Roscan Gold (TSXV: ROS; US-OTC: RCGCF) has signed a definitive agreement with Komet Resources (TSXV: KMT) to purchase the 35-sq.-km Dabia Sud gold property, which lies directly north of the company's 254-sq.-km Kandiole project in the western part of the country.
In May, Roscan entered into a binding letter of intent with Komet for this purchase. To acquire the asset, the company will make a $1.6-million payment and issue $1.6 million worth of its shares to the vendor. Closing is expected by the end of June.
"Our goal is to immediately commence exploration after the acquisition," Nana Sangmuah, the company's president and CEO, said in a news release. "Exploration focus at the Dabia Sud gold property will be to evaluate the highly prospective regional targets at Komet Mali with our updated drill program."
The Dabia Sud property includes a historical pit-constrained resource estimate of 3.2 million indicated tonnes grading 1.03 grams gold and 1 million indicated tonnes at 1.14 grams gold, based on a 0.4 gram gold cut-off grade.
These estimates are based on a heap leach gold recovery with an average drill depth of 80 metres.
Roscan also announced an increase to its drill budget for Kandiole - the company plans to drill 45,000 metres this year (up from 30,000 metres previously).
Kandiole hosts a 7-km-long prospective corridor as well as eight exploration targets. In May, the company released drill results from the Mankouke South target: these include 62 metres of 4.84 grams gold and 46 metres of 4.76 grams gold.
The project is within 25 km of B2Gold's (TSX: BTO; NYSE-AM: BTG) Fekola mine and Iamgold's (TSX: IMG) Boto project.
- This article first appeared in the Canadian Mining Journal. The Northern Miner and Canadian Mining Journal are part of the Glacier Resource Innovation Group.