By Oscar Nkala
Australian Stock Exchange (ASX) listed miner Taruga Gold Limited is preparing to acquire a 60% stake in the Mwilu and Kamilombe high grade cobalt concession areas of the Central African Copper Belt in the Democratic Republic of Congo (DRC).
The licence zone lies within the gem rich Kolwezi Mining District. In a statement, the company said its shares rose by 178% on the ASX when the news of its acquisition plans swept into the market. The new Congolese acquisition is set to raise the company’s resource portfolio.
“Historical exploration drilling intersected multiple mineralised zones of shallow, high-grade cobalt mineralisation including 26.5 metres at 2% cobalt and 1% copper from 78.1m, and 32.2m at 3% cobalt and 0.5% copper from 209.6 metres.
“Results from recent channel samplings of artisanal workings reported cobalt grades of up to 13%. Artisanal miners are already extracting high-grade cobalt mineralisation from the area,” the company said.
Apart from Mwilu and Kamilombe, the company has secured the first right-of-refusal on a high grade cobalt project held by the Congolese government and a local junior miner in the Lualaba province.
Preliminary agreements have been signed for the acquisition of additional projects including two separate stakes of 70% and 100% within the Kolwezi Mining District. Three more properties are targeted for acquisition in the Lubumbashi Mining District.
“These prospects range from advanced exploration, with high grade drill intersections to early stage explorations which offer additional opportunities. Taruga is completing a placement of $0.10 per share to raise up to US$1.35 million to support due diligence and exploration on these projects,” the company said.
Meanwhile, the board of Taruga Gold has appointed Mark Gasson as executive director. His immediate responsibilities include managing the expansion of the gold and base metal portfolios in the DRC.