International Goldfields Limited (“IGS”) is the 100% owner of the exciting Plumridge Project located in the Albany-Fraser mobile zone on the eastern margin of the Yilgarn Craton of Western Australia.
IGS has entered into a binding term sheet with Fraser Range Metals Group (formerly AAQ Holdings Limited) (ASX: FRN) (Fraser Range) to sell its wholly owned subsidiary Plumridge Gold Pty Ltd, the holder of the Plumridge Gold Project, located 260km north east of Kalgoorlie, in conjunction with Fraser Range’s acquisition of the Buraminya project located south east of Norseman (AAQ Transaction). The monetisation of the Plumridge assets will allow IGS to focus both technical staff and exploration expenditure on its successful exploration programmes located in the Juruena Belt of Brazil, and the Birimian greenstone terrains of West Africa. The Company will also retain an equity interest in the Plumridge Gold Project and gains an interest in the Buraminya Project that allows IGS further exposure to potential upside from continued exploration efforts in the highly prospective Albany-Fraser belt of Western Australia.This exciting area is highly prospective for the discovery of gold mineralisation, indicated by the positive results returned for the exploration already completed at Plumridge and is regionally highlighted by the recent discovery of the 5 million ounce Tropicana-Havana deposit located just 60km to the north of the Plumridge Project, and recent discoveries on Beadell Resources tenements, also located to the north of Plumridge Project within the Albany Fraser mobile zone.
In order to complete the AAQ Transaction, Fraser Range will be required by ASX to re-comply with Chapters 1 and 2 of the ASX Listing Rules and will undertake a capital raising of no less than $2 million (Capital Raising). As part of the re-compliance the share capital of Fraser Range will be consolidated (Consolidation).
(a) 600 million Fraser Range shares (on a pre-Consolidation basis) issued at settlement of the AAQ Transaction (AAQ Settlement);
(a) Fraser Range being satisfied with the results of its due diligence investigations on the Plumridge Gold Project;
Plumridge Gold Project
The Company holds a commanding land position within the Albany-Fraser mobile zone, with ongoing exploration continuing to develop a better understanding on 9km of significant anomalism in the Corvette Gold Anomaly, which has yielded several significant gold intercepts hosted in bedrock mineralisation.
The Corvette Gold Anomaly
The Corvette Gold Anomaly lies within a small proportion of the tenements which is not overlain by late, Permian sediments in the region. An estimated 60 to 70% of the IGS tenement position is overlain by this post-gold sediment cover, where standard surface geochemical teqhniques ineffective. Through an advanced understanding of the lithology and structure of the mobile zone from continuing exploration of the Corvette Gold Anomaly, IGS has developed several highly prospective regional targets for initial aircore drill testing to be completed in early 2011. With such a small proportion of the current tenement position with substantial exploration work completed, the Company is very excited to be testing these refined targets in a rapidly emerging new gold province.