06/11/2007 - 14:01

Castle acquires Ghanan gold project for around $500K

06/11/2007 - 14:01

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West Perth-based gold explorer Castle Minerals Ltd will acquire a 8,200 sqkm gold project from Newmont Ghana Gold Ltd for around $500,000 in scrip and exploration expenditure.

Castle acquires Ghanan gold project for around $500K

West Perth-based gold explorer Castle Minerals Ltd will acquire a 8,200 sqkm gold project from Newmont Ghana Gold Ltd for around $500,000 in scrip and exploration expenditure.

 

 

The full text of a company announcement is pasted below

Castle Minerals Limited (ASX:CDT) is pleased to announce that it has reached agreement with Newmont Ghana Gold Limited to acquire Newmont's 8,200 km2 Wa gold project in northern Ghana.

The Wa project surrounds the Julie, Josephine and Collette gold prospects (approx. 300,000 ounces) held by London based Crew Gold Corporation and is south along strike of Azumah Resource's 500,000 ounce Kunche gold deposit.

Work by Newmont has identified numerous gold targets based on the collection of over 7,000 soil and stream sediment samples. Anomalous gold zones have been returned from the area west (along strike) of the Julie gold deposit and represent a priority area for Castle follow up work.

Castle Managing Director Mike Ivey said "we believe that the project is an excellent fit with the Company's nearby Ducie project and has potential to deliver economic gold mineralisation. It is an enormous landholding with identified gold targets, particularly the area west along strike of the Julie gold deposit".

Under the key terms of the deal Castle must issue to Newmont 400,000 Castle shares and spend US$300,000 on exploration. Castle can acquire a full 100% interest by issuing a further 600,000 options (30c exercise price) to Newmont. The agreement is subject to the approval of the Ghanaian Minister of Mines.

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