AMN - LIBERIA: Tango to acquire stake in diamond project

Tango Mining has entered an agreement with West Mining to purchase an 80% interest in the Mano River Diamond Project in the Republic of Liberia. The property consists of one recently granted 104.3 square kilometre diamond mineral exploration licence in the western part of the country, an area known for the widespread occurrence of alluvial diamonds and kimberlites.

The licence is valid for four years until September 7, 2021.

Once the acquisition is completed, Tango will undertake an exploration program by the end of the first quarter of 2019. This program will include geological and structural mapping, sampling and ground geophysical surveys.

Tango is required to meet all holding costs in exchange for the acquisition of the 80% stake in the project.

During the 1960s and early 1970s, a joint program between the Liberian Geological Survey (LGS) and the United States Geological Survey (USGS), collected a significant amount of topographic, airborne magnetic and radiometric data covering the entire country.

This resulted in an excellent digital regional exploration database to support future exploration work.

The exploration results importantly identified that the geology of Liberia is very favourable for the occurrence of a wide range of metals and minerals, including gold and diamonds.

The LGS and USGS documented about 160 kimberlite occurrences in central and western Liberia.

Due to the lack of bedrock exposure, access and vegetation, further follow-up work was difficult.

Since the 1980s, exploration for diamond-bearing kimberlites has increased significantly and a number of distinct kimberlite clusters have been identified in western Liberia around the property.

This includes Kumgbor, Mano Godua and Weasua and the most important recent discovery, around 25 kilometres north of the property is an area with three identified kimberlites, known as Camp Alpha, which is being explored by a private US-funded company.

The largest active gold mine in Liberia - the New Liberty Gold Mine operated by Avesoro Resources - is 45 kilometres southwest of the property and commenced production in 2015.

In a separate development, Tango has signed a diamond services agreement with Cooperativa Mineira Do Moquitaon on a property within the Lauchimo River basin in Lunda Norte, Angola.

Under the terms of the agreement, Tango will incur expenses associated with alluvial diamond mine design and equipment acquisition, as well as enhancing production in exchange for 60% of the proceeds from the sale of diamonds produced from the property.

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