Vancouver junior Adamas Resources (AMS-V) has signed a memorandum of understanding with Mincor Resources (MIR-A) for a 13,760-ha gold concession in northern Mozambique.
In order to earn a 70% interest, Adamas must spend $1.5 million on exploration and development over the next three years. Mincor will also receive, in four stages, 150,000 common shares of Adamas. Adamas also retains the right of first refusal for Mincor’s remaining 30% interest.
The company expects to spend at least $500,000 during a first-phase program, which will be conducted over the next 1-2 years. This work will include geological mapping, and stream sediment, rock chip and geochemical sampling in order to define preliminary trench and drill targets.
Other work there will include continued regional reconnaissance and assessment programs, trenching, and reverse-circulation or diamond drilling of gold targets.
The concession is situated in Niassa province, which borders Tanzania and Malawi. Mincor acquired the property in March from the Mozambique government for US$350,000. According to the government, 240,000 oz. gold were recovered there in 1994 by artisanal miners from alluvial, eluvial and colluvial deposits, as well as from surface-exposed gold-bearing reefs.
Adamas expects to spend at least $1 million there during the second phase of exploration and development. Further costs will be shared on a pro rata basis.
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