Alecto owns the 1,369 sq. km. Wad Amour IOCG Project in Mauritania. The Company completed a range of reconnaissance work including trenching, soil geochemistry and geophysical surveys, which have revealed significant potential for a high-grade Guelb Moghrein style iron oxide copper gold (‘IOCG’) deposit. The Company has defined two initial priority target areas comprising Chiron, where rock chip sampling has returned grades of up to 5.79% copper at surface, and Oued Amour, which has an 800m Cu anomaly and grab samples up to 1.2% Cu. In addition, two secondary targets, Tamourt and Gadel, have also been identified. The Board considers the Wad Amour project to be outside of its current focus, of near-term gold production, and is consequently inviting interested parties to tender their interest in acquiring or partnering on this project. A comprehensive database of historical exploration work is available.
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In September 2015, Alecto disposed of its interest in the two Ethiopian exploration permits, Wayu Boda and Aysid Metekel, to Wame, a private Ethiopian mineral development company (see announcement dated 30 September 2015) on a deferred consideration basis.
Under the terms of the agreements, Wame will pay Alecto a deferred consideration in the form of a royalty [into perpetuity] of US$3 per JORC resource ounce of gold or gold equivalent discovered up to a maximum of US$1.0 million in respect of each of the licences. Accordingly, the maximum aggregate deferred consideration that could be receivable by the Company is US$2.0 million. Any deferred consideration ultimately received will be used to strengthen the Company’s then prevailing balance sheet.
The prospectivity of the Wayu Boda and Aysid Metekel licences was highlighted by the interest shown by Centamin Plc when they entered into an exploration joint venture agreement with Alecto in October 2013. The joint venture ended in February 2015 in accordance with the change in focus of Centamin outside of Ethiopia, and the Company believes that earnings on a deferred basis on JORC resource ounces discovered has the potential to deliver significant value to shareholders in the future.
Alecto Minerals owns and operates a Rotary Air Blast (RAB) drilling rig and a Landcruiser mounted auger-drilling rig in West Africa. It has been able to complete exploration activities at extremely low cost by maintaining the capability to complete scout drilling and detailed geochemical sampling at well below commercial rates, which has led to considerable exploration success with resource ounces added at its Malian assets at less than US$5 per ounce.
With the Company’s change in focus from grassroots exploration to gold production, Alecto is able to provide scout-drilling services to other companies in the region at very competitive rates. For further information or a quote for exploration services please contact email@example.com
Fig 1 – Alecto’s RAB rig operational in western Mali
Fig 2 – Alecto’s auger rig operational in northern Burkina Faso