Mozambique Overview - African Eagle Gold Project
Property Descriptions
African Eagle Gold Properties |
The Company entered into an agreement dated April 10, 2007 with U.K.-based African Eagle Resources plc (“African Eagle”) (AIM: AFE) for exploration, development and exploitation of five prospecting Licenses controlled by African Eagle’s wholly-owned subsidiary, Twigg Exploration and Mining Limitada, in the greater Fingoe region situated in Tete Province in the northwest of Mozambique. The licenses comprise approximately 150 square km in aggregate and are located in close proximity to the Company’s other Fingoe area holdings under its joint venture with Opti Metals. The project is a grassroots gold exploration prospect.
The project area is accessed from the major town of Tete by tar road (approximately 160 km) followed by gravel road (approximately 100 km) and jeep track (approximately 30 km). Tete has a good domestic airport with regular flights from Maputo, the capital of Mozambique. The project area is characterized by moderate relief with a medium density drainage network that flows into Lake Caborra Bassa and the Zambezi River, approximately 50 km to the south. The project area is vegetated by Miombo woodland. The climate is characterized by two distinct seasons, namely a wet season from November to March and a dry season from April to October. The project is workable through most of the year with heavy rains impeding access routes during the wetter months. Under terms of the agreement, the Company has now earned the right to acquire African Eagle’s Fingoe licenses by funding and carrying out a regional exploration program on the licenses during the preceding dry season. It is anticipated that the licenses will be assigned to PAM Mocambique Limitada, the Company’s operating subsidiary in Mozambique, in the near future. In the event that the Company undertakes a mining operation on the licenses, African Eagle will receive a standard and customary 2% NSR with respect to all future mineral production from the license area., subject to the Company having the right at any time and at its sole discretion to repurchase a 1% NSR from African Eagle for US$2,000,000 cash.
