AMN - BURKINA FASO: Tajiri to acquire Reo Gold Project

Canadian company Tajiri Resources Corp has entered into an agreement with ASX-listed Middle Island Resources Limited that will see it acquire, through option, the advanced Reo Gold Project in Burkina Faso, West Africa.

The Reo project is of regional scale, covering 1,002sqkm at the confluence of the prolific Houndé and Boromo greenstone belts which are hosts to several substantial gold deposits, including Karma 3.8 million ounces, Bissa 6.6 million, Hounde 4.9 million and Mana 8.6 million.

The Reo project, which has had about US$8 million spent on exploration since the mid-2000s, contains two advanced prospects, Morley and K4-K5.

Shallow reverse circulation and aircore drilling at Morley has returned results including 34 metres at 16.48 g/t, 39 metres at 2.62 g/t, 38 metres at 2.33 g/t, 10 metres at 7.55 g/t and 10 metres at 9.63 g/t.

At the K4-K5 prospect best RAB, aircore and RC intersections are 44 metres at 1.48 g/t, including 12 metres at 4.11 g/t; 8 metres at 8.20 g/t; 8 metres at 4.68 g/t; 12 metres at 4.99 g/t; 18 metres at 2.5 g/t; 18 metres at 2.51 g/t; 16 metres at 1.95 g/t and 13 metres at 2.19 g/t; 10 metres at 3.47 g/t; and 13 metres at 2.33 g/t.

Best diamond drill results are 3 metres at 11.5 g/t, including 1 metre at 23.2 g/t; and 2 metres at 16.8 g/t, including 1 metre at 31.9 g/t.

Tajiri considers the exploration upside at the project to be of the highest order, with immediate well-defined drill targets at the K4-K5 Prospect to be followed on from past drilling, combined with a large regional land package that hosts the smaller drilled Morley Prospect and several remaining auger geochemical targets yet to be tested by drilling.

Commercial terms of the acquisition involve aggregate cash payments to Middle Island of US$335,000 and issuance of 5 million Tajiri shares over 21 months. The agreement also includes a 2% net smelter return royalty in favour of Middle Island, which may be purchased by Tajiri for US$5 million.

The project is 150km from the capital Ouagadougou and has good infrastructure.

Tajiri president Graham Keevil said: "Tajiri looks forward to beginning project due diligence as early as possible and conducting in-country reviews in early March.

"We look forward to working closely with Middle Island during the due diligence period in order to complete the transaction and subsequently continue building on the excellent work that Middle Island have completed to date.

"The board of Tajiri believes that the Reo project offers compelling upside, at an attractive entry price, and gives shareholders exposure to an advanced gold project, in an excellent mining jurisdiction that with minimal work can become subject of a resource definition drilling program.

"The agreement also further validates the company’s growing portfolio of Guyana-based gold projects and the potential value they represent."

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