HomeGoldAflease acquires Mozambique gold concession

Aflease acquires Mozambique gold concession

The portal at
Aflease’s Modder
East operation
Johannesburg, South Africa — MININGREVIEW.COM — 02 December 2008 – Aflease Gold – which last week announced its proposed merger with Australia-based BMA Gold – has acquired the 22 000-hectare Tulo concession in Mozambique’s Niassa gold belt.

An Aflease statement released here today said the company had gained the mining concession by acquiring 100% of the Mozambique-registered Noble Trade and Commerce for R6 million, payable in Aflease shares. It would also pay a 3% net smelter royalty on the first 32 150 ounces per calendar year, and a further 0.5% on the ounces produced over this amount in the same calendar year.

Aflease chief executive Neal Froneman said Tulo had given the company an extensive holding in a highly favourable geological setting, where limited trenching and drilling had already yielded significant results.

“The concession includes a substantial alluvial resource base which is readily and cheaply extractable, and as such could fund our primary exploration activities at Tulo,” he added. Aflease would be determining the alluvial potential through a two-year bulk sampling programme.

Aflease is to be re-named Gold One International after completion of the proposed merger with BMA. It is currently developing the Modder East gold mine on the Witwatersrand, and the mine is scheduled to pour its first gold in the fourth quarter of next year. It also has mining and prospecting rights elsewhere on the Witwatersrand, in the Free State and in Namibia.