Waratah, through its 100% owned subsidiary Waratah Gabon S.A., secured a Permis de recherché miniere (“Permit”), for area No. G6-508, named “Fer Mekambo-Est” in the Republic of Gabon (“Gabon”) in December 2011. The Permit abuts and is located immediately adjacent to the Company’s flagship asset, the Youkou Exploration Licence in the Republic of Congo (“ROC”).
The Permit is expected to be formally validated with the signature of the President of Gabon in the near future. The Permit gives Waratah the exclusive right to commence and execute its exploration work program targeting DSO hematite iron ore for an initial 3 year period, with an option to extend for a further 6 years.
To complement its existing presence in ROC, and to support operations in Gabon, Waratah has recently opened an office in the Gabon capital of Libreville.
Waratah will work on both license areas, maintaining respect for the requirements of the governments of both Gabon and ROC, as the Company seeks to define an iron ore resource in 2012 and in the longer term, to work toward the development a world-class DSO asset that benefits both countries.
Geological mapping to date indicates that the potential strike zone of the iron ore prospective geology crosses between Gabon and the ROC. With the granting of the Permit, Waratah has secured the remaining part of the likely project area, providing ownership on both sides of the Gabon/ROC border and doubling the exploration area to a total of 2,100 km2.