West Perth-based minerals explorer Central Asia Resources Ltd has signed a deal with Kazakhstan-based Kazakhstan-Australia Association Ltd, giving it first right of refusal on several exploration prospects adjacent to its current joint ventures.
The full text of a company announcement is pasted below
Central Asia Resources Limited has secured first right of refusal on several exploration prospects immediately adjacent to its current joint venture projects in Kazakhstan, following the signing of a Memorandum of Understanding (MOU) with Kazakhstan company, Kazakhstan-Australia Association Limited ("the Association").
The MOU covers the Ushkuduk-Maytokenskaya, Karatas-Andasayskay and Tarlanat-Aldaushinskaya license areas, located near the Company's existing joint venture areas in Kazakhstan. Collectively these licences hold approximately 26 occurrences of gold and base metal mineralization as interpreted by previous explorers.
The Association intends to define specific targets within the license areas for exploration during 2007 and 2008.
Central Asia will provide technical assistance and advice in regards to the selection of the most prospective exploration targets.
Based on the outcome of the initial exploration, and under the terms of the MOU, Central Asia will have first-right of refusal to enter into a commercial agreement with the Association for up to 60% of any area within the licences for which commercial discovery will be declared.
Central Asia Director Angela Dent said "Importantly, and for minimal outlay to Central Asia, we have the first right of refusal to enter into an agreement over these projects should their development potential be defined."
"The agreement reinforces our good relationship with the Association who are our partner in the Altyn-Tas joint venture" Ms Dent said.
CEO, Kevin Malaxos believes the MOU with the Association will present future farm-in opportunities at close to zero discovery cost.
"Securing first right of access to future commercial discoveries made by the Association has the potential to add significantly to our growth strategy and create increased operational flexibility." Mr Malaxos said.
The Company is currently progressing an extensional diamond drilling program at its Kengir prospect, which will be followed by further drilling at its Altyntas Prospect.
