Scandinavian asset management and development company IGE Resources (IGE) has announced its intention to pursue full ownership of the Wanga alluvial gold project in the Democratic Republic of the Congo (DRC) and an alluvial gold project in Ethiopia.
The project is located in the North Eastern province in the middle of the African gold belt.
The license covers an area of 1.440 km2 including tailings of approximately 38 km2.
The tailings have inferred grades ranging from 0.46 to 5.08 g/t, based on a competent persons report prepared by SRK Exploration Services in 2012.
The company intends to initiate production as soon as possible and has already secured a financing offer for commissioning and its operation by way of a forward trade contract instrument of USD$15 million (R135.74 million) per recovery line.
In addition to above mineral rights, the proposed acquisition includes the right to purchase up to six recovery lines for the production of alluvial gold and diamonds.
The recovery lines represent state-of-the-art technology that significantly improves recovery rates compared to current industry standards.
Each recovery line has a purchase price of US$15 million, of which the current owner already has paid US$2 million per line.
IGE’s acting CEO Thomas Carlsson says: “The contemplated acquisition of the Wanga gold license adds significant resources to our existing diamond assets in the DRC. It will also enable us to benefit from economies of scale as we move towards both diamond and gold production in the country. “Furthermore, I am pleased that a financing solution for the development of the gold resource in the DRC has been established without a demand for additional equity.”
Ulrik Jansson, chairman of IGE, said: “We are pushing hard to get into production and to get cash flow from the company’s operations. Recent year’s great development in the gold price makes this mineral a natural way for IGE to expand and diversify risk. With the support of the machinery included in the contemplated acquisition, IGE will be well prepared to start production with a relative short ramp up period. Based on the improved technology, we expect significant alluvial recovery on new prospects and old tailings of both gold and diamonds.”