Canyon Resources (ASX: CAY) continues to boost land holdings in Burkina Faso, with the country providing strong gold mining potential, with many gold projects in operation.
The acquisitions can be considered prospective due to several gold deposits in the area, including the Orezone Gold Corp (TSE: ORE) 700,000 gold ounce Sega deposit and the Cluff Gold (LON: CLF, TSE: CFG) 500,000 gold ounce Kalsaka deposit, which are both around 50 kilometres to the east.
The two additional permits which form the acquisition are contiguous to the company's Derosa Project, growing the project by 385 square kilometres to almost 1400 square kilometres, covering six contiguous permits.
Canyon’s total exploration area in Burkina Faso now exceeds 2500 square kilometres.
Consideration comprises Canyon making cash payments, and to gain 100% ownership the company is required to pay:
- US$50,000 at the time of the permits being granted;
- US$50,000 six months from the granting of the permits;
- US$60,000 on the 1st anniversary of the granting of the permits;
- US$60,000 on the 2nd anniversary of the granting of the permits; and
- US$80,000 on the 3rd anniversary of the granting of the permits.
In total Canyon will now control 10 permits in the Birimian Greenstone Belts of the West African craton, known as Taparko North Project, the Tao Project and the Derosa Project.
The Tao Project lies in the Gorouol Greenstone Belt which hosts the country’s largest deposit, the IAMGOLD Corporation (TSE: IMG) 5 million ounce Essakane gold mine.
Significantly, both projects are situated along north east striking structures.
The major gold endowed north east – south west trending Markoye Fault is recognised as hosting both the Taparko and Essakane gold deposits and the Orezone Gold Corp (TSE: ORE) 3.5 million ounce Bomboré gold deposit, situated along strike to the south west.
Adding to the potential further, numerous artisanal gold occurrences have also been located along the trend of the Markoye Fault within the Taparko North Project.