Alecto Minerals (LON:ALO) said its joint-venture partner Centamin (LON:CEY) will carry out the first phase of work that will earn it 51% of the Aysid Metekel Gold Project in Ethiopia.
It follows a period of reconnaissance work on the 1,954 sq. km property, which is in the north-west of the country.
Centamin collected of 3,450 soil samples, 200 stream samples and 350 rock chip samples, Alecto said.
Aysid is one of two Ethiopian projects joint ventured with the FTSE 250 gold producer – the other being Wayu Boda, which is in the country’s Adola Greenstone Belt.
Centamin has committed to spending US$3mln initially to earn a 51% stake in each and will have to plough a total of US$14mln into exploration work to take its holdings in 70%.
By way of an update on Wayu Boda, Alecto revealed over 2,500 metres of diamond core drilling across 14 holes has been completed, representing approximately 80% of the planned initial drill programme.
All the holes have intersected a major shear zone and core samples have been submitted for independent assaying, the AIM-list firm added.
Rock chip, soil and bulk leach extractable gold, or ‘Bleg’ sampling is now underway in order to test extensions to this zone.
Previous work by Alecto, including rock chip sampling and trenching, returned grades of up to 47.4 grams per tonne.
Alecto chief executive Mark Jones said: “We are very pleased by the progress that has been made at the Company’s two Ethiopian gold projects, with the current work programmes being managed and funded by Centamin, providing us with exposure to exploration upside without capital expenditure.
“Confirmation that Centamin wish to proceed beyond the initial reconnaissance phase at Aysid-Metekel underlines the project’s strong potential and the 2,500 metres of diamond core drilling completed at Wayu Boda, with all 14 holes intersecting a major shear zone, demonstrates the swift progress being made on this project and we look forward to reporting the assay results in due course.”
Source : Proactive Investors
Related articles on the web
UK-based developer to further develop Ethiopian gold project
Tullow finds water-bearing reservoirs at Ethiopian well
Nyota Minerals decided to focus on gold
Tullow says latest Ethiopia well is dry hole Reuters
A boy and his sister drowned in a water filled hole in Hawasa’s main street
We will tell you when we discover oil
Traditional Gold Mining in Ethiopia
Nyota Minerals to sell 75 per cent of Ethiopian pit
These Maps Show Every Country’s Most Valuable Exports
Ethiopian Journalists Forum warns other associations
An Institute to coordinate Infrastructure works of the Country
Ethiopian stars Aman, Dibaba set to dazzle at IDL Doha 2014
Join Conversations