Randgold Resources (Mali) Limited
Cradle Arc – 35%
Randgold – 65%
About the project
The 137 km2 Kossanto West Gold Project in western Mali, comprises two primary permit areas, Kobokoto East and Koussikoto.
The Project is located over a substantial area of the regionally significant Main Transcurrent Shear Zone, which is considered to be one of the major controls on gold mineralisation in western Mali and eastern Senegal.
Kossanto West has been subject to soil geochemical sampling, pitting, trenching and scout drilling since Cradle Arc acquired the project in 2013 and the results have been extremely encouraging, demonstrating high-grade gold mineralisation.
Since signing the JV and assuming operational control, Randgold has confirmed soil anomalies identified by Cradle Arc and identified NW-SE striking lithologies in the area in addition to several major geological domains that are interpreted as basal sediments and clastic rocks intruded by a range of different plutonic rocks in the east and a mélange of volcano-sedimentary rocks in the west.
Randgold is now undertaking follow up pitting to check the regolith profile and test further anomalous zones and generating regional targets that present potential structure (alteration, lithology and mineralisation) for a multimillion ounce discovery.
- JV agreement secured February 2016 with Randgold Resources (Mali) Limited, a wholly owned subsidiary of FTSE-100 Randgold Resources Limited (LSE: RRS) (‘Randgold’)
- Randgold to fund all costs up to and including the completion of a pre-feasibility study (‘PFS’) on the Project
- Randgold will hold 65% and Cradle Arc will retain a 35% participating interest in the Permits
- On completion of a PFS, all costs will be split between the JV parties in accordance with their participating interest
- Permits will continue to be held by Caracal, until such time as the JV Committee (comprising three Randgold representatives and one Cradle Arc) forms a new company (‘NewCo’) for the development of a mine
- On formation of NewCo, Caracal will transfer the relevant Permits to NewCo, with the JV partners expected to hold 90%, held in the same proportion as their respective interests in the JV, and with the Malian Government expected to hold 10%