Alba Mineral Resources plc has acquired an option to earn into a portfolio of gold licences, including “near-term” production opportunities, in northern Tanzania.
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The move follows the company’s signing an option last week for the Finnsbo rare earth project in eastern Sweden.
Alba said that the Tanzanian licences were in the same district as some of the country’s largest gold deposits.
Midas 1 and Buly South are considered to have the potential for near-term – less than six months – gold production.
Current owners plan to excavate shallow gold mineralisation, crush the ore on site before refining at a nearby contract CIP plant.
Historic data on previous drilling by IAMGOLD and Barrick confirms gold mineralisation “relatively close to surface”.
Alba has “significant flexibility” with the options allowing it to earn into one or more of the projects at its discretion.
The total package comprises Buly South covering 0.90 km²; Midas 1, 18.52 km²; an application for Midas 2 over 9.74 km²; and for Kiabakari covering 143.13 km².
The Midas project, comprising the two licences, is located in Nyangwale District in the southeast-northwest trending Geita greenstone belt.
The mine is 7km south of the Perseus Nyanzega gold deposit of 3.1 million ounces and 20km northeast of Barrick’s Bulyanhulu gold mine containing 3.4 Moz reserves and 10.3 Moz resources.
Upon exercise of the Midas 1 option, the parties will apply for three primary mining licences which, on approval, will allow mining operations to begin “immediately”.
The company said that the Kiabakari licence adjoined the length of the northern boundary of the Kiabakari gold mine, 200m from the main pit, and therefore has “significant potential”.
The project is in its early stages.
On exercise of the options Alba may increase its ownership in line with future expenditure in cash and shares within an agreed time.
Alba will review all historic geological, drilling and other technical information and is also organising a site visit as part of due diligence.
“We are delighted to have secured this option over a portfolio of highly prospective gold licences in northern Tanzania,” added executive chairman George Frangeskides.
“To be clear, our current focus remains very much on the completion of our bulk sampling of the Llechfraith target at the Clogau gold mine in north Wales.
“However, we have always been clear as a company that we will continue to seek out
exploration and mining opportunities, especially underappreciated ones, which have the potential to add serious value to the company for the benefit of our shareholders.
“That is how we found the Amitsoq mine and it is also how we found Clogau itself.”