- Golden Rim Resources (GMR) has executed a binding heads of agreement to acquire up to a 75 per cent interest in the Kada Gold Project in Guinea
- The project was previously drilled by Newmont and gold grading up to 49.9 grammes per tonne was intersected
- Gold mineralisation remains open along strike and at depth and no significant work has been completed since 2012
- According to Managing Director Craig Mackay, the company is aiming for a maiden JORC mineral resource in the near-term
- Golden Rim is up a healthy 20 per cent in early afternoon trade, with shares priced at 1.8 cents each
Golden Rim Resources (GMR) has executed a binding heads of agreement to acquire up to a 75 per cent interest in the Kada Gold Project in Guinea.
The agreement has been signed with Vetro Gold SARL, the sole owners of the Kada permit, and Elta Madencilik Ticaret Anonim STI, the sole shareholder of Vetro.
Subject to various conditions, Golden Rim can acquire an initial 25 per cent interest in Kada through the issue of company shares to Elta, equivalent to US$2.5 million (around A$3.5 million).
Conditions include shareholder approval, completion of due diligence, and execution of definitive documentation.
Golden Rim may then choose the acquire an additional 26 per cent interest in the project — bringing its total to 51 per cent — by sole-funding no less than US$4 million (approximately A$5.61 million) within 24 months.
To bring its interest to 75 per cent, Golden Rim can sole-fund a definitive feasibility study to earn an additional 24 per cent interest.
The Kada Project is located in the central Siguiri Basin and spans 100 square kilometres.
Previous drilling by Newmont consisted of 33,857 metres of drilling, consisting of 195 air core holes, 84 reverse circulation holes, and 18 diamond holes.
Significant results include; four metres at 28.9g/t gold from 20 metres, including two metres at 55.1g/t gold from 20 metres; and nine metres at 8.4g/t gold from 78 metres, including one metre at 49.9g/t gold from 78 metres.
Newmont also calculated a non-JORC resource for Kada in 2012 and determined that the heap leach recoveries and resource grade were insufficient to warrant further exploration.
As a result, no significant work has been completed at the project since then.
Gold mineralisation at Kada remains open along strike and at depth with limited drilling completed below a 100-metre depth.
“Kada provides an exciting new opportunity for Golden Rim in one of the most under-explored countries in West Africa,” Managing Director Craig Mackay said.
“Broad and open zones of gold mineralisation have already been identified at Kada and, with substantial historical drilling, we are aiming for a maiden JORC mineral resource in the near-term,” he added.
Golden Rim is up a healthy 20 per cent in early afternoon trade, with shares priced at 1.8 cents each at 12:45 pm AEST.