Caledonia Mining Corporation filed a NI 43-101 technical report on Maligreen, the prospect it is buying in the Gweru mining district in the Zimbabwe Midlands.
The report confirms a NI 43-101 compliant inferred mineral resource of approximately 940,000 oz of gold.
Caledonia said it expects to finalise the transfer of the claims from the seller shortly, at which point the consideration of US$4mln will become payable.
Maligreen covers approximately 550 hectares and comprises two historic open-pit mining operations which produced about 20,000 ounces of gold between 2000 and 2002 before the operation was closed.
Caledonia expects to drill an initial 4,800 meters at an estimated cost of US$1.6mln over a period of 18 to 24 months to improve its understanding of the existing resource and assess the potential for a mining operation.