Dual-listed Nexus Gold has entered a letter of intent with Belemyida SA to acquire the right to earn up to 100% interest in the Rakounga Gold Property.
The 250 km2 Rakounga Gold Property is contiguous to the Nexus Gold Bouboulou gold concession.
The property borders Bouboulou on the west and south sides and hosts the Bouboulou 1 gold showing, which is the southern extension of the Bouboulou 2 trend. Bouboulou 1 is an active orpaillage with shaft workings that extend down approximately 80 m.
“This is a substantial addition to the land package at Bouboulou, effectively making the project almost 300 km2 in size,” says Nexus Gold president and CEO, Peter Berdusco.
“The acquisition allows us to follow the Bouboulou 2 and Pelatanga-Rawema trends to the southwest.
“This addition is important when you consider how this might influence the goal of establishing a resource at Bouboulou. There is significant artisanal activity in this new area which indicates gold mineralisation continues along the established trends for some distance.
“Our exploration programs will determine to what extent and obviously at what economic level, but we are excited at the potential value this strategic addition brings to Nexus Gold’s growing portfolio. We are looking forward to executing the definitive agreement in the coming weeks,” continues Berdusco.
Nexus Gold will have an option to acquire a 90% interest in the property, in consideration for cash payments of US$400 000 and the issuance of 575 000 common shares of Nexus Gold, over a period of three years.
Following the acquisition of a 90% interest in the property, Nexus Gold will have the option to acquire the remaining 10% interest in the property through a cash payment of $1 000 000 with a 1% net smelter return royalty remaining with the Optionor.
The main Bouboulou concession covers an area of 38.3 km2 and is located approximately 100 km north by northwest of the capital city of Ouagadougou.
Exploration on the permit area has been conducted by Boliden (1997 – 1999), Riverstone Resources (2005 to 2011) and Roxgold (2011 to 2012).
The property is situated at the north end of the Boromo greenstone belt underlain by an alternating sedimentary-basalt-sedimentary-volcanic progression which strikes generally northeast-southwest, and is bisected by the Sabce Shear Zone, which hosts numerous artisanal gold zones over its 120-km length plus the Bissa Mine operated by Nordgold.
Four zones of gold mineralisation were previously identified on the property termed Koala, Rawema, Bouboulou 2 and Pelatanga.
A fifth zone, Rawema West, was recently identified by Nexus Gold geologists.