Kefi Minerals, the gold and copper mineral exploration company, announced that it had entered into a Joint Venture Agreement with mid-tier gold producer, Centerra Gold (TSX: CG).
The agreement covers Kefi Minerals Artvin Project in north-eastern Turkey, and will see Centerra spend US$3 million over three years to earn a 70% stake. Centerra can further elect to spend an additional $3 million over 2 years to take its interest to 90%. The Artvin Project includes 15 tenements covering 254 square kilometres of ground over the eastern side of the Eastern Pontide Belt, which is highly prospective for volcanic-hosted massive sulphide (VHMS) deposits, porphyry copper-gold deposits and epithermal gold-silver mineralisation.
Kefi Minerals will act as manager of the project intially
KEFI Minerals' Managing Director, Jeff Rayner, commented:
"We are very pleased to announce details of this Joint Venture with Centerra and look forward to a successful association. Centerra's strong technical background and financial capabilities will provide the impetus to assess the copper-gold porphyry potential of the highly prospective Artvin Project. KEFI Minerals has an effective, low-cost approach to value-adding in minerals exploration and development and this joint venture will allow KEFI to progress this prospect. The current turmoil in world financial markets serves to highlight the importance of the Company's alliances with major shareholder EMED Mining and now with Project joint venturer Centerra."
Centerra Gold currently operates two gold mines, one in the Kyrgyz Republic and the other in Mongolia. At the close of trading on the Toronto Stock Exchange on 22 October, 2008, the company had a market capitalisation of approximately C$325 million. Centerra's consolidated gold production for the second quarter of 2008 totalled 158,303 ounces at a total cash cost of $553 per ounce.