Terranova to acquire Manica gold project in Mozambique

THE BOURSE WHISPERER: Terranova Minerals has entered an agreement to acquire 100 per cent interest in the Manica gold project in Mozambique from AIM-listed Pan African Resources.

The Manica project has a JORC-compliant gold resource of approximately three million ounces.

The project is located in central Mozambique, approximately 270 kilometres from the port city of Beira on the Indian Ocean.

The project is positioned in the Beira Corridor which contains major road and rail infrastructure linking Zimbabwe to Beira.

Terranova described the region surrounding Manica to be well known for hosting gold mines such as Penhalonga, Rezende, Monarch and Old West.

 

Project location. Source: Company announcement

 

An estimated two million ounces of gold has been extracted from the Rezende Mine and surrounding deposits, which are situated along strike extensions of the Manica gold project.

“The Manica gold project is an exciting opportunity for the company to acquire an advanced stage gold project with significant resources, in a favorable mining jurisdiction,” Terranova Minerals chairman Ben Bussell said in the company’s announcement to the Australian Securities Exchange.

“In addition to the outstanding asset, the company has obtained a very solid management and technical team.

“The company has negotiated a strong, constructive and performance based agreement tied to the continued exploration success and ultimate production of the Manica gold project.

“The project is still relatively under explored; drilling has only targeted two kilometres of an identified strike length of 27 kilometres.

“The incoming team has outlined several drill ready targets that will start a round of high impact exploration work in the first quarter of 2013.

“We believe this will lead to significant upside in the resource potential and will drive shareholder growth.”