JOHANNESBURG (miningweekly.com) – Kisenge Mining (KMP) has completed due diligence and exercised its option to form a joint venture (JV) over Aim-listed Armadale Capital’s Mpokoto gold project, in the Democratic Republic of Congo.
Mpokoto has a total mineral resource of 678 000 oz gold from 14.58-million tonnes, at 1.45 g/t.
The mine is expected to produce almost 25 000 oz/y over a nine-year mine life.
Under the terms of the JV agreement, KMP could earn an initial 25% interest in Armadale’s subsidiary, Kisenge, by providing funding and project-related services of up to $1.25-million, including incremental metallurgical testwork, and refining the current definitive feasibility study (DFS) to incorporate financing for the project and initial capital works.
Upon completion of the first phase, KMP has 30 days to decide whether to exercise an option to proceed with a second phase.
If so, it will seek to arrange funding to put Mpokoto into production and if it successfully arranges 100% of the funding, it will receive a further 60% in Kisenge, lifting its aggregate interest to 85%.
“With attractive economics and a defined route to production, we are confident that the project offers significant potential and we are pleased that the completion of KMP’s due diligence has led to the commencement of phase one of the JV agreement.
“KMP will assume operational responsibility and provide funding to further advance Mpokoto. The board is optimistic that once KMP has completed the revised DFS and other work, it will progress to the second phase of the JV agreement to bring Mpokoto into commercial production,” Armadale chairperson William Frewen said.
He added that this development meant that management’s efforts and resources could remain focused on progressing the next phase of the Mahenge Liandu graphite project, in Tanzania, for which an initial Joint Ore Reserves Committee-compliant resource estimate was anticipated in the coming weeks.