Prospect Resources acquires Option for Moba Gold Project

Published at Apr 4, 2016, in Small Caps

Prospect Resources (ASX:PSC) today advised that it has been given the option to acquire the Moba Gold Project – a 12km gold system in the Democratic Republic of Congo (DRC).

This system has been ignored in recent times, with limited modern exploration conducted. However, historic mining is encouraging for PSC with 325,000oz produced from less than 35m depth.

The project area comprises more than 12km of gold bearing structures in an approximately 50km diameter metal zonation.

The option is for six months for a 70% interest in tenements prospective for gold in the DRC through an option to acquire 100% of Oryx mining and Exploration, the company that rediscovered the Moba project.

An initial $10,000 option fee will be paid by PSC, which then has 180 days to conduct due diligence on the Project and to enter into definitive documentation to acquire Oryx.

To exercise the option PSC will pay $90,000 in cash and $1 million in shares. A further $2.5 million in shares will be paid out upon the first pouring of gold within two years of the option being excercised.

PSC plans to investigate early production options to fund a larger scale exploration program.

The option complements PSC’s Prestwood mine gold play, where gold production is imminent.

The company recently completed a share placement at 0.5c per share to raise $200,000, with fully underwritten rights to raise an additional $515,000.

The $715,000 raised will go towards a working capital buffer in anticipation of the commencement of gold production at Prestwood.

The Moba Gold Project consists of two colonial era mines operating between 1939 and 1942 and then from 1953 to 1958.

Exploration over the past three years has delineated a significant gold bearing system. The mine has undergone drilling, pitting, trenching and grab/channel sampling.

From this four main drill targets have been identified:

  1. The Mutotolwa Target, where 1276m drilling has tested an approximate 3km gold structure including 400m strike length averaging 7g/t over 1m and 600m strike averaging 6g/t over 1m.
  2. The Kamalingela Prospect consists of the Kamalingela Nord and South Targets, where gold values up to 69g/t were reported with an average gold grade of 3.13g/t and trenching returning values of 13m at 7.7g/t, 30m at 1.5g/t and 4m at 4.85g/t.
  3. The Mt Kalema Target with a 0.8km strike length gold target.
  4. The Kansatu Target where 22 trenches were excavated and reported gold quartz veins over a total strike length of 1.5km.

The Moba Project is located in the Tanganyika Province in the DRC on the Western shore of Lake Tanganyika.

tags

GOLD

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