Through the acquisition of Aviva Mining Kenya Limited (AMKL) in 2012, Acacia acquired AMKL’s 51% interest in a joint venture (“Lonmin JV”) with Lonmin plc (“Lonmin”, LSE:LMI), and AMKL’s right to earn an initial 75% interest in a second joint venture (“Advance JV”) with Advance Gold Corporation ("Advance", TSXV:AAX).
In 2016, Acacia acquired the remaining 49% of the Lonmin JV from a subsidiary of Lonmin for US$5 million and now owns 100% of the two Special Licenses in West Kenya that make up the prokect (SL123 Ndori and SL213 Siaya, the “Lonmin JV Licenses”).
The principal assets of the Advance JV are three Special Licenses in West Kenya (SL265 Bukura, SL266 Sigalagala and SL267 Rosterman, together, the “Advance JV Licenses”). Since 2012, through exploration spend, Acacia has increased its ownership in the JV to approximately 87 by completing additional exploration programmes to which Advance Gold elected not to fund.
The licences under the two joint ventures occupy approximately 1,650 square kilometres of the highly-prospective Busia Kakamega - Greenstone Belt in Kenya, which forms part of the Archean Tanzanian Craton. Previous exploration identified significant potential for gold, as well as copper, lead and zinc.
The licence areas have been divided into two large gold camps, known locally as the Kakamega Dome Camp and the Lake Zone Camp.
Total exploration expenditure on the West Kenya Project from November 2012 to December 2016 amounts to US$29.5 million with more than 26,312 soil samples, 575 rock chip samples, 1,200km2 of mapping, 190 line kilometres of ground geophysics, 2,535 line km of airborne Electromagnetic surveys, approximately 61,000 metres of Aircore drilling and 83,450 metres of reverse circulation (“RC”) and diamond core (“DD”) drilling completed.
This work has resulted in seven (five priority) multi-kilometre gold corridors being identified across the project. The Liranda Corridor, in the far northeast of the project area was the highest priority target identified. Reconnaissance Aircore drilling of gold-in-soil anomalies identified significant gold mineralisation.
West Kenyan Licence Areas - Regional Geology, Gold Camps, Historic Workings, and Key Prospects