Toronto-listed Pangea Goldfields and South African-based Randgold Exploration will form a joint venture, the purpose of which is to outline additional reserves at the former’s Golden Ridge property in Tanzania.
Rangold can earn a 25% interest in Golden Ridge in exchange for US$1 million. It can increase this to 50% by spending US$4 million on exploration and development, and to 65% by conducting a bankable feasibility study and securing project financing for five years.
The company has a one-time option to buy an additional 5% interest by paying Pangea US$30 per oz. for 5% of the total proven and probable gold reserves established in the feasibility study.
Golden Ridge consists of three concessions covering 100 sq. km. These are underlain by a folded, banded iron formation with a strike length of nearly 25 km.
Gold mineralization has been cut in several widely spaced, shallow holes drilled on a 9-km section of the iron formation. Other targets have yet to be tested, and a second drill program is under way.
Randgold will operate the venture, drawing on its operating and development experience in Africa.
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