Tanzanian Royalty Exploration Corporation (TSX: TNX / AMEX: TRX) is pleased to announce that it has entered into a Definitive Joint Venture Agreement with the State Mining Corporation of Tanzania (Stamico) for the development of the Buckreef Gold Project in Tanzania.
Buckreef is located in the prolific Lake Victoria Goldfields of northern Tanzania within the Rwamagaza Greenstone Belt. Major gold producers in the region include AngloGold Ashanti’s Geita mine (18M Oz), the largest gold producer in Tanzania which is located 30 kilometres to the northeast of Buckreef, and African Barrick’s Bulyanhulu gold mine (12M Oz) which is situated 60 kilometres to the southeast.
The Buckreef Project contains National Instrument 43-101 compliant gold resources at a 0.5 g/t cutoff grade in the following categories: Measured, 5.176 million tonnes grading 2.05 g/t (341,000 oz); Indicated, 24.97 million tonnes averaging 1.19 t/g (954,000 oz); Inferred, 17.173 million tonnes grading 1.51 g/t (835,000 oz).
Through its wholly-owned subsidiary, Tanzanian American International Development Corporation 2000 Limited (Tanzam), the Company will hold a 55% interest in the joint venture company, Buckreef Gold Company Limited, with Stamico holding the remaining 45%.At a public signing ceremony attended by invited dignitaries and the media in Dar es Salaam on October 25, 2011, the Honourable William Mganga Ngeleja, Tanzanian Minister for Energy and Minerals, told the gathering: “Today, I am most delighted to witness this historic event of the signing of the Joint Venture Agreement for the Re-development of Buckreef Gold Mine between Stamico and Tanzam.” Responding to the minister, James E. Sinclair, the President and CEO of Tanzanian Royalty, stated that the agreement represents “a new model” with respect to how international mining companies conduct business in mineral rich countries in the developing world. “Our policy has always been to empower Tanzanians to create their own future and we take great pride in the fact that our corporate, professional and support staff in Tanzania are indigenous to the region.”