Tanzanian Royalty Exploration reports that negotiations with UK-listed Kibo Mining to extend the schedule of option payments and exploration expenditures for the Itetemia and Luhala gold prospects have failed to produce an equitable agreement. As a result, both properties, along with their respective databases, will be returned to Tanzanian Royalty.
According to James E. Sinclair, President and CEO of Tanzanian Royalty, “The Company regrets that Kibo Mining was unable to fulfill the conditions for retaining its options on the Itetemia and Luhala properties even though we were exceedingly generous in allowing them extra time to reach an accommodation with us.”
Itetemia comprises prospecting licenses in the Shinyanga Region in northern Tanzania. The property is situated just five kilometres east of Barrick Gold’s Bulyanhulu Gold Mine (16 million ounce gold resource) which has been operating since 2001.
The main gold prospect on Itetemia is the Golden Horseshoe Reef (GHR) which Kibo has been evaluating as a potential open pit mining operation. Kibo describes its preliminary economic assessment for Itetemia as “robust” and Mr. Sinclair confirms that an immediate priority for Tanzanian Royalty will be the preparation of a NI 43-101 compliant Technical Report for the project which will “enable further development and enhancement on an accelerated basis of the production model considered by Kibo.”
Also returned to the Company was the Luhala Gold Prospect in the Mwanza region of Tanzania. In 2010, Kibo completed a 1,500m drill program at Luhala to test for the continuation of a zone of shallow dipping gold mineralization in the Kisunge East area. Kibo has stated publicly that the results from this drilling “were very encouraging and confirmed the down-dip continuity of mineralization at this locality.”
The Company’s Qualified Person, Mr. Peter Zizhou, has reviewed and approved the contents of this news release. Mr. Zizhou is the General Manager (Exploration & Admin) of Tanzanian Royalty Exploration Corporation Limited. He has a Master of Science (Exploration Geology) degree from the University of Zimbabwe (2000) and is a registered scientist with SACNASP (Reg. No.400028/08).