Taruga Gold Ltd (ASX:TAR) is the ASX’s biggest gainer, up 178% on news of the intended acquisition of highly prospective cobalt and copper mineralised concessions in the Democratic Republic of Congo.
Reinstated to quotation at the opening bell, Taruga is up to $0.347 on strong volume of more than 27 million.
The previous close was $0.125 on 26 February prior to suspension from official quotation.
Cobalt prospects in Kolwezi Mining District
Subject to due diligence, Taruga will acquire a 60% interest in the Mwilu and Kamilombe high-grade cobalt occurrences in the Kolwezi Mining District within the Central African Copper Belt.
Historical exploration drilling intersected multiple mineralised zones of shallow, high-grade cobalt mineralisation including 26.5 metres at 2% cobalt and 1% copper from 78.1 metres and 32.2 metres at 3% cobalt and 0.5% copper from 209.6 metres.
Results from recent channel sampling of artisanal workings reported cobalt grades up to 13%.
Artisanal miners are extracting high-grade cobalt mineralisation from the area.
First right of refusal
Taruga has secured the first right of refusal on additional high-grade cobalt projects held by the Government of Lualaba province and local company MintMaster RDC Development and Construction.
It has also entered into additional agreements to acquire exploration projects, subject to due diligence.
These include up to a 100% interest in a tenement in the Kolwezi Mining District.
Three prospects in Lubumbashi Mining District
Taruga has entered an agreement with local company Madini Minerals to acquire a 70% interest in a tenement in the Kolwezi Mining District and three in the Lubumbashi Mining District.
The prospects range from advanced exploration with high-grade drill intersections through to early stage exploration offering additional opportunities.
Placement to raise up to $1.35 million
Taruga is completing a placement at $0.10 per share to raise up to $1.35 million to support the due diligence and exploration on these prospects.
It has also appointed Mark Gasson as an executive director and he will be responsible for the management of Taruga’s exploration activities.
Gasson has been active in the DRC since 2004 in gold and base metals exploration and resource development.
He and Klaus Eckhof have acted as strategic consultants to identify opportunities in the DRC, which has led to the potential acquisition of these highly prospective projects.