Prospect Resources acquires Option for Moba Gold Project
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
Prospect Resources (ASX:PSC) today advised that it has been given the option to acquire the Moba Gold Project – a 12km gold system in the Democratic Republic of Congo (DRC).
This system has been ignored in recent times, with limited modern exploration conducted. However, historic mining is encouraging for PSC with 325,000oz produced from less than 35m depth.
The project area comprises more than 12km of gold bearing structures in an approximately 50km diameter metal zonation.
The option is for six months for a 70% interest in tenements prospective for gold in the DRC through an option to acquire 100% of Oryx mining and Exploration, the company that rediscovered the Moba project.
An initial $10,000 option fee will be paid by PSC, which then has 180 days to conduct due diligence on the Project and to enter into definitive documentation to acquire Oryx.
To exercise the option PSC will pay $90,000 in cash and $1 million in shares. A further $2.5 million in shares will be paid out upon the first pouring of gold within two years of the option being excercised.
PSC plans to investigate early production options to fund a larger scale exploration program.
The option complements PSC’s Prestwood mine gold play, where gold production is imminent.
The company recently completed a share placement at 0.5c per share to raise $200,000, with fully underwritten rights to raise an additional $515,000.
The $715,000 raised will go towards a working capital buffer in anticipation of the commencement of gold production at Prestwood.
The Moba Gold Project consists of two colonial era mines operating between 1939 and 1942 and then from 1953 to 1958.
Exploration over the past three years has delineated a significant gold bearing system. The mine has undergone drilling, pitting, trenching and grab/channel sampling.
From this four main drill targets have been identified:
- The Mutotolwa Target, where 1276m drilling has tested an approximate 3km gold structure including 400m strike length averaging 7g/t over 1m and 600m strike averaging 6g/t over 1m.
- The Kamalingela Prospect consists of the Kamalingela Nord and South Targets, where gold values up to 69g/t were reported with an average gold grade of 3.13g/t and trenching returning values of 13m at 7.7g/t, 30m at 1.5g/t and 4m at 4.85g/t.
- The Mt Kalema Target with a 0.8km strike length gold target.
- The Kansatu Target where 22 trenches were excavated and reported gold quartz veins over a total strike length of 1.5km.
The Moba Project is located in the Tanganyika Province in the DRC on the Western shore of Lake Tanganyika.
General Information Only
This material has been prepared by StocksDigital. StocksDigital is an authorised representative (CAR 000433913) of 62 Consulting Pty Limited (ABN 88 664 809 303) (AFSL 548573).
This material is general advice only and is not an offer for the purchase or sale of any financial product or service. The material is not intended to provide you with personal financial or tax advice and does not take into account your personal objectives, financial situation or needs. Although we believe that the material is correct, no warranty of accuracy, reliability or completeness is given, except for liability under statute which cannot be excluded. Please note that past performance may not be indicative of future performance and that no guarantee of performance, the return of capital or a particular rate of return is given by 62C, StocksDigital, any of their related body corporates or any other person. To the maximum extent possible, 62C, StocksDigital, their related body corporates or any other person do not accept any liability for any statement in this material.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.
