Perth, Australia — MININGREVIEW.COM — 01 April 2010 – Aviva Corporation “’ a resource development company listed on both the Australian and Botswana Stock Exchanges, and headquartered in Perth “’ has reached agreement with AfriOre International (Barbados) Limited (AfriOre) “’ a wholly-owned subsidiary of Lonmin Plc “’ to acquire an interest in the development of its highly prospective West Kenya gold and base metals project.
A company statement released here confirmed that Aviva had signed a memorandum of understanding with AfriOre through which it could earn up to 75% of the West Kenya project.
It added that the project comprised two contiguous licences covering 2 800 sq km of the highly prospective Kakamega Greenstone belt in Kenya, part of the Tanzanian Archaean Craton. Previous exploration of the area had identified significant potential for gold, as well as copper, lead and zinc.
In terms of the agreement, Aviva can earn a 51% interest in the licences by sole funding US$3 million (R22.5 million) over three years. It can earn a 75% interest in the project by completing a pre-feasibility study demonstrating a pre-tax NPV of not less than US$50 million (R375 million).
“The project includes a large and prospective landholding, with relatively low expenditure commitments and annual licence fees,” Aviva CEO Lindsay Reed said. “Aviva is proposing an exploration programme which will include airborne geophysics, regional mapping and structural modelling and a drilling programme targeting both gold and base metals,” he added.
“The project has significant gold potential, with more than 200 known gold occurrences within the licence areas, and positive results from limited drilling by AfriOre,” he continued.
“This is a world class gold address, and the project boasts high grade base metal targets,” Reed stated, “and the project is well supported by road and rail transport to port, commercial and communications infrastructure.
He went on to say that the Kenyan project would be a key focus for Aviva, which would leverage is established project development expertise. “Aviva has proven expertise in the exploration, development, approval and feasibility of resource projects, and we look forward to applying this to the Kenyan project,” he concluded.