Arrow Minerals joins forces with Roxgold for Hounde South earn-in
Hounde South is in Burkina Faso, in a prolific West African greenstone belt
Arrow Minerals Ltd (ASX:AMD) has joined forces with Roxgold Inc (TSE:ROXG) (OTCMKTS:ROGFF) after signing an earn-in agreement covering Arrow’s Hounde South Gold Project in southwest Burkina Faso.
The definitive agreement, which has been finalised and executed, enables Roxgold to earn up to a 70% interest in the project.
Earn-in stages
This will be achieved after expenditure of up to US$1 million (approximately A$1.5 million) in exploration in two stages over four years.
Hounde South consists of two exploration licences, the Fofora and Konkoira permits, adjacent to Roxgold’s Boussoura permit.
A “strategic fit”
Arrow’s chief executive officer Howard Golden said: “The earn-in agreement with Roxgold is a strategic fit for Arrow as it allows Arrow to focus its resources on its more advanced projects including the recent Dassa gold discovery, while working with a well-respected and successful Burkina Faso miner.
“Roxgold owns the Yaramoko gold mine in the same geological belt as Hounde, as well as active exploration projects in Burkina Faso.”
Gold potential
Historical exploration at the project, including stream sediment sampling, demonstrated the potential for gold mineralisation traversing the licences of Arrow and Roxgold.
Arrow and Roxgold tenement locations in Burkina Faso.
Golden said: “Arrow’s and Roxgold’s permits at Hounde comprise a prospective area that shows great potential for gold mineralisation based on regional sampling.”
Exploration expenditure
Roxgold can earn an initial 51% interest in the project by spending US$600,000 (around A$900,000) over two years.
In a second earn-in stage, the Canadian-based company can increase its interest to 70% by spending US$400,000 (around A$600,000) over the following two years.
Following this Roxgold and Arrow will form a joint venture where both companies contribute according to their interest for the remainder of the project life.
Joining forces
Arrow’s CEO concluded: “We welcome the opportunity to join forces with Roxgold to increase the probability of exploration success in this prolific gold belt in southwest Burkina Faso.”
Roxgold owns and operates the high-grade Yaramoko Gold Mine on the Houndé greenstone belt in Burkina Faso and is also advancing the development and exploration of Séguéla Gold Project in Côte d’Ivoire.