A joint venture (JV) has been entered into between Auroch Minerals NL (ASX:AOU) and AIM-listed Baobab Resources. The deal see Auroch successfully expand its gold resource in Mozamibique.Auroch managing director Dean Cunningham comments, “The announcement of the Baobab JV represents the company’s first step in its aim to establish itself as the major gold camp in the Manica Province. Auroch’s “Near Term Route to Production” announced on 3 July 2013, sees an immediate focus on near term production with future material exploration expenditure coming from cash-flows. Gaining access to further potential resources at the JV prospecting licence is important to bolster Auroch’s first mover advantage in what is already a significant gold camp. With a resource upgrade forthcoming from the company’s drilling to date, this JV is intended to provide the company with flexibility and critical mass for the future.” Auroch, a Mozambique-focused gold exploration and development company, has the ability to earn up to 100% of an area of interest within Prospecting Licence 1022L (JV Prospecting Licence), located in the Manica Province by spending US$1.5m over a period of four years. The company is confident that the prospective regional shear zones that are present on its 100% owned Mining Concession continue into the proposed JV area, having been offset to the south by a regional NNE trending fault.
The proposed JV area covers approximately 18 km² and extends the company’s Northern Shear by 1.6 km and the Southern Shear by 2.2km. Auroch believes there may be an additional 4.1km of regional prospective shears based on the interpretation of satellite imagery. The proposed JV area increases the Manica Gold Project’s existing prospective strike length from 27km to 34.9km.Highlights
- Joint Venture Agreement entered into with Baobab Resources
- 7.9 km of additional strike length added to Auroch’s existing 27 km of prospective strike
- Auroch to earn up to 100% of contiguous greenstone ground at the 3 Moz Manica gold project with the expenditure of $1.5 million over four years
- Consolidation and first mover advantage in a significant gold camp