Montreal-based KWG Resources has agreed in principle to earn a 100% interest in 15 gold concessions in French Guiana from Bureau de recherches geologiques et minieres of France.
The concessions lie along the Sophie-Saul shear zone, which has produced about 320,000 oz. of gold since its discovery in the early 1900s. The zone, 19 miles long and five miles wide, marks the contact between the Paramaca greenstone belt and the granodiorite intrusions of the central Guiana platform.
To acquire the properties, KWG must spend US$3 million over the next three years and make a positive production decision on at least one deposit. If the feasibility study is negative, KWG’s interest would be limited to 50%. The deal is subject to a 10% net profits royalty.
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