Liontown Resources (ASX: LTR) has acquired an interest in the gold focused Jubilee Reef project in Tanzania through a joint venture with Currie Rose Resources (CVE: CUI).
The project is located in the Lake Victoria Goldfield, a geological terrain containing several world class gold deposits such as African Barricks’s 15 million ounce Bulyanhulu Mine and Anglogold Ashanti’s 10 million ounce Geita Mine.
The terms of the joint venture include:
- Stage 1. A 4 month data review and target definition period to commence immediately;
- Stage 2. Liontown can earn 51% equity in the Jubilee Reef project by drilling a minimum 5,000 metres in 2011, and drilling a further 10,000 metres by December 31 2013;
- Stage 3. Liontown can, at its election, increase its equity to 75% by completing a Definitive Feasibility Study; and
- Liontown must spend US$50,000 during Stage 1 before having right to withdraw from the agreement with Currie Rose.
Providing some interesting potential to the project, Liontown said Jubilee was in a similar geological setting to the multi-million ounce mines in the area.
Previous exploration including soil sampling and shallow drilling has defined several high order gold anomalies that are open along strike and untested at depth.
Liontown will continue to maintain an active gold exploration program in northeast Queensland, where the company is one of the biggest land holders with a tenement portfolio of 5,000 square kilometres.