West African gold producer Aureus Mining has agreed to acquire three exploration licences from Sarama Resources which are contiguous to its Bea Mountain mining licence and close to its New Liberty gold mine in Liberia.
Following the completion of the acquisition, Aureus will have 100% ownership of the licences and the company’s total land portfolio will increase to from 1 402 km2 to 1 683 km2.
“The acquisition of Sarama’s licences corresponds with Aureus’ strategy of building a long-term and sustainable gold district in Liberia. This consolidates our ownership of quality ground, adding further exploration potential and allowing New Liberty to become the hub to accelerate our regional development. We look forward to continuing the exploration programme, which to date has produced some promising results,” says David Reading, President and CEO of Aureus Mining.
Past exploration and geology
Sarama conducted a US$1.8 million exploration programme over the licence areas starting with an airborne magnetic survey followed by regional soil sampling. This programme lead to the identification of the 15 km gold in soil anomaly that straddles the Cape Mount and Cape Mount East licences. It also corresponds to the westerly extension of the Bea Mountain Greenstone Belt.
In 2014, Sarama undertook a 1 600 m reconnaissance diamond drilling programme of 15 holes targeting three prospects located in the Cape Mount license. Gold mineralisation was intersected in all but one of the drill holes.
The Cape Mount, Cape Mount West and Cape Mount East licences are held by Sarama Resources Liberia which Aureus will acquire for a total of 2 600 000 common shares of Aureus Mining Inc. Sarama will also retain an uncapped 1% net smelter return royalty on gold produced from the Cape Mount permit.
The acquisition is subject to a number of conditions precedent, including receipt of all required governmental and regulatory approvals, including the approval of the TSX to the issue of the common Aureus shares.