Leederville-based International Goldfields Ltd has signed a farm-in agreement with South African company Genorah Resources Ltd for exclusive exploration rights over a platinum project.
Leederville-based International Goldfields Ltd has signed a farm-in agreement with South African company Genorah Resources Ltd for exclusive exploration rights over a platinum project.
IGL will pay a $300,000 deposit for exclusive rights over the project, and must spend around $13.2 million on the project over the next three years to earn 15 per cent stake in the tenements. The company will also issue 20 million shares and 60 million options to Genorah on completion of the transaction.
The company had recently announced plans to raise $3 million through a placement to European investors, coming after the company raised $5 million in its May ASX float.
The full text of a company announcement is pasted below
International Goldfields Signs US$10m Farm-In Agreement For Advanced Exploration Platinum Project In the Bushveld Complex, South Africa
Diversified Australian based resources company International Goldfields Limited (ASX: IGC) has today signed a conditional Farm-In Agreement with Genorah Resources (Pty ) Ltd ("Genorah") for the Genorah Farms, an advanced exploration platinum project in South
Africa ("Agreement").
Under the terms of the Agreement IGC will:
- pay a $A300,000 deposit for exclusivity;
- spend US$10m on the project over the next three years to earn 15%; and
- issue 20m Shares and 60m Options (20 cents, 30 June 2009) to Genorah (or nominee) upon completion of the Transaction.
The Genorah Farms include Hoepakrantz 291KT, Nooitverwacht 324KT and Eerste Geluk 327KT, which are located on the eastern limb of South Africa's renowned Bushveld Complex, the world's premier platinum group metal producing region comprising approximately 80% of world production (see attached map).
The Project has an independently estimated "mineralisation potential" of up to 100 million ounces of 3PGE and it is the intention of the project partners to prove up a JORC compliant resource within 6 - 12 months through extensive drilling. It should be made clear that this "mineralisation potential" statement is not a Mineral Resource statement, but reflects the amount of mineralisation that the Project has the potential to host given the known Merensky / UG2 reef characteristics of adjacent mining operations.
Given the large amount of information available from surrounding properties by reputable companies, the Project can be considered substantially more advanced than a pure exploration play and could possibly be classified as an advanced exploration project.
The Measured, Indicated and Inferred Resource blocks on Anglo's adjacent Modikwa mine are indicated to cross onto the Eerste Geluk farm and even though the Anglo Resource Blocks stop shortly after the border, there is no reason to believe that they will not extend onto Eerste Geluk. Similarly Inferred Resource blocks are indicated to extend onto Hoepakrantz and Nooitverwacht, which raise the confidence in the mineral potential of the Genorah farms.
The reported grade at Modikwa, immediately to the east of the Genorah Platinum project, published on the Anglo Platinum Website varies between 5.65 and 5.81 g/t (4 elements - 3PGE +Au). Substantially higher grades of 17 or 18 g/t have been reported over small intervals, but these are inter-layered with lower grade material to give a weighted average grade close to the regional averages.
Vermaak and van der Merwe (South African geologists) quote the average total grade for the area from Driekop to De Goedeverwachting, bordering onto Eerste Geluk, at 5.47 g/t. The Merensky and UG2 dips westwards at 110 at Modikwa, directly bordering onto the Genorah Project Area, with a separation between the two reefs of approximately 260m.
The Genorah Farms are within an area that has good infrastructure and numerous other operating mines, including the Modikwa Mine operated by Anglo Platinum. The UG2 and Merensky package outcrop to the east of the project area and dip towards the west at a
shallow angle underneath the project area.
The Agreement also provides for the issue of additional Shares and Option to Genorah (or nominee) on the achievement of the following milestones:
The Agreement is subject to the finalisation of due diligence by the Company and all necessary approvals required under ASX Listing Rules and the Corporations Act.
