London, England — MININGREVIEW.COM 03 September 2009 – Mwana Africa plc – an African-focused mining exploration and development company – has announced that it is to establish a joint venture company, to be called Newco, with L’Office des Mines d’Or de Kilo-Moto (Okimo), which will hold the mining titles for its Zani-Kodo gold project in the Democratic Republic of Congo (DRC).
Revealing this in a statement to shareholders, Mwana said this had become possible because the DRC Council of Ministers had approved Mwana’s re-negotiated contract with State-owned Okimo. Mwana would retain its 80% shareholding in the JV with Okimo holding the remaining stake of 20%
It would make one-off payments totaling US$600 000 (R4.8 million) to Okimo and to the DRC mining registry once the JVwas created. This would include payments for the transfer of mining titles to Newco and the settlement of disputes with the registry over surface fees accrued since 2006
Meanwhile the resources company has revealed that the gold-bearing Zani-Kodo trend has been accurately delineated over a strike length of 9 km. Initial drilling, focused on the northern 700m of this 9km strike (the Kodo Section), has outlined JORC compliant indicated resources of 190 684 oz of gold and JORC compliant inferred resources of 261 192 oz of gold
“We are pleased to be able to announce our first resource estimate based on our initial exploration at the Zani-Kodo gold prospect. Indications are, that only limited additional drilling is required to upgrade the majority of the inferred resource to indicated,” said Mwana CEO Kalaa Mpinga.
“Together with the nearby Moto Goldmines and AngloGold concessions, the prospect represents one of the world’s major undeveloped gold resources. The approval by the DRC Council of Ministers of our joint-venture agreement with Okimo is a further step towards realising the potential of this exciting gold prospect,” Mpinga added.