Nov 13 2014
Gold Canyon Resources Inc. is pleased to announce commencement of a rare earth elements (REE) exploration program in Tanzania, Africa through its Joint Exploration Agreement (JEA) between the Company and its joint venture participant, Japan Oil, Gas and Metals National Corporation (JOGMEC).
This joint venture was established in January 2009 with the goal of targeting strategic REE projects which can be brought into production within a reasonable time frame and capital requirements. A wholly owned joint venture subsidiary, named Spring Take Limited, a Tanzania Corporation, has been established to carry out REE exploration in Tanzania. Under the JEA, the participating interest and contributions of each of the joint venture partners is 90% JOGMEC and 10% Gold Canyon for this Tanzania project. However, Gold Canyon can increase its participating interest up to 33% with the reimbursement to JOGMEC of the exploration costs incurred on the project.
An approximately 117 square kilometer Prospecting License has been granted to the joint venture in the Masasi District in Tanzania by the Tanzania Ministry of Energy and Minerals. A US$400,000 exploration budget has been approved by the joint venture partners for the Phase One Exploration Program, which is currently underway. Mitsui Mineral Development Engineering Co., Ltd (MINDECO) in Japan has been contracted as the operator of the program.
"Gold Canyon has been working on Rare Metals and REEs for over 10 years, but this Tanzania Project is exceptionally intriguing for the Company," states Akiko Levinson, President of Gold Canyon. "While the Company remains focused on the advancement of our flagship Springpole Gold Project, we believe the Tanzania REE Project is a unique opportunity to provide added value to our shareholders."
MINDECO is a 100% owned subsidiary of Mitsui Mining and Smelting Co., Ltd. It was established in 1981 in response to public sector demand for geo-environmental consultation and exploration of geological resources such as minerals, geothermal resources and groundwater.
JOGMEC is a government organization established under the Japanese Ministry of Economy, Trade and Industry, and is responsible for fostering international exploration and development of strategic minerals, amongst other mineral and petroleum related activities.