AMN - KENYA: Advance Gold issued licences

Advance Gold Corp has been issued new prospecting licences for the three claims that make up the West Kenya, Advance Gold-Acacia Mining joint venture in Kenya. Two of the claims are on either side of Acacia Mining's 100%-owned ground on the Liranda corridor.

On Acacia’s 100%-owned ground a resource estimate from the Isulu Shoot was announced in February 2018, consisting of 1.2 million ounces of gold with an average grade of 12.6 g/t.

The Isulu Shoot zone is contiguous to Advance Gold’s licences PL/2018/0211 and PL/2018/0210 although mineralisation hosted on Acacia’s property is not necessarily indicative of that hosted on the properties that make up the Advance-Acacia joint venture.

In addition, claim PL/2018/0211 has seen past drilling that returned a highlight hole of 6 metres of 30.9 g/t gold.

The joint venture is owned 85.37% by Acacia and 14.63% by Advance Gold. If during the JV either party decides to sell their interest, the other party has a first right of refusal on any offering price.

If Advance Gold is diluted down to a 10% interest, then its interest converts to a 3% uncapped net smelter royalty (NSR). In the event that Advance Gold is diluted to an NSR, Acacia Mining has no first rights of refusal and the NSR can be sold directly to any interested party.

Advance Gold's president and CEO Allan Barry Laboucan said: “Management is delighted with the new licences for our strategically located claims in Kenya that have been recently re-issued.

"The joint venture claims have seen high-grade gold intersections in past drilling, and are located on the Liranda corridor on either side of Acacia Mining’s high-grade gold resource at their Isulu Shoot.

"Based on the past work at the joint venture claims, including drilling, geophysics, and surface sampling, the potential of the project is clear and why an Acacia Mining sized company is our partner.

"Acacia Mining is 64% owned by Barrick Gold Corporation, so it is fair to say from Barrick’s public statements about deposit size, that they are looking for more than 1.2 million ounces.

"A logical move by Acacia Mining will be to drill more extensively on the joint venture ground to enhance Acacia’s known resource.

"Now that we have the new licences, Advance Gold will evaluate its options to participate in further exploration, or be diluted down to an NSR.

"We are also considering the option to sell our interest as we feel that it is an attractive asset for gold miners, streamers and royalty companies that are hard-pressed to put their cash to work as there aren’t a lot of high-grade gold projects to choose from.”

www.advancegold.ca