Having terminated its silver joint venture in Mexico, Silvrex plans to re-focus its efforts on gold and silver projects within Africa. Silvrex has previously entered into a joint venture agreement on several Tanzanian gold properties and, in December 2009, entered a further joint venture over a large exploration licence within a highly prospective area in southeast Sénégal. The Board of Silvrex intends to add value to all projects in which it has an interest, prior to the Company's flotation on a recognised stock exchange.
Sénégal Gold
Property/Agreement
Silvrex has entered into a Joint Venture Agreement with Energy and Mining Corporation of Sénégal relating to the Dalafin licence in the east of the country. The licence covers 704km2 in the Kédougou-Kéniéba Gold Belt which straddles Mali and Sénégal and in which a significant number of discoveries have recently been made. Silvrex will earn a 75% interest in the property by spending US$3 million over five years.
Project Summary
Mali-Senegal Greenstone Belts are highly prospective - Mali is third largest gold producer in Africa. The Kédougou-Kéniéba Gold Belt encompasses part of western Mali and southeast Senegal and is one of the most strongly gold endowed regions in the world – current resources of >44Moz. The potential of Senegal has only recently been recognised – 3 major discoveries have been made to date, one is now in production (Sabodala). Several other significant prospects are known – see table. Senegal has a progressive minerals law and the ground in the Kédougou-Kéniéba Gold Belt is tightly held. Senegal minerals law guarantees security of tenure and a fully automatic award of exploitation title after successful exploration.
The Dalafin area is located centrally within the Kédougou-Kéniéba Gold Belt. There is good access to region by sealed roads – the main road network is being actively improved. In addition, the Dakar-Bamako rail line traverses Dalafin property. Extensive new regional data sets were acquired in 2007-08 by the Senegalese government through an EU-Senegal programme, these included high resolution magnetics, radiometrics and digital elevation data + EM over specific target areas. Interpretation of geophysical data and integration with regional geological mapping by Fugro Airborne Surveys has produced integrated structural interpretation maps at 1:200,000 scale. The new maps represent a crucial advance in targeting gold-bearing structures in the region.
The Dalafin exploration permit, held by a Senegalese company, Energy and Mining Corporation (EMC), covers 704km2 and was issued in August 2007. It is valid for an initial 3-year period, with two further 3-year renewals possible. The permit covers rocks of the Birimian Diale-Dalema Supergroup. Granitic intrusives also occur – these may represent a possible gold ‘heat engine’. Structural interpretation based on recent airborne geophysics identifies multiple N-NE trending structures – similar to those hosting most of the major gold deposits in the region. E-NE cross-cutting structures may also focus mineralised fluids. The Boto Au deposit (2Moz+) is located just 10km to E in similar geological units; the Bambadji prospect is located a few km to the NE – a major shear zone appears to extend from the Loulo mine through the Dalafin permit.
The Dalafin licence is unexplored to date for bedrock gold – it represents a grassroots project in a highly prospective environment. New geological maps, airborne geophysical and structural interpretation data have recently been acquired by the JV. A preliminary site visit has confirmed that at least two locations on the property 5km apart have alluvial gold workings. At one of these sites, there are indications that gold has been sourced from weathered/altered bedrock.
Joint Venture Agreement
A detailed Heads of Agreement was signed with EMC in December 2009 and has been approved by the Minister of Mines. The Directorate of Mines has provided a letter of comfort supporting the JV and the renewal of the licence. The main terms of the JV are:
• Silvrex to make US$100,000 in staged payments to EMC within 3 months + a further US$100,000 after 18 months.
• Silvrex to fund exploration programme in two stages:
- US$1.5m over a maximum of 3 years to earn 51%
- US$1.5m over a further 2 years maximum to earn an additional 24% (75% in total).
• Silvrex to carry EMC’s % interest in a discovery through feasibility study. Thereafter both partners contribute pro rata
• If mine is developed, Silvrex to endeavour to assist EMC to raise its % share of financing (for a fee).
• Mining company would cede 10% to the Senegal state + 3% production royalty payable.
• Government also has right to purchase a further 25% interest or arrange for a private Senegalese company to do likewise. This right has never been exercised to date.
Among the financial incentives for exploration/mining companies operating in Senegal are:
• Fiscal incentives allowing the holder of a mining concession to benefit from exemptions from company taxation for a seven year period.
• Total exemption of all taxes for the holder of an exploration licence during the period of validity of the licence and any renewals.
• Exoneration of all customs duties and taxes, including VAT and withholding tax on equipment, materials, supplies and replacement parts.
Exploration Programme Plan
The following first phase exploration programme is planned:
• Airborne geophysics, satellite and air photo interpretations to develop and prioritise targets;
• Geological and regolith mapping, regional stream + soil geochemistry and reconnaissance lithosampling;
• Follow up field programmes on priority targets involving detailed mapping, soil and litho geochemistry;
• Completion of multi-phased programmes on specific targets including trenching, pitting and reconnaissance drilling.
