Juniors Minorca Resources (MAR-T) and Tan Range Exploration (TNX-A) will shortly sign a formal agreement to jointly explore the latter’s Itetemia gold property in the Lake Victoria Goldfields region of Tanzania.
Minorca can earn a 45% participating interest in the property by initially purchasing 1.8 million units of Tan Range at 85cents per unit. A unit consists of one share and one share purchase warrant. The warrants are exercisable into an equal number of shares at $1 per share in the first year of the deal, and $1.50 in the second.
In addition, Minorca must spend $10 million on exploration within 3.5 years, as well as complete a bankable feasibility study.
Tan Range will retain operatorship of any exploration programs. The company has a 90% interest in the Itetemia property, with the remainder held by a state enterprise (as required under Tanzanian law).
The property comprises 191 sq. km and adjoins the eastern and northern border of the Bulyanhulu gold property of Sutton Resources. Recent exploration has focused on the northwestern portion, where a gold-bearing quartz-pyrite exhalative horizon, dubbed Golden Horseshoe, was outlined by previous drilling.
The horizon occurs along the contact zone of felsic and intermediate volcanic units and measures 800 metres long and 100 metres deep. It is coincident with a 2.2-km-long induced-polarization anomaly, which suggests the possibility of mineralized extensions along strike.
A 10,000-metre program of diamond drilling will begin shortly.
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