Advance Gold Corp.("Advance") announces that African Barrick Gold Plc. ("ABG") has been assigned an Option and Joint venture Agreement that Advance had previously entered into with Aviva Corporation Ltd. regarding Special License 265 (Bukura), Special License 266 (Sigalagala) and Special License 267 (Rosterman) located in the Kakamega region of Kenya.
As a result of the assignment, ABG has the right to acquire a 51% ownership interest in the relevant Special Licenses in consideration for ABG incurring further exploration expenditure of US$0.5 million in a defined period of 24 months in relation to those mineral rights. ABG can further increase its interest to 75% by spending an additional US$ 1million within a further 24 month period.
Background to the special licences 265, 266 and 267
In addition to the potential in and around the old mines, prospects and artisanal workings themselves, all three special licences lie along regional structures that are interpreted to represent reactivated, inverted syn-sedimentary extensional faults on or close to the Kavirondian-Nyanzian unconformity. These structures are target areas considered to have potential to host gold deposits.
The most northerly of the three licences hosts the historic Rosterman mine, which is reported to have produced in excess of 250,000 ounces gold at in excess of 13 grams per tonne. Rosterman was subject to significant exploration activity during the mining period up until 1952, but since then, very little exploration appears to have been done. The potential for residual ore, more lodes and the value of selvedges to mined lodes justifies immediate further exploration activity.
Recent structural mapping has highlighted a major long-lived structure on the northern flank of the Kakamega dome combined with a number of occurrences of gold-in-stream anomalies that appear never to have been followed up.
SL Bukura 265 and SL266 Sigalagala
The southern licences, Bukura and Sigalagala, in addition to hosting numerous significant historical colonial mines and areas of active artisanal mining, lie along the western portion of the Liranda lineament known as the Bushiangala-Shitole segment. Kimingini, Bushiangala, Isulu and Shitgoko all lie in close proximity to the mapped and interpreted structure. Sigalagala appears to lie on a different structure to the north of the main Liranda lineament.
The following work has been completed by Aviva Corporation Ltd. over the last 15 months on the three Advance licences:
- Collection and compilation of regional data sets -- ALOS, ASTER, Magnetics, BRGM data. Regional mapping and interpretation as part of a West Kenyan regional evaluation.
- Preliminary prospect scale mapping, focusing on the regional setting and position in terms of the Nyanzian--Kavirondian boundary.
- Soil sampling at 1080 sites for Au and multi-elements on SL267 Rosterman and 265 Bukura.
- 2 RC holes (1 abandoned before target depth) completed into the Bukura workings with the following results:
Hole ASRC024 intersected a significant intercept and ended in mineralisation of greater than 1 gram per ton Gold (g/t Au). The hole returned 57.00m of 0.67g/t Au from a depth of 49m including 9.00m of 1.75g/t Au and 9.00m of 1.47g/t Au from 97.00m ending in mineralisation.
Hole ASRC023 was abandoned at 36m after drilling into a cavity. The hole however did intersect a mineralised zone before entering the cavity. The hole returned 7.00m of 0.89g/t Au from 29.00m including 2.00m of 2.33g/t Au.
Jeffrey Scott Ackert, a director of the Company and its Vice President Exploration and Business Development, is a Qualified Person as defined by National Instrument 43-101 and has reviewed and approved the exploration information and technical disclosure in this news release.
For further information, please contact:
Jim Gillis, President
Telephone: (250) 314-0186
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