The Company is pleased to announce the receipt of a joint NI-43-101 compliant Technical Report for its Itetemia and Luhala gold projects in the Lake Victoria Goldfields of Tanzania. The full report will be filed on
Itetemia is an advanced-stage exploration project that was previously the subject of an option royalty agreement with a UK-based mining exploration company. (See News Release December 21, 2011). The Itetemia Project adjoins African Barrick’s Bulyanhulu gold mine, one of the largest gold producers in Tanzania.
The NI-43-101 report for Itetemia includes a Resource Summary for the Golden Horseshoe Reef (GHR) which was the subject of a preliminary economic study in August 2009 that examined and confirmed the technical feasibility of open pit mining employing various processing plant options.
Based on a 1.0 g/t cutoff grade, Itetemia has an Indicated Resource of 2,799,000 tonnes grading 2.96 g/t, representing 266,000 troy ounces and an Inferred Resource of 1,433,000 tonnes averaging 3.39 g/t, representing 156,000 ounces. Under the existing ownership structure, 90% of these resources will accrue to Tanzanian Royalty.
One of the Company’s priorities will be to update earlier studies for Itetemia in the context of higher gold prices. In addition the Company intends to prepare a revised geological model and pit design that will incorporate a lower cut-off grade along with a revised cost and capital estimate for commercial exploitation of the GHR resource.
“The prospects for Itetemia are virtually limitless given its proximity to an existing large scale mining operation and the infrastructure associated with it,” states the Company’s Chairman and COO, Joseph K. Kahama. “We intend to move aggressively to optimize this important asset for our shareholders and the people of Tanzania,” he adds.
The Luhala Project is an advanced stage exploration project where the exploration focus has been on the development of gold deposits on five anomalous hilltops. The mineralization at Luhala is stratabound and shear-zone hosted, with the Kisunge Hill, Shilalo West and Shilalo South Hills representing the areas of primary economic interest.