Huge NEWSGoldbelt acquires five gold properties from Resolute
2004-01-30Â 13:41Â ET - News Release
Mr. Paul Morgan reports
GOLDBELT TO ACQUIRE AFRICAN GOLD INTERESTS
Goldbelt has entered into an arm's-length agreement with Resolute Mining Limited of Perth, Australia, an Australian Stock Exchange-listed company, to acquire Resolute's 100-per-cent interest in five gold exploration properties in Burkina Faso in western Africa. The properties are known as the Belahouro, Kari, Kiere, Mandiasso and Diosso properties which are held by Resolute (West Africa) Limited (RWA), an indirect subsidiary of Resolute, which Goldbelt will acquire for cash and securities of Goldbelt.
The principal gold exploration project is known as the Belahouro project, located approximately 220 kilometres north-northeast of Ouagadougou, the capital of Burkina Faso, along the western part of the Djibo greenstone belt near the Mali-Burkina Faso border. The belt comprises essentially intermediate volcano-sedimentary formations intruded by syn to posttectonic granitoids.
Belahouro project
Exploration at Belahouro by previous companies, including BHP and Resolute, has mainly been concentrated in and around known artisanal workings. A number of areas of gold mineralization have been identified. A large proportion of the permit has not been explored in detail.
The Belahouro project permit area has been divided into three principal domains: the Damba-Inata province, the Belahouro basin and the Feto Kole volcanic province.
Damba-Inata province
The Damba-Inata volcano-sedimentary province is dominated by metasediments (epiclastics) with lesser basaltic to andesitic volcanics. The province contains multiple granitoid intrusions. The regional foliation trend is northeast. The Inata trend contains the main gold zones associated with this area.
Inata trend
There are three mineralized areas located within a strike length of four kilometres.
The Inata North deposit trends at 10 degrees over a strike of 1,200 metres. The deposit comprises two zones. The southern zone extends for a length of 500 metres. The northern zone extends for approximately 600 metres. Weak dispersed mineralization separates the two zones. The mineralization dips between 70 degrees to 85 degrees west and consists of quartz vein sets (strike 20 degrees to 70 degrees) stacked along the mineralized 10-degree-trending zone. The most southerly section is open, with the last RAB drill hole west on the IN1588150N line (105 metres south) intercepting anomalous near-surface gold. The mineralization is open to the north.
The Inata central deposit trends between 0 and 25 degrees with a steep westerly dip. Mineralization has been defined over a strike length of 1,000 metres. The central section of the deposit has good continuity. The northern portion has been intruded by felsic porphyry and diorite, which appears to terminate the mineralization. The southern section has a northeast-trending fault crosscutting the main zone. Most of the artisanal alluvial/saprolite workings are to the west of this area. There is potential to add to the oxide resource with parallel mineralized zones. This zone extends into the Inata south area.
The Inata south deposit has been defined over a strike of 1,400 metres. The zone trends approximately north with a steep westerly dip. The main section is arcuate. The mineralization is narrow (approximately three metres) and medium grade. Down-dip and plunge extensions have yet to be fully tested. The zone is open to the south. Potential for parallel mineralized zones is supported by mineralization identified 80 metres and 350 metres east of the main zone. The mineralization 80 metres east reflects the continuation of the parallel zone outlined at Inata central. Strike extensions and parallel zones to the main gold mineralization at Inata have also seen limited testing with reverse-circulation and RAB drilling.
The Inata central and Inata south mineralized areas are essentially on the same mineralized horizon, separated by lower grades and cross-faulting. The Inata North deposit lies approximately 300 metres west of the Inata central-south trend. It is not yet known if cross-faulting is responsible for this displacement or Inata North is a different trend.
Belahouro basin
The Belahouro-Sona basin is dominated by metasediments, generally turbiditic, with minor intermediate volcaniclastics. An east-west shear zone traverses the southern portion of the permit. South of this zone, lithotypes are andesites, shales and chert. The Minfo-Pali-Filio trend contains the main gold zones associated with this area to the west and south. To the east are the Souma trend mineralized areas.
