THE BOURSE WHISPERER: Riedel Resources has entered into a binding agreement with Golden Rim Resources for the right to acquire 100 per cent interests in a package of five granted exploration permits.
The permits are known individually as Galgouli South, Gonsin, Keri, Moaga and Tagou, and cover a total area of 1,076 square kilometres in African gold-bearing nation Burkina Faso.
Geology and Aeromagnetic Image – Galgouli South project. Source: Company announcement
Acccording to Riedel the permits exhibit appealing geological attributes, including:
– Major regional structures;
– Favourable host rocks within Birimian Greenstone Belts;
– Areas of artisanal mining;
– Numerous significant ‘gold-in-soil’ anomalies and rock chip samples up to 65.5 grams per tonne gold; and
– The company considers the permits to be highly prospective for the discovery of large gold deposits with several permits being located along strike from major gold deposits including Ampella Mining’s 2.2 million ounce Konkera gold deposit and operating gold mines such as thw 1.1 million ounce Youga mine and the 0.6 million ounce Kalska mine.
Some limited exploration programs have already been carried out by Golden Rim, which Riedel indicated have already identified multiple drilling targets within each of the permit areas.
“This permit package offers Riedel a compelling opportunity to establish a significant position in the fastest growing gold producing region in the world,” Riedel Resources managing director Jeffrey Moore said in the company’s announcement to the Australian Securities Exchange.
“When coupled with our Marymia project located in the Doolgunna – Thaduna region of Western Australia, Riedel has significant tenement holdings in two of the most prospective precious- and base-metals minerals provinces in Western Australia and West Africa.
“These opportunities represent an outstanding business case for prospective investors with significant exploration upside from a modest market capitalisation base.
“We also consider it a major advantage to be able to commence a partnership with Golden Rim who have a substantial exploration footprint together with demonstrable exploration success and a highly developed knowledge base in West Africa and specifically, in Burkina Faso.”
Riedel commenced due diligence on the tenements with site visits in late September 2011 and many aspects of the legal reviews underway.
The company said it identified and selected in-country exploration management and preferred contractors for commencement of field operations for the current field season.
Riedel anticipates the due diligence period for the transaction will be completed by mid-December 2011, with initial field operations including geochemical sampling and auger drilling planned for immediate commencement after that.