Under a joint-venture agreement, JCI of South Africa will carry out a 2-year exploration program on the Forest Reef property of Patrician Gold Mines (ASE).
Situated near Lake Victoria in northwestern Tanzania, the property yielded about 20,000 oz. of the yellow metal in the late 1930s.
JCI will earn a 70% interest by spending US$1.6 million on exploration over the 2-year period. The work plan for the first phase of exploration provides for initial relogging and resampling of core, surface mapping, geochemical sampling, ground geophysics, and interpretation of airphoto and satellite imagery. Later phases will include reverse-circulation and diamond drilling and, ultimately, reserve calculations and a prefeasibility study. Airborne electromagnetic and magnetic surveying is expected to start in the next few weeks.
The agreement is subject to the approval of South African and Albertan securities regulators, and the Tanzanian government. Joint-venture agreements on Patrician’s Bunda and Kisamwe properties in Tanzania are being completed.
Patrician has also closed a private placement of 2.4 million units, each consisting of a share plus an 18-month warrant to purchase an additional share at 62 cents. The proceeds will provide $1.1 million in exploration funding, including $500,000 for drilling on Patrician’s Winteroad property east of Matheson, Ont.
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