JOHANNESBURG (miningweekly.com) -– South African gold-miner Aflease Gold has acquired the 22 000-ha Tulo concession, in Mozambique, which CEO Neal Froneman formerly described as a "company maker" for the new Gold One.

Aflease last month announced that it would merge with Australia's BMA Gold to form Gold One, an international gold business with a mine close to production and a portfolio of growth prospects.

Froneman said in a statement to shareholders on Tuesday that Tulo would give the company an "extensive holding in a highly favourable geological setting".

The miner has acquired 100% of the Mozambican company, Noble Trade and Commerce, for R6-million and subsequently gained the mining concession for Tulo, which was situated in the Niassa gold belt.

The purchase amount would be payable in Aflease shares, as well as a 3% net smelter royalty on the first 32 150 oz/y and a 0,5% royalty on the ounces produced over this amount in the same year.

"The concession includes a substantial alluvial resource base, which is readily and cheaply extractable and, as such, could fund our primary exploration activities at Tulo. Aflease will be determining the alluvial potential through a two-year bulk sampling programme," said Froneman.

Gold One has set itself a goal to produce 500 000 oz/y of gold. The company would be listed on the ASX and JSE.

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