Luiri Hill Gold Project Licences Confirmed in Good Standing

Luiri Hill Gold Project Licences Confirmed in Good Standing

Volt is pleased to advise that the Luiri Hill Gold Project’s Large Exploration Licence and the Mineral Processing Licence have been formally confirmed to be in good standing by the Republic Of Zambia’s Mining Cadastre Department and the Mines Development Department respectively

African focused gold and graphite explorer and developer Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to advise that the Luiri Hill Gold Project’s Large Exploration Licence and the Mineral Processing Licence have been formally confirmed to be in good standing by the Republic Of Zambia’s Mining Cadastre Department and the Mines Development Department respectively. The written confirmation by the Zambian government of the good standing of both licences is a key component of the project acquisition.

Cupriferous Resources Limited is the holder of a Large Scale Exploration Licence No. 23009-HQ-LEL covering an area of approximately 31km2 in south-central Zambia and Bukomo Mining Limited and Cupriferous together hold a Mineral Processing Licence No. 20943-HQ-MPL which falls within the Cupriferous Licence area (together the Licences). The Licence holder and area are identified in the below images from the Zambia Mining Cadastre Portal.

Under the terms of the Binding Term Sheet dated 18 May 20201, Volt will acquire an 85% interest in the Luiri Hill Gold Project to form a partnership with the current Zambian shareholders of Cupriferous and Bukomo for the funding and development of the Luiri Hill Gold Project.

Completion of the acquisition is subject to the satisfactory completion of Volt’s due diligence enquiries, the execution of a share sale agreement in a form acceptable to Volt, as well as the approval of Volt shareholders to the issue of the consideration shares to be sought at an upcoming meeting of Volt shareholders to be held at 10.00am Monday 20 July 2020. Approval for the change in ownership of the Licences by the Zambian Ministry for Mines will also be required.

Volt has already undertaken work on the Luiri Hill Gold Project development as follows:

  • Obtained the project database containing historical drilling, sample analysis, resource models and reports, metallurgical reports, feasibility studies, etc. The estimated value of this and other information is in excess of US$20M and would take a number of years to replicate.
  • Completed and published an updated JORC 2012 Mineral Resources estimate for the project which reported 10.2 million tonnes at 2.6 g/t gold for 851,000 ounces of gold at the Matala and Dunrobin deposits2 This included the development of optimised pit shells for Matala and Dunrobin.
  • Prepared and shipped for analysis a representative sample from the Leach Pads on the Mineral Processing Licence. This will provide important preliminary information on the gold grade within the Leach Pads.
  • Planned and now arranging for the commencement of drilling, sampling, analysis, density measurement and volumetric survey of the Leach Pads to prepare a JORC 2012 Mineral Resource estimate.
  • Undertaking a metallurgical review of the various project reports to identify any further metallurgical testwork that needs to be undertaken in relation to selecting viable processing options for the Leach Pads and stockpiles, combined with a large scale gold processing plant and associated infrastructure for the extraction of the in-situ Mineral resources at the Matala and Dunrobin deposits.

Volt Managing Director, Trevor Matthews, commented

“Obtaining confirmation of the good standing of the Luiri Hill Gold Project licences is a key step forward for the acquisition.”

“The Company has taken the opportunity during the due diligence process to further develop our understanding of the Project and progress with key programs of work to identify the best pathway to early production.”

“Volt has already shown its strong commitment to the development of the Luiri Hill Gold Project through the activities it has undertaken in the short time since we signed the Binding Term Sheet.”

Authorised by:

Trevor Matthews
Managing Director
Volt Resources Limited

1 Refer to ASX announcement dated 21 May 2020 entitled “Binding Term Sheet to Acquire Advanced Gold Project”
2 Refer to ASX announcement dated 25 June 2020 entitled “Luiri Hill Gold Project Mineral Resource Estimate 851,000 ounces at 2.6 g/t gold”


FOR PERSONAL USE ONLY
For further information please contact:

Trevor Matthews
Managing Director
Tel: +61 8 9486 7788