AngloGold Ashanti‘s subsidiary AngloGold Ashanti Holdings has entered into a binding $9m (A$13.5m), five-year farm-in agreement with EcoGraf for gold exploration at the Golden Eagle gold project in Tanzania.
The project, owned by EcoGraf’s fully owned subsidiary Innogy, is situated in the prolific Lake Victoria Goldfields.
Under the agreement, AngloGold will make an initial payment of $100,000 to Innogy upon the granting of prospecting licences by the Tanzanian Mining Commission.
AngloGold can earn a 70% interest in the Golden Eagle project by investing $8.9m over five years, with EcoGraf retaining a 30% stake.
It also has an option to withdraw from the agreement after a minimum expenditure of $900,000, which covers the first two years’ commitment.
In such an event, all data and samples collected during the exploration will be returned to EcoGraf.
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By GlobalData
Once a 70% interest is earned, EcoGraf can choose to either maintain its 30% share or convert it into a gross revenue royalty if AngloGold advances the project to production.
Golden Eagle Project has undergone extensive due diligence by AngloGold since May of the previous year.
Located in the Singida and Manyara regions, the project is considered a high-quality gold asset with the potential to uncover multi-million-ounce gold deposits.
It lies in the same structural corridor as the former Golden Pride 2 gold mine and near the Winston gold deposit, known for high-grade gold findings.
The region’s geology is marked by Archean greenstone belts within a granitic complex, with gold predominantly found in veined shear zones.
Additionally, the project includes two pending prospecting licences covering 578km² and is part of AngloGold’s renewed exploration efforts in Tanzania.
AngloGold has set up a dedicated exploration office in Dodoma, Tanzania.
EcoGraf, through Innogy, also holds the Northern, Southern and Western Frontier Projects, which show promise for nickel, lithium and Proterozoic gold mineralisation.
Its portfolio in Tanzania extends to additional gold, nickel and lithium exploration assets, currently attracting interest from various corporate groups.
EcoGraf managing director Andrew Spinks said: “The Golden Eagle farm-in agreement with AngloGold Ashanti, the fourth-largest gold miner in the world, demonstrates the strong technical quality of the Innogy assets and is a further vote of confidence in the mining industry of Tanzania.
“This agreement is a great result from our technical team, providing a pathway to realise value for our shareholders from EcoGraf’s non-core mineral assets.
“It provides upside exposure to the rising gold price for our shareholders, while the company focuses on the development of its battery anode materials business for the lithium-ion battery market.”
