Following completion of a due diligence review of the Malmani gold project in South Africa, William Resources (ME) has opted to acquire all shares of Ventra Gold Mines held by Braeside Investments.
Ventura owns the property, situated in the northeastern province of Transvaal.
Previous option payments by William to Braeside totaled $80,000. William will hence issue 1.4 million shares at 70 cents each to raise the additional $1 million needed for the remaining option payment.
The due diligence confirmed an indicated minable reserve of 90,000 oz. gold to a depth of 980 ft. and 265,000 oz. to a depth of 1,640 ft. Grades are in the range of 0.17-0.23 oz. per ton.
The cost of developing the underground mine and constructing a plant is estimated to be $4.8 million. Once operational, the mine could produce 100,000 tons of ore per year to yield 17,000 oz. gold annually. The full operating cost would be about US$236 per oz.
Preliminary production could start 15 months after development commences and full production could follow six months later.
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