Angkor Gold has secured approval for its Koan Nheak project from the Cambodian Ministry of Mines and Energy, in cooperation with Renaissance Minerals.
The approval clears the way for the companies to proceed with exploration in accordance with the earn-in agreement signed in July between Angkor and Renaissance’s parent company Emerald Resources.
The companies are expected to immediately start planning the project's next stage of exploration.
Under the agreement, Renaissance will invest $2m towards exploration and development costs of the project.
Through Renaissance, Emerald agreed to acquire a 51% participating interest in the Koan Nheak licence by offering a payment of $200,000 to Angkor over two years.
Once Renaissance exercises the initial earn-in option, it needs to complete a definitive feasibility study in order to acquire a further 29% participating interest in the project.
Angkor will hold a 20% participating interest in the property, which will be operated by Renaissance.
The project contains Peacock, East Ring and Straddle prospects, and is immediately south of Koan Nheak town in the north-east of Mondulkiri province.
Zones of sulphide-rich quartz vein float were identified on Peacock, which previously reported a field grab sample assay value of more than 33.2g/t of gold.
Angkor stated that no drilling activity has been carried out in the project to date.
Renaissance’s Okvau Gold deposit is located around 60km from the southern edge of the Koan Nheak licence, and is currently undergoing the final permitting process.