Golden Rim Resources (ASX:GMR) has inked an agreement with Epsilon Gold Mines to acquire 90% of the Korongou gold project in Burkina Faso.
The Korongou project covers part of the the highly prospective Birimian greenstone belt in Burkina and is traversed by a significant northeast trending fault that connects to the major Markoye fault system.
This fault controls a number of major gold deposits in Burkina Faso, including the Kiaka with 5 million ounces of gold, the 5.2 million ounce Bombore deposit, the 5.6 million ounce Essakane deposit and Samira Hill with 2 million ounce in western Niger.
The project area covers over 315 square kilometres and consists of four permits including the Korongou exploration permit covering 65 square kilometres; the Gandeni exploration permit covering 250 square kilometre and the Banouassi mining permit encompassing 1 square kilometres within the Korongou permit.
The agreement is subject to satisfactory due diligence by Golden Rim.
Under the terms of the agreement, Golden Rim has the right to acquire a 90% interest in the Korongou project for $3 million in staged cash payments to Epsilon.
A total of $2 million is payable over a period of 2 years. The additional $1 million is payable upon the commencement of a Definitive Feasibility Study.
Epsilon will retain a 10% free carried interest in the Project until the Decision to Mine. After this time, Golden Rim will provide loans for Epsilon to maintain its 10% interest in the Project.
The project is a sought after one with more than 70 kilometres of potential gold mineralised structure having been mapped by Epsilon.
Trenching in the NE of the Korongou permit has identified more than 20 parallel gold mineralised shear structures within a 1 kilometres wide corridor.
Golden Rim has plans for an immediate drilling program to outline a gold resource in excess of one million ounces that would be suitable for bulk mining.
The company will divest some of its other Burkina Faso projects to focus on Korongou and Balogo projects.
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