Afcan acquires rest of Mt. Kakoulima

Afcan (AFK-T) has bought the 47% interest it did not already own in the Mt. Kakoulima nickel-sulphide project in Guinea, West Africa, from Semafo (SMF-T).

In return, Afcan will pay 1 million shares to Semafo subsidiary Les Mineraux SGV.

Partners FNX Mining (FNX-T) and Maple Minerals (MPM-V) have an option to acquire Afcan’s 100% interest in the property by carrying out several stages of exploration. Under this agreement, Maple can earn a half interest in the project from FNX by spending US$2.4 million on exploration over five years and, together with FNX, completing a feasibility study or spending a further US$2 million on the property. At least US$400,000 must be spent during the first year of the agreement, and FNX is project operator during the earn-in period.

Once Maple exercises its option, a 50-50 joint venture will be formed, and future expenditures will be funded on a pro rata basis. An additional expenditure of US$2 million will allow the joint venture to exercise an underlying option agreement to acquire a 100% interest in the 193-sq.-km Mt. Kakoulima property, subject to a 3% net smelter return royalty to Afcan.

In the fall, Maple and FNX launched a 5,000-metre drilling program which confirmed a basal contact structure with disseminated sulphide zones.

The initial high-grade, nickel discovery at Mt. Kakoulima was made by Afcan and Semafo in 1997 when surface drilling cut narrow, high-grade, massive sulphide veins of nickel/copper/cobalt/platinum-group-metals in the upper sequence of the Kaloum igneous complex. The best historic drill intersections graded 4.72% nickel, 1.51% copper, 0.22% cobalt and 3 grams combined platinum-palladium per tonne over 0.5 metre.

Meanwhile, in China’s Qinghai province, Afcan is a month away from completing a bankable feasibility study at its 85%-owned TJS gold project.

Mine construction is expected to start in the new year.