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Harden points out the structural orientation exposed by trenching at the Goat

Hill prospect on the Arakaka main trend. Mineralisation in Guyana shares many

Sabrina Williams prepares samples from Alicanto’s similarities to the deposits of West Africa’s greenstone belts

recent drilling campaign. Guyana’s familiarity with this way we have that pressure Australians still see it as limiting the up-
gold mining means there are always willing employ- taken off us and can concentrate side so it becomes about balancing out
the two sides. If we come across some-
ees, even in remote locations on exploration.”
A withdrawal does not appear thing which is smaller but high-grade,

Barrick the opportunity to secure 65% of imminent. The deal with Barrick was that a junior could develop by itself, we

Arakaka by spending $US10 million over signed in March 2016 and the interven- could retain 100% of it,” he said.

four years. Shareholders can bemoan ing period has seen a successful initial “We have Sprott in there as a major

such deals for giving away upside but diamond drilling campaign undertaken at investor and they are interested in the

Schwertfeger is adamant it was undoubt- Arakaka. project generation model and we see

edly the best option for both Alicanto and Alicanto’s share price spiked shortly ourselves as early movers in Guyana

Arakaka’s progress. after the Barrick JV was announced. It and with more opportunity still available.”

“It was a conscious decision to pursue is ironic then that the subsequent drilling Alicanto retains management of the

project level dilution rather than com- results have failed to excite the market project with Barrick seemingly happy the

pany level and maintain a tighter capital further despite delivering Barrick exactly team’s experience – Schwertfeger spent

structure,” he said. “It was exactly the what it was hoping for from early work. more than 15 years with Newmont while

right strategy to undertake at the time Harden said the initial exploration drill- Harden has a similar wealth of experi-

because even a few ‘director’s special ing was never likely to deliver the kind of ence in West Africa with First Quantum

“holes’ would not have got the market results shareholders of explorers hoped Minerals Ltd, Resolute Mining Ltd and
response we would’ve needed to fund for. Gryphon – is strong enough to carry the

a proper exploration cam- project on.

paign at Arakaka.” We had turned the downturn to Schwertfeger credits this
Any claim of giving away our advantage because without trust again to Alicanto’s ear-
ly work at Arakaka.
upside is also rejected by

Schwertfeger. that time and work we couldn’t have “We matched Barrick’s
“If Barrick walked we taken the project to the majors. That criteria for greenstone belt
projects and there was rec-
would have received $4

million worth of drilling for year of low-cost exploration ultimately ognition of a potential en-
free and we can approach added a lot of value to the project. dowment which would suit
Arakaka like a junior or take their hurdles. The deal was

it to one of the companies aligned with their model

who missed out originally and they were particularly

but are ready to come back in. “We received a bit of a rerating off the happy with the quality of work we had

“We would, of course, prefer to have back of the Barrick deal but it was per- done at the early stages.”

35% of a 5 moz deposit so it is a genu- haps slightly premature. I don’t think the Part of the reason for bringing in a JV

ine no-lose situation for Alicanto. And, market appreciated how greenfields this partner was the sheer breath of the op-

retaining Barrick’s interest is worthwhile project still was,” he said. portunity. Alicanto had gathered 15km of

for Alicanto because it takes away that Schwertfeger accepted Australian in- near-continuous plus-100 ppb soil sam-

pressure of having to please capital vestors were less comfortable with such ples along the Arakaka Main Trend with

markets in anticipation of the next capi- JV models in their junior investments. a further 15km of plus-100 ppb anoma-

tal raising. As an industry, we can waste “The North American investors get the lies on the Xenopsaris trend to the south

money chasing high-grade numbers but project generation model but I think the of Arakaka. Both trends have extensive

AUSTRALIA’S PAYDIRT MAY 2017 PAGE 25