Azimut Exploration options Kenyan gold properties

Montreal-based Azimut Exploration (AZM-M) is optioning two gold properties in Kenya from LaSource Development, a subsidiary of Australian major Normandy Mining (NDY-T).

To acquire a half-interest in the Yala and Busia properties, Azimut must spend US$2.5 million on surface exploration over four years, including US$350,000 in the first year. LaSource will manage development and mining.

In the event of a discovery, LaSource can re-acquire a 10% interest by financing feasibility and development work up to commercial production.

The 125-sq.-km Yala property is 300 km west of Nairobi in a regional deformation zone where there is a contact between Archean-age sedimentary and felsic-volcanic rocks.

The Yala exploration permit covers a portion of the former Kakamega mining camp, including at least 10 past-producing gold mines that vary in depth from 15 to 150 metres. The camp, which was active from 1931 to 1951, produced a total of about 437,000 oz. gold, according to the Geological Survey of Kenya.

The 624-sq.-km Busia property is 75 km northeast of Kisumu, near the Ugandan border. It is underlain by an Archean greenstone belt where a stream-sediment survey has identified anomalous gold values.