Ecograf Signs Gold Farm-In With Anglogold Ashanti In Tanzania

EcoGraf Ltd (ASX: EGR) has entered into a farm-in agreement with AngloGold Ashanti Plc (NYSE: AU) for gold exploration at EcoGraf’s Golden Eagle gold project in Tanzania.

AngloGold has the right to earn a 70% interest in the project by spending US$8.9m (approx. A$13.4m) over five years.

After AngloGold earns a 70% interest, EcoGraf can contribute to maintain its 30% or dilute to a gross revenue royalty.

New exploration portfolio

AngloGold is one of the world’s largest gold miners and owns Tanzania’s largest gold mine, the 9.9Moz Geita gold mine.

The Golden Eagle Project forms part of AngloGold’s new exploration portfolio in Tanzania as it restarts exploration in the country.

AngloGold has established a dedicated Tanzanian exploration office in Dodoma.

AngloGold and EcoGraf’s major Tanzanian projects and operations.

Hunt for another Tier-1 gold deposit

EcoGraf Managing Director Andrew Spinks said: “The Golden Eagle farm-in agreement with AngloGold Ashanti, the fourth largest gold miner in the world, demonstrates the strong technical quality of the Innogy assets and is a further vote of confidence in the mining industry of Tanzania.

 “We look forward to AngloGold’s expertise in gold exploration being applied to Golden Eagle, as it hunts for another Tier-1 gold deposit to complement its existing Geita operation in Tanzania.”

Spinks added that the earn-in provides upside exposure to the rising gold price for EcoGraf’s shareholders, while the company focuses on the development of its battery anode materials business for the lithium-ion battery market.

Other projects

Aside from the Golden Eagle Project, EcoGraf holds the Northern, Southern and Western Frontier Projects.

In addition to nickel and lithium prospectivity, the Frontier Projects hold significant potential for Proterozoic gold mineralisation.

Africa’s third largest gold producer

Tanzania is Africa’s third largest gold producer, largely from the +70 Moz Lake Victoria Goldfield, which was discovered in 1906.

EcoGraf holds further gold, nickel and lithium exploration assets in Tanzania and is engaging with interested corporate groups.

 

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