Kossanto East Gold Project

JV PARTNER

Ashanti Gold Corp

JV STRUCTURE

Cradle Arc – 1.5 per cent. net smelter royalty
Ashanti – 100%

RESOURCE

Inferred resource estimate of 6.72Mt grading at 1.14 g/t for an aggregate of 247,000 ounces Au (at a cut-off grade of 0.5 g/t Au)

About the project

The Kossanto East Project comprises a 66.41km2 licence area located in felsic volcanic rocks in between two major regional structures, the Main Transcurrent Shear Zone and the Senegal-Malian Fault, that host most of the major gold deposits in the Birimian-age rocks of the Kedougou-Kenieba inlier in western Mali.

 

Kossanto East has an independent Mineral Resource in accordance with the JORC Code comprising an unconstrained Inferred Mineral Resource of 6.72Mt grading at 1.14g/t Au for an aggregate of 247,000 oz Au (at a cut-off grade of 0.5g/t) as of June 2014, completed by Wardell Armstrong.
On 28 November 2016, the Company announced that it had agreed the final terms of the Kossanto East JV with respect to the Kossanto East Project having executed the Ashanti Option Agreement.

 

On 17 August 2017, the Company announced an agreement to sell its entire interest in the Kossanto East Project to Ashanti for CAD 1 million, retaining a 1.5 per cent. net smelter royalty. Ashanti has the right to purchase some or all of the 1.5 per cent. net smelter royalty by paying to Cradle Arc US$100,000 for each 0.1 per cent. of the net smelter royalty purchased, up to a maximum of US$1.5 million.

 

 

 

Terms of the Joint Venture

  • On 28 November 2016, the Company announced that it had agreed the final terms of the Kossanto East JV with respect to the Kossanto East Project having executed the Ashanti Option Agreement.

 

  • Cradle Arc currently holds a 100% interest in Kossanto East and Ashanti Gold Corp. (‘Ashanti’), a Toronto Venture Exchange listed public company (TSX: AGZ.V) was granted the exclusive right to earn-in for a 65 per cent. interest in the Project (58.5 per cent. effective interest after allowing for the 10 per cent. carried interest of the Government of Mali) (the ‘Earn-In’) by completing a PFS within a period of 36 months (the ‘Option Period’).

 

  • On 17 August 2017, the Company announced that it had reached an agreement to sell its entire interest in the Kossanto East Project to Ashanti for CAD 1 million, retaining a 1.5 per cent. net smelter royalty. Ashanti has the right to purchase some or all of the 1.5 per cent. net smelter royalty by paying to Cradle Arc US$100,000 for each 0.1 per cent. of the net smelter royalty purchased, up to a maximum of US$1.5 million.