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Update re Ethiopian JV Gold Projects – Centamin plc elects to proceed to satisfy initial expenditure commitment at Aysid-Metekel
Alecto Minerals plc (AIM:ALO), the AIM quoted mineral exploration company focussed on West and East Africa, has provided an update regarding drilling and exploration activities at its two Ethiopian gold projects. Both projects are held subject to a joint venture agreement with Centamin plc, pursuant to which Centamin is required to fund exploration costs of, in aggregate, US$3 million over a two year period in order to maintain an initial 51% interest in each project.
The company has confirmed that, pursuant to the terms of the JV Agreement, Centamin has formally notified Alecto that it will now proceed to satisfy its initial expenditure commitment at the Company’s 1,954 sq. km. Aysid Metekel Gold Project located in the Aysid-Metekel region of north-west Ethiopia following completion of its initial reconnaissance phase on the project. The initial reconnaissance work involved fieldwork from two base camps and the collection of approximately 3,450 soil samples, 200 stream samples and 350 rock chip samples which have been submitted for independent assaying.
At the Company’s 945 sq. km. Wayu Boda Gold Project, located on the Adola Greenstone belt in south-west Ethiopia, over 2,500 metres of diamond core drilling across 14 holes has been completed by Centamin, representing approximately 80% of the planned initial drill programme. All holes have intersected a major shear zone and core samples have been submitted for independent assaying. Rock chip, Bleg and soil sampling is now underway in order to test extensions to this zone. Previous work by Alecto at this project, including rock chip sampling and trenching, has returned notable grades of up to 47.4 g/t of gold.
Pursuant to the terms of the JV Agreement, Centamin is required to fund US$1.2 million and US$1.8 million of exploration work to maintain an initial 51% interest in Aysid-Metekel and Wayu Boda respectively, with an option to fund up to a further US$5 million and US$6 million of work respectively to increase its interest in the projects up to 70%.
Mark Jones, CEO of Alecto, commented “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.”
