Trivalence lures Rio Tinto to Aredor project in Guinea

Trivalence Mining (TMI-V) has signed a letter-of-intent agreement with London-based Rio Tinto (RTP-N) granting that company a right to acquire a 58% stake in the Aredor kimberlite project in Guinea.

Rio can initially earn a 40% interest by spending US$6 million on exploration (including the cost for a recently completed 3,200-metre drill program) and paying US$2 million in cash over three years. The major can boost its interest to 58% by advancing any primary deposit to production and paying another US$6.5 million.

In early November, Trivalence drilled 2,500 metres in the K23 kimberlite to test for depth extensions. Five of the six holes cut kimberlite to depths of up to 166 metres below surface. The pipe remains open at depth and to the west.

The K23 pipe lies 1.1 km upstream of the BAI-4 alluvial block, which hosts 312,569 tonnes grading 0.11 carat per tonne. All alluvial diamonds and related operations are excluded from the recent deal.

Rio retains the right to mine any primary stones arising from the project. The deal is expected to be completed by mid-February.