AngloGold Ashanti Enters $9M Agreement with EcoGraf for Tanzanian Gold Exploration

AngloGold Ashanti Holdings has signed a $9 million, five-year farm-in agreement with EcoGraf to explore the Golden Eagle gold project in Tanzania's Lake Victoria Goldfields. This agreement allows AngloGold to earn a 70% interest in the project by investing $8.9 million over five years, while EcoGraf retains a 30% stake.

The Golden Eagle project, owned by EcoGraf's fully owned subsidiary Innogy, is situated in the Singida and Manyara regions of Tanzania. The project is considered a high-quality gold asset with the potential to uncover multi-million-ounce gold deposits. It lies in the same structural corridor as the former Golden Pride gold mine and near the Winston gold deposit, known for high-grade gold findings.

Why this matters: This agreement highlights the growing interest in Tanzania's gold mining industry, which could lead to increased investment and economic growth in the region. The success of this project could also have implications for the global gold market and the environment.

AngloGold will make an initial payment of $100,000 to Innogy upon the granting of prospecting licenses by the Tanzanian Mining Commission. The project includes two pending prospecting licenses covering 578km2. The region's geology is marked by Archean greenstone belts within a granitic complex, with gold predominantly found in veined shear zones.

AngloGold has been conducting extensive due diligence on the Golden Eagle project since May 2023. This agreement is part of AngloGold's renewed exploration efforts in Tanzania. The company has an option to withdraw from the agreement after a minimum expenditure of $900,000, which covers the first two years' commitment.

The agreement, signed on May 24, 2024, marks a significant step for both AngloGold and EcoGraf. It highlights the potential of the Golden Eagle project and the strategic importance of the Lake Victoria Goldfields region in Tanzania's mining sector.

In summary, AngloGold Ashanti Holdings' $9 million farm-in agreement with EcoGraf for the Golden Eagle gold project underscores the renewed interest and investment in Tanzania's gold mining industry. The project's promising geological features and strategic location make it a valuable asset for future exploration and development.

Key Takeaways

• AngloGold Ashanti signs $9m farm-in agreement with EcoGraf for Golden Eagle gold project in Tanzania.
• AngloGold can earn 70% interest in project by investing $8.9m over 5 years.
• Golden Eagle project considered high-quality gold asset with multi-million-ounce potential.
• Project located in Lake Victoria Goldfields region, near former Golden Pride gold mine.
• Agreement highlights growing interest in Tanzania's gold mining industry.