Erongo Energy (ASX: ERN) is is focussed on exploring the highly prospective Maniema Project, which covers 1,800 sq kms and is located in east central Democratic Republic of Congo.
The Maniema Project is prospective for gold and tin, and is in the same geological setting as the Banro and Kilo-Moto gold deposits.
Erongo Energy (ASX: ERN) is targeting the expansion of its gold exploration footprint in the Democratic Republic of the Congo with plans to acquire a 60% interest in the Giro Gold Project.
The project, which covers 850 square kilometres in the Oriental Province, lies in the same geological setting as Randgold Resources’ 20 million ounce Kibali Gold Project 30 kilometres to the east.
The Giro Gold Project is hosted within the Kilo-Moto Belt, one of the world’s principal Precambrian orogenic-metallogenic provinces.
Highlighting the prospectivity of the region, the province is home to Anglogold Ashanti’s (JSE: ANG, NYSE: AU) gold deposits to the east and Banro Corporation’s (TSX: BAA, AMEX: BAA) gold deposits in the Twangiza-Namoya belt to the south.
Both primary and alluvial gold was mined from two main areas, the Giro and Tora areas, during Belgian rule and these areas today are the subject of artisanal mining activities.
At Giro, a wide quartz vein with an average grade of 16 grams per tonne (g/t) gold, and including grades of up to 59.6g/t gold, was mined.
Erongo Energy plans to begin exploration with a detailed mapping and sampling program of all exposures within the project area with results expected during the two month due diligence period.
The company is targeting four known areas close to Giro where artisanal miners have exposed mineralised quartz veins and quartz stockwork zones in diorite, as well as 17 target areas identified in historic exploration.
The deal is with Amani Consulting and requires a number of staged payments and allocations of shares to acquire the 60% interest in Giro.
On completion of due diligence, Erongo will pay US$520,000 to the DRC State Mining Registry to cover outstanding annual licence fees. A further US$1.2 million in licence fees is payable.
Once the agreement has been finalised, Erongo will make the first payment of US$300,000 and issue 3 million shares to Amani.
To acquire its 60% interest, the company will pay a further US$6.5 million upon meeting certain milestones and issue an additional 30 million shares.
Erongo will solely fund exploration through to the completion of a Feasibility Study.
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