Vector Resources proceeds with Kibali South and Nizi gold project acquisitions in DRC
Vector Resources (ASX: VEC) has officially decided to go ahead with the Kibali South and Nizi gold project acquisitions in the Democratic Republic of Congo.
The company has completed technical and legal due diligence and it has notified Société Miniere de Kilo Moto of its decision to proceed with the acquisition of up to 70% interest in the gold assets.
Kibali South includes two granted mining licences and hosts an historic resource of 28.1 million tonnes grading 1.63 grams per tonne gold for 1.47 million ounces.
The project is adjacent to Africa’s largest gold mining operation – the Kibali gold mine, which has proved and probable gold reserves of 9.2moz, plus 17.4moz of gold in resources.
With its proximity to the operation, Vector is also close to requisite infrastructure.
Meanwhile, the Nizi gold project comprises a mining licence and hosts the old King Leopold gold mine which previously produced more than 1.45moz of gold with grades averaging 30g/t gold.
Once the agreement with Société Minere is finalised, Vector plans to target initial exploration around the King Leopold mine.
According to Vector, due diligence has boosted the company’s confidence in the projects’ after failing to fine any significant issues that could prevent the acquisition from moving forward.
As part of the acquisition terms with Société Minere de Kilo Moto, a joint venture company will be established to advance Kibali South, while a development partnership will be executed for Nizi.
Vector and Société Minere de Kilo Moto will negotiate the final terms for the joint ventures including Vector’s aim to develop the projects as stand alone gold operations within two years of inking the formal joint venture agreements.
Preliminary details will comprise Vector undertaking exploration and development and meeting 100% of the costs of advancing the projects to definitive feasibility study stage.
As well as Kibali South and Nizi, Vector is acquiring a 60% interest in the Adidi-Kanga gold project, which is also in the Democratic Republic of Congo.
Adidi-Kanga has a JORC-complaint resource of 15mt grading 6.6g/t gold for 3.2moz.
In addition to the abovementioned acquisitions, Vector remains committed to advancing its 70%-owned Maniema gold project, which represented its first foray into the Democratic Republic of Congo.
The project has an existing resource of 6.97mt grading 1.9g/t for 421,000oz.
Vector claims mineralisation ant Maniema remains open along strike and at depth.
Maniema encompasses 500 square kilometres and previous exploration has returned results of 5.7m grading 8.74g/t gold, 21.7m grading 3.58g/t gold and 8m grading 4.03g/t gold.
Shares in Vector had slipped almost 4% by mid afternoon to settle at A$0.026.