Placer gains Solomon’s gold interests in Africa

Partners Channel Resources (CHU-T) and Solomon Resources (SRB-V) have entered into separate agreements that will allow Placer Dome (PDG-T) to earn up to a 65% interest in the Bombore and Naoube gold properties in Burkina Faso, West Africa.

Situated east of the capital, Ouagadougou, the 2,100-sq.-km Bombore property hosts an indicated resource of 35 million tonnes grading 1.1 grams gold per tonne. Oxide gold mineralization occurs in seven zones over a combined strike length of 8.5 km and to a depth of 50 metres.

Channel has a 55% interest in the property; Solomon, 45%.

The 500-sq.-km Naoube property, ownership of which is split evenly between Channel and Solomon, adjoins the northeastern boundary of Bombore. The Naoube property covers the northeastern 4 km of a 10-km-long zone of elevated gold-in-soil concentrations that start on the Bombore property.

Mineralization consists of a series of gold-bearing quartz-tourmaline veins in granodiorite, close to a contact with sheared mafic volcanics.

Placer can acquire a 20% interest in Bombore and 15% of Naoube by spending US$5 million over four years.

Placer is required to spend $500,000 at Bombore in the first year, following which reverse-circulation drilling will test the strike and depth extensions of the deposit. Diamond core infill drilling and metallurgical testing will also be carried out, as will rotary air-blast drilling.

According to its agreement with Solomon, Placer has agreed to acquire that company’s interests in Bombore and Naoube, and in a third gold property, known as Soubeiga. In return Solomon will receive US$750,000 in three equal payments made over two years, plus a final cash payment of US$2 million after the third year.

Once it has earned Solomon’s interest, Placer will hold a 65% interest in the Bombore and Naoube properties, with Channel holding the remaining 35%. Placer will also own 45% of the Soubeiga property, with Channel holding the remaining 55%.

The 1.3-sq.-km Soubeiga property hosts three principal gold prospects: Radogo, Zabantenga and Bagadodgo-Bouli. Gold mineralization occurs in high-grade shear and tension quartz veins at the contacts between massive undeformed and sheared rocks.

The Radogo trend is 4 km long, and channel samples have returned up to 43.5 grams gold per tonne over 2 metres. Significant results obtained at the Bagadogo prospect include 6.7 grams gold over 8 metres and 13.7 grams gold over 8 metres.

In related news, Channel and joint-venture partner Viceroy Resources (VOY-T) have approved a $1-million budget for a feasibility study of the Bouroum property.

Situated 200 km northeast of Ouagadougou, Bouroum hosts a resource of 2.8 million tonnes grading 2.3 grams gold in a broader zone of 12.4 million tonnes grading 1.3 grams gold. Viceroy can earn a 60% interest in the property by funding a positive feasibility study by Oct. 1, 2000. Viceroy owns 35% of Channel.