$700k Exploration Program Continues
Advance Gold Corp. ("Advance") is pleased to announce that African Barrick Gold Exploration (Kenya) Ltd a subsidiary of African Barrick Gold Plc. (LSE:ABG) ("ABG") is proceeding with their planned exploration program on Advance's three projects in the Kakamega Dome area in Kenya, East Africa, having completed the deep core hole on the former producing Rosterman Gold Mine. The work done on the Advance projects will be in conjunction with ABG's regional exploration work on their West Kenya Joint Venture. The three Advance projects include Special License 265 (Bukura), Special License 266 (Sigalagala) and Special License 267 (Rosterman) that cover in total 64km2.
Diamond drill hole RODDH001 was planned to investigate for mineralisation along the selvedges of the Rosterman mineralised quartz reefs, to look for disseminated economic gold mineralisation within the wall rock, as well as, for additional reefs not identified by historic mining. This information will assist in the design of drill targets for extensions to and/or satellite deposits to the Rosterman mineralisation. Drilling of RODD001 was completed during H1 to a depth of 506m. All Rosterman quartz reefs targeted were intersected; however, limited disseminated sulphides were intersected in zones between quartz reefs. The Rosterman "reefs" were marked by remnant quartz veins, voids and/or broken ground (possibly backfill) in the core. The deepest reef intersected was the Number 4 Footwall Reef, and in the area of the core hole it was completely preserved in the core. Several other narrow quartz reefs were intersected by the core hole between the known mined reefs. Results for the core hole are pending.
The Rosterman Mine's orebody, which was in production between 1932 and 1952, is a series of arcuate, sigmoidal quartz veins stacked within a diorite near a contact with mafic volcanic rock. The mine is reported to have produced 250,000 ounces of gold at a grade of 13 grams per ton gold (g Au/t).
The incorporation of geological mapping, structural information from the core hole and assay results from RODDH001 into the 3D model will be used for targeting along strike within the Rosterman corridor, especially to the northeast where existing surface anomalies exist from soil sampling. ABG is also planning ten to twelve holes for 1,000-1,500 metres of RC drilling on three to four drill fences along strike from the Rosterman Mine. The SW and NE trend of the mineralization has been defined by gold in soil anomalies as a result of Aviva Mining (Kenya)'s first phase exploration program in 2011-2012. This priority target area lies within a structurally significant zone bounded by the diorite - volcanic contact to the south and altered and sheared volcanics next to the Mumias Granite in the north.
Elsewhere on the Advance Gold licences (Sigalagala and Bukura) soil sampling is being undertaken to extend the existing grids for total coverage. This work is expected to be complete during Q3 2013 and once all results are received aircore drilling will be undertaken on priority targets. At Bukura, a previous RC hole drilled by Aviva Mining (Kenya) in 2011, returned 57 metres of 0.67 g Au/t including 9 metres of 1.47 g Au/t ending in mineralization.
The total expenditure for this phase of work is expected to be in the range of $US 700,000.
ABG has the right to acquire a 51% ownership interest in the three Advance Special Licenses in consideration for ABG incurring 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.
Jim Gillis, President of Advance Gold Corp indicated "At a time when most companies are cutting back on exploration expenditures, its important that African Barrick is continuing to explore on Advance Gold's Kenyan project."
About Advance Gold Corp: Advance is focused on acquiring and developing gold and precious metal projects in stable jurisdictions with manageable risk. The company has and will continue to identify, acquire and add value to overlooked and undervalued assets.
About African Barrick Gold plc.: ABG is Tanzania's largest gold producer and one of the five largest gold producers in Africa with four producing mines, all located in northwest Tanzania, and several exploration projects at various stages of development.
ABG is a UK public company with its headquarters in London and listed on the Main Market of the London Stock Exchange under the symbol ABG, and has a secondary listing on the Dar es Salaam Stock Exchange. Historically and prior to our initial public offering (IPO), ABG's operations comprised the Tanzanian gold mining business of Barrick Gold Corporation (Barrick), our majority shareholder. ABG reports in US dollars in accordance with IFRS as adopted by the European Union, unless otherwise stated in this announcement.
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
Advance Gold Corp.
#1100 -- 235 First Avenue
Kamloops, BC V2C 3J4
This news release contains certain statements that may be deemed "forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. The Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors should change, except as required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.