 Location map of Senegal Gold Belt area |
 Location of Silvrex Dalafin JV licence within Gold Belt |
 Current advanced gold projects within Kédougou-Kéniéba Gold Belt |
Click on the image below to enlarge it. Dalafin permit area with multiple, highly prospective N-NE structures interpreted from recent airborne geophysics + alluvial gold showings. |
 White argillic alteration from diggings in weathered bedrock up-slope from alluvial gold workings at Dalafin |
 Artisanal alluvial gold digging on Dalafin permit |
Tanzania
Properties/Agreement
In August 2008 Silvrex entered into a Joint Venture agreement with a private Tanzanian company which holds a number of gold exploration and primary mining licences (PML's) in the Lake Victoria Goldfields region of Tanzania. Silvrex can earn a 51% interest in four projects by spending US$550,000 on exploration and development over a two-year period.
No |
Property Name |
PL/PML No's |
Approximate Area (km2) |
Issue Date |
1. |
Iparamasa PMLs (15 in total). |
0001011-1024 0000612 |
1.254 |
31/03/2000 |
2. |
Kabahelele |
PL 1452/2000 |
15.92 |
To be advised |
3. |
Nyakahura |
3612/2005 |
11.58 |
Nov. 2005 |
4. |
Kibondo (30 in total) |
To be advised |
2.5 |
To be advised |
Project Summaries
The current properties held include an Exploration Licence at Nyakahura in western Tanzania, located approximately 70km west of the majority Barrick Gold-owned Tulawaka gold mine (170,000oz/yr). Nyakahura is underlain by Precambrian metasediments and Archaean granite, bounded by a major shear zone in a region which has recently become very active for artisanal gold mining. The area has not previously been explored for gold, but soil sampling by Silvrex has returned several anomalous results over 150ppb Au within an anomaly covering an area of 500 x 250m. The geological/structural setting and the positive preliminary soil results at Nyakahura are considered to represent an encouraging result from a minimal exploration programme carried out to date.
A work programme is proposed as follows:
• Infill and extension of the soil grid.
• Geological mapping and rock sampling to establish the source and nature of the gold occurrence.
• Acquisition of air photos and/or satellite imagery for structural interpretation.
• Trenching/channel sampling across the core zone of the soil anomaly.
• IP/Resistivity geophysical surveying, where this is judged effective in tracing the target zone on strike and to depth.
• Proposals for a follow-up drill programme will be prepared (drilling can be fast-tracked if results are particularly encouraging).
The PML's at Iparamasa are located within the heart of the Lake Victoria Goldfields area. The property immediately adjoins an extensive area of active licensed artisanal gold mining on quartz reefs – up to eight reefs are reported in the area, each up to 1m+ in width, trending west-southwest. The former Buck Reef gold mine is located approximately 20km to the east, while recent drilling by IAMGOLD in the Busolwa-Buziba area, 20km east of Buck Reef, resulted in the discovery and definition of a 900,000oz gold resource.
Gold-bearing quartz reef material is visible on surface at the Iparamasa PML's but no artisanal mining has been carried out and no systematic exploration has yet been undertaken on the properties. It is proposed to convert these PML's into a mining licence and to examine the potential for both near-term gold extraction from the shallow weathered reef zone and to explore the potential for development of a larger-scale mining operation. Once the mining title has been converted, technical appraisal will include systematic soil sampling and trenching.
The Kabahelele PL covers an area adjoining the Iparamasa PMLs to the southwest and is considered to be strongly prospective for reef-hosted gold. As soon as the licence issuing process is completed site visits will be carried out and a full exploration programme plan will be drawn up.
The Kibondo PMLs are located to the west of the Lake Victoria Gold Belt towards the Nyakahura property. Alluvial gold mining is reported in the region. This area will also be visited to confirm its prospectivity for bedrock gold and a programme plan will be drawn up accordingly.
Click on the diagrams/images below to view them bigger.
Project Acquisition
Silvrex is currently evaluating several additional silver/gold opportunities in Mexico, including a near mine-ready project on a high grade silver-(gold) vein system with bonanza intercepts, with a 100% interest negotiable and a gold-dominant vein deposit with an established 43-101 resource.
Several gold projects in Mali have also been offered to Silvrex for joint venture including one with shallow gold intercepts from earlier drilling. In addition, an advanced silver-lead-zinc-gold project in southeastern Europe is also under appraisal which contains a substantial estimated Soviet-era resource.
It is proposed to carry out full data appraisal and site visits to the more attractive of these with a view to strengthening the Silvrex property portfolio in the near to medium term.