Castle to acquire Newmont gold project in Ghana

Castle Minerals Ltd (ASX:CDT) has agreed to acquire Newmont Ghana Gold Ltd’s 8200 sq km Wa gold project in northern Ghana.

The Wa project surrounds the Julie, Josephine and Collette gold prospects (about 300,000 ounces) held by London-based Crew Gold Corporation, and is south along strike of Azumah Resources Ltd’s (ASX:AZM) 500,000-ounce Kunche gold deposit.

Work by Newmont has identified numerous gold targets based on the collection of more than 7000 soil and stream sediment samples.

Anomalous gold zones have been returned from the area west (along strike) of the Julie gold deposit and represent a priority area for Castle follow-up work.

Castle managing director Mr Mike Ivey said, “we believe that the project is an excellent fit with the company’s nearby Ducie project and has potential to deliver economic gold mineralisation.

“It is an enormous landholding with identified gold targets, particularly the area west along strike of the Julie gold deposit.”

Under the key terms of the deal Castle must issue 400,000 shares to Newmont and spend $US300,000 on exploration.

Castle can acquire a full 100pc interest by issuing a further 600,000 options (30c exercise price) to Newmont. The agreement is subject to the approval of the Ghanaian Minister of Mines.