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AJN Resources CEO on Dabel gold project acquisition in Kenya

AJN Resources Inc (CSE:AJN) CEO Klaus Eckhof joined Proactive's Stephen Gunnion with details of the company's agreement to acquire up to 70% of the Dabel gold project in northern Kenya.

Eckhof discussed the region's untapped potential, noting the artisanal mining activity and vast strike length of the mineralization. He emphasized, “We think 4 or 5, 6,000,000 ounces should be the target there,” as the Dabel gold project has not been explored or drilled before. The new Kenyan government’s support for mining provided an opportune environment for AJN Resources to explore and develop this virgin discovery.

Eckhof highlighted the logistical advantages, stating, "500km equates to five hours and not five months." He also mentioned that the company has already lined up four drill rigs, set to start in early November, with a focus on identifying the project's large-scale potential. The CEO added that if the initial results align with their expectations, AJN Resources will move forward with additional resource evaluations and cash payments as per the agreement.

Stay tuned to Proactive's channel for future updates on AJN Resources' progress at Dabel and more insights from mining industry leaders. Don’t forget to like the video, subscribe to the channel, and hit the notification bell to stay updated with our latest content.

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Broadcast on:
03 Oct 2024
Audio Format:
other

Hello, you're watching Proactive. I'm joined by AJN Resources CEO, Klaus Ekhoff. Klaus, very good to see you again. You've signed a deal to acquire up to 70% of the Dabelle Gold Project in Northern Kenya. Tell us more about what you're acquiring. Well, we looked at the area over the last six months. It took us quite a long time to clean everything up there. I mean, there was a lot of artisanal activities there. It's a virgin discovery. It has never been drilled. It's never been looked at by anybody. And the government, as you probably have seen in Kenya, is now looking to get more mining orientated on top of the tourism that you have with a new government, with route to on power. And we saw it's a good opportunity to look at the country. Historically, we looked at it in the '90s, and it was difficult to work there. But with the new government there, we feel that it's possible. And then with hardly any discoveries over the last 20 years there, we feel that we have a good chance here. And the potential you're seeing here, so you mentioned the artisanal mining at Dabelle. What's the potential you're seeing? Well, I mean, as you probably know, I always try to find something well-class big. We think that 4 or 5, 6 million ounces should be the target there, which is properly achievable in a short term too. The strike extent of the mineralization is over 60 kilometers. So it's not like a tiny little sort of resource there, maybe. And the areas which we looked at, they are all 2, 3, 4 kilometers long of artisanal activities. The width of the mineralization is very visible. It's around 50 meters wide. And we definitely assure that it's on a major structure, so it will go down at depths. So with a little bit of drilling there, we could probably show everybody that there is big potential there. So under the agreement you've signed, you're going to do a 90-day due diligence during which you have to have a minimum of 1,000 meters of drilling. Take us through your exploration plans at this stage. Yeah, I mean, maybe just from a background point of view, because Kenya is different from other locations where the mining act is looking after land owners. So we had to sign up around 1,100 land owners in the area, so that there is no problem there for us to operate there. We will go on site in the next week. We do an inspection of the dual locations which we already selected. We got four drill rigs lined up to go in early November on site. So with the infrastructure, they're very good. It's excellent. So 500 kilometers equates to five hours and not five months. So it's very easy to access it. There's no jungle. And with the exposed areas which we've seen, we're pretty confident that your first drill holds will generate already some very good results. And could you just outline the terms of the deal with us, please? Yeah, I mean, initially when we can go up to 60, 70%, 70% as we said there, it's pretty clear how we're going to do it. I mean, once we issue these shares to the vendors, we will get up to 60% immediately. Those 60% will be transferred. And then it's up to us to make it a decision. If the resources as big as we think, we will exercise the other options, the cash payments as quickly as possible. And then also, naturally, as you know, it depends on the gold market and the environment we are in as usual. But at the moment, it's not too bad for juniors, but I wouldn't call it excellent. The juniors are still suffering worldwide. But there is a few bright spots in Australia, in Canada. And I think it's over the next two to six months, it might jump over to the junior sector to her. Well, Klaus, I hope you'll keep us updated with any progress you make at that new discovery. Thank you very much for speaking with us today. Thank you for your time. I'm looking forward to talk to you in a few months with some good results. I look forward to that soon. That's AJM Resources CEO Klaus Ekhoff. [BLANK_AUDIO]