30th May 2019 13:43
LONDON (Alliance News) - Gold explorer Panthera Resources PLC said Thursday it has agreed to move to a full option to purchase agreement for a Burkina Faso project following a successful due diligence process.
Panthera will pay an initial USD50,000 option fee payment for the 65 square kilometre Labola Project. The agreement will allow Panthera up to five years to explore and develop the project, during this time it can pay USD1.0 million in order to buy a 100% interest in Labola.
An additional payment of USD1.0 million would become due if the project delivered a resource above 1.0 million ounces of contained gold and a 1% net smelter royalty capped at USD2 million will be payable from production.
Previous drill results at Labola have revealed "significant potential" for higher grade mineralisation. These include two metres at 130.6 grammes of gold per tonne, 11 metres at 8.2 grammes of gold per tonne and 6.5 metres at 7.26 grammes of gold per tonne.
"This is an exciting addition to Panthera's West African gold portfolio with drill defined mineralisation identified over at least 7 kilometres of the known 9 kilometres strike and previously identified resource estimates of approximately 600,000 ounces of contained gold," Panthera Managing Director Geoff Stanley said.
"The company is well advanced with planning programs to confirm previous resources and define extensions to those resources," Stanley added. "The large strike extent of artisanal workings and the significant amount of previous drilling has provided abundant targets for initial exploration work and significantly de-risks the project."
Shares in Panthera were 2.3% higher at 9.72 pence on Thursday.
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