London Stock Exchange listed Acacia Mining has announced the discovery of an estimated 1.31 million ounces (Sh125,800 per ounce = Sh165 Billion) of gold resources on the Liranda Corridor within its West Kenya exploration project.
Announcing the news, Acacia’s Chief Executive Officer Brad Gordon said: “We are delighted to announce the maiden NI 43-101 compliant Inferred Mineral Resource Estimate (MRE) on the Liranda Corridor. This is one of the highest-grade projects in Africa today, and we believe that this initial resource is a first step in the delineation of a multi-million-ounce high-grade corridor. This greenfield discovery demonstrates the value of our systematic approach to grassroots exploration and validates our contrarian strategy of investing in exploration over the past few years whilst others have been pulling back.”
Despite being a major discovery, significant further exploration and technical study work is required to establish whether this becomes an economically viable mine which will take several years.
Commenting on the West Kenya Project, Cabinet Secretary for Mining, the Honourable Dan Kazungu said, “Kenya is undoubtedly a geologically rich country, and we are taking significant steps, such as the ratification of the 2016 Mining Act, to establish a robust legislative framework to support our developing mining industry. We are excited about the potential of Acacia’s West Kenya Project, as it could ultimately lead to the creation of a gold mining industry that would have a benefit to our country, economy and people. We look forward to continuing to work with Acacia and welcome their continued interest and investment in Kenya.”
Acacia now aims to prospect further on the corridor over the next 12 months while investing over US$12 million. A large percentage of this amount will go towards a 45,000 metre drilling programme on the Corridor which is targeting an increase in the gold resource to over 2 million ounces in 2017.
The miner also plans to commence a scoping study that looks at the potential for an underground mining operation towards the end of 2017.
About the Liranda Corridor
The Liranda Corridor is located in the County of Kakamega in Western Kenya. The project area lies approximately 48 km north-northwest of Kisumu City and 30km southwest of Kakamega town.
Total exploration expenditure on the West Kenya Project from November 2012 to December 2016 by Acacia amounts to US$29.5 million.
About Acacia Mining
Acacia Mining plc (LSE:ACA) is a UK public company headquartered in London and is listed on the Main Market of the London Stock Exchange with a secondary listing on the Dar es Salaam Stock Exchange with Barrick Gold Corporation as the majority shareholder.
The company currently operates three gold mines in north-west Tanzania: North Mara, Bulyanhulu and Buzwagi and has a portfolio of exploration projects in Tanzania, Kenya, Burkina Faso and Mali. In Kenya, Acacia is exploring for gold in four counties in West Kenya, namely; Kakamega, Vihiga, Siaya and Kisumu.