Alecto Minerals continues to be proactive in the base metals exploration arena as it operates in four countries in Africa. The company’s strategy is to create joint ventures with mining companies, to minimise exposure for shareholders and share the risk in new areas.
The recent acquisition of Kerboulé gold project in Burkina Faso is an example of enhancing value at low costs. Their approach is to establish effective working relationships with mining companies that have both strong balance sheets and the necessary expertise to manage these types of projects. Effective joint ventures provide shareholders with exploration upside without financial exposure.
With this strategy in mind, management is in early stage discussions regarding a potential joint venture for the advancement of the Kossanto West Gold Project in west Mali. Whilst these discussions are on going, the Company will not undertake further exploration activities at Kossanto. However the Board believe that there could be a multi million ounce discovery in the region. The recent gold rush has seen several thousand artisanal miners explore the area and the signs are encouraging. The company is in discussion with the owners of neighbouring permits to share findings.
Alecto has also seen some developments in the Karan project in Southern Mali. With the large-scale increase in artisanal mining in the area, the Company has identified significant gold mineralisation along lithological contacts outside the areas explored by previous owners.
In Ethiopia, the joint venture strategy is on target as is on track as soil samples and trenching continues in the high potential projects. A new 9km gold in soil anomaly has been discovered at Aysid- Metekel in the region.