Aim- and ASX-listed resource developer Aura Energy has signed a farm-in or joint venture agreement with Nomads Mining Company, based in Mauritania, to extend its position in the Tasiast Archean Greenstone Belt.
The agreement allowed Aura to earn a 70% interest in Nomads’ 100%-owned 160 km2 exploration permit. The permit covers 50 km2 of Archean greenstones in the Tasiast belt.
The key terms of the agreement included that Aura pay Nomads $25 000 in cash and $25 000 in Aura shares, followed by $50 000 in cash or shares six months after the initial payment.
Aura will pay another $50 000 after 12 months, unless it withdraws from the venture.
Aura may earn a 70% interest by spending $1-million over a three-year period. If Aura defines a one-million-ounce resource, the company will pay $1.5-million to Nomads.
Should Aura earn the 70% interest, it will solely fund the project towards a decision to mine.
The exploration permit is situated about 35 km along strike from TSX-listed Kinross’ 20-million-ounce Tasiast gold mine and 30 km from TSX-V-listed Algold’s Tijirit’s gold deposit.
The Nomads exploration permit adjoins Aura’s existing Taet exploration permit, which covers a 30 km strike length of the Tasiast greenstones.
“It is unusual today to be able to obtain access to virtually unexplored greenstone belts in established gold-bearing provinces such as this. We are excited at the potential, given that the Tasiast gold deposit is the only known significant gold resource in a field where little exploration has been conducted and in a geological setting where gold deposits tend to occur in clusters elsewhere in the word.
"We will maintain our core focus in Mauritania of getting the Tiris uranium project definitive feasibility study completed and the project into production as soon as possible.
“However, given our extensive knowledge of Mauritania and our planned activities in adjoining areas this presents another high-quality opportunity in a country we know well. It is an excellent opportunity, in our opinion, to add significant shareholder value for Aura Energy,” stated Aura chairperson Peter Reeve.
On the Nomads permit area, Aura was planning a programme of airborne geophysics to define geology and structure, bedrock chemistry based on aircore drilling, possible ground geophysics in selected areas of interest arising from these programmes, as well as further reverse circulation and diamond drill testing of targets arising.