core sector communique

AVIVA WEST KENYA DEAL SIGNED

      

Aviva Corporation Ltd (ASX: AVA, BSE: AVIVA) is pleased to announce it has finalised a Joint Venture Agreement (JVA) with Lonmin Plc subsidiary, AfriOre International (Barbados) Limited, in respect of the West Kenya gold and base metals project as announced on 26 March 2010. The JVA will be submitted to the Commissioner of Mines and Geology for his consent.

Under the terms of the JVA which was signed earlier today, Aviva can earn up to 75% of the project which comprises two contiguous licenses over some 2,800km2 of the prospective Ndori Greenstone belt in West Kenya.

Initially, Aviva will earn a 51% interest in the licenses by spending $US3 million over three years.

Aviva Chief Executive Officer, Lindsay Reed said the Company has completed an extensive due diligence process.

“We have mapped out and costed a scope of work and are confident the US$3 million budget will allow us to comfortably comply with the license conditions,” Mr Reed said.

“We will commence as soon as possible an aeromagnetic survey over the entire tenement package as well as a detailed VTEM survey over the Bumbo base metals area.

“The Ndori Greenstone belt in Kenya forms part of the Tanzanian Archaean Craton which hosts a number of significant gold operations within Tanzania’s borders. Previous exploration on the West Kenyan Project tenements has identified significant potential for gold, as well as copper, lead and zinc.

“We are eager to replicate and build on these historical results and at this stage expect to commence drilling in the last quarter of 2010.

“Signing the JVA with AfriOre International (Barbados) is a significant milestone, marking the first step in Aviva’s next major project focus.”