Thursday, 13th March 2008 (1406 views)

Canadian exploration company MDN has exercised an option on its joint venture agreement with Lakota Resources to acquire a 60 per cent interest the Ikungu gold property in Tanzania, south-east Africa, the company has announced.

Under the deal, MDN will pay Lakota US$215,000 (£105,545) cash and spend $2 million on exploration work at the site over the next five years.

Between 1938 and 1946, around 19,000 ounces of gold was mined from underground works at Ikungu, with grades of up to 12.5 g/t gold. The structure that produced this gold extends over a minimum strike length of 2.4 kilometres and remains open to expansion in the west, MDN said.

The Ikungu property, which is located on the eastern shore of Lake Victoria, sits within the Mara-Musoma greenstone belt in the Lake Victoria Goldfield. Historically, this belt has hosted a number of gold-bearing operations, including the 4.3 million gold ounce North Mara mine.

However, since the 1960s exploration at the property has been intermittent, with 17 holes drilled on the main gold-bearing structure.

Dr Dominique Fournier of MDN said despite this, results from Igungu were "very encouraging" for future development.

The Lake Victoria Goldfield is currently Africa's third-largest gold producing region.

 

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