The Ianna Gold Project is located in Guyana’s Northwest Mining District, less than 20km southeast from existing Alicanto exploration operations at the Arakaka Gold Project. The Project is hosted in the highly prospective Barama-Mazaruni Greenstone Belt in Guyana’s Northwest District historical drilling has already delivered multiple potential ore grade intersections in the top 60m from surface, with better intercepts including;
The project area is host to existing drilling with numerous gold mineralised intercepts associated with extensive surface geochemical survey work completed historically. Over 12,400m of reverse circulation drilling and 926m of diamond drilling was historically undertaken prior to Alicanto’s acquisition. Previous drilling covered limited strike extent to very shallow depths, with ~95% of drilling testing less than 50m below surface. (refer to announcement dated 26 July 2016).
The Project contains both the structural and lithological setting considered by the company to be ideal to host large scale gold deposits.The Project has excellent infrastructure, including existing camp facilities, an existing airstrip and river port landing on the property, and can be accessed by road from the Arakaka Project area.
Alicanto holds an exclusive option to acquire a 100% interest in the project by completing the following payments during the 36 month option period from 7 November 2016 (refer to ASX release date 8 November 2016):
During the option period, Alicanto must keep the Project tenements in good standing and ensure a minimum aggregate expenditure of US$600,000 on exploration and various land holding costs over a 24 month period.
Alicanto can elect to acquire the Project at any time subsequent to making the US$50,000 option payment, without further expenditure or option payment liabilities, by paying either i) a lump sum payment of US$3,000,000; or ii) a lump sum payment of US$1,350,000 and a 2% net smelter return royalty (NSR).
If an NSR is issued as consideration upon completion of the Project acquisition (“Completion”), the Company will retain a Right of Re-purchase of the NSR for 24 months after Completion, and at Alicanto’s election can acquire either: i) a 50% portion of the NSR by paying US$2,000,000; or ii) a 100% portion of the NSR by paying US$3,000,000. Following the expiry of the Right of Re-purchase period, the Company will retain a right of first offer for a further 36 month period to acquire all or a specified part of the NSR.