Gold junior Moydow Mines International (MOY-T) has signed an agreement to earn a majority interest from PW Ltd in the Okumpreko gold project on the eastern flank of Ghana’s Ashanti gold belt, some 30 km south of the Ashanti mine.
PW, a privately held engineering and mining contractor, previously served as the contract miner at Moydow’s failed Wassa open-pit, heap-leach gold mine in Ghana.
Okumpreko comprises two contiguous mining leases totalling 93 sq. km: Nyaduom to the west and Kushea to the east.
Moydow describes the licences as being underlain by mostly fine-grained Tarkwaian meta-epiclastics in the western Nyaduom lease, and by lower Birimian metasediments with biotitic granites in the eastern Kushea lease.
The rivers Pra and Offin run through the licences, and terrace alluvium deposits are found on the banks of both these rivers within the licence area.
Moydow notes that previous exploration and production on the licences has been limited to mostly alluvial material, with only limited exploration of the bedrock.
Moydow can earn a 51% interest in the project by spending US$500,000 on exploration over two years.
Moydow last made the headlines in mid 2003, when it sold its half stake in the Ntotoroso gold project in Ghana’s Sefwi belt to its partner Newmont Mining (NEM-N), in return for Newmont shares and the cancellation of some Moydow shares.
The sale allowed Moydow to return a special cash distribution of $1.25 to its shareholders in December 2003.
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