St. Genevieve in Mozambique

Already exploring for gold in two African countries, St. Genevieve Resources (TSE) has added Mozambique to its land holdings on that continent.

The Montreal-based explorer has entered into a joint-venture agreement with the Mining Developers Fund of Mozambique (MDFM) on the Niassa gold concession. Situated on the Tanzanian border, the 160-sq.-km property covers an area where artisanal miners have extracted 120,000 oz. gold per year since 1991. Last year, the Mozambique government introduced regulations that caused artisanal work there to cease.

St. Genevieve paid US$25,000 to MDFM upon signing the joint venture and will earn a half interest by carrying out first-phase geological, geochemical and geophysical surveying. The cost of the work is projected at US$200,000.

An intensely sheared Archean greenstone belt has yielded hard rock and associated displaced samples with economic gold grades. The main rock units are quartzites, gneisses and schists (altered greenstone) and a massive granite intrusion. Gold, thought to be hydrothermal in origin, is found in certain quartzites and cherty horizons, as well as in quartz veins and lenses.

In Guinea, St. Genevieve has acquired a gold-diamond property from a local company. By financing all activity up to production on the 606-sq.-km property, St. Genevieve can acquire a 50% interest in any alluvial gold or diamondiferous deposits and a 70% interest in any primary gold or diamond deposits.

St. Genevieve has granted Lithos (ME) an option on 50% of the gold-bearing alluvial and primary deposits over a surface area of about 200 sq.-km, in return for investment related to the development of deposits.

St. Genevieve has also granted to Spider Resources (ASE) an option to acquire all of St. Genevieve’s rights on all diamondiferous alluvial and primary deposits found, in return for assuming all expenses until production.

St. Genevieve can acquire a 15% interest in any primary deposit identified on the property by completing a feasibility study and paying 15% of historical development expenses.

Favorable Birimian volcano-sedimentary horizons and attractive structural settings have been identified on the property. Kimberlite and diamondiferous peridotite have also been found.

According to studies carried out by St. Genevieve’s Guinean partner, the combined in situ alluvial gold resource is estimated at 200,000 oz. of contained gold.

Diamond reserves there are estimated at 200,000 carats, with 80% being of gem quality.