Savannah Resources has sold its remaining Malian gold exploration permits to AIM-quoted Alecto Minerals.
The acquisition has enhanced Alecto’s existing Malian gold portfolio, which includes its flagship Kossanto Gold Project, through the acquisition of all of the issued share capital of NewMines Holdings Limited from Savannah, including Tobon Tondo, the Karan gold project, and the Diatissan gold project in western Mali.
“The acquisition of the Karan Project bolsters our existing African gold portfolio, which includes our flagship Kossanto Gold Project in the same country. At 250 sq. km., the Karan Project is a large tenement with excellent geophysical and solid gold anomalies as well as widespread artisanal mining operations. In 2011, Newmont Mining Corporation obtained its highest Bulk Leach Extractable Gold (BLEG) results on the Karan Project when it undertook regional exploration. Multiple targets have been identified, with two positioned for near term drilling,” said Alecto CEO Mark Jones.
“Our existing knowledge of the area, obtained from the management team’s previous role in its development, will be highly beneficial and we have identified that RAB drilling, utilising our in-house equipment will best uncover the Karan Project’s wider potential. In light of Mali having put its recent political challenges behind it, interest in Malian gold assets is now growing and JV opportunities on greenfield projects are improving. Accordingly, we look forward to advancing both projects in tandem with Kossanto to best deliver long-term shareholder value,” said Jones.
For Savanna, the sale follows a strategic review of its assets. “The sale of these legacy assets streamlines our portfolio whilst providing us with an indirect interest in their potential upside. Alecto is very well placed to add value to these projects on the back of its in-country capabilities, said Savannah CEO David Archer.
‘’As a result, we are now focussed on progressing our highly prospective Jangamo Project. With a 1,812m drilling programme completed, a scoping review underway to assess the potential scale and grade of the project, and the objective of defining a maiden JORC compliant heavy mineral resource by the end of the year, we look forward to delivering updates on developments at Jangamo. In addition, we have a very active business development programme underway aimed at developing a pipeline of exciting projects.”
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