ASX-listed Turaco Gold, and its 100%-owned subsidiary Turaco Côte d’Ivoire, have entered into an exclusivity and option agreement with Pioneer Minerals, securing acquisition rights over an additional 366 km² of prospective exploration tenure adjoining Turaco’s 2.52-million-ounce Afema project in south-east Côte d’Ivoire.

The transaction further extends Turaco’s coverage of the Sefwi greenstone belt within Côte d’Ivoire to include additional prospective shear corridors, including the western margin of the main volcanic sequence.

Turaco says it is unaware of any previous exploration activities over the permit application area, highlighting the underexplored nature of the area.

The permit lies immediately south of the hydroelectricity-producing lake, Lac Ayame, which is aligned in a prominent north-easterly trend suggesting a strong north-east structural grain in the area consistent with prospective regional shear zones, the company points out.

Upon granting of the exploration permit, Turaco may elect to acquire a 12-month option to undertake initial reconnaissance exploration consisting of low-cost generative exploration techniques such as stream sediment and reconnaissance soils sampling possibly paired with airborne geophysics.

These programmes will form the basis of Turaco’s decision to exercise the option to acquire 100% of the granted permit. 

Exclusivity has been secured for an upfront payment of $75 000 in Turaco shares.

Upon granting of exploration permit, Turaco has the right to pay $100 000 for a 12-month option to acquire 100% of the granted exploration permit.

Turaco will use the 12-month option period to undertake permit-wide stream and soil geochemical sampling before making a decision to exercise the option.

At any time during the 12-month option period, Turaco may (at its election) acquire 100% of the exploration permit in return for the issue of 2.25-million Turaco shares and the granting of a 2% net smelter royalty.

“Securing exclusivity over this application allows Turaco to materially expand the Afema project area to over 1 600 km².

“Importantly, the application further consolidates Turaco’s control over the majority of the interpreted extension of the prolifically mineralised Sefwi Belt in Côte d’Ivoire. It is a relatively low cost for exclusivity and a 12-month option to undertake initial reconnaissance exploration in this prospective region,” says MD Justin Tremain.