JOHANNESBURG (miningweekly.com) – Dual-listed Gold One and exploration and development company Goliath Gold on Wednesday announced that the final prospecting right pertaining to the R70-million acquisition of the underground deposits and selected surface assets of the Pamodzi gold mine, on the East Rand, was granted on September 12.

Last year, Gold One and Goliath Gold entered into an agreement with the joint provisional liquidators of Pamodzi to acquire the Grootvlei treatment plant and surface assets, historical geological data and the right to apply for three prospecting rights.

Two of the prospecting rights had been granted by August 7 and the acquisition of selected surface assets by Gold One and underground mining and geological information by Goliath Gold had been made unconditional.

“Now that the Pamodzi acquisition has been made unconditional, Gold One will be able to embark on exploring and delineating the well-known down-dip Kimberley Reef extension to the Modder East mine. This down-dip extension has the potential to substantially increase Modder East’s current mine life of ten years.

“Further, this area can be accessed using Modder East’s existing infrastructure and remains disconnected from the flooded historical mine voids,” Gold One CFO and acting CEO Christopher Chadwick said.

The granting of the final prospecting right provides Goliath Gold with a contiguous prospecting area of 64 481 ha.

Gold One said the contiguous prospecting area comprised Goliath Gold’s existing Megamine project, including the sub-Nigel mining right and the recently awarded prospecting rights over selected portions of the historic Pamodzi Gold mining areas.

“The greater East Rand basin has been largely devoid of any systematic exploration programmes over the past few decades. Gold One and Goliath Gold’s current exploration activities at their respective Modder North and Megamine projects have demonstrated the prospective nature of the unmined East Rand deposits.

“Having received the final prospecting right, Goliath Gold now has the unique opportunity to undertake regional and holistic geological modelling and associated exploration activities. The combination of our existing models at our Megamine projects combined with the vast historic Pamodzi database will facilitate the identification of priority exploration targets and fast-track target development,” Goliath Gold CEO Richard Stewart commented.

The final payment relating to the acquisition would be made upon transfer of the properties to Gold One.

The outstanding payment amounted to R63-million, of which R58.5-million was payable by Gold One and R4.5-million by Goliath Gold.