Pali-Minfo-Filio trend
Pali is located five kilometres southwest of the Inata mineralized areas. Dominating the area are folded intermediate volcanoclastic schist interbedded by chert bands overlying intermediate volcanics (andesites etc.). Locally, the quartz veins and silicified shear corridors are mineralized. Two high-order gold-in-soil anomalies have been located. The westernmost anomaly has dimensions 900 metres by 200 metres trending north-south and the easternmost anomaly had a strike length of 1,500 metres with a maximum width of 700 metres trending east-west and northwest. These anomalies are associated with numerous artisanal workings and correlate with detailed geological mapping that has outlined auriferous shear zones and quartz vein sets. The westernmost area drilling outlined two narrow shear zones with limited strike continuity. The easternmost area defined a wide zone of shearing and associated gold anomalism, between 200 metres and 250 metres wide.
Minfo lies on the Minfo-Filio east-west shear zone. The shear zone can be traced over a distance of 20 kilometres and is characterized by a wide zone of shearing (up to 400 metres) associated with a strong aeromagnetic trend. Along the shear zone, gold is elevated in soils with a number of strongly anomalous areas. The Minfo soil anomaly extends for three kilometres with a maximum width of 600 metres. Mineralization is associated with massive and stringer quartz veining in black to grey shales (n carbonaceous n pyritic n chloritic) within an intermediate volcanic-shale/siltstone package. Conjugate quartz veining sets (east-west and northeast trending) with steep south dip, form a series of mineralized zones situated on a flexure within the main east-west shear zone. The potential for similar prospects to Minfo is high along the shear trend.
Filo lies on the same east-west shear zone as Minfo. The gold-in-soil anomalism extends over 2.5 kilometres in length with a maximum width of 500 metres. Mineralization is associated with stringer quartz within more intensively sheared zones. The mineralization is open to both the east and west. The main area of mineralization is associated with a flexure within the main shear zone corridor. Potential for similar zones of mineralization along the shear zone is high. Recent soil sampling east of Filio area has delineated a wide gold anomaly over two kilometres long. The trend is northwest and parallels the local foliation/shearing. The anomaly is open to the north and to the west, toward a major drainage. Aeromagnetics has highlighted a conjugate set of shears/structures associated with the gold soil anomaly.
Souma trend
Strong gold-in-soil anomalism and rock chip assays were the focus for RAB and reverse-circulation drilling at Souma village. The soil anomaly (500 metres by 300 metres and open) was coincident with artisanal workings in ferricrete. Drilling has tested a north-south trending zone over a strike of two kilometres in the vicinity of the Souma village area. Mineralization is associated with stringer quartz and minor stockworking in discrete shears hosted within a layered gabbro. The mineralized structures are open to the north and south. Potential to extend the known zone of mineralization is high. The mineralized corridor is interpreted to continue both north and south as shown by recent soil-sampling programs. To the south, workings have tested the zone up to one kilometre south of N'darga (seven kilometres of strike). To the north, workings occur along strike at Tabassi (three kilometres of strike). Soil sampling was curtailed further north due to the extensive aeolian sand cover.
To the east, Souma -- BSF16, a quartz reef structure was identified as a reverse-circulation drilling target based on trenching and rock chip sampling. The mineralized zone has been tested over a strike of one kilometre. The zone trends around 330 degrees with variable dip (45 degrees to 60 degrees) to the west. The strongest mineralization is associated with a gentle flexure in the quartz veining. Souma -- BSF1 lies along the same structure as BSF16 2.5 kilometres to the southeast. Previous trenching (bulk sampling) and RC/DD drilling had identified moderate-width quartz veins with high-grade gold in metasediments adjacent to a sheared contact with granitoid.
Mineralization was confirmed over a strike of 800 metres in a northeast-trending quartz vein structure with variable (30-degree-to-75-degree) dip to the west. Mineralization identified by the current drilling was narrow with higher grade intersections associated with flexures in the quartz vein system.
Feto Kole volcanic province
The Feto Kole volcanic province is a complex of rhyodacitic, dacitic, andesitic and basaltic volcanics with associated pyroclastics and epiclastics. Within the volcanics, both pretectonic and syn to posttectonic granitoids occur. The last major intrusive phase is a differentiated gabbro complex. The gabbro has intruded mainly into the volcanic package. At the base of the gabbro, titaniferous and vanadiferous magnetite banding can be found. The Feto Kole trend contains the main gold deposit associated with this area.
