Advance Gold Corp.("Advance") is pleased to announce that African Barrick Gold Plc. (LSE:ABG) ("ABG") will proceed with an exploration program on Advance's three projects in the Kakamega Dome area in Kenya, East Africa. 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.
ABG, over the course of the exploration program, will drill one deep diamond drill hole to test between the upper gold bearing reefs at the Rosterman Mine. The hole will target the reef mineralization, extension of any lower reefs near surface and also any wallrock mineralization that was overlooked during mining of the deposit between 1932 and 1952. The Rosterman Mine's orebody 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 g/t Au.
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.
As part of ABG's regional program, Advance Gold's two other properties (Sigalagala and Bukura) will receive more soil sampling as infill and expansion of previous work. Aircore drilling will then test the best targets in the area. At Bukura, a previous RC hole drilled by Aviva Mining (Kenya) in 2011, returned 57 metres of 0.67 gAu/t including 9 metres of 1.47gAu/t ending in mineralization.
All of the Advance Gold licences will be covered with remote sensing imagery, mapping, soil sampling and aircore drilling during these programs. The total expenditure for all proposed work is expected to be in the range of $US700,000.
"I am quite encouraged by the gold endowment in our Kenya West Project area as indicated by the historical mining at the Rosterman Mine as well as by the recent exploration work and drilling by the Aviva Mining (Kenya) Joint Venture." states Peter Spora, Vice President, Exploration for ABG. "Exploration of the Kakamega Dome area is a high priority for ABG."
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 "Testing the mineralization at the Rosterman Mine with deep core drilling and looking at the near surface extension of the mine with RC drilling will give this Advance Gold project the attention it deserves. I am quite happy that ABG will be spending the time and money in this area."
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. Advance Gold Corp currently has 36.8M share issued and outstanding.
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
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