Canadian company pulls out from gold joint venture at Arakaka

Australian mining company Alicanto Minerals Ltd will be moving forward alone with its gold mining at Arakaka in Region 1 after Canadian mining company Barrick Gold Corporation withdrew from the joint venture.

This is according to a statement on Alicanto’s website which explained that Barrick’s decision follows a US$7.1m investment in regional reconnaissance programmes which has highlighted multiple targets throughout the Project.

The earn-in agreement signed in March 2016 required Barrick to spend US$8 million to earn 65% ownership of the project.

The statement explained that Barrick-funded work has provided for the development of targets and definition of some key features to be followed up by Alicanto in the Gomes and Purple Heart to Concorde prospect areas.

Alicanto’s statement adds that the company will now look to capitalise on the Barrick funded work, taking the opportunity to focus on higher grade targets not tested during Barrick’s earn-in period.

The company’s Managing Director, Travis Schwertfeger is quoted as saying that “the Company has benefitted from a strong working relationship with Barrick and with over US$7 million spent on exploration over the past two years without diluting our shareholders, Alicanto is now well positioned to follow up on numerous high-grade targets more befitting of a junior mining company”.

Specifically the company is looking to expand its work on the Gomes prospect where gold has been confirmed at surface for up to 1.1km southeast of mineralised drilling. This prospect has been described as a high priority target for extension of known mineralisation.

Further along the Purple Heart Structure, reconnaissance drilling over the past year has demonstrated Purple Heart to be a strongly mineralised structure for 3.2km of extent within the 12km long Arakaka Main Trend containing stacked mineralised structural horizons. A recent 750m step-out on the best historical drill intercepts defines a priority target for high grade potential within the Arakaka Main Trend.

Overall, the company has completed several concurrent exploration and drilling programmes over recent months, and has received among others final results for the last four holes of a 2,600m programme and Ianna.

The Ianna gold project, 25km south-east of Arakaka is also owned by Alicanto. The company has previously reported that the maiden drill programme at Ianna highlighted the potential for a multimillion ounce deposit.

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