Vancouver, July 29, 2020– John Cumming, President and CEO of Stellar AfricaGold Inc., (TSX-V: SPX) (“Stellar” or the “Company”) is pleased to provide the following update on the status of project acquisitions in Morocco and Côte d’Ivoire:
Due Diligence Field Program on ONHYM Tichka Est Domain Property, Morocco
Further to Stellar’s July 1, 2020 news release, the Company is acquiring a major 90% interest in the Tichka Est domain property in partnership with Morocco’s Office Nationale des Hydrocarbures et des Mines (ONHYM) and has completed the initial field due diligence program.
The field program, which consisted of 2 field visits of 10 days each, was completed successfully by two local geologists under the supervision of Dr. Ali Saquaque, the Company’s senior technical advisor for Africa.
– The first 10-day mission focused on locating gold structures known as Zones A and B, previously discovered and well-documented in ONHYM’s data base, and to sample and validate historically reported gold grades and confirm the geological context and, finally, channel sample the two mineralized gold structures.
– In the second 10-day mission, the objective was to search for additional gold structures upstream from the historically reported ONHYM stream sediments gold anomalies.
All objectives were achieved successfully. Zones A and B were both located, and 117 samples were collected. Zone A was mapped over a distance of 500m and is described as a granitic dyke containing numerous quartz-carbonate veins and oriented NNW. Samples from Zone A returned results of up to 8 g/t Au. Zone B is a major sheared structure that was mapped over a distance of two kilometres and oriented N250E, and from this main structure numerous secondary structures oriented N500E returned gold grades ranging from 0.1 g/t Au to 4.5 g/t Au.
The results obtained from the initial due diligence field program fully warrant the Company proceeding with a partnership with ONHYM, and the terms of a final agreement are agreed and the formal documents are at the final drafting with signing expected in the near future.
A three-year work program is anticipated to commence shortly after entry into force of the contract to follow up on the encouraging results obtained in the due diligence program. The acquisition remains subject to TSX-V acceptance and local authorities’ approval.
Côte d’Ivoire Acquisition Update
As previously announced, Stellar is actively pursuing the acquisition of four (4) gold exploration permits totalling 1,240 km2 in Côte d’Ivoire.
Bocanda and Djekanou Permits
Progressing towards the closing of the transaction, BIRIMGEX SARL shareholders transferred 80% of the shares of BIRIMGEX SARL to Stellar. The transaction remains subject to the final issuance of the two permits and TSX-V acceptance of the option agreement.
As announced January 7, 2020, subject to the final issuance of the two permits and TSX Venture Exchange acceptance of the option agreement, Stellar will acquire an initial 80-per-cent interest for $20,000 (U.S.). Stellar will then have up to 48 months to complete $3 million (U.S.) of exploration on the permits to maintain the option, after which Stellar may acquire the remaining 20 per cent at any time for $1.5 million (U.S.). If 100 per cent of BGE is acquired, then the BGE vendors shall retain a 1.25-per-cent net smelter return.
Prikro and Zenoula Permits
Further to the Company’s July 29, 2020 news release of the signing of a Term Sheet with Altus Strategies for the acquisition of 100% of the shares of Aeos Resources Limited, the parent company of Aucrest SARL that owns 100% of the Prikros Permit and the pending Zenoula Permit, legal and technical due diligence examinations have been completed and the parties are currently discussing the terms of the Final Agreement. The acquisition remains subject to TSX-V acceptance.
Stellar is planning to start a reconnaissance program as soon as the agreement is signed to start unlocking the potential of those 4 permits. Exploration budgets are being prepared and, despite pandemic restrictions, Stellar has in-country a crew of experienced geologist on standby and ready to commence work according to industry ‘best practices’ for the safety of personnel.
Maurice Giroux, V.P. Ex and COO commented “At Stellar, following 6 months of project research, intensive discussions and negotiations, we are very happy to finally deliver such an interesting package of 1,240 Km2 in Côte d’Ivoire and in Morocco. Stellar has a solid management team with long international experience, an excellent network in the West African countries of interest, and a good cash position. These are significant advantages when the business plan is to assemble a solid portfolio of high potential gold exploration projects in desirable North and West African exploration jurisdictions. Even in this difficult period, we are delighted to observe the increase in financings for exploration projects and the substantial merger and acquisition transactions in West Africa. With gold price reaching unprecedent summit, we, at Stellar, intend to be an active participant in this surge of interest in gold exploration in West Africa. Our talented team of business and technical professionals in Canada and in Africa have full capacity to work at distance enabling Stellar to pursue its stated objectives despite the restrictions necessitated by the current public health crisis.”
For a pdf copy of the June 29, 2020 news release click here.
