Karan Gold Project


Cora Gold Limited


To Scoping Study level:

Cradle Arc – 35%

Cora Gold – 65%


To Bankable Feasibility level:

Cradle Arc – 20%

Cora Gold – 80%



About the Project


The 250 km2 Karan gold project is situated in southern Mali, approximately 90 km from the Malian capital of Bamako. Situated close to the Niger River, the Karan permit has been host to significant artisanal mining activity in hard rock, eluvial and alluvial placers. Mineralised structures are associated with a major regional shear zone and the permit has the potential to host several deposits of various types of gold mineralisation. Work to date includes soil geochemistry, pitting, trenching and drilling, which have defined 8 large target areas, two of which are drill ready.


A Scoping Study for trial mining of alluvial gravels has been completed indicating that significant gold recovery could be achieved on the Karan permit which has the potential to advance exploration without recourse to the public markets.


Due to the expansive nature of the exploration project and the Company’s current focus on advancing nearer term production opportunities, the Board is inviting interested parties to discuss potential joint venture or partnership opportunities (for both hard rock exploration and potential alluvial production). A comprehensive database of previous exploration work is available, as well as advanced studies for the potential monetisation of the alluvial opportunity.


An initial work programme, led by Cora Gold, has been undertaken at Karan, including geochemical and termite mound sampling, mapping of recently discovered gold occurrences and compilation of a substantial historical exploration database that includes approximately 12,000 metres of reverse circulation (‘RC’) and rotary air blast (‘RAB’) drilling, trenching and pitting.


Cora Gold and Cradle Arc are applying for the extension of the Karan exploration permit and further surface sampling is to be undertaken whilst the licence extension application continues to progress. Depending on the surface sampling results, follow-up reconnaissance drilling will be undertaken.

Terms of the JV


  • JV agreement secured May 2016


  • Cradle Arc’s wholly owned subsidiary, Newmines Holdings Limited (‘Newmines’), has entered into an option and joint venture agreement with Cora Gold Limited (‘Cora Gold’) for the exploration and development of Karan. Cora Gold is an AIM quoted West African focused gold exploration company, which has a portfolio of gold projects in Mali and the Republic of Congo, including certain gold permits which are contiguous to Karan.  50% of Cora Gold is held by AIM quoted Hummingbird Resources plc.


  • Cora Gold will solely fund all exploration and development costs up to and including the completion initially of a scoping study (‘Scoping Study’) and ultimately a Bankable Feasibility Study (‘BFS’)


  • Cora Gold will earn an initial interest of 65% in the Karan JV by solely funding exploration expenditure until completion of a Scoping Study and will earn a further 15% interest by solely funding exploration expenditure until completion of a BFS


  • Accordingly, following completion of the BFS, Cora Gold will have earned, in aggregate, an 80% interest in the Karan JV, at which point Cradle Arc may elect to either participate in future funding on a pro rata basis and retain its 20% interest, or decline the right to provide future funding and relinquish its remaining interest, such that Cora would then own 100% of the Karan JV


  • Cradle Arc will retain a 2% Net Smelter Return (‘NSR’) interest from any commercial production from the Karan permit area


  • During the first 5 years of commercial production, Cora Gold will have the right to purchase the 2% NSR from Cradle Arc for the sum of US$3m in cash


  • The Karan permit will continue to be held by Newmines until such time as a new Joint Venture operating company (‘NewCo’) is established, at which point the parties will agree a mutually acceptable shareholders agreement


  • On formation of NewCo, Newmines will transfer the then relevant permit(s) to NewCo, with the JV partners holding 90%, held in the same proportion as their respective interests in the JV, and the Malian Government expected to hold 10% in accordance with the convention de recherché in respect of Karan