 |
| |
SearchGold Resources has entered into an option agreement dated September 18, 2008, with Somika SARL ("Somika") to acquire 100% interest in the 400 km² Arae-Gassel Gold Property ("Arae-Gassel") located in northern Burkina Faso, West Africa. SearchGold can acquire a 100% interest in Arae-Gassel over one year by meeting the following conditions:
- Paying Somika a total of $US110,000 as follows: $US50,000 upon signature; $US30,000 six months after the date of signature; and $US30,000 twelve months after the date of signing;
- By issuing Somika a total of 800,000 SearchGold shares as follows: 200,000 shares upon signature and 600,000 shares on the first anniversary date; and
- By incurring a total of $US750,000 in exploration expenditures over the first year.
Following SearchGold's acquisition 100% interest, Somika will retain a 3% Net Smelter Return (the "NSR"). SearchGold will have the right to purchase up to half of the NSR held by Somika (or 1.5%) for $US500,000 per 0.5% NSR bracket, or for a total of $US1,500,000 for 1.5% of the NSR held by Somika.
The Arae-Gassel property is directly adjoining on its southern boundary Wega Mining's ("Wega") Belahouro property, host of the 1.4 million ounce Inata gold deposit (5.2 million tonnes @ 2.3 g/t Au for 378,480 ounces of Measured Resources and 19.8 million tonnes @ 1.6 g/t Au for 1,018,450 ounces of Indicated Resources). Mineralization at Inata is hosted in a northeast trending shear zone which extends onto SearchGold's Arae-Gassel property, where the Inata shear zone has been traced over a 2.5 km strike length in 1999 by previous operator Orezone Resources Inc.
On Arae-Gassel, the following historic reverse circulation drilling intercepts are reported :
- RCK99-20 : 10.72 g/t Au over 8 m from 48 to 56 m
- RCK99-86 : 5.20 g/t Au over 38 m from 26 to 64 m
- RCK99-58 : 2.51 g/t Au over 56 m from 42 to 98 m
- RCK99-05 : 2.20 g/t Au over 50 m from 0 to 50 m
- RCK99-41 : 1.87 g/t Au over 50 m from 0 to 50 m
- RCK99-04 : 1.49 g/t Au over 130 m from 0 to 130 m
- RCK99-45 : 1.03 g/t Au over 94 m from 0 to 94 m
No cut-off grade was reported for the calculation of the above intersections and even though exploration drilling attempts to intersect the mineralized structures at a high angle, the above intersections do not represent perfect true widths.
Arae and Gassel Properties
|
SearchGold, on the WEGA gold trend in Burkina
|
SearchGold, gold from Burkina
|
SearchGold, gold in the pan, from Burkina
|
SearchGold, on the quartz, Araé-Gassel, in Burkina
|
| | |
