Hodges Resources (ASX: HDG) is focussed on thermal coal assets in central east Botswana.
Hodges Resources (ASX: HGD) has reached agreement with Wells Gold Corporation (International) Limited, a subsidiary of listed Poseidon Nickel (ASX: POS), to acquire its shares and interest in the Salman South and Mame gold prospects in southern Ghana.
As consideration for the acquisition, Hodges will pay A$750,000 and issue 1,250,000 Ordinary Shares.
The deal is contingent on the vendor obtaining approval from the government of the Republic of Ghana to transfer the Prospecting License to Niagara Wells Mining Company Limited.
Well’s owns 90% of the subsidiary company, Niagara, which in turn owns the rights to 80% ownership in the prospect licenses. The remaining 20% is split equally between the Ghanaian government and Sanu Resources.
The prospects are located just 1.5km down strike from Adamus Resources' (ASX: ADU) 1.1 Moz Salman Gold deposit.
Interestingly, there has been limited exploration completed to date, which has shown strong indicators of significant gold anomalism.
The Salman South and Mame prospecting license is located within the southern extension of the Ashanti Gold Belt, one of the most highly endowed gold trends in the world. It is considered to be a highly prospective gold acquisition within one of the world’s largest mineral camps.
It hosts numerous major deposits including those at Konongo (5.6Moz), Obuasi (42Moz), Bogosu (3.3Moz) Presta (10.7Moz) and Salman (1.1Moz), which collectively represents a gold
endowment in excess of 60Moz.
Mark Major, managing director, said “the Ashanti shear zone is one of the most prospective and sought after exploration areas in Ghana."
"With the success of Adamus Resources Salman deposit 1.5km’s to the North, and with the knowledge that this mineralized shear zone continues into the Salman South prospecting license combined with the positive first pass exploration on both prospects, provide me with great confidence in exploring over these obvious high priority targets,” he added.
The company said the presence of artisanal workings and old colonial mines within the license area, together with the wide spread gold geochemical anomalies and encouraging drill intersections shows a good potential for significant gold systems within the area.
Hodges plans to commence on ground exploration at Salman South and Mame in June involving regolith mapping, trenching, soil sampling and drilling.