A subsidiary of Golden Star Resources (TSE) can earn an 80% undivided interest in the 900-sq.-km Eteke gold prospect in Gabon, West Africa.
Previous exploration uncovered numerous areas with anomalous gold values. Two such areas, the Dango and Dondo Mobi, were drilled, with the result that several steeply dipping, sheet-like zones of gold mineralization have been intersected. The structures are hosted by oxidized rock and are thought to be Birimian greenstones.
Golden Star’s subsidiary plans to confirm the grade and tonnage of these zones, as well as explore for other zones along strike and at depth. The company paid US$50,000 for the option and is required to spend an additional US$950,000.
Golden Star will fund exploration and feasibility study costs during the option period, which runs until Sept. 4, 1997. If the property is put into production, a royalty of 1.75% on the first 10 tons of production will be payable.
Elsewhere in South America, Golden Star said it will write off its US$6.4-million capital investment in the Mahdia prospect, found 200 km southwest of Georgetown, Guyana.
The project hosts a known paleo-alluvial gold deposit which covers a 15,500-hectare area. The decision not to proceed was based on a thorough review of the project by Golden Star’s partner. Subsequently, the partner has declined to participate in the project’s development and Golden Star has stated that the deposit does not meet its standards.
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