Arrow Minerals in "transformative" agreement with Trevali Mining for exploration rights in Burkino Faso
The agreement provides upside for Arrow as it consolidates a large gold footprint surrounding the Dassa discovery on its Divole West permit.
Arrow Minerals Ltd (ASX:AMD) has signed a binding term sheet that sets out terms for an exploration joint venture with Trevali Mining Corp (TSE:TV) (OTCMKTS:TREVF) wherein both parties receive reciprocal exploration rights to their exploration permits in a highly prospective gold belt in Burkina Faso, West Africa.
The agreement covers eight exploration licences – Kikio, Kordie, Pilimpikou, Semapoun, and Viveo (100% Trevali); and Divole East, Divole West and Dyapya (100% Arrow) and allows Arrow to perform gold exploration over the Trevali permits.
It also includes a reciprocal arrangement for Trevali to undertake base metals exploration on Arrow’s permits.
Chief executive officer Howard Golden said: “This arrangement is transformative for Arrow Minerals and gives us access to more than 80 kilometres of strike length along the highly prospective gold-bearing Boromo Greenstone Belt.
“This expanded exploration space greatly increases the probability of delivering significant additional gold to the developing Arrow portfolio of discoveries including Dassa and Divole East.
“Our new cooperative arrangement is truly mutually beneficial, exposing both parties to highly prospective exploration ground to advance their respective commodity focuses.
“At the same time, both companies retain exposure to exploration success in non-core minerals."
Arrow-Trevali joint exploration permit area
Within the 1,024-square-kilometre combined permit package known gold mineralisation includes the Dassa, Divole East, Poa and Guido advanced prospects.
The agreement will provide significant upside for Arrow as it continues to consolidate its significant gold footprint surrounding the Dassa gold discovery on its Divole West permit.
It will also allow Arrow to expand its exploration activities as follows:
- Arrow receives the right to explore on Trevali permits in return for a 51% interest in any gold resource that is defined on Trevali’s permits;
- Trevali receives the right to explore on Arrow permits in return for a 51% interest in any base metals mineral resource that is defined on Arrow’s exploration permits;
- If Arrow discovers base metals on a Trevali permit, Trevali will pay to reimburse Arrow an amount that is two times the amount of Arrow’s exploration costs and Trevali will grant a 2% NSR royalty to Arrow when mined;
- If Trevali discovers gold on an Arrow permit, Arrow will pay to reimburse Trevali an amount that is two times the amount of Arrow’s exploration costs and grant to Trevali a 2% NSR royalty when mined; and
- Exploration data will be shared by Arrow and Trevali.
Golden added: “Previous work by Trevali and others along the length of the permits has highlighted areas of elevated prospectivity that Arrow intends to aggressively explore, commencing with a program of regional stream sediment sampling to start in March 2021.”
Arrow exploration update
A 4,000-metre reverse circulation drilling program has been completed by Arrow at the Dassa gold discovery in Burkina Faso.
Drilling data is being compiled and analysed with results from the program expected to be announced in the next 10 days.
At the Strickland Copper-Gold VMS Project in Western Australia, work continues to complete regulatory and logistical preparations to test targets developed from geochemical and geophysical results.
Trevali is a global base-metals mining company, headquartered in Vancouver, Canada.
The bulk of Trevali’s revenue is generated from base-metals mining at its three operational assets: the 90%-owned Perkoa Mine in Burkina Faso, the 90%-owned Rosh Pinah Mine in Namibia, and the wholly-owned Santander Mine in Peru.
In addition, Trevali owns the Caribou Mine, Halfmile and Stratmat properties and the Restigouche deposit in New Brunswick, Canada, and the past-producing Ruttan Mine in northern Manitoba, Canada.
Trevali also owns an effective 44%-interest in the Gergarub Project in Namibia, as well as an option to acquire a 100% interest in the Heath Steele deposit in New Brunswick, Canada.