ASX-listed Castle Minerals advises that its wholly-owned Ghana-based subsidiary, Carlie Mining has executed a binding term sheet with private Ghana company, Iguana Resources, whereby Iguana may earn up to an 80% interest in Carlie’s Degbiwu and Gbiniyiri licences in Ghana’s Upper West region by spending a total of US$11.7 million in three stages over five years.
Castle Minerals MD, Stephen Stone says:
“This US$11.7 million, three-staged farm-out deal on the Degbiwu and Gbiniyiri licences with Ghana-based Iguana Resources will see an acceleration in exploration activity on these prospective licences and in particular the Kpali target, where Castle Minerals has previously outlined an open-ended 107,200 oz gold Inferred Mineral Resource, and at the intriguing Bundi gold-zinc prospect.”
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The 150 km2 Degbiwu Prospecting Licence (PL 10/26) in North West Ghana is host to the Kpali gold and Bundi gold – zinc prospects and is located at the confluence of three major regional-scale structures:
The Kpali prospect is one of five prospects outlined by Castle on the Degbiwu licence in 2013 and is considered the most prospective target. It lies beneath a thin veneer of alluvial cover.
No previous gold occurrence or artisanal workings were known. RC drilling over a 600 m strike identified an open-ended gold zone.
Gold mineralisation appears as hydrothermal lode style (pyrite-sericite-silica) hosted by Birimian sediments. Castle has reported a JORC Code 2012 Inferred Mineral Resource estimate of 107,200 oz Au for Kpali (2.9 Mt at 1.1g/t Au).
Bundi is an intriguing gold – zinc prospect defined over 1.1 km strike and presents an opportunity for a gold resource to be defined.
It was discovered by Castle in 2013 following soil, auger and RAB drilling. RC drilling was undertaken in 2013/14. These holes intersected up to 51g/t Au with 16 of the 20 holes testing the Bundi structure reporting mineralisation.
The gold mineralisation is associated with zinc sulphides and is open along strike and at depth.
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The 1,081 km2 Gbiniyiri licence (RL 8/27) is located to the north, south and east of the Degbiwu licence, and presents as a grassroots exploration proposition where historical work by Carlie has identified a series of strong, open-ended auger and RAB anomalies requiring follow-up investigation.
Exploration Planned by Iguana Initial exploration by Iguana will focus on five key target areas including the Kpali gold prospect and the Bundi gold-zinc prospect located on the Degbiwu Prospecting Licence.
It will include a 4,600 m RC drilling programme and is expected to commence later in 2019 after cessation of the current seasonal rains and subject to approval of the Term Sheet by the Government of Ghana.
Iguana has advised that it will work closely with and employ the services of Ghana-based exploration and mining consultants, Minecon Resources and Services, to manage exploration activities on the Licences.