LONDON (Alliance News) - Alecto Minerals PLC Thursday said it has renewed its exploration licences covering the Kerboule project in Burkino Faso, boosting the company's chances of finding a joint venture partner to help develop the asset.
The Gassel-Manere and Arae mineral exploration permits, which together form the Kerboule project, have been extended until January 16, 2019, and Alecto said the deal was integral to helping find a joint venture partner for the development.
The permit areas currently have an initial independent gold resource of 6.2 million tonnes of ore graded at 1.16 grammes of gold per tonne, which is thought to contain a total of 230,758 ounces of gold.
Importantly, Alecto can try to expand that resource over the next three years.
"An additional three year licence period for the Kerboule project sets the conditions for adequate additional exploration work to be completed at this highly attractive and exciting gold asset in a well established mining jurisdiction," said Chief Executive Mark Jones.
"We remain committed to finalising a joint venture arrangement for the continuance of activities on the ground so that Alecto and its shareholders can maintain exposure to the project without committing financial resources, whilst we continue to focus on producing saleable gold from our Matala project in Zambia as rapidly as possible," he added.
Alecto shares were up 6.0% to 0.132 pence per share on Thursday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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