Aviva Corporation rapidly advances towards 75% interest in West Kenya copper project

Aviva Corporation (ASX: AVA) continues to meet milestones at pace at the West Kenya project, this time earning a 51% interest in the joint venture in just over a year by meeting its obligation to spend US$3 million over three years.

Chief executive Lindsay Reed said, “To achieve the expenditure in a little over 12 months is indicative of the outstanding results achieved to date and the prospectivity of the licenses.”

In early September, within just eight months of the commencement of drilling, Aviva announced an initial Inferred JORC Resource of 1.68 million tonnes at 4% copper equivalent at the Bumbo base metal deposit.

Aviva now holds a 51% interest Special Licenses No. 123 and No. 213.

In July 2010 Aviva and AfriOre International, a Lonmin (LSE: LMI) subsidiary, signed a joint venture agreement under which Aviva can earn up to 75% of the West Kenya project through expenditure and completion of a Pre-Feasibility Study on any project on the licences demonstrating a pre-tax net present value of $50 million.

The project area covers a large part of the Ndori Greenstone belt in West Kenya comprising two contiguous licences covering around 2,800 square kilometres.

The Ndori Greenstone Belt is similar to other Greenstone Belts in the Tanzania Craton, and also closer to home in Western Australia.

Aviva and Lonmin are continuing with exploration and project assessment prior to selecting a project for Pre-Feasibility Study evaluation.

A number of attractive gold prospects have also been identified in the Kakamega Gold Camp and continue to be drill tested. Drilling in the Lake Gold district continues to demonstrate the potential for large gold systems.

Aviva currently has three drill rigs operating on the licences and has to date received and released assays results from only 21 holes of the 88 holes drilled so far.

Results of target drilling in the Kakamega Gold Camp and drilling at Bumbo to test depth and strike extensions are expected to be released early next month.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/21210/aviva-corporation-rapidly-advances-towards-75-interest-in-west-kenya-copper-project-21210.html