Kossanto West has been subject to soil geochemical sampling, pitting, trenching and scout drilling since Alecto acquired the project in 2013 and the results have been extremely encouraging, demonstrating high-grade gold mineralisation (peak intercepts shown in Figure 1 below) over a significant area of the regionally significant Main Transcurrent Shear Zone (MTZ). The MTZ is considered to be one of the major controls on gold mineralisation in western Mali and eastern Senegal, and an important control at several major gold deposits such as Sabodala (3Moz - Teranga Gold), Massawa (3Moz - Randgold), Makabingui (1Moz - Bassari Resources), and Sadiola and Yatela. The area has been a centre for significant artisanal mining activity that has uncovered some previously unknown gold occurrences that also highlight the areas potential.
In July 2014, the Company received the first approach from a major gold producer interested in forming a joint venture partnership to explore the area. In line with the Company’s strategy to identify alternative sources of funding for exploration activities, Alecto is in negotiations to secure a joint venture that will see the project funded through to a Pre- feasibility Study level. Under current market conditions, where securing capital for exploration targets is most challenging, the Board considers that this approach will be the most effective way to return shareholder value and retain an interest in what is potentially a significant gold discovery. Partnering with a major producer that has considerable experience in the region and can fund exploration from its balance sheet is the preferred option.