Castle Minerals Ltd (ASX:CDT) has executed a binding term sheet with Ghana company Iguana Resources for Iguana to earn up to an 80% interest in two licences held by Castle subsidiary, Carlie Mining Limited.
Iguana will earn up to 80% in the Degbiwu and Gbiniyiri licences by spending a total of US$11.7 million.
“Acceleration in exploration activity”
Castle managing director Stephen Stone said: “This US$11.7 million, three-staged farm-out deal on the Degiwu and Gbiniyiri licences with Ghana-based Iguana Resources will see an acceleration in exploration activity on those prospective licences.
"In particular the Kpali target, where Castle has previously outlined an open-ended 107,200-ounce gold inferred mineral resource and at the intriguing Bundi gold-zinc prospect."
Azumah largest Castle shareholder
The company’s Ghana licences are adjacent to and largely surround the Wa Gold Project of Azumah Resources Limited which has similar geological terrain.
Azumah has recently reported a 2.8 million ounce mineral resource and an ore reserve of 1 million ounces and is well advanced in completing a feasibility study for the establishment of a long life, multi-open pit mining operation.
Azumah now holds a 12.4% interest in the issued capital of Castle and is its largest individual shareholder.
Five target areas
Degbiwu hosts the Kpali gold and Bundi gold-zinc prospects and is located at the confluence of three major regional-scale structures.
Initial exploration by Iguana will focus on five key target areas including Kpali and Bundi.
It will include a 4,600-metre RC drilling program and is expected to start later in 2019 after cessation of seasonal rains and approval of the term sheet by the government of Ghana.