Noble Peak to explore South African greenstone belt

Following a definitive agreement from the controlling shareholders of Eastern Goldfields Holdings, Noble Peak Resources (ASE) is poised to acquire all shares of the private, British Virgin Islands-based company.

Eastern Goldfields owns, or holds options on, mineral rights to more than 202 sq. km of prospective ground in the Barberton gold camp of South Africa. Discovered in 1884, the Barberton camp was the site of the country’s first gold production, though it was quickly upstaged by the discovery of the Witwatersrand deposits in 1886. Nevertheless, more than 350 mines have operated in the Barberton camp since its discovery. Today, a mere six mines remain active, producing a total of 200,000 oz. per year.

While most of South Africa’s gold comes from the reefs of the Witwatersrand and the Orange Free State, the Barberton gold fields are within the Barberton greenstone belt, an area of Archean metasediments and metavolcanics similar to the Red Lake greenstone belt of northern Ontario.

The lands to be acquired include the Worcester gold mine, a past producer with a geological reserve of 990,000 tonnes grading 6.5 grams gold per tonne. Reserves at Worcester exist beneath the previous workings, to a depth of 450 metres, and additional potential exists at deeper levels and on strike with the old mine. The mine site includes a 6,000-tonne-per-month gold processing plant.

Noble Peak plans to expand Worcester’s reserves and explore the surrounding properties.

Eastern Goldfields’ extensive land position in this prospective region impressed Noble Peak President Maureen Jensen, as did the opportunity to find new gold in a prolific, yet underachieving, gold camp.

“Eastern Goldfields has spent the past 20 years putting together this land position,” Jensen says.

She adds that, although the ground has been well-mapped and prospected, fewer than 30 diamond drill holes have been drilled over the entire 200-sq.-km package. Extensive drilling is planned, however.

“We’re trying to take the North American concept of looking three-dimensionally at greenstone belts and apply it [to deposits in South Africa].”

For Jensen, the immediate potential of the Eastern Goldfields lands lies within 2.5 km of the Worcester gold mine, where four old mines have yet to undergo drill-testing.

Eastern Goldfields also holds properties adjacent to four active mines in the Barberton greenstone belt, from which Jensen expects long-term results.

To acquire Eastern Goldfields, Noble Peak is issuing 3.5 common shares for every Eastern Goldfields share. Purchase of the shares is conditional on the completion of the acquisition of all of the shares, the approval of the Noble Peak and Eastern Goldfields shareholders and the raising of $4 million. The purchase is expected to close by April 9.

Meanwhile, Noble Peak has signed a letter of engagement with C.M. Oliver (UK) to raise a maximum of $6 million through a European equity offering of up to 6.3 million units at a price of 95 cents per unit. Each unit will consist of one common share and one common share purchase warrant priced at $1.10 each for 18 months. The funding is expected to close concurrent with the acquisition of Eastern Goldfields.