Randgold Resources (GOLD-Q, RRS-L) will earn a 50% interest in the Miyabi gold project, in the Lake Victoria area of northwestern Tanzania, under a deal with African Eagle Resources (AFE-L).
Under the agreement, Randgold commits to fund a drill program to delineate the resource at Miyabi and to provide a prefeasibility study. Once that is complete, African Eagle can decide whether to share the funding of a final feasibility study to maintain a 49% interest, or to leave the funding to Randgold, which would dilute African Eagle’s interest to 35%.
African Eagle has already drilled off an indicated and inferred resource at Miyabi; seven separate zones make up an indicated resource of 7.9 million tonnes grading 1.45 grams gold per tonne and an inferred resource of 4.5 million tonnes grading 1.01 grams. Metallurgical testing has shown recoveries around 95%.
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