Canyon eyes East African property

Canyon Resources (NASDAQ) has signed an exploration agreement with the government of Ethiopia concerning the Megado Serdo gold property.

The 60-sq.-km package lies within the Adola greenstone belt, in the south, and is adjacent to the 2-million oz. Lega Dembi deposit.

Canyon will spend US$2.25 million on exploration over the next three years, including US$500,000 in the first. Management plans to entertain joint-venture offers from majors to develop the property.

At the same time, the company has applied to explore three other properties in the country, two in the Adola area and one in the north.

Meanwhile, the Ethiopian government has put the Lega Dembi up for bid, and Canyon intends to participate. A decision is not expected for some months.