Acacia Mining buys out partners in West Kenya
Updated : 08:54
Acacia Mining posted an exploration update on Monday, announcing that it has continued to enhance and expand its exploration portfolio through an agreement to accelerate the earn-in on the West Kenya Joint Venture licences in Kenya.
The FTSE 250 firm said it has agreed to increase its ownership from 51% to 100% in the two licences covering the majority of West Kenya project area from a subsidiary of Lonmin for consideration of $5m.
Following the completion of the agreement Acacia has full exposure to an exciting and highly prospective land package in Kenya, including its most advanced project, the Liranda Corridor.
Acacia said it continues to intersect high grade gold zones at the Bushiangala and Acacia prospects along the Liranda Corridor where drilling is indicating the potential for a new gold camp.
“We are greatly encouraged by our continued exploration success in Kenya,” said Acacia Mining CEO Brad Gordon.
“Our systematic approach to exploration and drill targeting, as well as taking the decision to drill deeper holes early has resulted in the potential for an exciting new discovery.
“As a result we have moved to consolidate our position in the project at this stage to ensure our shareholders will be able to fully benefit if the project continues to progress,” Gordon added.
As it disclosed in its 2016 Interim Results on 22 July, Acacia has continued to drill test prospects within the Liranda Corridor, located in the northeast of the licence area.
It said it is approximately 30% of the way through a 40,000 metre drilling programme to test the structural orientation and continuity of high grade gold mineralisation encountered on the Acacia and Bushiangala Prospects.
The programme, if successful, aims to allow for the calculation of an initial inferred resource by early 2017.
Previously released assay results from 11 diamond core drill holes drilled in H1 2016 testing the Acacia and Bushiangala prospects, two of at least six potential gold prospects in the corridor, continued to return positive results, the company reported.