AngloGold Ashanti Holdings, a subsidiary of AngloGold Ashanti, has entered into a five-year, $9 million (A$13.5 million) farm-in agreement with EcoGraf for gold exploration at the Golden Eagle project in Tanzania. Under the terms of the agreement, AngloGold will make an initial payment of $100,000 to EcoGraf’s subsidiary Innogy once prospecting licences are granted by the Tanzanian Mining Commission. AngloGold can earn a 70% interest in the Golden Eagle project by investing $8.9 million over five years, with EcoGraf retaining a 30% stake.
Opt-Out Clause and Data Return
The agreement includes an option for AngloGold to withdraw after spending a minimum of $900,000, covering the first two years’ commitment. If AngloGold opts out, all data and samples collected during the exploration will be returned to EcoGraf. Should AngloGold secure a 70% interest, EcoGraf can choose to maintain its 30% share or convert it into a gross revenue royalty if the project advances to production.
Project Location and Geological Potential
The Golden Eagle project, located in the Lake Victoria Goldfields within the Singida and Manyara regions, has undergone extensive due diligence by AngloGold since May of last year. This high-quality gold asset is situated in the same structural corridor as the former Golden Pride 2 mine and near the high-grade Winston gold deposit. The region is characterized by Archean greenstone belts within a granitic complex, with gold primarily found in veined shear zones. The project includes two pending prospecting licences covering 578km².
Strategic Expansion and Broader Portfolio
This farm-in agreement is part of company’s renewed exploration efforts in Tanzania, highlighted by the establishment of a dedicated exploration office in Dodoma. EcoGraf, through Innogy, also holds the Northern, Southern, and Western Frontier Projects, which show potential for nickel, lithium, and Proterozoic gold mineralisation. EcoGraf’s portfolio in Tanzania has been attracting interest from various corporate groups.
Management Insight
EcoGraf managing director Andrew Spinks stated that the agreement with AngloGold Ashanti, the world’s fourth-largest gold miner, underscores the strong technical quality of Innogy’s assets and signifies confidence in Tanzania’s mining industry. He emphasized that this agreement provides a pathway to create value for EcoGraf’s shareholders from non-core mineral assets, while the company focuses on developing its battery anode materials business for the lithium-ion battery market
