Toronto-based Trans Hex International (THI-T) and Sydney-based Longreach Gold Oil have agreed to explore and develop the latter’s three diamond concessions in Angola’s Lunda Norte province.
Longreach owns a 50% share of the diamond mining rights for the Somicoa, Kupolu and Diagema concessions, which are on the Chicapa and Luachimo Rivers in the Lucapa area. The remaining half share is owned by Angolans.
Following a positive due diligence study, Trans Hex will spend up to US$4 million on exploration, a full-feasibility study and development of the concessions, thereby earning a 75% interest in Longreach’s half interest. As a result, Trans Hex will end up with an overall 37.5% interest.
The agreement also suggests that Trans Hex will become operator of the project and will market any production.
In the past, exploration programs of pitting and manual treatment of gravel were carried out on the concessions, as well as some ensuing small-scale mining.
Alluvial resources for the properties have been pegged at a minimum of 400,000 carats.
Trans Hex holds the non-South African exploration properties of the Trans Hex Group of South Africa.
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