West Africa gold focused exploration company Goldcrest Resources has agreed to acquire the entire issued share capital of Taoudeni Resources, enabling it to expand its Akoko gold project in Ghana.

Taoudeni Resources is a company incorporated in England and Wales which owns 100% of the Asheba gold project in Ghana.

The acquisition is to be satisfied by the issue of an initial consideration of 599 177 916 new ordinary shares in Goldcrest, deferred consideration of 617 702 713 new ordinary shares and 102 257 114 warrants to the shareholders of Taoudeni.

Asheba has an initial non-JORC compliant resource estimate of 176 000 oz at an average grade of 1.8g/t gold, with significant exploration upside potential. It adjoins the Akoko project, which Goldcrest conditionally acquired in May 2015 and which has a JORC-compliant resource of 92 800 oz at an average grade of 1.9g/t gold.

The combined Asheba-Akoko gold project adjoins Endeavour Mining’s Nzema mine and is also located in the vicinity of a number of other operational mines in the region.

“We are delighted to finalise the transformational acquisition of Taoudeni Resources, and with it the Asheba gold project.  The deal allows us to build critical mass in a region of Ghana that hosts numerous gold mines and positions the company to be a significant presence in the area,” says MD Frederick Bell.

“Asheba, like Akoko, already has significant defined gold mineralisation with substantial exploration upside and most importantly for us, near-term production potential,” he continues.

“We will continue to take advantage of the opportunity presented by the sector downturn and plan to acquire additional advanced projects in well-established mining regions, which have benefitted from significant exploration expenditure and have proven mineralisation.”

Background

Taoudeni Resources, through fully-owned subsidiaries, owns 100% of the Asheba gold project, located in Ghana and has submitted licence applications for copper in Mauritania.

The Asheba project consists of a prospecting licence located in the southeast of Ghana on the prolific Ashanti Gold Belt, adjacent to the Akoko project, which the company conditionally acquired in May 2015.

The area has been the site of historic mining during the 1920s and more recent artisanal mining. Modern exploration by Glencar and most recently Goldfields in 2011-13 has included over 16 000 m of RC and 6 000 m of diamond drilling and identified multiple mineralised lenses over a 2km strike.

This exploration work highlighted two defined mineralised areas, Atinasi and Cheriaman, and provided a significant exploration database to assess.

Mineralisation remains open in many areas with potential for the discovery of additional resources. Previous exploration identified additional geochemically anomalous areas within the licence area that have the potential to host additional mineralisation and are yet to be fully tested.

The combined project is located at the southern end of the prolific Ashanti Gold Belt that hosts deposits such as Anglogold’s Obuasi mine (27 Moz) and Golden Star’s Prestea (10 Moz). The combined project is close to existing infrastructure and located in one of Africa’s most established mining jurisdictions.

Exploration plans

While a non-JORC compliant resource estimate of 176 000 oz at 1.8g/t gold exists at Asheba, Goldcrest intends to commission an independent consultant to undertake a JORC resource estimate over the combined project, facilitated by the historic data and retained reference samples.

In conjunction with this, the company will review exploration targets using data from both projects to improve the understanding of the area as well as investigate the potential for near-term production based on the combined project’s proximity to existing operations.

A thorough review of areas of open mineralisation and known undrilled geochemically anomalous areas will enable the company to design additional drill programmes to further expand the resource base.

The company believes the region has the potential to host significant resources capable of supporting modern mining operations in the mid-term, potentially via multiple smaller pits feeding a central plant.

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