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Marvel Gold (ASX:MVL) strikes earn-in deal for western-Mali gold project

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ASX:MVL      MCAP $7.774M
10 September 2020 03:00 (AEST)

Junior explorer Marvel Gold (MVL) is solidifying its new status as a gold company after striking an earn-in deal with Société Minière et Commerciale (SOMICO).

Marvel, previously known as Graphex Mining, recently switched its focus from looking for graphite in Tanzania to looking for gold in Mali.

The tack-change was solidified by the purchase of two gold exploration projects in Mali, namely Tabakorole and Lakanfla, in a joint venture project with Altus Strategies.

Now, the company is expanding its Mali asset holding with the SOMICO deal which gives Marvel access to the Sakaar Exploration Project in western Mali.

Marvel Managing Director Phil Hoskins said the deal strengthens the company’s positions as a Mali-focused gold explorer.

“Sakaar has exploration synergies with our Lakanfla project and both projects are strategically important due to their proximity to the Sadiola Gold Mine which we understand will require additional oxide feed in the relative near term,” Phil explained.

“A discovery at either of these projects will be economically significant for Marvel shareholders,” he said.

The deal

Under the contract, Marvel can earn an 80 per cent interest in Sakaar by completing three stages of exploration work over the next three years. Each stage is set to be completed in 12 months.

The first stage will include soil geochemistry, ground magnetic survey, and geological mapping work. In this stage, Marvel can earn a 25 per cent interest in Sakaar.

The second stage will include 5000 metres of drilling in a mix of rotary air blast, aircore, reverse circulation, or diamond drilling. In this stage, Marvel can earn a 51 per cent interest.

The third and final stage will bolster Marvel’s holding in the tenement to 80 per cent if the company can drill another 7500 metres at the project.

On top of this, Marvel will need to fully fund a pre-feasibility study for Sakaar and reimburse SOMICO for an US$18,000 (roughly A$25,000) licence application fee.

Why Sakaar?

It seems the main attraction of Sakaar is its proximity to the major Sadiola Gold Mine. Both Sadiola and Sakaar are in the Senegal Mali Shear Zone.

Marvel has already started the geological mapping and soil geochemistry work at Sakaar as per its deal with SIMICO.

The company said it plans to take on some ground magnetic survey work after its upcoming 3500-metre drilling program at Lakanfla.

Shares in Marvel Gold retreated a slight 3.85 per cent today, closing worth five cents each.

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