Content area
Abstract
Since the completion of the Project's Pre-Feasibility Study in August 2006, the conversion rate of Inferred to Indicated Mineral Resources has been close to 100% within the key deposits. Further to the underground concept study completed by AMC Consultants Pty Ltd ("AMC") in February 2008, Moto has focused drilling efforts in the Chauffeur area of the KCD deposit which is largely an Inferred Mineral Resource. The main lodes in this area have an estimated Inferred Mineral Resource of 20 Mt at 6.8 g/t Au for 4.4 [Moz] of gold and have been identified as being amenable to exploitation by underground mining. Due to the high grade nature of this system, Moto intends to undertake work to convert this mineralization to Mineral Reserve status as a matter of course.
The Moto Gold Project is located in the north-east of the DRC and is a joint venture between L'Office des Mines d'Or de Kilo-Moto ("OKIMO")(30%) and Borgakim sprl ("Borgakim", a Moto wholly-owned subsidiary)(70%). All figures referenced represent the Moto Gold Project, being 100% of the project, unless otherwise stated.
Moto is presently finalizing the negotiations of the joint venture agreement with OKIMO following the successful conclusion of negotiations with OKIMO of amendment agreements regarding the Moto Gold Project entered into following the report of the commission set up to review the agreements entered into by para-statal companies of the DRC Government. There can be no assurance that the negotiations will result in a joint venture agreement on terms that are acceptable to the parties or that any required approvals of any such agreement will be obtained or that the results of such negotiations will not impair Moto's ability to secure additional financing in the future. This could have a material adverse effect on the Moto's business, operating results and financial position.