Golden Rim Resources (ASX: GMR) has signed agreements to acquire the Diapaga gold project in far southeastern Burkina Faso, adding to its total holdings in west Africa of more than 4000 square kilometres.
The Diapaga project comprises four adjacent permits covering 960 square kilometres, and is located 350 kilometres from Ouagadougou, the capital city of Burkina Faso.
Golden Rim is able to purchase a 100% interest in each of the four permits following staged cash payments totalling $US100,000 to $US135,000 over a maximum three year period.
The agreements provide for a 1% net smelter return royalty on any gold produced from the permit.
Golden Rim has the right to withdraw from the agreements at any time.
Diapaga lies on the northeastern trending Diapaga Birmian greenstone belt and is bisected by a series of major and complex shear structures running into Niger and connected to the major Markoye Fault system.
The Markoye Fault hosts a number of significant gold deposits in Burkina Faso, including High River Resources' (TSX: HRG) Taparko mine (1.7 million ounces), IAMGOLD Corporation's (NYSE: IAG, TSX: IMG) Essakane mine (5.3 million ounces) and Orezone Gold Corporation's (TSX: ORE) Bomboré project (3.5 million ounces).
Several cross cutting structures that intersect the northeast shear structures in the project area are considered priority target areas for locating significant gold mineralisation.
The main lithological units at the Diapaga Project include typical Birimian volcano-sediments intruded by a series of mafic and felsic intrusions. New artisanal gold diggings commenced in the area a few months ago.
Golden Rim believes the Diapaga Project is highly prospective for disseminated intrusion-hosted gold deposits, similar to the company’s existing Balogo Project, and for shear-hosted gold deposits.
The Diapaga Birmian greenstone belt is considered to be one of the most under-explored greenstone sequences in Burkina Faso due to its remoteness, and has received no significant modern exploration.
Golden Rim is pursuing an active program of drilling at its projects Mali, Burkina Faso and Sweden.