London, England — MININGREVIEW.COM — 04 June 2008 – International gold mining and exploration company Randgold Resources Limited has completed its phase one exploration programme on the Miyabi gold project in the Lake Victoria goldfields of Tanzania, and has elected to enter the earn-in phase.
Making this announcement here last night, Mark Parker – managing director of Randgold’s joint venture partner in the Miyabi project, African Eagle Resources plc – commented: “Randgold’s decision to exercise its option to begin a formal earn-in to the Miyabi joint venture shows that it sees the potential of the project, and we look forward to rapid progress over the coming months. Randgold’s careful geological and structural interpretation has identified several new conceptual gold targets,” he added.
Under the joint venture agreement – which was signed in May 2007 – Randgold has been undertaking an agreed phase one exploration programme to assess the gold potential of the project beyond the 520 000 oz JORC-compliant resource already outlined by African Eagle.
It included diamond drilling in the 7km x 2km northeast-trending, gold-bearing Miyabi shear zone corridor, and RAB drilling over the Idahina geochemical targets, together with a structural and geological interpretation of all new and previous data. Randgold’s total expenditure on phase one was just over US$1 million (close to R8 million).
On completion of phase one, Randgold had the option – which it has now exercised – to commence phase two, under which it can earn a 50% interest in the joint venture by solely funding all further project costs up to and including completion of a predefined pre-feasibility study.
On completion of the pre-feasibility study, African Eagle can elect to retain a 49% stake in the project by co-funding a definitive feasibility study, or to dilute to a 35% stake if Randgold provides all funding for this phase.