MINING IN AFRICA SPECIAL — Nevsun has high hopes for N’Gary

In the fall of 1994, Nevsun Resources (VSE) announced an agreement to acquire Canarc Resource’s (VSE) interest in 10 gold properties under option in Mali.

In addition to receiving Nevsun shares for the transaction, Canarc secured “right of first opportunity” to participate in any transfer, sale or joint venture of the properties.

The most important property is the N’Gary, covering 125 sq. km and situated along strike and adjacent to the Sadiola Hill concession in the Kenieba region, in the west. Operator Anglo American recently gave the green light for a gold mine at Sadiola Hill.

Nevsun reports that the N’Gary East concession covers geology similar to that of Sadiola Hill but that, to date, it has been little-explored. The concession is dotted with small-scale workings, and gold recovered by natives grades in the range of 1 to 7 grams per tonne and appears to be related to east-west-trending structural lineaments disappearing under a laterite cover. The N’Gary West comprises 80 sq. km. and is 13 km west of N’Gary East. Small-scale production is evident on this concession, where alluvial gold placers are still being mined.

Nevsun can earn a 51% interest in N’Gary East and West by spending US$2 million on exploration over three years. A program of geological, geochemical, geophysical, trenching and drilling work will be carried out in order to evaluate the properties.

Nevsun can also earn a 54% interest in the Narena concession, the largest property under option in southwestern Kangaba region. It features extensive surface workings (some still active) which Nevsun says suggests potential for bulk-tonnage, open-pit gold deposits.

The remaining eight properties, which comprise a total of 64 sq. km, are in the Kangaba region. Nevsun can earn 80% in each property by spending US$100,000 on exploration.