Tanzanian Royalty Exploration is pleased to announce that the government of Tanzania has approved the application for the expansion of the area covered by the Special Mining License for the Company’s Buckreef Gold Project. As a result, the mining license for Buckreef has been expanded from 3.45 square kilometres to approximately 16.04 square kilometres - almost five times its original size.
The Special Mining License now covers the entire Buckreef property and gives the Company the exclusive right to prospect and mine minerals for a period of 25 years, with an option to renew for a similar period of time.
According to James E. Sinclair, President and CEO of Tanzanian Royalty, “Ministerial decisions of this nature assume there is a reasonable expectation that sufficient deposits or reserves of minerals are available to justify their commercial exploitation.”
“We have every reason to believe that the current resources established at Buckreef are economically viable and that ongoing exploration and the incorporation of satellite deposits in the region into our production plans will positively impact our operations.”
Tanzanian Royalty is currently in the process of completing a Preliminary Economic Assessment (PEA) for the Buckreef Project which is due out early in the New Year. Following the completion of a Pre-feasibility study, the Company intends to fast track the open pit development process at Buckreef in order to facilitate the ramp-up to mining and full commercial production.
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).
The geological continuity and grade distribution of the Buckreef mineralization is well constrained and the upside potential to define additional Mineral Resources in extensions of known deposits is presently being confirmed by drilling, the Company reports.