Aflease Gold Limited said in a press release that an exclusive prospecting licence was issued by the Ministry of Mines and Energy to its wholly owned Namibian subsidiary, Etendeka Prospecting and Mining Co (Pty) Ltd, on Monday.

The licence is for base and rare metals, precious metals and precious stones and expires on December 12 2008.

The area covered by the licence measures 65 685 hectares and is situated near Outjo.

During recent years, various geological features associated with Iron Oxide Copper Gold (IOCG) deposits were identified that triggered a new interest in the economic potential of the area.

Copper and gold mineralisation was reported to be present within late-stage, porphyritic, high-heat production granite of the Kaross Granite Suite, said the company.

A comprehensive exploration programme is envisaged in the area, with the main objective to locate IOCG deposits in the granitic rocks.

Meanwhile, Aflease Gold was also granted prospecting rights for three areas in South Africa.

Said Aflease Gold CEO Neal Froneman: "Each of these prospecting licences in Namibia, and the prospecting rights in South Africa, is significant, as they effectively mean that we can set to work exploring the properties and assessing the level of endowment.

"It is significant that we now have the go-ahead for our exploration project in Namibia, which represents the first step in growing Aflease Gold from a purely South African company into a regional player."

Aflease Gold was formed in January this year through the reverse takeover of Sub Nigel by the New Kleinfontein Mining Company, itself a wholly owned subsidiary of Uranium One.

Uranium One owns 80 per cent of Aflease Gold.

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