Feto Kole trend
Extensive artisan workings with associated gold-in-soil anomalism was targeted by RAB drilling at Gassel Garafo. The mineralized zone lies proximal to a major north-to-southeast-trending shear zone, which has a known extent of 14 kilometres between Senakaye and Lybie. In the Gassel Garafo area, the shear traverses the contact between granitoids to the west and basaltic andesites to the east.
The shear zone that controls the gold mineralization at Gassel Garafo has been tested at Dumsa and Senakaye. Artisanal workings and rock chip assays were targeted by broad spaced RAB traverses (approximately 400 metres apart). The shear zone is dominantly hosted in basaltic andesites and associated pyroclastics. High-grade mineralization was confined to quartz veining within the main shear zone.
Resources
The Belahouro project is an advanced exploration target on which Resolute, in its June 30, 2000, annual report announced the following resources based on the JORC code prepared by the joint ore reserves committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists, and Mineral Council of Australia. Goldbelt has not done any work or conducted any independent studies required to verify the classification of the resources by Resolute. Goldbelt is not treating them as an NI 43-101-defined resource verified by an independent qualified person, and the historical estimates set out below should not be relied upon.
Deposit Cutoff Category Tonnes
grade
North +1 g/t measured 1,734,849
indicated 1,974,525
inferred 612,225
Central +1 g/t measured 1,165,750
indicated 877,100
inferred 144,500
South +1 g/t measured 417,325
indicated 539,325
inferred 216,350
Minfo +1 g/t measured 265,363
indicated 259,613
inferred 78,775
TOTAL +1 g/t measured 3,583,287
indicated 3,650,563
inferred 1,051,850
Deposit Cutoff Category Au Au
grade g/t ounces
North +one g/t measured 3.1 172,908
indicated 3.0 189,178
inferred 3.0 58,263
Central +one g/t measured 3.0 111,690
indicated 2.8 78,676
inferred 2.4 10,871
South +one g/t measured 2.3 31,396
indicated 2.2 38,321
inferred 2.1 15,929
Minfo +one g/t measured 2.2 18,343
indicated 2.1 17,612
inferred 1.8 4,483
TOTAL +one g/t measured 2.9 334,337
indicated 2.7 323,786
inferred 2.6 89,546
Under the agreement, Goldbelt will acquire the Burkina Faso assets of Resolute by the purchase from a subsidiary of Resolute of all the outstanding shares of RWA, a Jersey company, which in turn holds all the outstanding shares of Resolute (West Africa) Mining Company SA, a Burkina Faso company. Following completion of the transaction, Resolute will become a major shareholder of Goldbelt and where it does not conflict with Resolute's activities, Resolute will assist Goldbelt in identifying other gold exploitation opportunities in West Africa.
Goldbelt is committed to expending $250,000 (U.S.) on exploration expenditures at the Belahouro project to conduct approximately 4,500 metres of RAB/AC drilling to test two areas within the Belahouro project. Sixty holes totalling 3,000 metres will test a 40-metre-wide area with a strike length of one kilometre, which may be an offset extension of the Inata trend and which has not previously been drilled. Thirty holes totalling 1,500 metres are planned to test an anomolous area on the western edge of the Sona basin also forming part of the Belahouro project. The drilling is planned to commence in the latter part of February.
Subject to the satisfactory completion of due diligence, receipt of the approval of the TSX Venture Exchange, an independent review of the Belahouro project to conform to National Instrument 43-101, and if required, the approval of the shareholders of Goldbelt, Goldbelt will pay a $1.5-million (U.S.) issue, subject to adjustment, five million common shares of Goldbelt at the price of $1 per share and 2.5 million share purchase warrants to Resolute. One-half of the share purchase warrants will entitle Resolute to purchase 1.25 million shares of Goldbelt at $1 per share for two years from the date of issue. The remaining half of the share purchase warrants will entitle Resolute to purchase an additional 1.25 million common shares of Goldbelt at $1.30 per common share for a period of two years from the date of issue. The number of shares and the exercise price of the share purchase warrants to be issued to Resolute will be adjusted based on the price of a private placement to be completed concurrently with or prior to the completion of the acquisition.
Goldbelt will pay a finder's fee to Plato Prospecting Pty. Ltd. of Perth, Australia, of 250,000 shares and warrants to purchase 125,000 shares of Goldbelt at $1 per share for a period of two years.