Zeus Resources (ASX:ZEU) has entered into a definitive share sale agreement to acquire up to 100% of the Diaguili Copper-Gold Project in southern Mauritania for US$2 million ($2.85 million).
Zeus may acquire Sab Metals Mauritania, which holds exploration permit 2475B2, through four tranches over 24 months. Total consideration comprises US$1 million in cash and US$1 million in Zeus shares.
First completion will give Zeus a 51% interest for US$750,000, including a US$50,000 exclusivity fee paid in June. Subsequent tranches will increase its interest to 70%, 90%, and ultimately 100%.
Diaguili is located within the Mauritanides orogenic belt, which also hosts First Quantum Minerals’ (TSX:FM) operating Guelb Moghrein copper–gold mine. Zeus says geological features at Diaguili are consistent with, but do not confirm, an iron oxide-copper-gold mineralisation model.
Historical drilling returned 22.25m @ 2.1% copper (Cu) from 48m in F12, including 11.25m @ 3.36% Cu. The hole ended in primary sulphide mineralisation.
Other results include 12.7m @ 2.94% Cu from 60m in SDG-2 and 35m @ 1.44% Cu from 1m in F19.
Zeus says most of the 49 recorded historical holes ended within 100m of surface. The company interprets mineralisation as remaining open at depth and along strike, although this has not been confirmed by modern drilling.
The company has commissioned reprocessing and three-dimensional inversion of historical airborne electromagnetic data to model a conductor beneath the drilled area. Subject to completion, funding, and seasonal access, Zeus plans reverse circulation and diamond drilling to verify historical mineralised zones before testing the conductor and strike extensions.
The historical results have not been independently verified or reported under the JORC Code 2012. Reported intersections are downhole lengths, with true widths unknown.
Zeus Resources is an Australian exploration and development company focused on critical mineral assets in Australia and Africa. It has also received commitments for a two-tranche $2 million placement at $0.006 per share to fund the acquisition and proposed work program.
The company notes the second tranche, attaching options, and $90,000 of director commitments remain subject to shareholder approval.
Write to France Pinzon at Mining.com.au
Images: Zeus Resources
