.
Golden Rim’s Managing Director, Craig Mackay, said arrangements are now being made for the permits that comprise Kada to be transferred into a newly incorporated joint venture company.
“Receipt of the Government approvals is an important step toward the finalisation of the Kada transaction.
“We look forward to being able to commence work at Kada as soon as possible.”
Golden Rim announced its intention to acquire up to a 75% interest in Kada in July 2020 and further announced that it had successfully completed its due diligence on the project on November 24, 2020.
Subject to all conditions under the Joint Venture Agreement being satisfied (or waived), upon the Kada permits being transferred, Golden Rim may acquire an initial 25% interest in Kada through the issue of Golden Rim shares which equals the Australian dollar equivalent of US$2.5 million
Following the issue of the Consideration Shares, Golden Rim expects to be able to immediately commence its exploration programs at Kada.
Initial exploration programs include an airborne VTEM and magnetic survey over the entire project area. In addition, an auger drilling program is planned to further define drill targets in areas where previous soil sampling by Newmont outlined significant gold anomalies. The auger drilling is expected to also extend to areas that have had no previous geochemical sampling.
Following the auger drilling, Golden Rim plans reverse circulation (RC) and diamond drilling programs to enable the Company to define a maiden JORC Mineral Resource at Kada and to test regional targets over the project area.
The Kada Gold Project comprises two exploration permits (Kada and Bamfele) and covers an area of 200 sq. km in eastern Guinea. It is located in the central Siguiri Basin and it lies 36km along strike from and to the south of the 10Moz Siguiri Gold Mine operated by AngloGold Ashanti. Kada is an advanced project, having previously been explored by Newmont.
Newmont completed 33,857mof drilling (297 holes) and outlined a non-JORC gold resource at Kada. With infill drilling, Golden Rim believes it can calculate a maiden JORC Mineral Resource in the near- term.
There is considerable exploration upside at Kada. The gold mineralisation in the Newmont gold resource area remains open along strike and at depth. Only around 2%of the project area has been subjected to any exploration drilling and approximately 90%of the gold-in-soil anomalies remain untested at the Kada, including sample sites that have returned values up to 22,470ppb gold (22.5g/t gold). Granite contact target areas are considered a priority for exploration.
