It provides for the parties to make an application to the Resource Mining Authority for an approved Alluvial Mining Lease.
The leases cover approximately 4 hectares of Alluvial Resource and are located in an area that has been producing gold since 1920.
Vincent Appo, a member of the Company’s Advisory Committee, has been working with the leaseholders over the past two months to identify key resource areas within the lease boundaries. Initial testing has yielded results that indicate a higher gold content than is found at Korangi, Wau Area. As part of the AML application Kibush will initiate a Geological survey to further assess the potential of the area. To date there has been a number of nuggets found weighing up to 93 grams, which also indicate a resource that could show a gold purity between 92% to 96%.
"Once we receive Government Approval to Operate under the Alluvial Mining Lease, Kibush Capital will employ the best techniques and equipment to maximize output and profit margins. Kibush Capital sees this particular agreement as a means to determine and prove an operating model that can be used on similar sized areas that leaseholders are interested in joining similar agreements with Kibush Capital. This would give Kibush the opportunity to lower operating costs over a number of cost centers but maintaining at the same time a level of expertise in Management and Financing that would ensure the cost centers operate at maximum efficiency and profitability. As with other projects in the area Kibush Capital will be working with local villagers and suppliers to support and work within the Project," the Company said.
