Drake Resources (ASX: DRK) has entered into an option to purchase an undrilled, 236 square kilometre area prospective for gold adjacent to its Seimana project in Guinea, West Africa.
Preliminary work to select 2014 drill targets is to commence immediately.
The new area will form part of Drake’s existing Seimana Project which has generated gold-in-soil anomalies up to 2.9 grams per tonne.
Numerous artisanal workings and gold-bearing quartz veins are evident in the area, located 10 kilometres along strike from Avocet’s (LON:AVM) 3 million ounce Tri-K gold deposits.
The project lies within the prolifically mineralised West African gold province that has yielded a steady stream of gold discoveries over the past decade, including the Tri-K deposits and AngloGold's (NYSE:AU) Siguiri deposit.
The area is composed of 3 permits with option payments on each of US$10,000 upon commencement of work, US$20,000 on the 1st anniversary, US$25,000 on the 2nd anniversary, and US$30,000 on the 3rd anniversary.
At any time Drake can elect to purchase 100% of each permit for $100,000, less any option payments made.
A royalty of US$10 for each ounce of gold mined from the permits will also be paid to the vendors.
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